mobile outlook 2012

8/14/2019 Mobile Outlook 2012

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CONTENTS

PAGE

3 INTRODUCTION:By Giselle Tsirulnik

4 2012 will be the year of tablet advertisingBy Chantal Tode

6 Location, 3D ad creative and social to dominate mobilead strategies

By Rimma Kats

8 Ad agencies will embrace the marriage of digital andphysical in 2012By Chantal Tode

10 Mobile no longer a peripheral thought for banking By Lauren Johnson

12 Mobile marketing offers carriers significantopportunities in 2012By Lauren Johnson

14 Retailers will struggle with mobile point of salepayments in 2012By Lauren Johnson

16 Mobile content needs to be practical, useful andresourceful

By Rimma Kats

18 Marketers shift from building databases to successfullyengaging them

By Rimma Kats

20 Fragmentation will continue to haunt mobile email

marketing in 2012 By Lauren Johnson

22 Brand integration in mobile gaming will drive mobilecommerce

By Rimma Kats

PAGE

23 Which will be the most discussed mobile legal issuesin 2012?By Chantal Tode

25 OEM focus on smartphones in 2012 to leave featurephones in the dust

By Chantal Tode

27 Publishers to eye mobile monetization in 2012 By Rimma Kats

29 Loyalty and rewards programs will rely heavily on SMS/MMS in 2012

By Lauren Johnson

31 Music industry must set focus on mobile discovery in2012

By Lauren Johnson

33 Mobile stats to remember in 2012

By Rimma Kats

35 Local, social will play prominent role in search By Lauren Johnson

37 Who will win the mobile, social war in 2012? By Rimma Kats

39 Mobile payments, social mcommerce and QR codes willdominate in 2012

By Chantal Tode

41 More TV programming to use mobile, tablets to complementviewing experience

By Lauren Johnson

43 A year in pictures By staff reports

PAGE 2 Mobile Marketer MOBILE OUTLOOK 2012

Mickey Alam Khan

Editor in Chief

mickey@

napean.com

Giselle Tsirulnik

Deputy Managing Editor

giselle@

mobilemarketer.com

Chantal Tode

Associate Editor

chantal@

mobilemarketer.com

Rimma Kats

Staff Reporter

rimma@

mobilemarketer.com

Jodie Solomon

Director, Ad Sales

ads@

mobilemarketer.com

Lauren Johnson

Editorial Assistant

lauren@

mobilemarketer.com


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INTRODUCTION


Mobile steamroller transforms content, commerce and marketing

Many brands and retailers who did not jump aboard themobile bandwagon in 2010, learned from their mistakesand took mobile more seriously in 2011.

Marketers built mobile Web sites, developed apps, engagedconsumers via rich-media mobile advertising, drove loyal-ists in-store via mobile database and CRM efforts and dab-bled with new, sexy mobile technology such as QR codes

and augmented reality.

Predictions for 2012What should marketers expect in the year ahead?

Mobile payments will make headlines for most of 2012,as Google Wallet has paved the way for innovation inthe space.

Mobile advertising will grow to be healthy in terms of dol-lars spent. New ad units with more engagement opportuni-

ties will increase spend in the channel.

SMS will continue to be the No. 1 channel for cultivatingloyalty, as consumers become more open to opting into da-tabases and hearing from their favorite brands regularly.

Fragmentation will continue to be a problem in 2012 asmore devices pop up. Marketers will continue to be chal-lenged by this.

Marketers will place a larger emphasis on smartphones,

leaving feature phones as an after-thought. With smart-phone proliferation expected to grow exponentially in2012, it is no surprise that marketers will follow consum-ers to engage and excite them.

Social media will play a crucial role in mobile market-ing initiatives, as brands and retailers alike realize theimportance of word of mouth in a world where consum-ers are comfortable sharing opinions and insights withone another.

Location-based advertis-ing will be a hot topic in

2012 and will likely be onregulatory radar.

Mobile search will be in-creasingly important in2012 as the number of mo-bile-optimized Web sitesskyrockets. Google will

Mobile advertising, marketing, media and commercewill have a bright 2012 as consumers increasinglyrely on their mobile devices daily to shop, learn, research,play and engage.

have a large part in growing the mobile Web ecosystemand therefore driving mobile search dollars.

The guideThe 2012 Mobile Marketer Outlook is spot-on in terms ofwhat marketers can expect in the mobile medium in 2012

The insight and analysis by reporters and industry execu-tives shines light on mobiles opportunities.

Thank you to reporters Chantel Tode, Rimma Kats andLauren Johnson for writing these insightful articles. Alsomuch appreciation to all of the mobile mobile executivesthat took the time to provide feedback and insight. This

would have been impossible without you all.

This is the fourth Mobile Outlook and is featured on http://www.mobilemarketer.com for all of 2012. Read it fromcover-to-cover. Learn from the best practices, how-tosforecasts and case studies within. Share the guide wilfriends, family and colleagues.

Best of luck in 2012 and beyond.

Giselle TsirulnikDeputy Managing EditorMobile Marketer


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As marketers learn more about what mobile advertisingcan offer, they are allocating a greater portion of theirspend to mobile ads and have higher expectations, adnetworks will be competing to meet expectations towin business.

Going into 2012, mobile ad networks that find a way

to execute the latest creative and targeting capabilitiesat scale will have a big advantage in 2012 as we expectmore players to enter the space or existing smaller play-ers to converge, said Susan Kuo, InMobi, San Mateo,CA. Those with the global footprint and technical andcreative expertise in these areas will ultimately prevail.

Pressure is onAd networks will also be under pressure to better targetmobile ads and improve ad creative.

In 2012, creativity and bigger and better rich media ini-tiatives will be an important part of every ad buy.

The mobile advertising industry continues to grow at arapid rate, said Amy Vale, vice president of mobile mar-keting for Mojiva, New York.

Technology integrations between the creative en-ablers, ad servers and ad networks will make the wholeprocess a lot easier, thereby taking mobile far beyondthe experimental portion of the ad spend that has beenseen in years gone by, she said.

I think we will see more companies roll out new ideas,new ad units and new executions, all so that advertiserscan differentiate in this medium and get the best possi-ble ROI for their spend, whether it be based on brand lift,conversions or any other campaign objective. HTML5 isalso opening creative floodgates in mobile advertising.

2012 will be the year of tablet advertisingBy Chantal Tode

Mobile ad networks will be under pressure todeliver better creative executions and wider

campaign reach in 2012 as many brands move


beyond the basics of mobile advertising.

Competition in the ad network space will heat upnext year as firms such as Millennial Media, Jumptap

InMobi and Mojiva compete with the leaders in the space Apples iAd and Google AdMob for a portion of theresources being funneled into mobile advertising.

Mobile ad fundingIn 2011, several ad networks received an infusion of cashto help build out their mobile advertising offerings andwill look to use the funding to help them compete fogrowing mobile budgets as well as try to take advan-tage of opportunities such as continued grumblings tha

Apple charges too much for the placement of ads via itsmobile ad network iAd.

There will be significant opportunities for those ad net-works that can offer engaging and rich brand experiencevia mobile to large audiences.

A growing opportunity for ad networks in 2012 will betablets, which are being scooped up by consumers ingrowing numbers and are quickly changing users mediaconsumption habits.

Tablets will become an even larger opportuni-ty, said Anne Frisbie, vice president and manag-ing director for North America at InMobi, San Fran-cisco. We expect to see this double in the U.S.and will deliver strong results for both brand andperformance marketers.

Tablets will be a popular gift during the holiday seasonwhich will help create an even bigger opportunity fobrands to reach consumers via mobile ads on tablets.

The payoff can be significant for ad networks andbrands that tailor their mobile advertising for thetablet experience.

Consider the tablet experienceWe are seeing and will continue to see a demand for althings tablet, both advertisers and users love the big-

AD NETWORKS


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While 2011 was the year of engagement, 2012 will be theyear of relevance. If consumers are served a mobile adthat does not interest them nor uses their devices GPSfunctionality, then they will be less inclined to click on it.

Right now, theres less friction all around, said TomLimongello, vice president of marketing at Crisp Media,New York. New technology is making it even easier forusers to interact with mobile ads.

If 2010 and 2011 was about touch gestures, 2012 willbe more about accelerometer enacted rotation of 3D adcreative assets, and potentially voice activated controlsfor iOS and Android devices, he said.

