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The Big Mobile Handbook2012

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©2012 Millennial Media. All rights reserved.

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Mobile is mass media that is personal, always on, and always with you. This makes mobile di�erent from any other type of media platform. Millennial Media’s solutions for advertisers are not just about delivering the right ad, they’re about connecting brands with the right consumers at the right moment.

Introduction

Advertising on mobile

Measuring mobile

M-Commerce

Integrating mobile

The Future of mobile

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Contents

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IntroductionMobile has unquestionably come a long way in the last few years, establishing itself as a medium that can no longer be ignored. It is also a medium that has been ‘interrupted’ by some game changing technology that has changed the way we live.

Most of us in the UK currently own a smartphone (59%), but it’s easy to forget how different the world looked in 2007. Back then the Nokia 1200 was the world’s bestselling handset with shipments of 150m – but things changed very quickly during the ad break for the 79th Academy Awards of that year. Apple’s “Hello” ad gave viewers the first taste of the phone that Apple went on to launch in June 2007. By 2008, the iPhone 3G became the world’s bestselling phone, and the consumer appetite for smartphone technology has not slowed since.

This pace of change in mobile technology and the phenomenally fast rate of consumer uptake have caused stirs in the marketing world from agency bars to advertiser boardrooms. Looking back to the first IAB/PWC adspend study in 2008, it’s a surprising reminder to see at that time the mobile advertising market was worth £28.6m. During the last four years the market has increased over seven fold to £203.2m, with £134m being spent on search and £69m on display advertising on mobile.

It is particularly interesting to look at mobile’s recent growth in comparison to online advertising ten years ago. Chart 1 illustrates that 2011 mobile revenues actually exceed the 2001 online advertising market and according to the industry analysts First Partner, we can expect that trend to continue into the future, with mobile potentially reaching just under £1bn in the UK by 2014, only two short years away.

These black and white smartphone and adspend figures certainly tell a story about the evolution of mobile marketing to date – but there have also been some changes in the way we think about mobile as an industry that is harder to quantify. The constant release of new technology has meant there is always some kind of mobile ‘new kid on the block’ the marketer has to know about. This makes mobile incredibly exciting and dynamic, but at the same time a bit of a challenge to keep up with. The feedback from our annual agency study in chart 2 goes some way to capture this – each year something new is crowned “the most exciting”, in this case from apps, to location, to NFC all in the space of three short years.

The IAB is committed to making mobile easier for brands and agencies to tap into this growing market, and this handbook brings together everything the marketer needs to know about mobile from the ground up. This complete guide from leading experts in the mobile field includes, measuring mobile, m-commerce, advertising on mobile, integrating mobile and the future of mobile. We hope this gives you everything you need in one place, but of course new information is released all the time. Please be sure to keep an eye on our website www.iabuk.net/mobile for the latest research, news and market information.

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Introduction

Alex Kozloff Senior Mobile Manager, IAB UK

Chart 1 Trends in mobile & online display advertising, IAB/PWC Adspend study

Chart 2 The changes in the “most exciting developments in mobile advertising” according to UK agencies over the last 3 years

2009 2010 2011

Source: IAB Snapshot researchBase: 2011 (406)

Source: IAB/PWC AdspendMobile Estimates: First Partner 2011

Online adspend

Mobile adspend

1998

28.6m51m

153m

203.2m

449m

727m

962m

2008

19m37.6m

83m

166m

197m

465m

825m

1999

2009

2000

2010

2001

2011

2002

2012

2003

2013

2004

2014

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Advertising on mobile

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5

1.1 Search

1.2 Mobile video

1.3 Social media

1.4 Display advertising

1.5 Affi liate marketing

1.6 Mobile targeting

1.7 Location-based advertising

1.8 Real-Time advertising

1.9 Mobile messaging

1.10 Tablets

1.11 Mobile creativity

1.8 Real-Time advertising

1.9 Mobile messaging

1.10 Tablets

1.11 Mobile creativity

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1.1SearchThe Mobile Landscape—It’s already proved quite a remarkable year for mobile, and for mobile search in particular.

The London 2012 Olympic Games provide a brilliant illustration. In the fi rst week of the Games, Olympics-related searches with Google on mobile devices – smartphones and tablets – grew tenfold over the previous week1. During the fi rst two days of the Games, 46% of total Olympics-related searches in the UK occurred on mobile devices2. And at some moments, more searches occurred on tablets and smartphones than on computers.

Mobile search is growing exponentially, and at Google we’ve seen mobile search queries grow fi vefold in the past two years3. In 2012, smartphone penetration in the UK reached over 50%4 and the iOS and Android app stores reached 50 billion app downloads combined5.

Increasing searches on mobile and tablet present exciting opportunities for you to engage with customers and meet your marketing objectives, whether that’s driving visitors to stores, call centres, online sales – on mobile or computer – or app downloads.

Mobile search is growing exponentially, and at Google we’ve seen mobile search queries grow fi vefold in the

. In 2012, smartphone penetration in the and the iOS and Android app

stores reached 50 billion app downloads combined5.

Increasing searches on mobile and tablet present exciting opportunities for you to engage with customers and meet your marketing objectives, whether that’s driving visitors to stores, call centres, online sales – on mobile or computer – or app downloads.

1,2 Google Mobile Ads Blog “Going for the Mobile Gold: 10x increase in Olympics mobile searches globally”

3 Google Internal Data 2012

4 Google and Ipsos. “Our Mobile Planet UK: Understanding the Mobile Consumer”. May 2012

5 Google Keynote June 2012 and Apple WWDC keynote June 2012

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1.1Advertising on mobile

Get the full value of mobile Mary Burris, Mobile Product and Solutions Strategist, GoogleMatt Brocklehurst, Product Marketing – Mobile Ads, Google

Getting the Basics RightSo where do you start? Follow best practices to get the most out of mobile.

1. Maximise search potential with full keyword coverage, extending desktop keywords to mobile and tablet devices.

2. Bid above the fold. Mobile has limited ad inventory compared to desktop, so appearing in position 1 or 2 is critical for mobile search ad performance.

3. Create relevant mobile ad text. Include calls to action, such as “Call a store near you”, and relevant ad extensions formats like click-to-call.

4. Create a mobile optimised site. Research shows 40% of users6 turn to a competitor’s site after a bad mobile experience. Capture mobile consumers post-click, because if you don’t they’ll go elsewhere.

Understanding the Benefi ts of MobileOnce you’ve created integrated mobile marketing campaigns, optimised your accounts across mobile search and created a mobile site experience, you’re in a position to start enjoying the full benefi ts of mobile.

Mobile offers returns above and beyond the in-site experience. As a result of the rise of mobile, we’ve discovered the emergence of new consumer behaviours. There are now multiple types of conversions stemming from this shift, and theseare happening both online and offl ine.

• In-store—85% of UK smartphone users have searched for local information and 81% have taken action as a result; 40% visited the business and 21% made a purchase in-store7.

