mobile app vs mobile web

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What you need to know (Right Now!) about Mobile Marketing March 3, 2011 Blue Ash Business Association http://www.twitter.com/servicewebsw

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What you need to know (Right Now!) about Mobile Marketing

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Page 1: Mobile App Vs Mobile Web

What you need to know (Right Now!) about Mobile MarketingWhat you need to know (Right Now!) about Mobile Marketing

March 3, 2011March 3, 2011

Blue Ash Business AssociationBlue Ash Business Association

http://www.twitter.com/servicewebsw

Page 2: Mobile App Vs Mobile Web

Mobile is now the primary tool for accessing the web

• Mobile provides access to social circles at all times. The median number of text messages sent by 18-24 year olds is 125 per day. 72% of young adults use social media.

• Mobile devices are constantly connected and provide immediate access to the web, to text messaging and entertainment. 85% of adults over 18 now own an internet connected cell phone.

• Smartphones provide information, entertainment, music & photos. 33% of adults use their cell phone to access news and online media.

• Social media is crossing generational boundaries. 42% of internet users ages 50 and older use social networking sites as of May 2010, up from 22% in April 2009. The fastest growing demographic on Facebook is seniors 70+.

Source: Pew Internet and American Life Foundation

Page 3: Mobile App Vs Mobile Web

“According to Borrell Associates statistics, more than half a million apps are downloaded every hour and the average smartphone user has 22 of them.”

The average smartphone users spends 2.8 hours per day using apps and 3 in 5 people first turn to an app before searching the Web, says Mobclix.

“Consumers in the United States are more likely to buy a smartphone in 2011 than PCs, feature phones, ereaders, media tablets and gaming products, according to a recent survey by Gartner Inc.

U.S. smartphone sales are expected to grow from 67 million units in 2010 to 95 million units in 2011. By comparison, mobile PC shipments are forecast to total 50.9 million in the U.S. in 2011, up from 45.6

Report: Top 10 App Trends of 2011, Read Write Mobile, December 28, 2010

2010 App Game Changers, Mobclix, December 20, 2010

Americans more likely to buy smartphone than any other device: Gartner, Mobile Commerce Daily, February 23, 2011

How fast is the mobile app marketplace growing?

Page 4: Mobile App Vs Mobile Web

Businesses of every size are targeting customers with smartphones as the primary communications medium

Page 5: Mobile App Vs Mobile Web

© 2010 ServiceWeb Systems, all rights reserved.

Nearly every social media site is now accessible through mobile apps.

Mobile is the primary vehicle for reaching consumers through social media

Page 6: Mobile App Vs Mobile Web

Apple iPhone/iPad Android Blackberry

- Apple sole manufacturer- 200K+ apps, 9000 developers- One app store / common hardware- Tight control over distribution- Native programming language:

Objective C / Cocoa- Safari browser- Tablet computer: iPad- iAd Mobile advertising- Network: ATT cellular, wireless,

Verizon (2011)

- Licensed to 27 manufacturers- 100K+ apps- Multiple app stores- Numerous hardware variants- Registered app- Native programming language:

Java / Android API / SDK- Multiple browsers- Multiple tablet computers- AdMob Mobile advertising- Network: many

- RIM sole manufacturer- 10K+ apps- Multiple app stores- Multiple hardware variants- Registered app- Native programming language:

Java / Blackberry API / SDK- RIM browsers- AdMob Mobile advertising- Network: many

Page 7: Mobile App Vs Mobile Web

What are some of the solutions available to reach mobile customers?

Option

Integrate 2D bar codes into print media and promotions

Use 1D and 2D bar codes

Objective Action

Modify website to capture statistics and support promotions

Send SMS messages to customers, receive text messages

Use text messaging

Create campaign, register short code, modify web site

Drive more mobile web traffic with mobile friendly website

Create mobile friendly website

Modify website to use mobile frameworks

Create campaign to drive traffic to website

Use mobile device advertising

Provide mobile web access and track web traffic

Provide enhanced capabilities to lock in customers (loyalty card, payments)

Create a custom app to engage customers

Develop custom app and integrate into business processes

Develop kiosk solution and integrate with promotions

Drive in-store salesUse proximity marketing

Cost

$

$$$

Page 8: Mobile App Vs Mobile Web

© 2010 ServiceWeb Systems, all rights reserved.

Reaching your Audience via Mobile Devices… 2D bar codes

• QR Codes can be used to integrate you print media campaigns with your web strategy.

• QR Codes can be generated by free, open source code generator tools.

• Adding QR codes to print campaigns has no incremental cost.

• A steadily growing percentage of customers understand QR codes and have 2D bar code reader software installed in their smartphones.

Cost: No Incremental Cost

Advantages

Disadvantages

• QR Code use is new to Cincinnati and a smaller proportion of customers know what QR codes are and how to use them

• Some older smartphones have difficulty scanning QR Codes.

• There are other formats for 2D barcodes such as Microsoft Tags or EZCodes that are proprietary and require the user to be connected to a website when reading the codes.

Page 9: Mobile App Vs Mobile Web

Reaching your Audience via Mobile Devices… Messaging Services

• SMS and MMS capabilities are available on almost every mobile device. Most consumers, especially consumers 18 - 34, are very familiar with using text message services.

• SMS programs are simple to implement and are cost effective. Because the requests are user initiated, response rates are on average about 12% vs. < 2% for other web based advertising.