Also, now that iOS and Android both have notificationtrays, its even possible for publisher apps to communi-

cate with users more often, which may mean that spon-sors could push notifications from time to time fromadvertisers without breaking the social contract withits users.

Commerce into playThe main challenges of mobile advertising is not brandsare not using location-based technology or thinkingabout relevance.

Consumers increasingly have their mobile devices on

them and running targeted ads with information thatwould appeal to them would not only help build thatbrand and consumer relationship, but have the user fur-ther engage with a mobile ad.

Additionally,with iOS and Android now close to 15 per-cent of all Web purchases, it is clear that 2012 will bringa new focus on mobile commerce not from near fieldcommunication, but from digital commerce.

Location, 3D ad creative and social to dominate mobile ad strategies

By Rimma Kats

B

rands and marketers are realizing the impact thatlocation plays in their mobile advertising strategy.

Location-based technology will be the key driver in


not only bolstering in-store traffic, but also a good way toserve relevant and targeted mobile ads to on-the-go users.

I think the innovation for 2012, will be that westart to see commerce functionality creeping into

rich-media advertisements more and more for digi-tal goods as well as some low to mid cost physi-cal goods segments, such as food and even clothing,Mr. Limongello said.

I think the challenge will be to move brandsfrom the content building phase where they fo-cus their budgets on building sites and apps to themedia phase where they spend their budgets onmedia, he said.

Also, technology issues behind deploying conversiontracking either on sites or for when users move from appto app have held back online segments from spending

ADVERTISING


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more on mobile, specifically the travel segment has beenslow to move from test budgets to ROI driven budgetsdue to lack of conversion tracking capabilities.

Overall enhancement

Advertisers should try to leverage their real-time feedsand social profiles in mobile banners to make their adsas dynamic as possible.

RSS feeds or APIs are useful branding tools not onlyfor daily deal sites or credit card companies, but for in-stance, auto or CPG brands who sponsor events such asMarch Madness, Mr. Limongello said.

Interestingly, there have been a lot of uses of live feedsin desktop advertising, there has been less demand onmobile, potentially because logins are more difficult forsocial media on mobile, he said.

However, if pub-lic feeds werepulled directlyinto rich mediaadvertising pan-

els, this approachalso makes it pos-sible for users tosee the brand in-formation beforethey are promptedto login.


Above the restAlthough many brands are still not realizing the potential of running targeted mobile ads, others are leadingthe pack.

Victorias Secret has been running mobile ads foa while. The ads drive traffic to its in-store loca-tions, as well as its mobile apps and mobile-optimizedcommerce-enabled site.

Recently, the company realized that running targetedlocation-based ads is effective to getting that consumeto click the ad.

With the expected usage growth among advertis-ers becoming more mature, we expect 2012 to be anexciting year for mobile advertising, said Kim Lu-egers, director of mobile and emerging media atPandora, Chicago.

We expect many of the industry shaping orga-nizations such as the IAB and MMA, along withtheir members, to make great strides in assistingwith overcoming the many challenges mobile ad-

vertising faces such as measurement and ad unitstandardization, she said.

There will be ongoing maturation of themobile advertising marketplace in 2012 as mobilesolidifies its presence as a valuable and viablemarketing channel.

You have to embrace it, Ms. Luegers said.


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Some agencies have not been as aggressive in mobileas others because of challenges creating and executingmobile campaigns at scale. However, with big brandssuch as Coca-Cola, Walmart, BMW and others active inmobile over the past year, agencies recognize that theyneed to continue to build out the mobile services theyoffer with either in-house capabilities or by partnering

with third-parties.

The pace of the technological revolution is not de-termined by technology only but also by our willing-ness to use it this year, we saw a significant changein behavior, said Hugh Boyle, global head of digital forOgilvyAction, New York.

Mr. Boyle points to the appearance of national televi-sion ads during primetime showcasing how a brands

app works. For example, British supermarket chain Tescoran a spot in 2011 that focused on its app. Mr. Boylesaid this points to the significant role that mobile playsfor consumers.

An app being advertised is not about early adopters,Mr. Boyle said. Marketers are being cognizant of thefact that people have smartphones in their pocket andare happy to use it if it is useful to them.

As mobile continues to rapidly evolve, agencies will need

to master mobile compatibility, mcommerce, messagingand location-based services.

Agencies are also responding to the significant changesin consumer behavior that are being driven by growingmobile penetration.

Larger focus on mobile marketingWhile 2011 was the year that brands and their agencies

Ad agencies will embrace the marriage of digital and physical in 2012

By Chantal Tode

Advertising agencies in 2012 will be looking to in-corporate mobile in a bigger way into their brand

strategies, following a year in which smart-phone penetration grew significantly and initial effortsfound success.

focused on bringing branded content and utility at thepoint of purchase to mobile, one area of focus in 2012

will be on bringing mobile marketing to more consumerand products.

In 2011, the penetration and use of smartphones hasgone through the roof across all groups, Mr. Boyle saidFor an ad agency, this means that mobile is a channewe can use for more products than last year and moregroups than last year.Since women still typically hold the households pursestrings, agencies will need to pay close attention to fe-male mobile users in 2012.

Mobile Marketer MOBILE OUTLOOK 2012PAGE 8

ADVERTISING AGENCIES


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Currently, most women use their mobile phones primar-ily for basic communications, according to research fromagency JWT. However, that could start to change.

You will see the mobile phone evolving into a womans

Swiss Army knife, helping her manage all her identi-ties mom, daughter, boss/employee, wife, friend andresponsibilities making social plans, shopping, payingbills simultaneously, said Ann Mack, director of trendspotting for JWT, New York.

As a result, brands will need to create seamless experi-ences optimized for mobile and local, she said.

The marriage of digital and physical

Agencies will also be well served by developing mobileprograms that integrate digital with physical.

Mobile is a great way to bridge the physical with thedigital because users can interact with real world prod-

ucts and marketing materials via mobile devices.

QR codes and augmented reality are also exam-ples of how agencies can use mobile for a real-world

connection in mobile.

The future is very much in the electricity between thedigital and the physical, OgilvyActions Mr. Boyle said.

Treating mobile like a standalone technology is a mistake, he said. Treating it as an integrated part of peo-ples lives is the right way to do it.

Our recommendation is to look at ways to use mobile tointeract with physical stuff.

Dual-screeningA related trend that will pick up more steam in 2012is the way that consumers increasingly consume me-dia and engage with their mobile phones at thesame time.

In the year ahead, youll see marketers creating moreexperiences designed for simultaneous consumption andengagement, JWTs Ms. Mack said.

People are no longer interacting with media and tech-nology in a focused, linear way, she said. Rather, theyrechatting on Facebook as they watch TV, texting whileflipping through a magazine, gaming on their mobilewhile listening to music.

Brands should steer attention between one medium andanother in a continuous loop, timing secondary contentto stream alongside primary content.



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Mobile no longer a peripheral thought for bankingBy Lauren Johnson

E

xperts agree that 2012 will be the year that mobilewill become an essential part of marketing mixesfor financial institutions and payment companies.

In particular, mobile advertising will increasingly beused by banks and financial institutions to spread theword about mobile services. Banks and institutions willcontinue to rely on mobile to develop easier bankingsolutions for clients.

One of the key things we are focused on its makingsure we are servicing our customers when they go tomobile, said Russ Eisenman, head of mobile marketing

and partnerships at JPMorgan Chase, New York.

Every year, our numbers double with the amountof consumers using our mobile services and weare focused on continuing to build our mobilebrowser, applications and SMS programs in 2012,he said.

Quick bankingAccording to Mr. Eisenman, Chases quick depositapp feature, which lets consumers snap a picture of

a check to deposit, has generated 2 billion depos-its since launching in 2010, showing that consumersare relying on mobile for everyday banking.

Chases mobile strategy with apps is focused on beingon every platform for its consumers, and in 2012 thefinancial institution will roll out apps on more devicesincluding BlackBerry products and for Amazons KindleFire tablet.

In 2011, big and small financial institutions focused ontranslating online banking to mobile for both consumersand business clients.

Now that financial institutions have mobile servicessuch as apps, the challenge for banks will be keepingthem updated with features that are relevant and usefulfor consumers.

Similar to other areas of mobile, fragmentation will con-

tinue to be an issue for financial institutions looking toreach the most consumers.

HTML5 is rumored to help solve fragmentation problemin 2012, but it is still unknown how effective the tech-nology will be for app developers.

From a marketing point of view, the biggest challengeis looking at mobile standards because fragmentationhurts us in order to be an effective ecosystem, MrEisenman said.