• Phone calls—85% of UK smartphone users have searched for local information and 81% have taken action as a result; 35% called the business8.

• Cross device—39% of UK users researched on a smartphone and then made a purchase via computer9.

• App downloads—UK smartphone users have installed 23 apps on average, with nine apps used in the last 30 days10.

• Mobile web—31% of UK smartphone users have made a purchase on their smartphone11.

6 Compuware, “What Users Want from Mobile,” 2011

7,8,9,10,11 Google and Ipsos. “Our Mobile Planet UK: Understanding the Mobile Consumer”. May 2012

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Advertising on mobile1.1

The Mobile Marketing ToolsetIn order to help advertisers assign full value to and make the most of mobile marketing, several product solutions capture and measure these new types of conversions.

Location ExtensionsSearching for local information is one of mobile’s most common activities. Give potential customers more reasons to click on an ad by including an address up front. Location extensions merge your business address and phone number seamlessly with ad text. Through location extensions you can better track and view user interactions that could be happening around your store locations. Analyse AdWords accounts to understand local behaviours, such as the number of users clicking on “Get directions”, and use Google Analytics to record users interacting with the store locator on your site.

Call ExtensionsCall extensions allow you to add a phone number that’s displayed as the last line of text whenever your ad appears. This enables customers to connect with your business by phone directly, without having to re-enter the number manually into their keypad. Call extensions can help you to better understand the online-to-offl ine behaviour of users interacting with your call centres, revealing the volume of calls – and sales – triggered by your mobile ads.

Mobile App ExtensionsNot all mobile users searching for a business may know that the business has an app. The mobile app extension in AdWords allows advertisers to add a mobile app download link to search ads. With this extension, you can promote your mobile app to users who may simply be searching for a brand, product or service.

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Click-to-Download Ads for AppsFor advertisers focused on driving app downloads, click-to-download ads incorporate rich information about an app in the ad unit itself. After a user performs a search and your click-to-download ad appears, the consumer can see image previews, a descriptionand pricing and rating information.

In-App AdvertisingGoogle’s AdMob network is integrated into AdWords, so advertisers can reach 350 million12 mobile devices in the AdMob network and appear on some of the top apps available in app stores. Various tools and ad formats make it easy to promote app downloads within apps too. Choose optimised text ads for iOS or Android apps with rotating ad text to promote app downloads. To understand your mobile ad’s performance across these formats, you can monitor app downloads from the Google Play Store with AdWords conversion tracking.

Tracking Mobile ConversionsMobile conversions drive business, but are you measuring their full value? Use AdWords conversion tracking and Google Analytics to optimise your mobile site, then continue to test new designs based on performance. Meanwhile, remember to take into account users who are researching on mobile devices but converting on desktop. By considering these interactions, you’ll develop a fuller picture of the opportunity that mobile drives across all devices.

In SummaryFor years mobile has been seen as an important part of advertiser plans – for the future. But the increase in mobile search activity, the mobile-specifi c ways in which advertisers can now engage with users and the online and offl ine returns being generated from mobile devices mean that in 2012 we are seeing the mobile potential realised at last.

12 Google Mobile Ads Blog “Adwords <3 Mobile Apps”

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1.2Mobile videoClicks vs Impressions… Its not just about CTR’s, video completion rate (VCR’s) and brand engagement matter as well

Mobile video advertising sits at the intersection of two of the fastest growing market segments of digital advertising – mobile advertising and digital video advertising. Mobile advertising rose 157% in 2011 to £203M and video advertising rose 100% to £109M of the £4.8B internet advertising market in the UK that grew 14% last year. With over 25M people using the mobile internet every month and over 27M people streaming content when they go online, the mobile video advertising opportunity is one that every marketer needs to consider. The year of mobile has fi nally come and gone, and consumers are clicking play in video players and using apps at an unprecedented rate so every brand advertising campaign should factor mobile video into its plan.

video advertising. Mobile advertising rose 157% in 2011 to £203M and video advertising rose 100% to £109M of the £4.8B internet advertising market in the UK that grew 14% last year. With over 25M people using the mobile internet every month and over 27M people streaming content when they go online, the mobile video advertising opportunity is one that every marketer needs to consider. The year of mobile has fi nally come and gone, and consumers are clicking play in video players and using apps at an unprecedented rate so every brand advertising campaign should factor mobile video into its plan.

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YuMe is a global multi-screen digital video advertising service and solution provider that drives brand results and publisher revenue. YuMe solves the audience fragmentation problem with software and aggregates TV-scale audiences with data sciences.

The Broadband Connected, High Definition Screen That Extends the Reach and Frequency of TV by Yume

The long held belief that mobile is best for only location aware direct response is finally giving way to the power of the platform for branding. We use our mobile devices now for more than portrait mode utilitarian activities such as communication, search, and location. We are increasing rotating the device into landscape mode to watch a video, play a game, or consume content. We are leaning back and killing some time to be entertained and informed at all times of the day. Furthermore the rise of tablets as both primary and second screen media consumption devices is creating even more lean back branding opportunities. Touchscreens have revolutionised advertising as 27% of respondents claim they are more likely to interact with ads because they have a touchscreen (Three Device Lives, IAB, Dec 2011). The smartphone and tablet are now both a lean forward direct response opportunity and a lean back brand advertising platform that should be planned in much the same way you plan for TV.

Mobile video offers some unique brand campaign opportunities you don’t get with traditional TV or even online. A great TV commercial is and always will be, a great TV commercial, regardless of screen so when you have one you are always looking for ways to extend its reach. Mobile video provides the opportunity to take your existing creative and re-mix it for the mobile screen and add interactive elements that leverage the unique capabilities of the devices. By adding touchscreen, orientation, accelerometer, and location elements to your existing TV creative you enable consumers to engage with your brand message in new and unique ways. Overleaf are some examples of mobile video ad units:

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1.2 Advertising on mobile

Pre-roll on mobilePre-Roll is a 5 to 30 second video advertisement that appears before the desired video content or mobile application.

Brand customizable pre rollMobile video ad is enhanced by an interactive & branded overlay. The overlay is displayed on the bottom right of the screen throughout the video ad, making it more relevant, informative, and compelling with subtle branding elements.

Multi-interactive mobile video Full screen pre-roll ad overlaid with up to 5 interactivity icons that enable further engagement with the brand.

Mobile 2Motion2Motion mobile ad unit features a full-screen rich media ad for 3 seconds followed by a video ad with the options for further engagement with the brand overlaid as ‘tap to actions.’

Mobile Tap2MotionTap2Motion mobile ad unit features a full-screen banner or rich media ad that appears before the desired video content or application and allows the user to either play video or connect with social networking and ecommerce brand destination sites.