• Multimedia Message Services (MMS) is the mechanism to send images, video and audio to a user using extensions to the SMS messaging protocol.

Common Short Code (CSC) is a five or six digit number to which a user can send a text message. Common short codes are obtained by registering at the Common Short Code Administration website below. The cost is $500/month for a randomly assigned number or $1000 per month for a specific numeric code.

http://www.usshortcodes.com/index.html

Cost: $ 500-$1000/month

Advantages

Disadvantages

• SMS Spam is becoming more common. Uses response rates are declining as a consequence.

• To be effective, SMS campaigns must be coordinated with campaigns that use alternate marketing channels.

Page 10: Mobile App Vs Mobile Web

Reaching your Audience via Mobile… Web Centric Mobile Client Apps

Cost: $3K and up

Advantages

• Client based solution. App distribution from server.

• Server can detect mobile device type and map screen data to mobile device view.

• Frameworks make it possible to emulate native code handling of gestures and touch behaviors.

• Can be programmed to recognize both any smartphone or tablet device.

Disadvantages

• Mobile web access does not provide the same level of engagement and capability as native apps.

• Navigation to mobile web app is more complicated and less user friendly than workstation web access.

• Smartphone users are not tolerant of websites that do not emulate native mode behavior.

Page 11: Mobile App Vs Mobile Web

Reaching your Audience via Mobile… Custom Smartphone Apps

Cost: $10K and up

Advantages

• Resident on the phone. Generates a higher level of engagement with the customer.

• Accessed from the smartphone main menu. Icon is always visible.

• The application guides the user’s interaction with the business.

• Apps typically provide greater value to the end user and can be used to perform more complex interactions with the business (e.g. banking transactions).

Disadvantages

• Organization must develop and maintain the application.

• Applications requirement ongoing maintenance and support, and will need to be updated as user needs change.

• The software development, distribution and management process is much more complex than traditional web development.

• Skilled app development resources are very scarce, demand is very high and development costs are rising quickly.

Page 12: Mobile App Vs Mobile Web

Evaluating Mobile Web vs. Custom Smartphone Apps

Page 13: Mobile App Vs Mobile Web

© 2010 ServiceWeb Systems, all rights reserved.

Apple’s iAd and Google’s AdMob programs allows mobile ads to be sent to smartphones if the user opts in. Push notifications set an alert notification in the home menu and the messages will be displayed within the target application.

Reaching your Audience via Mobile… Mobile Banner Ads

Page 14: Mobile App Vs Mobile Web

© 2010 ServiceWeb Systems, all rights reserved.

Proximity marketing leverages the communications and geolocation capabilities of smartphones to direct targeted marketing at mobile users within a limited geographic area.

Marketing Solutions Based on Short Range Connection Strategies,.. Bluetooth, Bump, SMS, Audible, QR Codes

• Proximity Marketing is used for point-of-purchase, kiosk and special event marketing.

• Marketing strategies include walk-by “talking” shelf tags, in store SMS, 1D/2D bar code scanning, “bump” message exchange, subsonic phone communications

• Next phone generation will include GPS receivers that will resolve location down to 3 – 5 feet

• Proximity marketing is ideal method for at public events

• Proximity marketing has moved from bleeding edge concept to deployment over last 6 months

Emerging Solutions for Mobile Devices… Mobile Proximity Marketing

Page 15: Mobile App Vs Mobile Web

http://www.youtube.com/watch?v=DpLRQy5cNIc&feature=&p=ECE328605D4296AE&index=0&playnext=1

Emerging Solutions on Mobile Devices… Gaming, Lifestyle and Affinity Marketing

Gaming, Lifestyle and Affinity apps are emerging tools for engaging prospective customers

• Games such as Angry Birds and Mafia Wars create a new level of engagement.

• Gaming and social media have successfully pulled 18-24 demographic away from prime time television to engagement via smartphones and tablets.

• Gaming and lifestyle strategies create multiple new categories for revenue generation… embedded advertising, virtual goods, paid cheats, character merchandising, product tie-ins, and lots more.

• Lifestyle marketing strategies with these kinds of innovative channels achieve incredibly high response rates.

ROVIO “Angry Birds” App Design and Monetization Strategy

Page 16: Mobile App Vs Mobile Web

Takeaways…

Mobile marketing has become mainstream and is affordable for most businesses

Mobile marketing is inherently measurable and has very high response rates

Mobile provides “always on” access to web sites, social media, entertainment and information

Mobile levels the playing field… it provides much deeper insight into customer behavior than print media or traditional websites

Mobile solutions deliver the kind of immediate personal engagement that customers now demand.

Page 17: Mobile App Vs Mobile Web

Bob McCarthy Biography

17

Bob McCarthy is the President and CEO of ServiceWeb Systems, Inc. a software development and services company based in Cincinnati, Ohio.

ServiceWeb Systems is a mobile device and web development services company based in Cincinnati, Ohio. SWSI uses onshore and offshore resources to deliver custom smartphone and tablet apps quickly and cost effectively.

Visit the SWSI website for videos and screen shots of previous projects or scan the QR code below for contact information and links to our website. http://www.servicewebsw.com

http://www.twitter.com/servicewebsw

Page 18: Mobile App Vs Mobile Web

Bob McCarthyBob [email protected]

Thank you…Thank you…