As soon as the market starts to stabilize, we will start to

see an increase in development, he said.


BANKING AND PAYMENTS


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he massive upgrades undertaken by wireless net-works in 2011 will help encourage consumers

to move more activities from a tradition wired

T

By Chantal Tode

CARRIER NETWORKS

Mobile marketing offers carriers significant opportunities in 2012

The combination of increased smartphone penetration,greater bandwidth speeds and consumers who want toshift behavior to mobile will provide significant opportu-nities for marketers next year. Wireless carriers will buildon their efforts to roll out faster networks to subscribersby simplifying and improving the ability for marketers toreach consumers via their networks with ads, games and

other unique content.

Organizations, large and small, public or private, arelooking to find mobile-supported revenues, said RobRussell, director of mobile marketing solutions at AT&T,Dallas. These trends are top of mind with our customers,regardless of the direction of economy at large.

As a leader in wireless, AT&T is poised to support andspread mobile marketing solutions among business-es and consumers, he said. We plan to continue in-

novating in the ways that matter most to businessesin 2012 to further the momentum we have seen thispast year with business adoption of mobile applicationsand services.

Whether our customers are looking for global machine-to-machine communications or mobile marketing solu-tions, well center our efforts on the areas that providesignificant return on investment and help businesseswork better.

Bar code opportunityOne of the opportunities AT&T sees in 2012 is with 2Dbar codes.

Bar code scanning is making huge strides in the industryby preloading scanners on our devices, Mr. Russell said.

AT&T has a vision to move the industry toward interop-

erability between bar code scanning technologies andenable seamless interactive marketing, he said.

Next year will also see greater standardization by wire-less carriers to simplify mobile marketing.

Protecting consumersAlready, carriers have been working with organizationssuch as the Mobile Marketing Association, InteractiveAdvertising Bureau and others to create a standard ap-proach to mobile marketing that protects consumerswhile enriching their mobile lives.

Next year the fruits of these efforts will begin to appear


Internet connection to their mobile devices in 2012.


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That step signifies the importance these carriers placeon providing their subscribers with the services theywant, when they want them, while protecting their pri-vacy, said Jean Foster, vice president of marketing forcarrier services at Neustar, Sterling, VA.

Carriers are well aware of the mobile dynamics at workand are positioning themselves to support the forthcom-

ing tidal wave of mobile marketing, Ms. Foster said.Privacy becomes a concern.

Furthermore, we expect carriers to explore new ways toadd value to their subscribers with additional networkintelligence and functionality.

Content is kingOne important area of opportunity for wireless carriersnext year will be in enabling the delivery of engagingcontent to subscribers.

With smartphones expected to overtake feature phonesin 2012, the desire for more content is growing and re-flects the need for wireless networks to look beyond SMS.

Mobile carriers have spent vast resources to upgradetheir infrastructures to support the surge in mobiletraffic, Ms. Foster said.

It is paramount to their future that mobile car-riers deliver intelligent content with that toadd value and monetize their investments,she said. By achieving success here, opera-tors will develop further brand loyalty withtheir subscriber base and begin to monetize

their resources.

Today the primary form of mobile marketing isstill done via SMS. This is the most basic mobilefunctionality and while it allows brands to reachconsumers on-the-go, it does not provide the sameengaging content as other data streams able to bedelivered via a wireless connection.

One form of content that will be a big focus in

2012 is mobile video.

The surge in Internet traffic related to YouTube showsconsumers love of video, Ms. Foster said. Industry fore-casts expect mobile video traffic to continue its steeppace of growth.

The challenge and opportunity is for mobile carriers tohelp brands turn this obsession with video into mobilemarketing, she said.

[The convergence of social, local and mobile is a trendthat] captures the move by consumers to shift their so-cial lives to mobile and to make it locally relevant.


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Additionally, retailers and merchants need to view theirmobile properties differently from their Web properties in2012. In order to move forward, retailers need to tie mo-bile payments with incentives that encourage consumersto use their mobile device, including mobile coupons andloyalty programs.

Merchants and retailers will continue to face the issue

of redemption at the point of sale, said Chip Fishburne,vice president of mobile commerce services at FirethornHoldings, Atlanta.

The mobile consumer continues to hear of the optionsfor mobile payments, but the merchants are waiting tosee what mode of payment will be broadly adopted,he said.

Mobile catch-upAccording to a Juniper Research study, smartphone ship-ments are expected to reach one billion by 2016.

As mobile device usage continues to grow, consumerswill have higher expectations in 2012.

In order to catch up with consumers, businesses willneed to take bigger risks and develop a complete mobilestrategy around payments.

2011 was the year of mobile payments for small-ticket

items, such as transportation tickets or food and bev-erage purchases, which was largely spurred by the in-troduction of Googles mobile payment program,Google Wallet.

Google Wallet works with merchants and retailers to setup a mobile payment solution using a mobile app thatconsumers can add money to via a credit card or by cre-ating a Google Prepaid card.

Retailers will struggle with mobile point of sale payments in 2012

By Lauren Johnson

D

espite the rise in mobile commerce and paymentsthis year with advancements in initiatives such as

Google Wallet and NFC, retailers will continue to

Since launching inSeptember, retail-

ers including JambaJuice, Gap, Ameri-can Eagle Outfit-ters and NJ Transithave begun usingGoogle Wallet.

In particular, con-sumers will beginto purchase bigger-


COMMERCE

ticket items such as apparel on their mobile devices

in 2012.

However, retailers and merchants need to be more opento trying multiple mobile payment services in 2012 tofind the sweet spot with their consumers.

Dont be afraid to place multiple bets and use exter-nal partners, stay closely engaged with consumers andhow they are interacting with your brand across multiplechannels, Mr. Fishburne said.

Make sure you give them options and clearly communi-cate the value of each, he said.

Plan on commerceWhen consumers use a retailers application or mobileWeb site, they are looking for more than just informa-tion - they are also looking for a unique experience thamimics their device.

With major brands and companies utilizing multiple mo-

bile channels, consumers know they can get more outof their experience than an exact replica of a companysWeb site.

Not having a unique mobile experience is now an ex-pense that retailers cannot afford.

The approach of replicating your online site is a mis-take that I see a lot of retailers making, said Roger Un-

struggle with point-of-sale mobile purchases in 2012.


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While rolling out mobile apps is becoming a daily thing,having a consumer download it and use it only once willnot be good for the brand or the user.

In 2012, companies will need to find their own nicheand build a mobile application that syncs with who theirtarget user is.

Mobile is no longer a novelty, it is a necessity, said JudyGalani, product manager at XO Group Inc, New York.

Practical, useful and resourceful is what our audi-

Mobile content needs to be practical, useful and resourcefulBy Rimma Kats

M

obile users are becoming more niche-focusedwith regards to smartphone applications and

companies are realizing that new content will

ence is looking for, and we want to give them some-thing they will come to depend on, she said. The

challenge is inherent in the opportunity how do weorganize our abundance of authoritative content in aneasy-to-use way.

We have so much to offer our audiences that there wilalways be another thing to develop and its a challengeto find the best way to do that.

Interactive contentBefore companies launch a mobile app simply for thefact that their competitor has one or that they just want

one, brands and marketers need to have a strong under-standing of who their audience is and who the app theyare building is meant to reach.

Personalization is going to play a big role in 2012.

More apps, such as AOL Editions are letting consumerspersonalize the content that they want to see.

Letting users personalize the content they want to seewhen they open up a mobile application helps build useengagement.

2012 will bring the expectation of complete accessibility and a fully-synched user experience, Ms. Galani saidThe users actions and information will translate seam-lessly from laptop to on the go.

We will take personalization of content delivery a stepfurther by utilizing inherent mobile technologies and leveraging the consumers dependence on social media,

she said.

FrequencyGrowth in the number of mobile users and frequency ofuse will reinforce the importance of enabling content toallow customers the ability to view, transact and applyfor our products and services.

The shifting mobile landscape and rapid changes in


CONTENT

succeed only if it addresses what the consumer wantsto hear.


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technology such as increased tablet and operating sys-tem availability and varied device capabilities, will cre-ate a challenging environment for industry leaders tomaintain their current position.

Creating content that is appropriate for mobile deviceswill continue to be a challenge.

We will continue to use mobile content to cross-mar-ket our products across all platforms while looking for

ways to integrate with social media, said Eli Winn,manager of enterprise Internet solutions at State Farm,Bloomington, IL.