Multi-interactive mobile video

Mobile Tap2Motion

Mobile Tap2Motion

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Mobile FlipMobile Flip leverages interactions specifi c to smart phones & tablets. It is a full-screen branding experience that enables a tap or a swipe to switch between video ad and branded display. Mobile Flip allows for multiple interactivity options, all inside the ad experience.

Mobile video has proven to be one of the most effective brand advertising tools over the last 2 years with video completion rate on average in excess of 70%. Consumers watching video advertising on smartphones and tablets offer advertisers the ability to increase brand awareness at the top of the marketing consideration funnel, and the interactive nature of these devices allows for brand engagement and purchase consideration to enable performance based advertising to succeed.

The rules of brand advertising have not differed dramatically over the last 50 years; drive awareness of the brand in order to increase consideration and purchase. Mobile advertising has been established as an always on and always available performance platform, but now with the growth of mobile video as a consumer entertainment medium, driven by scale of audience, technological developments; quality of picture, screen size and consumer adoption, mobile video advertising allows brand advertisers the ability to drive awareness and brand consideration on the very devices which are closest at hand and accessed more than any other brand platform. Isn’t it time that your marketing harnessed the power of mobile video brand advertising?

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1.3Social mediaSocial media is becoming increasingly mobile as consumers are accessing social content whilst on the go. According to a study by comScore, 35% of UK mobile users access social networking sites on their mobile phones and more than one third (36%) of UK consumers are using social platforms such as Twitter and Facebook to interact with brands.1

Advertisers are capitalizing on the convergence of mobile and social by integrating social media with their mobile advertising campaigns to extend the connection between the consumers and the brand beyond the life of the campaign.

Social media is the ultimate viral marketing tool and there are few reasons not to include it in a mobile campaign. The integration of mobile advertising and social is seamless because the technology and the user experience are similar. Social media has a positive novelty factor effect and makes the brand cool, fresh, and up-to-date. It also extends reach and helps with acquisition.

If your brand has a Facebook page or Twitter profi le, don’t forget to include buttons in your ad to take your users there. It’s an easy fi rst step toward bringing social media into your ads, and it’s also quite effective. Across a sampling of ads that included social media buttons, 4% clicked to Facebook, 5% clicked to Twitter and 20% clicked to Instagram2. If there are multiple social media buttons, Facebook typically gets the most clicks.

Mobile display ads that include social media sharing engage users even more than linking. Facebook user generated content fosters creativity and leverages social graphs to add virality. Branded messages received from a friend resonate more with consumers, so savvy mobile advertisers will offer opportunities for users to create compelling content such as videos or pictures that can be shared. On average, 9% share user generated content on Facebook and 13% of users share a branded message on Twitter.2

the brand beyond the life of the campaign.

Social media is the ultimate viral marketing tool and there are few reasons not to include it in a mobile campaign. The integration of mobile advertising and social is seamless because the technology and the user experience are similar. Social media has a positive novelty factor effect and makes the brand cool, fresh, and up-to-date. It also extends reach and helps with acquisition.

If your brand has a Facebook page or Twitter profi le, don’t forget to include buttons in your ad to take your users there. It’s an easy fi rst step toward bringing social media into your ads, and it’s also quite effective. Across a sampling of ads that included social media buttons, 4% clicked to Facebook, 5% clicked to Twitter and 20%

. If there are multiple social media buttons, Facebook typically gets the most clicks.

a friend resonate more with consumers, so savvy mobile advertisers will offer opportunities for users to create compelling content such as videos or pictures that can be shared. On average, 9% share user generated content on Facebook and 13% of users share a branded message on Twitter.2

1 Fishburn Hedges and Echo Research

2 Celtra, Inc.

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Celtra Inc. is the global leader for rich media mobile advertising and analytics across mobile devices. AdCreator 3, used directly by top agencies, publishers and ad networks in more than 18 countries, is the only complete, SDK-agnostic platform for building, managing and tracking effective rich media mobile advertisements. For more information, visit Celtra at www.celtra.com or @CeltraMobile on Twitter.

Twitter is effective for forwarding branded messages that users are excited about. Ads can include a Canned Tweet which allows users to Tweet a message directly from an ad. A Twitter Feed component integrates a Twitter feed directly into the rich media ad. Users can interact with the feed by swiping up or down the device screen to move through the items in the feed.

If the goal is customer acquisition, foursquare drives foot traffic by encouraging users to find a location nearby and check in. National brands that run different promotions regionally find foursquare highly effective as it allows geo-targeting of specials, coupons or other messages.

A recent study conducted by Simply Measured showed 40 percent of the top 100 companies in the world have integrated Instagram into their marketing strategies. Instagram has proven effective for advertisers looking to capture the attention of the “hipster” crowd by encouraging them to share brand enthusiasm by creating “cool” photos.

Foot Locker recently launched a mobile advertising campaign that encouraged Instagram users to tag pictures of themselves wearing their favourite sports shoe using #kickstagram and @footlocker. Uploaded photos had the chance to be showcased on Footlocker.com, the Foot Locker Facebook page as well as in store windows.

The convergence of social media and mobile advertising is critical, and the ability to create highly relevant, contextual advertising is a powerful step in the right direction for advertisers. Social media empowers consumers to identify with a brand by allowing them to interact with entertaining content and share it, creating powerful brand advocates for marketers and advertisers. Always include social media in your mobile campaigns as it drives high engagement and extends the media buy beyond the life of the campaign.

Social Media and Mobile by Celtra

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1.4Display advertisingDisplay advertising on mobile and tablets has many similarities with digital advertising. Campaigns can be broadly split into brand advertising or direct response, often known as performance advertising.

The path you choose depends on your campaign goals and objectives and, once these are decided, the other elements of the campaign will follow.

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Millennial Media is the leading independent mobile advertising platform company. Our technology, tools and services help app developers and mobile website publishers to maximize their advertising revenue, acquire users for their apps and gain insight about their users. We offer advertisers signifi cant audience reach, sophisticated targeting capabilities and the ability to deliver rich and engaging ad experiences to consumers on their mobile connected devices.

by Gavin Stirrat Managing Director EMEA, Millennial Media

Brand AdvertisingBrand advertising on mobile will be bought as a CPM (cost per mille – thousand) impressions. It is important to understand your target audience and then choose the appropriate methods for reaching them. Types of targeting on mobile include:

• Tactical Targeting—reach consumers based on the characteristics of their device and data connection; e.g device, OS, network, wi-fi

• Content-Based Targeting—reach consumers based on the types of content they are currently consuming; e.g. automotive, fi nance, games, music, news, social, sports, etc

• Demographic Targeting—reach consumers based on their demographic characteristics, for example age, gender, household income

• Behavioural Targeting—reach consumers based on real-world actions and behaviours

• Contextual Targeting—reach consumers based on what is happening around them at that moment; e.g. location, day parting, competitive conquesting, situational – at an event; at an airport; in a hotel

• Local/Proximity Targeting—a subset of contextual targeting, that enables the advertiser to present relevant offers to consumers at the right moment, in the right place

• Retargeting—reach consumers who have already expressed interest or exhibited favourable intent for your brand or products

Millennial Media’s targeting technology enables brands to connect with real-world audiences, in the right place at the right time.