New form factors for mobile platforms, like televisionand automobiles will provide new and exciting opportu-nities, she said.

Additionally, mobile content will need to be tailored


to the platform in order to provide the best possiblecustomer experience.

Providing content that is meaningful and relevant wilstart to become a requirement rather than a good idea.

State Farm will continue to focus on the consumer withour 2012 mobile strategy by providing additional accespoints that are easy to use, when and where the con-sumer needs our services, Ms. Winn said.

Our mobile content will be customer centric, providingsolutions to address consumers expressed and antici-pated needs, she said.

In general, mobile marketers should monitor new tech-nologies in the mobile sector and look for opportunitiesto serve the consumer with simplified solutions that pro-vide value and are easy to use and access.


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Many companies have experimented with SMS mar-keting programs and found that the medium providedadditional information about consumers and improvedoverall consumer engagement. Marketers were able tocapture mobile phone numbers, provide relevant offersand information specific to the individual and measurethat consumers response.

Over the past year, mobile marketing has swept over thenation and many companies have invested substantialresources in building a mobile database, said Shuli Lowy,marketing and client services manager at Ping Mobile,Englewood Cliffs, NJ.

For those companies who have devised successfuldatabase building strategies, the goal will now shiftfrom building a database to successfully engaging it,she said.

At the same time, we expect more and more companiesto realize that the ability to remarket to consumers isone of the foundational distinguishing factors that setsmobile apart from other forms of advertising, and to be-gin database and CRM focused mobile campaigns.

2012 will see a major increase in the number of com-panies who are focused on mobile database buildingand CRM.

Growing databaseThe growing investment in database building and CRMis indicative of the spreading awareness of the effective-ness of marketing via SMS and of the many consum-ers who are engaging with companies through theirmobile devices.

While this represents tremendous opportunity for mo-

Marketers shift from building databases to successfully engaging them

By Rimma Kats

U

sing mobile as an integral part of the CRM strat-egy will be a key trend in 2012, with more com-

panies adopting common practices and newtools, technology and data to fuel deeper engagementand relevance.

bile marketing companies who wish to grow their rev-enues, it also will bring along challenges particularly

that consumers are likely to be inundated with multiplemobile messages on a daily basis.

This may decrease the penetration level of each cam-paign and make it harder for advertisers to catch aconsumers attention.

However, this also represents a real opportunity fomarketers, as consumers will tend to remain subscribedonly to those programs that are providing them withreal value.

Companies who can really give their database sub-scribers what they want will find themselves withloyal customers.

The overall focus for marketers should be to strive tobuild a relationship with each of their subscribers, in-stead of just blindly pushing out content to a database,Ms. Lowy said. This means they must be more creative instructuring their campaigns to ensure delivered contencaptures the consumers attention, and they should also


DATABASE/CRM


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be sure that they are using platforms which allow themto effectively profile and target their audiences.

From a marketing perspective, companies should con-sult with experienced industry experts to strategize theircampaigns in order to ensure their messages are clear,desirable to consumers, and delivered at the optimal mo-ment, she said.

Above all, companies must remember that mobile in-teractions are powerful encounters which can generatevery strong positive and negative reactions, and focus on

generating a positive brand interaction in every contact.

Brands and marketers are constantly looking for ways totarget within their own database.

A big challenge is being presented due to the increase intraffic across short codes that are shared among brands,sometimes hundreds, and without much oversight byapplication providers.

Carriers are becoming increasingly sensitive to this in-crease, and continue to tighten requirements for compa-nies utilizing these shared codes, said Randy Atkissonexecutive vice president of sales and business develop-ment at Sumotext, Little Rock, AK.

Brands that are serious about their marketing efforts arealready working with a dedicated short code, he said.

Mobile effortsConsumers want the ability to choose how brands com-municate with them even when they have signed upand opted in for multiple channels of communicationhow and when the brand communicates with them iscritically important.

Marketers have the opportunity to create customizedonline preference centers that provide consumers withoptions for channels and messages that are relevant totheir individual needs and lifestyles.In addition, one of the biggest opportunities for growthin the mobile channel is standard industry metrics andROI measurement.

While some mobile programs are transaction-based andare measured based on the number of transactions andsales revenue, other mobile programs which focus onproviding information or brand engagement strugglewith how to measure success.

One way to overcome this challenge in 2012 will be toset key objectives for the mobile channel prior to creat-ing the CRM program.

2012 will be different because even more brandsare actively using or planning to use mobile as part

of their marketing channel, said Doug Yokoyamavice president of mobile and emerging technologiesat Epsilon.

We will see significant growth as it relates to imple-menting SMS programs, he said. Marketers will bemore focused on gathering consumers mobile phonenumbers and driving them to participate in ongoing dia-logues with the brand.



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This year expect to see email marketing being used withseveral mobile initiatives, including application down-loads, instant email sign-up and cross-platform featuresthat load email quickly and efficiently regardless of thedevice users are reading their email on.

With more and more consumers reading emails onmobile devices, marketers are now faced with the new

burden of ensuring that their content renders reason-ably well across diverse devices, said Manny Ju, direc-tor of product management at BlueHornet Networks,San Diego.

Marketers do not yet understand the opportunitiesthat the mobile context provides. They still treat mo-bile email as simply a formatting exercise when in fact,it is a whole new opportunity that the desktop cannotduplicate, he said.

Untapped opportunitiesAccording to Mr. Ju, email is only being used in prelim-inary stages by brands and companies in their overallmobile initiatives.

Similar to other digital marketing efforts, brands andmarketers need to remember to extend the mobile emailexperience past the initial click.

To create an engaging post-click experience, remember

to keep mobile in mind. For example, redirecting usersto an un-optimized Web site in an email that they arereading from their mobile device is a bad user experiencethat they are likely to abandon.

In addition to the new opportunities that mobile offers,brands and marketers should not forget how email is tra-ditionally used to build databases and instant email sign-up features will be used more by companies in 2012.

Fragmentation will continue to haunt mobile email marketing in 2012

By Lauren Johnson

I

n 2012 marketers and brands to use email to ramp uptheir mobile email marketing strategy. With the grow-

ing rate of email opens done via mobile, there is a bigopportunity for marketers here.


EMAIL

Dont wait for a consumer to go home and turn on hiscomputer to sign up for your email marketing program,

Mr. Ju said.

Allow the person to sign up by simply sending a textmessage with his email address while hes in the restau-rant, hotel, store, museum, concert or amusement park.

Keep it freshUnlike traditional marketing initiatives, one of the chal-lenges of email marketing is constantly re-evaluatingyour program and constantly finding new ways to im-prove it.

With the speed that mobile is moving, any mobile strategy created on Jan. 1 will likely be obsolete by Septem-ber, said R.J. Taylor, director of product marketing a


21/43

ExactTarget, Indianapolis, IN.

Quarterly evaluation and adjustments will ensureyou stay on track and create meaningful experiencesfor your customer and conversions for your business,he said.

2012 will also bring more experimentation with emailmarketing being tied to other mobile initiatives, includ-ing SMS and push notification programs.


With an increase in apps over the past year, brandsshould leverage their email campaigns by placingcalls-to-action that promote their mobile servicesin emails.

This can be done with a click-to-downloadfeature for apps or a click-to-call feature forsmartphone owners wanting to opt-in to anSMS program.

Another issue that mobile email marketing willface in 2012 is relevancy and making sure that

email messages can target specific users, whichis a common problem for all email marketing.

Data is kingBrands and marketers can expect to see moredata being used to segment email blasts to users.

There will be an increased focus on dynamic, tar-geted emails based on an individual users inter-ests and activities, said Manish Naik, cofounder/

CEO of Paper Hat Press, New York.

For Paper Hat Press, which is a digital publisher that sellspersonalized childrens books, being able to link a con-sumers shopping history with a targeted email message

is key.

If a consumer clicks on a link in an email and buys some-thing, the company is able to tell that the transactioncame via email and can send other relevant emails toconsumers in the future.

Marketers and brands will also need to continue testingemail subject lines for 2012, per Mr. Naik.

Email marketing is more than just a one-hit approach.

If a consumer did not open an email, marketers need totry variations on the subject lines until they find one thagenerates successful opens.

Batch and blast email campaigns will continue to pro-duce poor results and unengaged email databases, MrNaik said.