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Performance/Direct Response AdvertisingThis is an advertising approach where the action being inspired by the advertising is measured. There are many types of direct response campaigns and these can be broadly categorised as follows:

• App Download/Upgrade

• Lead Generation/Capture

• Enroll/Join/Register

• Site Traffic

• Orders

Performance advertising can be bought on a variety of metrics, including: cost-per click (CPC), cost-per-download (CPD), cost-per-install (CPI), cost-per-acquisition. CPC is by far the most common approach.

An important element of any performance campaign is the ability to instigate conversion tracking. This process reports when a conversion event takes place. It is possible for the media owner to track the campaign, or employ a third-party tracking service. This process is covered in more detail elsewhere in this handbook. By implementing conversion tracking, the campaign can then be optimised.

OptimisationThis is an analytical process that takes place when your display advertising runs over multiple sites. This is particularly true when taking advantage of a mobile ad platform or network. By monitoring the conversion insight it is possible, through the use of technology and data analyst intervention, to make improvements to the campaign by focusing parts of the budget on the places that are delivering the best results – for example specific types of sites, a time of day, etc.

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Ad FormatsWhether conducting advertising in-app, or via mobile web, there are fi ve main types of advertising opportunity to consider:

Standard Banners

There are a wide range of banner sizes available, with some of the most common listed below:

• 480x60

• 728x90 Leaderboard for smartphone or tablet

• 320x50 MMA Global Ad Unit for smartphone

• 320x53

• 300x250 MPU – MMA Global Ad Unit for smartphone or tablet

• 300x50 MMA Global Ad Unit for smartphone

• 216x36 MMA Global Ad Unit for feature phone



• 468x60 Banner for tablet

• 1024x768 iPad full screen

All of these banners can be static or animated.

Rich Media

A self-contained ad experience that can be tailored to accommodate complex client goals. The consumer is kept within their content experience and the advertising content is all served directly within the ad unit. Includes full-page expandable ad units, games, mobile video or other bespoke content. The wide range of post-click destinations and customisable features - including access to device functionality such as accelerometer, GPS, etc - provide advertisers with an opportunity to expand upon the initial consumer conversation.

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Full-Page Interstitial

Often found in game apps between levels, or in magazine-style content, between pages. These can be static, or include video, social media integration or other rich-media functionality.

Mobile Video

Effi ciently extend digital and TV creative onto the mobile platform and give consumers a lean-forward experience that starts a dialogue. Opportunities include video interstitial, pre and post-roll, inline and click-to-video.

Sponsorship

Provides 100 percent share-of-voice within the publishing channel chosen and often includes the opportunity to integrate advertising with the content itself. Campaign scale is limited by the reach of the site or app chosen.

IAB Rising Stars FormatsThese are a suite of fi ve Rich Media formats, designed to propel brand creativity on mobile devices, at scale.

The placement of these ads is publisher dependent, but as more publishers adopt these formats it should enable even greater creativity within brand campaigns. Further details can be found on the IAB website (www.iab.net/risingstarsmobile).

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by the reach of the site or app chosen.

IAB Rising Stars FormatsThese are a suite of fi ve Rich Media formats, designed to propel brand creativity on mobile devices, at scale.

The placement of these ads is publisher dependent, but as more publishers adopt these formats it should enable even greater creativity within brand campaigns. Further details can be found on the IAB website (www.iab.net/risingstarsmobile).

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Future TrendsAs an ever-growing number of brands include mobile within their marketing plans, the proportion of the overall budget will increase, to edge closer to the time spent with the medium.

Brands who test a mobile campaign for the fi rst time often gravitate towards a performance model as this can easily be evaluated and the ROI calculated. Increasingly however brands are realising the imperative need to use mobile to engage consumers with outstanding, rich-media creative. When beautiful ad-formats are created and social media tools integrated, the innate desire to share is encouraged, allowing bought media to also drive earned media value.

Sophisticated brand marketers with experience running mobile campaigns understand that a reach fi gure for mobile is not enough. Quality is of growing importance. As a result, ever more intelligent methods will start to appear to target brand audiences, using a wealth of data available and the unique attributes of mobile devices, to deliver the right message, to the right consumer, in the right place, and at the right time.

Buying Points – Ad Platform/NetworkThere are a large number of mobile ad networks operating within the UK, each with their own set of competencies and it is important to choose the one that best fi ts your campaign objectives. Mobile ad networks aggregate a large number of publisher sites and apps together, to provide scale and reach when conducting your advertising campaigns.

There are two distinct classifi cations of ad network – Premium or Blind – however a number operate across both disciplines. A premium network consists of a larger proportion of the premium publisher inventory and portal sites, along with the most well-known apps and long-tail developers. It is possible to receive site lists for where your campaign may run and target by a variety of variables. Whilst these networks will run performance campaigns, they take a higher proportion of the brand spend.

Blind networks are often the largest in terms of number of impressions offered, however it is not generally possible to have sight of where your campaign runs and as a result performance campaigns are more common.

Buying Points – Publisher DirectA smaller group of individual publisher sites, often with a prestige outside of mobile, for example large media conglomerates, broadcasters and major online portals. Inventory is usually sold by a direct sales team, or by a single network under an exclusive relationship. A larger percentage of brand campaigns are bought directly as it can give the advertiser – particularly if they are new to mobile – the security to know exactly where their advertising content will run. Scale and optimisation opportunities are limited as a result of the single-site buy.

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1.5Affi liate marketingMobile: the magic word of the decade. The rapid growth in the use of smartphones and tablets, high-speed mobile telecommunications networks, and sophisticated operating systems such as iOS and Android, are transforming the way we research and buy goods.

But while the spotlight in recent years has been on such things as mobile apps, mobile display and mobile PPC, mobile affi liate marketing seems to have been left in the shadows.

Yet online affi liate marketing, whether mobile or PC-based, signifi cantly extends the reach and infl uence of advertising and marketing campaigns. It generates new and highly qualifi ed leads; underpins highly targeted and tailored promotional campaigns; can be accurately tracked, measured and analysed for business benefi t; and helps to build brand reputation and awareness through association with trusted, sometimes highly infl uential, third party websites. It does all of this in a risk-free CPA metric. In short, what’s not to like?

With mobile commerce growing at an exponential rate, estimated to account for 20% of all sales this Christmas, there is an immediate opportunity for those advertisers that embrace m-affi liate early on.

Here I discuss the steps needed to be taken by advertisers to do just this.

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A leader in performance-based digital marketing/technology, responsible for pioneering affiliate marketing across Europe and the first to fully integrate m-commerce, helping its clients harness the potential of mobile marketing.

Define your affiliate objectivesWhat do you want your affiliates to drive? Customers that buy direct on mobile? Those that buy through your app? Footfall in store? Tracking technology can enable affiliates to drive interested customers straight to your m-commerce store or to download and buy via your app. It also enables affiliates to motivate people to visit their high street shops with a range of location-based mobile offers designed to integrate seamlessly with in-store till systems.

Of course, for any of the options to be truly successful, it’s important for an organisation to understand clearly which one (or more) they most want to push, and to build their mobile affiliate strategy around that. Your affiliate network should be able to work with you to deliver this pre-defined strategy.

Each of these routes can be accommodated through the same advertiser/affiliate performance-based reward system as traditional online affiliate marketing: it’s simply a case of different metrics, measured and analysed using the network’s tracking technology.

Get affiliate tracking on your mobile siteIncorporating tracking on to your mobile site is paramount to taking advantage of the affiliate channel. Contrary to a common misconception, m-commerce tracking is extremely simple to incorporate as it is identical to standard affiliate tracking and your network will be able to support you in implementing this on your m-commerce site.

Once the tracking is live you can fairly and accurately reward your affiliates for the traffic that they send you, as well as start planning sales-generating activity with them to drive incremental value through your m-commerce site. Those clients that can integrate tracking can steal a march on competitors that are slow to take advantage of the value that m-affiliate offers.

by Neil Ranatunga Head of Mobile UK & Ireland, Tradedoubler

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Clean up the user journeyCustomers who reach your mobile site or app via an affi liate are generally closer to the point of purchase than those coming in from general mobile display campaigns.

Advertisers can help to harness this opportunity by making sure the purchase process is designed to maximise conversion. Interstitial pages encouraging users to download an app rather than continue to purchase via the m-commerce site, and sites that don’t allow customers to deep link to specifi c pages, but rather redirect to a mobile homepage will negatively affect your affi liates’ conversion rates.

Those advertisers that work with their affi liate network to optimise the journey will quickly become preferred partners of the major affi liates as well as increase the conversion rate and thus sales of their affi liate traffi c.

Develop communication channels internally and externallyMany advertisers have separate mobile and affi liate teams. Affi liate marketing, more than any other marketing channel, is centred round relationships and as such, effective communication is pivotal. This extends both internally between those that determine mobile strategy and the affi liate managers, and between mobile managers and the affi liate network. Establishing a good dialogue will allow you to maximise the ability of your affi liate team and network to grow your m-affi liate programme.

Advertisers can help to harness this opportunity by making sure the purchase process is designed to maximise conversion

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Learn, test and utilise expertiseAffi liates have established themselves in the mobile arena for several years now and centre round the cash back, voucher codes, price comparison and content business models. Although ubiquitous in e-commerce, these affi liates can work very differently in the mobile space and it’s important to understand these differences and incorporate them into your promotional planning process to ensure that you optimise your m-affi liate programme. Don’t be afraid to try new ideas or approaches, learn from your initial successes and challenges in the m-affi liate space and lean on the expertise that your network and affi liates can offer you.

Talk to your network’s head of mobile or equivalent to help advise you from the start alongside your account manager to get the most from your network. Start planning m-affi liate activity in conjunction with your e-commerce plans and bring mobile into your strategic planning to allow the channel to work most effectively.

Many leading brands have already grasped all this. For those following in their footsteps, it is time for mobile affi liate marketing to take its rightful place at the top table of mobile marketing strategy. You have nothing to lose but sales.

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expertise that your network and affi liates can offer you.

Talk to your network’s head of mobile or equivalent to help advise you from the start alongside your account manager to get the most from your network. Start planning m-affi liate activity in conjunction with your e-commerce plans and bring mobile into your strategic planning to allow the channel to work most effectively.

Many leading brands have already grasped all this. For those following in their footsteps, it is time for mobile affi liate marketing to take its rightful place at the top table of mobile marketing strategy. You have nothing

For those following in their footsteps, it is time for mobile affi liate marketing to take its rightful place at the top table of mobile marketing strategy

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1.6Mobile targetingAs consumers, we are always on-the-go and rushing from one place to the next – all the while using our smartphones and tablets to read and send emails, catch up on breaking news, research fl ights and hotels, listen to music, watch TV and videos, and so much more.

Because of this “rushed” mentality, consumers tend to juggle multiple tasks at one time, are easily distracted and want “instant gratifi cation”. Geo-location targeting allows brands to deliver their brand’s location-specifi c message to users, wherever they happen to be. Be it a mobile coupon or streaming video, geo-location creates customer loyalty and a “hook” for purchases, both online and offl ine. For example, a fast food chain looking to grow its sales in a particular region can target mobile users with a “buy one, get one free” coupon at locations in that area. Similar to other mediums (e.g. online, TV and radio), brands can segment their mobile ads by time of day. For example, a fast food restaurant like McDonald’s could easily leverage the benefi ts of day-parting for meal time periods to generate brand awareness and deliver relevant offers. What’s important to understand here is that brands must look at the nature of how their consumer buys, layer that in with how they use their mobile device and time their executions accordingly.

catch up on breaking news, research fl ights and hotels, listen to music, watch TV and videos, and so much more.

Because of this “rushed” mentality, consumers tend to juggle multiple tasks at one time, are easily distracted and want “instant gratifi cation”. Geo-location targeting allows brands to deliver their brand’s location-specifi c message to users, wherever they happen to be. Be it a mobile coupon or streaming video, geo-location creates customer loyalty and a “hook” for purchases, both online and offl ine. For example, a fast food chain looking to grow its sales in a particular region can target mobile users with a “buy one, get one free” coupon at locations in that area. Similar to other mediums (e.g. online, TV and radio), brands can segment their mobile ads by time of day. For example, a fast food restaurant like McDonald’s could easily leverage the benefi ts of day-parting for meal time periods to generate brand awareness and deliver relevant offers. What’s important to understand here is that brands must look at the nature of how their consumer buys, layer that in with how they use their mobile device and time their executions accordingly.

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In addition, user context should be a key factor in a brand’s mobile strategy. And it’s been seen that contextually relevant mobile ads, when executed well, can outperform online display ads. So what’s the reason for these increased click-through rates? By placing a mobile ad within relevant content on a mobile website or application, the ad then becomes more engaging to users. That’s a win-win for both users and brands/publishers.

Mobile devices are everywhere. Kids, adults and businesses alike are using these “connected” devices to make their lives easier, more productive and entertaining. As we prepare for the launch of Apple’s newest iPhone (or iPhone 5, as some are calling it), it’s important to understand the plethora of mobile devices being used by consumers. Whether it’s one of the many iterations of the iPhone, the myriad of Android-powered devices or the latest range of tablets what seem like are launched daily, each mobile device attracts different types of demographics.