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Brand integration in mobile gaming will drive mcommerceBy Rimma Kats

Brands and marketers are seeing the potential of us-ing mobile games to reach a broader audience andcompanies such as HSN are bridging the virtual

While 2011 was a successful year for gaming com-panies such as McDonalds, Pizza Hut and HSN incor-porated their brand into mobile games, 2012 will bringin more opportunities. Partnerships with mobile gam-ing companies will prove to be an effective way to driveuser engagement.

In 2012 we will thoughtfully pursue and participate inmobile gaming opportunities that are a good fit withthe HSN brand in order to extend our brand presenceand reach a new audience that doesnt know our sto-ry, said Jill Braff, executive vice president of digitalcommerce at HSN, San Francisco.

Combining our mobile shopping experience and casualgames is a natural progression for our consumer - sheloves both, she said.

We want to further differentiate the HSN shopping ex-perience by bringing together content and commerce ina fun and innovative way.

Play firstHSN teamed up with PlayFirst for the Cooking Dash ap-plication that incorporates chef Emeril Lagasses cook-ware and kitchen electrics line and lets players buy theproducts without leaving the app.

The Cooking Dash app includes a new restaurant venuecalled HSN Cooks with Emeril that lets players inter-act with virtual representations of his cookware andkitchen electrics line, and buy the real products via themobile game.

A partnership such as that is an ideal way to not onlyengage users, but also add a commerce element to themobile mix.

Marrying mcommerce with gaming helps brands furthebuild a relationship with consumers. The mobile gam-ing world must deliver quality entertainment that is trulyengaging and let companies introduce their personalitieand products to users.

Socially mobile2012 is going to be the year where mobile social gamesand social networks start to break into the mainstream.

I dont think games on mobile have truly become socia

between players and devices, and 2012 is the year wherepublishers and developers begin to crack the code, saidChris Cunningham, cofounder/CEO of appssavvy, New York

With NFC, better processors and voice recognition com-ing to mobile devices, the possibilities on the gamingplatform with social interaction is endless, he said.

In 2012, publishers and developers will have to find away to maximize the revenue they drive from thei

apps and fine-tune micro-transaction strategies andad-supported models.

One of the biggest challenges will be for a developer toform a seamless layer between location-based gamesand social platforms on the Web and mobile.

Location-aware multi-user games are the next bigthing, Mr. Cunningham said.


GAMING

and real-time world together.


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Which will be the most discussed mobile legal issues in 2012?By Chantal Tode

The number of legal battles in the mobile spacewill continue to grow in 2012 thanks in no small

part to mobiles rapid growth, which has raised thestakes considerably for many companies.As a result, legal wranglings over who owns the right touse a particular mobile technology will continue to be aheadache for many in 2012. At the same time, the indus-try could see greater enforcement around mobile privacynext year now that regulators have turned their focus onthe burgeoning mobile space.

Patent issues will continue to be a major source of dis-cussion in the mobile world, which will dovetail with anacceleration in deals, said Jason Koslofsky, an attorneywith ArentFox LLP, Washington.

Big companies will continue to compete in the mobilespace, not only through marketing and sales, but alsothrough patent licensing strategies designed to obtain apiece of every mobile-related transaction, he said.

One solution companies are employing is buying up

patent portfolios and companies to attempt to head offpatent infringement claims before they arise. Expect tosee more of these patent portfolio deals at eye-raisingsums and mobile patent litigation to continue to impactevery major mobile company in 2012.


LEGAL/PRIVACY

Patents and privacyLegal battles involving mobile-related patents were big

news in 2011 and understandably so. Microsoft was re-ported to be making millions on the sale of Android de-vices because of patent licensing deals it has with thedevice manufacturers.

An unlikely alliance between Apple, Microsoft, RIMand others spent billions buying bankrupt Nortels pat-ents simply to protect themselves against intellectuaproperty suits.

On the privacy front, regulators turned their focus tomobile in 2011 and this scrutiny will be more intense in2012. If no privacy legislation is passed this year, thennew legislation is likely to be introduced next year.

One area of focus for regulators is the Telephone Con-sumer Protection Act, which Congress has expressedan interest in updating. Such a move could impact textmessage marketing.

The Federal Trade Commission is likely to address how

children use mobile apps and smartphones, which couldhave significant repercussions for mobile marketing.

The FTC has proposed changes to the Childrens OnlinePrivacy Protection act that would make geo-based loca-tion or identification of a mobile device similar to the IPaddress for a computer.

The information would be considered personally iden-tifiable information, which means marketers would nobe able to market to kids without parental consent, said

Linda Goldstein, partner and chair at Manatt Phelps &Phillips, New York.

And, obtaining consent in mobile is difficult becausethere is no robust system developed for obtaining paren-tal consent, she said.

I think you are going to see a lot more enforcement inthe kids area as it relates to mobile.


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Location-based servicesFollowing a growing number of news stories about howit easy it is to locate a smartphone and what the impli-cations are for consumers, location-based services andapps will be an important part of the discussion sur-

rounding mobile and privacy in 2012.

The need for location information to provide effectivesearch and other services for mobile is inherently in ten-sion with the desire for privacy and to not publicize in-formation, ArentFoxs Mr. Koslofsky said.

Many users may not understand what information isgathered and how it is used, he said.

This will be one of the most discussed mobile legal is-

sues in 2012 as companies, Congress, and users struggleto balance the usefulness of the information with thedesire to keep it private.

While mobile commerce is growing rapidly, it is still small

percentage of overall sales.

As the volume begins to reach hiogher levels and afew mobile payments systems gain share, this wilalso present some privacy issues.

This is the year you are going to see mobile pay-ments systems emerge and move toward mobile com-merce, Manatt Phelps & Phillips Ms. Goldstein saidWith that will come additional privacy considerationsuch making sure that the person authorizing billing is n fact authorized to do so.

Mobile companies will be well served to pay atten-tion to which direction the regulatory wind is blow-ing and to make sure that they are providing prope

notice regarding their privacy issues.

Companies should adopt the same privacy principalsthat they do on their Web sites because the FTC is view-ing the two similarly, Ms. Goldstein said.


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Building viable smartphone businesses will be especiallyimportant for companies such as Nokia and Research inMotion, which both saw their fortunes dwindle in 2011because they were not positioned properly to take ad-

vantage of the transition to smartphones.

The key thing that is strangling a lot of folks is the fea-ture phone market, Michael Morgan, an analyst withABI Research, New York. We always know that it wouldbe eaten up by smartphones but it seems to be collapsinga bit faster than expected.

Manufacturers want to establish faster growing smart-phone businesses faster than they are losing business onthe feature phone side, he said. It is a race for survival

for a lot of these folks.

Apple stomping competitionNokia saw sales waiver in 2011 and lost ground to Apple,Samsung because of its weak position in smartphones.

OEM focus on smartphones in 2012 to leave feature phones in the dust

By Chantal Tode

Mobile device manufacturers will seek to acceler-ate growth for their smartphone businesses in

2012 as feature phone sales continue to col-

With only two new smart devices coming out next yeabuilt on the Windows operating system, Nokia is notlikely to gain significant ground in the near future.

[Next year] is going to be the proving point for Nokia,Mr. Morgan said. Either they are going to turn aroundand do it in 2012 or they are going to have to make somebig changes again.

The situation is not likely to be much better for Researchin Motion, which went through a restructuring in 2011as sales faltered.

RIM is going to have a rugged 2012, Mr. Morgan saidIn 2012, RIM is transitioning to the QNX platform andmoving into smartphones they are hoping this will puthem back into a technologically relevant space.

Samsungs well-balanced portfolioHowever, other manufacturers are well positioned totake advantage of how mobile is evolving and, as a re-sult, will cement their leadership roles in 2012.

Samsung, with its well-balanced portfolio of high-endand feature phone devices, is one of these.

Samsung will still be looking good in 2012 as the Galaxyplatform establishes itself as a key driver of the Android

MANUFACTURERS

lapse. Introducing lower cost smartphones that offermuch of the functionality of high-end devices is oneof the major ways manufacturers will try to achievethese goals.


26/43


platform, Mr. Morgan said.

Apple is also likely to continue to perform well next yeareven though it lost its leader Steve Jobs, who retired inAugust and passed away a couple of months later.

Steve Jobs didnt leave the company without instill-ing a technology map for at least two years, Mr. Mor-gan said. Apple will be able to subsist off of that easily

through 2012.

They have a portfolio of devices with low price pointsand high-end devices that are still proving to be verysuccessful, he said.

The wildcard is Motorola, which was acquired by Googlein August for $12.5 billion. In the ensuing months, a lotof questions have arisen about whether Google will give

Motorola advance access to new technology or treat itthe same as other manufacturers.

Motorola has been marginally successful and now it isowned by Google, Mr. Morgan said.

The question is will Google strangle Motorola or be abenefit to it, he said.

As interest in smartphones continues to grow andconsumers integrate the devices into their every-day lives, handset manufacturers will look for ways tobring many of the features that have previously onlybeen available at the high-end of the market to awider audience.

Lower prices a mustIn order to make smartphones mass marketable and sothat the carrier can offer it for free with a two-year con-tract, manufacturers need to drive the price down un-der $200, said Wayne Lam, senior analyst for IHS, ESegundo, CA.

Making the hardware low enough in cost while also ad-dressing the functionality of smartphones is key, he saidWe are seeing a shift and more of a focus on selling to

that type of demographics.

A wider audience for smartphones could be good newsfor marketers.

There is a lot more interaction in the ecosystem of ser-vices with smartphones, Mr. Lam said.

The marketing potential is significant because the ad-dressable market becomes a lot bigger with lower costphones, he said.

Functionality such as touchscreens and near-fieldcommunication are likely to make their way to theselow-cost smartphones.

There should be some interesting business models in-troduced next year where Google absorbs the cost of in-cluding NFC or Mastercard absorbs the cost to enablemobile payments, Mr. Lam said.


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In 2011, tablet devices emerged and publishers quicklyhopped on the mobile bandwagon to offer their readersanother screen to absorb the editorial content. However,the media sector is experiencing a paradigm shift fromonline to mobile and publishers need to rethink theirstrategies to stay on top of the game.

The mobile channel has given publishers an additionaltouch point to connect with consumers as they increas-ingly turn to a wide variety of devices to search for, readand are entertained by content, said Christine Cook, se-nior vice president of sales and advertising operations atThe Daily, New York.

Tablet devices allow publishers to earn revenue fromsubscriptions and advertising, as well as revenue sharefrom in-application purchases a healthy and diversifiedrevenue portfolio, she said.

Rise of tabletsApples iPad has been a game-changer for the publish-ing industry with The New York Times, The WashingtonPost, The Daily and Conde Nast being one of the first totake advantage.

Additionally, many publishers have rolled out mo-bile apps both in Apples App Store and in GooglesAndroid Market.

However, throughout 2011 there have been con-flicts about Apple retaining 30 percent of the revenuefrom subscriptions sold on iTunes.

The Financial Times took a different route to drive mobilesubscriptions and launched a browser-based applica-tion instead of making the content available via ApplesApp Store.

Publishers to eye mobile monetization in 2012By Rimma Kats

In 2012, media giants and publishers will not only thinkof mobile as another revenue driver, but will focus

more on how they can monetize their mobile applica-

The Financial Times Web App was built usingHTML5 technology.

HTML5 enables open, cross-platform rich-media stan-dards that help brands and agencies display adver-tising achieve the creative and reach across variousmobile devices.

Although Apple contributed significantly to thegrowth of HTML5 first by refusing to let itsiOS devices support Adobe Flash, then by launching its ownrich-media mobile ad network, iAd, many industry expertstill believe that HTML5 is helping companies create richcontent and bypass the App Store.


MEDIA

tions and build readership.


28/43

However, others do not agree.

There is a lot of, in my opinion, wishful thinking thatHTML5 will replace native apps, said Brennan Hayden,vice president at Wireless Developer Agency, EastLansing, MI.

This thinking is bad for mobile media, because nativemobile apps are arguably the most attractive mobile-specific media innovation yet, he said. This thinkingleads to the presumption that what we call the digitalspace will absorb and assimilate the mobile space withregard to monetization and publishing, and in turn hasgiven some pause to aggressive investment plans in mo-bile-media-specific technologies and business models.

This pause is a mistake, but nonetheless will likelymake the 2012 landscape more difficult for loss-makingmobile and app businesses.

According to Mr. Hayden, media and publishers will needto see continued innovation in this space, however, therewill be less venture investment in the short term.

In 2011, mobile apps were where the action was,almost exclusively.

In 2012, the more mature companies will field morewell-rounded uses of mobile technology.

The effective, repeatable and attributable executions especially QR codes and location and apps will in-creasingly be deployed in a holistic fashion with tradi-tional media such as out-of-home, print and television,Mr. Hayden said.

This years trials and innovations in this integrated mo-

bile paradigm will be commonplace even imperative by the 2012 Christmas season.

MonetizationMobile media as a separately monetizable entity isfighting the laws of physics, not technology, when itcomes to monetization.

It cannot possibly replace or even supplement othermass media, dollar-for-dollar, and become a significant

part of the media mix, on a CPM basis, Mr. Haydensaid. There just isnt enough real-estate or lean-backattention span.

Mobile media value, then, has to come from superioquality showing the right ad, to the right people, athe right time, with a perfectly trackable, highly profit-able and frequently converting call-to-action, he saidMobile is the perfect medium in theory for this objective.

According to Mr. Hayden, publishers that want mobilemedia monetization should use 2012 to build a premi-um product that is probably worth a premium, at leastrelative to digital.

Today, any mobile inventory that manages to mon-

etize at a premium is sold as digital in the $10 CPMrange, with no particular mobile innovation, and nopremium over the equivalent digital ad, Mr. Haydensaid. 2012 ought to be the year to change at leastthat equation.



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Brands and companies will also start to tie their SMS ef-forts to more measurable programs, such as mobile cou-pons and loyalty programs. However, mobile redemptionwill need to be more universally acceptable by retailersin 2012.

The ability to generate unique coupon codes and inte-

grate into point-of-sale systems for retailers and manu-facturers will be critical, said Carrie Chitsey, CEO of 3Seventy, Austin, TX.

Loyalty and rewards programs will rely heavily on SMS/MMS in 2012By Lauren Johnson

I

n 2011 brands focused on building databases via mes-saging campaigns that offered incentives such assweepstakes in return for an opt-in. In 2012, market-

ers will focus on ways to cultivate these databases andengage the consumers within.

Additionally, the abil-ity to not only track amobile campaign buttrack the results andredemption by con-sumer is important,she said.

The days of one-waymessaging will changein 2012. Brands want


MESSAGING

and need to know more demographic information aboutconsumers than a cell phone number and that they tex

in a particular keyword.

Universal redemptionOne of the key challenges for brands and companies in2012 will be continuing to get retailers on board withmobile redemption that is tied to SMS.

With more companies experimenting with SMS and loy-alty, retailers need to understand how to process mobilecoupons at the point of sale.

In order to do mobile coupons and promotions in-storeretailers have to be able to access mobile coupons, MsChitsey said.

The method of coupon delivery has to be agnosticso retailers and consumers have channel of choice,she said.

One example of an effective and easy messaging promo-tion is to run a sweepstakes through mobile to develop

a database and then begin the communication channel.

By tying SMS programs with rewards and loyalty pro-grams, consumers are more comfortable opting-in totext messages and the channel will continue to increasein 2012.

Despite the rise in mobile device ownership, SMS re-mains the most universal way to reach consumers viatext message.


30/43

Understand that one size does not fit all, not all of yourconsumers have the same use of mobile devices, Ms.Chitsey said.

Finding the happy medium of rolling out multichannels

to see how consumers interact will help establish a fu-ture roadmap for innovation, she said.

Call to mobileAccording to experts, 2012 will bring more calls-to-ac-tion for SMS programs.

I think well see more loyalty clubs triggered by SMScalls-to-action, said Jeff Hasen, chief marketing officerof Hipcricket, Kirkland, WA.

We surely will experience calls to action in tradition-al media like TV, radio and print ads, and well also see


brands offer consumers multiple means of engagement- for example an SMS call to action and a QR code wilboth lead to a richer experience via the mobile Web o

MMS, he said.

In 2012, mobile messaging will continue to battle spamand SMS programs that bombard consumers with irrel-evant, constant messages.

According to Mr. Hasen, there will be more than two tril-lion messages sent and received in the United States in2012, showing the opportunity that marketers will con-tinue to have to reach a broad range of consumers with

the channel.

Apples iMessage service, which was rolled out this yeato let iPhone owners with iOS5 text other iPhone ownersfor free, will pave the way for mobile messaging in 2012by opening up a free text message program.

RIMs BBM group messaging service is another exampleof a wireless carrier helping consumers adapt SMS intotheir everyday lives.