One of the biggest advantages of mobile as an advertising medium is the features available on smartphones and tablets, such as accelerometers, cameras, longitude/latitude, GPS, payments, group messaging (BBM/iMessage) and screen capture. Many of these device features have been used in a rich media mobile advertisement by brands to give the user an interactive and engaging experience.

All of these mobile targeting parameters point to the far reach and scope of advertising that can be achieved on the small screen. Mobile is everywhere we look; it’s our first point of connection and engagement with brands and media content. Understanding the capabilities of these devices will prove invaluable to brands looking to achieve key metrics, such as increased traffic, conversions, video plays, social influence and sales.

Mobile is everywhere we look; it’s our first point of connection and engagement with brands and media content

by Amy Vale, VP, Global Research & Strategic Communications, Mojiva Inc.

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1.7Location-based advertisingLocation-based advertising has been around for a long time. Thousands of years ago Egyptians used stone obelisks to communicate local laws and treaties. In the 1930s merchants painted signs on walls to notify locals that their establishment sold horse blankets and rheumatism pills. The products, format and delivery method has altered slightly since then but the concept remains. Similar people with similar interests reside in similar places at similar times.

Take a look at a football fan; they can usually be found in pubs, or around the UK’s football grounds during match times. Comparatively, if one wished to target an AB1 audience, we might expect to fi nd them in an airport business lounge or fi ve star hotel. In short, we can assume a great deal about an individual from their location.

When Blis was founded back in 2004 we specialised in proximity marketing. One of our key platforms was Bluetooth. The potential to target consumers walking past a retailer’s store was hugely exciting but the reality was less so. The data transfer was slow, and compared with today’s Rich Media engaging ads the content was not particularly inspiring allowing only images or low quality video. With neither iPhone nor Blackberry accepting these messages it quickly became apparent that advances in technology were needed.

with similar interests reside in similar places at similar times.

found in pubs, or around the UK’s football grounds during match times. Comparatively, if one wished to target an AB1 audience, we might expect to fi nd them in an airport business lounge or fi ve star hotel. In short, we can assume a great deal about an individual from

When Blis was founded back in 2004 we specialised in proximity marketing. One of our key platforms was Bluetooth. The potential to target consumers walking past a retailer’s store was hugely exciting but the reality was less so. The data transfer was slow, and compared with today’s Rich Media engaging ads the content was not particularly inspiring allowing only images or low quality video. With neither iPhone nor Blackberry accepting these messages it quickly became apparent

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The rise of the smartphone, and with it the number of people who are accessing the web on the move, has created more opportunity to engage with consumers using relevant content. Location and demographic information about a target audience can be reinforced with data provided by the users themselves through social networking and opt-in services. The result is a level of audience visibility previously never envisaged. The real challenge, therefore, lies not in the collection of this marketable data but in the development of the method that utilises it most effectively.

With the advent of Real-Time Bidding (RTB), we can now gain access to rich, real-time user information on a single ad-impression basis. The implication of this is that the exact location of a user at a unique moment can be pinpointed from data contained within the bid request. A profile for the user can be built allowing uniquely targeted adverts to be served, significantly impacting redemption behaviour and click-through rates (CTR). The result is a more engaging campaign and higher value conversion as a larger percentage of clicks lead to valuable actions. A less targeted campaign may see a similar CTR but fewer clicks lead to the desired outcome.

Internet Service Providers (ISPs) hold huge volumes of data on their users; they own the browsing session and often user information as well due to account subscription. If incentivised to do so they can manipulate the traffic in a way that allows the decoding of a bid request to identify user location, as well as being able to pass user demographics in the milliseconds before the ad is served. Forward thinking marketers are already partnering with ISPs to take advantage of this. For the ISPs this is a complete game changer, this new approach opens the door to an entirely new revenue stream.

BlisMedia offer advertisers the most targeted solution for mobile. The Infinity+ RTB platform uses a range of unique data sources to accurately reach audiences.

by Greg Isbister CEO, Blis Media

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Blis recently ran a test campaign to collect volume information for a well-known smartphone manufacturer. The first few days were run of network using a single creative; the performance was acceptable but not spectacular. Blis advised the client that by focusing the campaign and tailoring the creative to specific locations they would significantly improve CTR. Blis optimised the campaign by targeting relevant locations with bespoke time-targeted creative.

Graph showing effect of optimisation on campaign CTR

The future for location advertising is incredibly exciting. With available bandwidth and device capability advancing rapidly along with progression in Near Field Communication (NFC), we’re only just beginning to witness the potential with this format. The ability to run a location based display and search campaign, driving to retailers and tracking through to NFC purchase doesn’t seem too far away. Looking further ahead, technologies, such as Google’s Project Glass, will augment relevant offers into physical spaces.

Those of us that are involved in shaping this future have a responsibility to ensure the technology is used to benefit both consumer and brand. We’re now at a stage where we can identify who you are, where you are and what interests you might have. The result of this should be more relevant ads allowing consumers to make informed purchasing decisions and enabling brands to spend budgets more efficiently.

Date in September

CTR

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0.8

0.6

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Time period of optimisation via location

01 02 03 04 05 06 07 08 09 10 11 12

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1.8 Real-Time AdvertisingWhat is Real-Time Advertising? Real-Time Advertising (RTA) is a means of buying and selling mobile inventory via a fully automated, instantaneous auction. By treating every ad impression as a unique, biddable entity and not as a bulk sale, and by automating a large part of the trading process, RTA ensures greater control and transparency for buyers, and the best possible price for sellers.

The non-RTA approachThe best way to understand RTA is by understanding what happens in non-RTA scenarios. Publishers with inventory to sell currently have several choices. They can enter into direct selling and tenancy or sponsorship arrangements, or, for the large majority of remnant inventory or non-premium sites, they can plug into ad networks.

At this point, they typically employ ad routers which allocate ad requests between buyers on the basis of platform or geography. These usually ‘daisy chain’ requests, whereby an ad request not filled by network A is sent to network B, and so on. This addresses the fill rate, but it doesn’t necessarily provide the best price.

Enter yield optimisation platforms. These address the value issue through historical data, to decide which buyer is most likely to provide the best price based on attributes such as device type and user’s country. But yield optimisation is not the last word, because each platform needs to be integrated with many ad networks on a case-by-case basis, creating complexity. Yield optimisation is not in real time.

So, how to address these issues? How to maintain fill rates, enable the best pricing for buyers and sellers, and do this all in real-time on platforms that do not need bespoke resources?

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Adfonic is the smarter buying platform for mobile. We offer advertisers and agencies access to the broadest range of mobile inventory sources through a single buying point.

RTA: from queues to crowdsThe answer is RTA. Here, instead of the daisy-chain queue, it’s an all-comers’ auction. Each ad request is shown to all interested buying partners in an instantaneous auction model. Partners have a split second to decide whether they can serve against the request, and if so how much they are willing to pay for it. If the criteria are met, they place a bid. Whoever bids the highest, wins.