Older demographics, which are typically thought to nouse mobile technology as much, will increase in 2012.

We recommend brands offer multiple means of engage-ment, Mr. Hasen said.

By giving consumers a choice in how they want to in-teract, brands will increase participation, drive saleand gain loyal customers, he said.


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And, with the numerous choices that consumers have foraccessing music on their mobile devices, companies needto use added marketing efforts, such as social media, todraw consumers to their products. It is no longer enoughto just offer free music to users.

Discovery is a huge issue now that everyone has accessto every track, said Kristin Frank, general manager of

MTV and VH1 Digital, New York.

Starting at an empty search box on a music service canbe very daunting, she said.

Social networks and all the data they produce aroundmusic make for some interesting opportunities inproduct development.

Music to my ears2012 will see more mobile-specific features added tomusic services, such as location.

Brands and marketers can tie location into its servicesto make music relevant and offer recommended tracksfor users.

MTV uses location in its Music Meter application, whichlets users discover new music based on what is trendingon the Web.

Go beyond simply playing back music or music videosand really consider what makes your product unique,Ms. Frank said. What does your product do best andhow can that be applied to the music conversation?

Music programmers have traditionally used mobile ap-plications to target smart device owners, but with theplethora of music apps on the marketplace, getting con-sumers to find, download and engage with a particular

Music industry must set focus on mobile discovery in 2012By Lauren Johnson

W

ith the introduction of more music streamingoptions that are either free or low-cost, such

as Spotify and Rdio, the challenge for mobilemusic marketers in 2012 will be discovery.

brands app will continue to be a challenge for the in-dustry in 2012.

For 2012, MTV and VH1 plan to update and release appli-cations that work with user-generated content, includ-ing polls and features that let users give instant feedbacon what they like and are listening to.

Interactive features that let users interact with con-tent in real-time will be a valuable asset that musicbrands and companies can use to measure their mar-keting initiatives, which has always been an issuewith mobile.

Shared tunes2012 will continue the transition from personal music


MUSIC


32/43

libraries to shared music clouds, which shows the con-tinuing need from consumers to access as much musicas possible.

As long as consumers can get music, they do not carewhere it is from.

There is one key challenge - reliability and accessibleconnectivity, said Michael Cerda, senior vice presidentof product at VEVO, New York.

People dont want to burn their entire data plan on mu-sic, but as Wi-Fi becomes more prevalent this issue willgo away, he said.

With the increase of the cloud, users will start to use mobilemusic in more social environments and around the home.


Tablets will also play a key role for mobile music in 2012with their lean-back tendencies.

Consumers will also be looking for more features thanjust playing a song on their mobile devices.

In 2012, users will be looking for more utility option

that enhance the music listening experience, which in-cludes games, facts, video and trivia.

However, consumers are not looking for a full package ofinformation and are only interested in pieces of contenthat is tailored for their music.

Simply put, the digital music industry is shifting to-wards a strategy that matches the basic principles\of mobile.

Music companies need to pull nuggets of informationfrom multiple places to give consumers a tailored, inclu-sive experience. Additionally, it will be more importanin 2012 to think about where consumers will be usingmobile music services.

Find the sweet spot between use case, ease of use, con-text, rights and how it can become more than audiblebackground, Mr. Cerda said.


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Mobile stats to remember in 2012By Rimma Kats

Mobile as an advertising and marketing vehicle willcontinue to grow and advance in 2012. Consum-ers will be come even more dependant on their

Here are some stats that are indicative of what to expectin 2012:

1. The spend on local mobile advertising will approach$1 billion by the end of 2012 as campaign objectivesevolve to meet the location-targeting abilities of smart-

phones, according to BIA/Kelsey.

2. Twenty-nine percent of mobile phone owners todaybelieve their handset will be the primary device for theirentertainment needs in the future, per Experian Simmons.

3. Android could generate more than $1 billion in mo-bile advertising revenue for Google in 2012, according toPiper Jaffray.

4. Tablets are rapidly emerging as the go-to device and us-

age will definitely increase in 2012. According to Google,

forty-two percent of tablet owners multitask while ontheir devices. In particular, consumers are switching ovetheir entertainment use from desktop to mobile devices

5. In-stream video ads, which appear as a commerciabreak in full episodes or before video clips, are picking umomentum and outperforming online ads, according toRhythm NewMedia.

6. According to Knotice, the number of emails openedon a mobile device jumped 51 percent in the first half o2011 compared with the last quarter of 2010 indica-tive that the number will grow in 2012 as smartphonepenetration grows.

7. While iOS and Android are the top operating systemsWindows Phone is gaining speed. IOS continues to trumpAndroid when it comes to click-through rates for mo-bile ads by operating system. However, Windows Phone

beats them both, suggesting there is an opportunity herefor marketers who want their advertising to stand outper Smaato.

8. Mobile bar codes made a big impact in 2011 and thenumber will only increase. According to ScanLife, therewas a 440 percent increase in scans year-over-year fromthe third quarter of 2011, indicating consumers are morewilling to interact and engage with content deliveredthrough QR codes.


RESEARCH

mobile devices for shopping, searching and researchingin 2012 and more marketers will take note.


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9. Location-based targeting grew 50 percent quarter-over-quarter and made up 66 percent of all the targetedaudience campaigns, according to Millennial Media.

10. Mobile will be the primary device for entertainment

needs. According to Experian Simmons, 29 percent ofmobile phone owners today believe their handset willbe the primary device for their entertainment needs inthe future.

11. Social and mobile go hand in hand and according toABI Research, mobile device users are heavily engagedwith social, with 73 percent of mobile device ownersin the United States using their phones to visit socialnetworking sites daily and, sometimes, more than once

a day.

12. Privacy and security are still big issues when it comesto mobile. Despite a steady increase in threats from de-vice loss and threats, malware and viruses, only 4 percent

of smartphones and tablets are protected with securitysoftware, according to Juniper Research.

13. Google continues to triumph in mobile search andwas the top destination among mobile sites in the month

of April last year attracting 55.3 million unique visitorsper Nielsen.

14. Mobile banking is gaining traction in the UnitedStates with gains in consumer adoption and avail-ability of mobile banking services across a wide arrayof devices, however 47 percent of financial eBusinessmanagers do not know how to measure theROI of mobile, according to Forrester Research.

15. Wireless data service revenues in the United Statesgrew 23 percent in the first quarter of 2011 com-pared with same quarter last year for a total of $15.4billion, proving that it will continue to grow in 2012per Chetan Sharma Consulting.



35/43

Making search results more relevant for consumers isincreasingly important, especially for mobile when con-sumers have less time to find what they are looking for.Voice will also begin to play an important part in mobilesearch in 2012.

Search has evolved beyond simply typing text andnavigating to third party sites via blue links, saidAndy Chu, director of product management for Bing at

Microsoft, Seattle.

In the end, we are driving towards a mobile servicewhere Bing will be the must-have mobile companionservice that delivers exactly what you need, whetherthat is booking a restaurant reservation or buying a pairof shoes, he said.

Local intentWith the increase in making content relevant for usersvia mobile applications and Web sites, mobile search

needs to catch up to be useful for consumers.

Mobile search needs to be viewed differently than desk-top search, which is when consumers have more time toresearch what they are looking for.

In 2012, different channels will be integrated into mobilesearch, including social media.

For example, Bing believes that one way consumers

will find relevant results is to see what their friends aresearching for.

Mobile search will need to give consumers all importantinformation directly through a search instead of clickingon links to make search easier for users in 2012.

Ultimately, we want to help users make fast, more in-formed local decisions on-the-go but also help people

Local, social will play prominent role in searchBy Lauren Johnson

M

obile search will continue to evolve in 2012 withan emphasis on localization and social media,according to experts.

complete tasks and save money, Mr. Chu said.

This helps Bing for Mobile better understanding user in

tent, context and location, which in turn allows Bing toprovide answers, help with decisions, and even recom-mend additional things to do after completing the im-mediate task at hand, he said.

Voice will also become key to mobile search with thelaunch of Apples Siri service this year and advancementwith Google Voice.

Ask and find

According to search executives, mobile search has madea significant switch from being a quick place for ques-tions and answers.

Mobile search is not about exploration, and in 2012 it


SEARCH


36/43

will continue to be focused on finding common ques-tions while on the go.