The whole process takes less than 100 milliseconds, and, with several thousand ad requests per second coming through across many exchanges, all participants, whether auctioneers (sales-side platforms) or bidders (buy-side platforms or ad networks), must have technology that handles this traffi c in a timely, reliable and robust manner.

Although not integral to RTA, the second-price auction model is common in RTA systems. In this, buyers submit bids without knowing what others have bid. The highest price wins, but only pays the second-highest bid. This is an effective pricing model, as it encourages buyers to state what they believe to be the value of an impression, rather than bidding against each other and applying upward or downward pressure. Possibly the most famous example of a second-price auction model is eBay.

by Paul ChildsCMO and co-founder, Adfonic

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Buyers love RTAThe major benefit of RTA for buyers is access. Demand-side ad platforms powered by fast algorithms can bid against the whole of the RTA-enabled market. Sophisticated self-service campaign management and inventory buying systems become single buying points, offering reach across billions of ad requests per month.

Another huge benefit is targeting. Most fixed-price campaigns are matched to criteria such as device type or platform, mobile operator and territory, plus some publisher information such as vertical or channel. But with RTA there is an opportunity to bring in much more demographic and behavioural data, and focus on audiences that may be more likely to convert based on current data or past behaviour (called retargeting). This is achieved by combining first-party data – that is, the information supplied by advertisers – with second-party data that the buyers own, complemented with third-party data bought in. This combination provides an incredibly dense, rich audience profile.

If there is a second-price auction, buyers also get more control by setting the price they are willing to pay. They don’t need to negotiate prices any more, or raise or lower prices to try and get a steal on their competitors. The process really is about fair bid prices that are determined by the collective intuition of the marketplace.

There are other benefits too. RTA gives buyers more transparency, in that they can choose exactly which exchanges and publishers they want to deal with. The process, as its name suggests, occurs in real time, so prices are current and consistent across all inventory. And simply automating a large part of the buy/sell process makes it all much more efficient and effective.

The major benefit of RTA for buyers is access. Inventory buying systems become single buying points, offering reach across billions of ad requests per month

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Sellers love RTAFor sellers, RTA is quite a simple proposition: they know that they’re getting the best possible price for each and every ad impression, because the marketplace has established the right level.

The dynamics really are like an auction (again, like eBay). More bidders bring more credibility as they make an ad impression more likely to be sold and create a more realistic market for impression-level bidding.

Mobile challengesAs technology has enabled RTA, it is establishing a foothold in online display advertising which, compared to mobile, is a relatively simple, uniform environment with a limited number of browsers and platforms, tied together via cookie technology.

What’s holding back mobile RTA is fragmentation of many operating systems and devices, which simply do not have the cookie technology available to tie this all together. For example, iOS app traffi c, which accounts for a signifi cant amount of mobile advertising, does not use cookies. The only other way to establish a user’s identity is via device IDs, and that raises a whole raft of security concerns.

The FutureMobile needs to address its challenges if RTA is to become successful. It needs a scalable way of tracking users that does not impinge on their privacy, and that works across multiple devices and platforms.

But mobile is still young, and mobile RTA is still very much work in progress. As RTA has continued to establish itself in the online world, the lessons learned will be applied to mobile when these barriers are overcome. The potential is large enough to act as a spur: sellers relish the opportunity to maximise the value of their inventory, while buyers likewise cherish the ability to extend their reach, improve effi ciency and gain control.

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1.9 Mobile messagingMobile messaging can complement traditional media by driving customers through their purchase lifecycle. A multi-channel approach to mobile communication can help brands achieve their business goals and maximize effectiveness.

Mobile messaging channels include:

• SMS (Short Messaging Service) is the most immediate and ubiquitous means of mobile communication today. It has a technical limitation of 160 characters of text but is accessible to nearly everyone on the planet. Many businesses already use SMS to engage with consumers. SMS allows brands to deliver one and two-way communication and even though it doesn’t enable the same multi-media creativity of other messaging types, it will remain the predominant messaging type for years to come as brands creatively exploit its unmatched ubiquity, reach and proven reliability.

Research by Ofcom shows that almost 94% of SMS messages are read within five minutes of being received, which makes its effectiveness and reach for certain campaigns unequalled compared to other messaging types.

• MMS (Multimedia Message Service) today enables up to 400Kb of rich media such as pictures, audio, or video to be delivered to MMS-capable phones. Examples of MMS include: branded advertisements, mobile coupons, interactive surveys, music videos, sports highlights and display ads. However, not all phones are MMS-capable, which limits the addressable market. Effective display of an MMS may also require the sender to know the recipient’s handset type. Companies like Virgin Media have shown click-through rates greater than 80% when deploying MMS campaigns appropriately.

• Push Notifications are sent directly to a mobile app on a smartphone. Assuming a brand has an app, the customer has installed it and opted-in to receive Push Notifications, brands can then send product updates, coupons, brand awareness promotions, or any other messages. Despite its many technical pre-requisites, Push allows for cost-effective ongoing consumer engagement with the brand as well as allowing better ROI on the investment in the app.

• E-mail has been a popular form of mobile messaging in the business community ever since BlackBerry created the mobile e-mail market. With smartphone penetration increasing, an increasing amount of e-mail campaigns are optimised for mobile screens. However, mobile e-mail still lags behind SMS in terms of effectiveness due to the differences in consumer attitudes towards SMS (short bursts of useful, important information) versus e-mail (longer, less intrusive and less important information).

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by Open Market

Key questions marketers should ask BEFORE using mobile messaging:

Having understood the different the types of mobile messaging, marketers must ask themselves important questions when considering a mobile messaging campaign.

Why am I choosing to send a mobile message?Does the brand want to drive a specifi c purchase action, build or nurture a relationship, provide some one-off or ongoing information/confi rmation? Be sure the use of technology is relevant to the commercial objective of the brand and isn’t just a vain science experiment or an attempt to keep up with a competitor.

Why is the end user receiving the message on their mobile?The brand may have decided to send a mobile message but that doesn’t mean the end user wants to receive it. Be sure to:

• Get the opt-in of the consumer – either through explicit action (such as texting to a shortcode or clicking a check box) or unambiguously implied (e.g. people submitting phone numbers on information forms). Remember: unwanted messages endanger your brand and risk your relationship with consumers. Therefore resist the temptation to buy large-scale mobile lists.

• Confi rm that mobile is relevant to the brand’s relationship with the end user. The brand must understand its different market segments and target the mobile audience accordingly.

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Can the end user receive the message?The agency may have the latest smartphone with unlimited data plans and installed applications – but that doesn’t mean the end users do as well. Be sure to choose the right message type for the intended audience.

What happens once the message is sent?• Mobile messaging is immediate, so if your end

user is engaged by the message the brand must have effective processes set up to handle the user’s response. What happens if they do press ‘reply’?