Mobile search has become ubiquitous whether some-one is looking for a restaurant they should try that

evening, or the best hotels at a given travel destina-tion, search has become the first place people go whenlooking for information from their mobile devices, saidJason Rupp, senior director of product management atAsk.com, Oakland, CA.

On top of that, people want immediate gratificationfrom their mobile search experience, he said.

Consumes expect more from their mobile devices and withthe advancements in location-based services, users ex-

pect to get results immediately where they currently are.

The coming year will also see mobile search become a

more two-way conversation with users and more inter-active features.

Mobile search results need to utilize data sources thatarent traditionally found through search such as user-

generated content, per Mr. Rupp.

The mobile search industry will also continue to be cluttered with companies trying to tap into exactly whaconsumers are looking for.

Just a few years ago, your mobile experience was so lim-ited that search couldnt be localized, and you couldntexpect more than local business listings or a few searchlinks when looking for information, Mr. Rupp said.

Now, people can control their entire lives on a mobilephone and there are thousands of companies vying toget users the information they want, he said.



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Google has already started integrating Google+ into An-droid and Twitter has deep integration into Appes iOS.In 2011, Facebook and Apple saw the impact that socialplays in the mobile space and next year, companies both big and small will be incorporating some aspectof social into their mobile strategies.

Consumers will eviscerate the line between mobile so-

cial networks and social networks in 2012, said CurtisHougland, founder/CEO of Attention USA, New York.

More than one-third of people already access Facebookthrough mobile, he said. Twitter and Facebook aregrowing more closely together through features such asthe Activity Stream and Ticker, respectively.

Social changeWhile Google and Apple looking to outdo each oth-er in the mobile space is no surprise, Facebook will

increasingly make its way into the mobile picture.

The question has become whether Facebook is satisfiedwith being an app or has to own its own mobile future,Mr. Hougland said.

Additionally, location will play a big role in the mobilesocial space.Users are increasingly using applications such asFacebook, foursquare and Gowalla to check-in toplaces and let their friends and family know wherethey are.

Companies such as Cabelas and Crumbs Bakery are real-izing the impact of this and offerings consumers specialsand incentives when they check-in.

In doing so, consumers can share these offers with friendsand family and thus begin a social change.

Who will win the mobile, social war in 2012?By Rimma Kats

Battle lines will be drawn in 2012 between Google,Facebook, Twitter and Apple, with each fighting for

direct integration into mobile operating systems.

2012 will usher in the maturation of geo location, MrHoughland said. Increasingly, consumers seek greate

rewards than a badge, or an alert.

They want to unlock rewards, experiences, brand andcommunity recognition and personalized offers, he saidMobile social will overlay and enrich the real world.

Technology requirements and budgets will have to growsignificantly.

Mocial

In addition to geolocation, brands, marketers and pub-lishers are increasingly incorporating social in their mobile marketing efforts, whether it is placing a Facebookicon on their mobile application to get users to Like


SOCIAL NETWORKS


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them or using Twitter to get users talking.

Recently, The Weather Channel integrated local, weath-er-related tweets across its television, Web and mobileplatforms to increase the companys two-way dialoguewith consumers.

The Weather Channel decided to make social a partof all of its platforms to helps the company tell a

more complete story of how weather events impactconsumers locally.

Weather is the ultimate social content, said PatrickMcCormack, vice president of mobile sales and strategyat The Weather Channel, Atlanta.

Adding The Weather Channel Social to The WeatherChannels mobile platforms lets us integrate live local


feedback from our consumers in a way that is both rel-evant and personal, he said.

2012 should be another great year for mobile, with an-ticipated advancements in both devices iPhone 5, iPad 3

Android Tablets and network speeds 4G, it will be eas-ier than ever to stay connected to your social networks.

Key to successSuccessful mobile and social marketing campaigns de-pend on providing the user with a highly personalizedcontent experience.

If the users do not feel that the content is tailored forthem or if it is not relevant, then they will not want tointeract with it nor tell their friends about it.

We use user-generated social content to complementour expert weather content, providing the mobile usewith complete coverage of their local weather, MrMcCormack said.

Its about generating content thats meaningful tothe user thats very specific to them, he said. In othewords, hyper-local equals hyper-relevant.


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Mobile payments, social mcommerce and QR codes will dominate in 2012

By Chantal Tode

Marketers must gain a better grasp of mobilesoftware and technology in order to provide

the kinds of experiences that consumers are de-

The goals of these efforts should be to ensure the bestpossible consumer experience by seamlessly incorpo-rating mobile technology into a brands marketing ef-forts, optimizing mobile content across multiple devicesand leveraging mobiles unique characteristics such aslocation-based services and personalization to meetconsumers needs.

As smartphone penetration is reaching significant lev-els, we are reaching a tipping point with the technol-ogy moving from emerging to mainstream, said Rebec-ca Kane, vice president of brand and customer-specificmarketing at Ahold USA, Quincy, MA. In response, themarketers will now be making the shift from watchingand waiting to actively engaging.

With the move from emerging to mainstream, custom-ers will have greater expectations expectations around

speed, simplicity and relevance, she said. If marketers/

manding now that mobile is mainstream.

companies dont deliver on these expectations, custom-ers will not have patience and will look for other option

resulting in wasted investments.

In 2012, we anticipate an exponential increase in totamarketing dollars flowing through the mobile channel specifically the smartphone mobile channel.

Mobile payments and commerceMobile payment and commerce technologies such asGoogle Wallet, Isis and others that are yet to come wilplay a big role in brands mobile software and technology

plans next year.

Much, although not all, of the activity will take placearound dedicated mobile applications.

There are a lot of competing technology platforms outhere to support mobile marketing and commerce, MsKane said. To some extent, therefore, winners and loserswill begin to shake out with respect to the providers ofthese technology solutions.

In 2012, as even more people embrace the rich capabili-ties offered by smartphones, marketers will look for waysto take advantage of mobile software and technologythat address way that mobile is changing how consum-ers engage with each other, content and brands.

From the conversations that weve been having with ouclients, the outlook [for mobile software and technologyis very strong, said Chia Chen, senior vice president andmobile practice lead for Digitas, Boston.

Paradoxically, it has less to do with the specific mo-bile technologies and software and more to do with theculture of mobility that the mobile technologies haveenabled, he said. This culture of mobility has changedthe way people connect with each other, contentand brands.

Onset of MoSoCommKey areas of opportunity for marketers beyond mobile


SOFTWARE AND TECHNOLOGY


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payments include the convergence of mobile, social andcommerce as well as consumers increasing use of smartdevices while they are watching television.

However, marketers will need to prove the effective-ness of their mobile efforts in order to gain support forincreased investment.

We are excited about two sets of mobile software/tech-nology opportunity for marketers, Mr. Chen said.

One is MoSoComm, the convergence of mobile, socialand commerce, especially as loyalty platforms start re-ally tapping into the social graph, he said. The secondis Co-Consumption, which is the engagement of peopleacross more than one screen at the same time.

The key challenges are around the need for integrat-ing mobile technologies and software into the mar-keters existing technology and software infrastruc-ture and real ROI cases to support the investmentneeded to integrate mobile technologies into themarketing programs.

QR codesQR codes saw significant uptake in 2011 and this willcontinue in 2012.


QR codes will become mainstream, becoming notonly the dominant 2D symbology, but also one ofthe most utilized mobile media elements lever-aged by marketers, said Laura Marriott, CEO ofNeoMedia, Atlanta.

2D wont be the only bar code symbology that reachesnew heights of adoption in 2012, we will also see 1D ac-cess via mobile continue to climb and as part of thiswe will see retailers offering scanning applications bundled into their offers to encourage consumer purchases,she said.

QR codes will also begin to be launched alongside NFCinitiatives in 2012, as the technologies are increasing-ly seen as complementary, rather than competitive, toeach other.


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More TV programming to use mobile, tablets to complement viewing experience

By Lauren Johnson

W

ith the introduction of the next-generationiPad this year, and all of the other tablet de-

vices rolled out, the broadcast industry founda platform that made sense as a second screen for con-tent with its size and image quality. In 2012, broadcast-ers will need to continue to take advantage of tabletsand combine mobile into their overall digital strategy.

Additionally, broadcasters will need to find new ways totie relevant and personalized content into their mobileservices. Experts forecast that broadcasters will begin tostream more select pieces of content onto mobile plat-forms.

Its still the early days for the mass market to adoptwatching TV on tablets and smartphones, but in 2012youll continue to see a lot more content companies andcable,satellite and IP service pr

mobile outlook 2012

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