• Different messaging types are better deployed for different times in the customer life cycle. Plan to evolve your messaging strategy as your campaign matures and the relationship with the end-user develops.

• If the brand wants to encourage interaction, they must be committed to ongoing dialogue and publicise mobile messaging paths in other ongoing existing communications.

How am I going to send the messages?Developing in-house capabilities, using a digital agency or a messaging aggregator are all options. The marketer needs to choose what is most effective and reliable for them and their needs/capabilities. If you’re going to an external provider, consider a partner that understands the importance of the brand and can provide technical reliability, scalability and evolution for today and the future.

Have I planned my budget properly?Like other messaging types, mobile is rarely effective without proper investment. In addition:

• Both SMS and MMS typically attract a per-message fee. As a result the brand has to accept that budgets are unlikely to be fixed.

• As with postal messaging, mobile messaging typically has a transit cost. Unit prices typically reflect quality of service. A second class stamp can arrive promptly, but if you want a first class service then expect to pay extra for a first class stamp.

Final wordMobile is by definition ever-changing. To best exploit mobile, brands have to embrace a long term investment in the channel and expect to evolve with their customers and the mobile technologies that they choose to use. Using mobile messaging to persuade a consumer to invite your brand into their life via their phone is a delicate situation that requires careful thought and consideration. Do it badly, and you seriously damage your brand and your relationship with existing and prospective customers alike. But do it well, and you can establish a valuable and productive understanding with consumers that delivers unparalleled and ongoing success for your brand.

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1.10 TabletsOver the past two years, the tablet market has exploded with IDC predicting over a 100m sales, globally, this year. By 2016 this is projected to be 375m1 The Communication Market Report from Ofcom identified that 11% of UK households already own a tablet device.

If we look at cumulative sales of the iPad recorded seven quarters after launch and compare this with the iPhone, the results are staggering. Over this period the iPhone had recorded cumulative sales of approx. 17m. Over the equivalent period after launch of the iPad, Apple had recorded almost 60m unit sales2

As new devices are activated each day and consumer usage increases we are now also seeing the rise of tablets in business. In a recent study of business leaders, 65% strongly agreed/agreed that they will be using their tablet device more so than their desktop computer, in future3. This is a significant shift and underlines the ease of use that ‘always on’ tablet devices offer.

iPad growth rate is phenomenal

Cu

mu

lativ

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tal u

nits

sol

d

(tho

usa

nds)

Quarters after launch

60000

45000

30000

15000

0

1 2 3 4 5 6 7

iPad

iPhone

iPod

Source: Asymco

1 Forrester Research

2 Asymco

3 Forbes Untethered Executive Report

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The Financial Times, one of the world’s leading business news organisations, is recognised internationally for its authority, integrity and accuracy. Providing essential news, comment, data and analysis for the global business community, the FT has a combined paid print and digital circulation of 600,000 (Deloitte assured, April 2012) and a combined print and online average daily readership of 2.2 million people worldwide (PwC assured, November 2011). FT.com has over 4.5 million registered users and 285,475 paying digital subscribers.

The newspaper, printed at 22 print sites across the globe, has a daily circulation of 297,225 (ABC fi gures June 2012).

Many publishers are claiming signifi cant revenues being generated from tablets, via subscription sales & advertising, and it’s clear to see why. Those of us that own tablets are fi nding new ways to use them all of the time. Whether it’s doing the weekly shop, reading the latest news, catching up on that TV show and so on, we’re all turning to our tablets to aid us in our daily lives.

It is said by some that the tablet is essentially a media consumption device. It’s hard to argue with this although it’s important to note that using a tablet to make a retail purchase is, according to another recent IAB study, the task that those surveyed most used the device for. Reading news content came a very close second – within 1%, in fact.

registered users and 285,475 paying digital subscribers.

by Financial Times

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It’s been interesting to see how content providers have tackled this, still very new opportunity and also the evolution of the advertising opportunities. From static, hard coded ads, initially, to rich media executions that is now becoming more prominent.

Interaction and CTR rates remain higher than the equivalent campaigns running on desktop websites. The novelty factor, that many thought might have explained this in 2010-11 does not appear to be wearing off.

A recent IAB study showed that 47% of tablet owners interact with ads every week4. This study reports that the vast majority of these people were likely to take some action. Studies like this indicate that the tablet is a great platform for advertising and the engagement, interaction and CTRs we’ve been seeing over these past two years underline this.

Tablet apps, native or web/HTML5, provide a great environment for the types of brands that have hitherto not taken to digital advertising in a big way e.g. luxury brands. Content providers are tapping into this and are striving to create new ways of making sure their proposition is the right fi t for these brands.

Exclusive research conducted by the FT to agencies and clients around the globe enforces this by fi nding a clear enthusiasm for tablets, with respondents anticipating a greater proportion of marketing budget to be allocated. Advertisers are highly encouraged by the improved creative executions and the ability for improved engagement.

4 IAB Mobile Marketing Center of Excellence released“Mobile’s Role in the Consumer’s Media Day,”

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Content providers need to focus on detailed campaign reporting and make this available to advertisers – yet this is not a given.

Basic level information like the number of ads served and ‘tapped’ on is often not offered to advertisers. This needs to change, and fast.

In the case of the FT, we have developed a proprietary reporting system, ‘Deep View’ that enables us to report back to advertisers on who has been viewing and responding to their ads. With our own audience registration data and also third party licensed data (Cameo and Dunn & Bradstreet), advertisers have access to extensive reporting on who has been exposed to their campaign, including users’ position in company, their area of responsibility, their industry sector and much more alongside what perhaps should be the standard ad impressions delivered and number of clicks recorded.

It is important to provide marketers with insight into how their campaigns are performing, not only for evaluation purposes but also crucially during their campaign, allowing us to take a proactive approach to all our account management. This is what ‘Deep View’ reporting enables us to do.

As the market becomes more mature, marketers will demand more information and transparency in order to make the best possible decision on what tablet opportunities are best for them and their brands.

Those that hold data and utilise it well will benefi t by seeing more investment from advertisers. These are exciting times. Long live the tablet!

As the market becomes more mature, marketers will demand more information and transparency in order to make the best possible decision on what tablet opportunities are best for them and their brands.

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1.11 Mobile creativityWe believe there are four key elements to great mobile creativity; truth, selectivity, responsiveness and experience.

Responsiveness

Experience Selectivity

Truth

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How to do breakthrough mobile creativity by Stefan Bardega, Managing partner, MediaCom

1. Build your mobile idea around a Real World Truth How do you build an amazing creative idea for mobile? Well the fi rst point to make is that mobile might well be the answer but it should never be the question. The start point should always be the audience not the platform. Once you understand your audience you can develop your view on the role of mobile as a platform and build the idea from there. This understanding of the audience should lead to a human or category truth: we call these ‘Real World Truths’.

A good example of how a real world truth can lead to cutting edge piece of mobile creativity is the Backseat Driver game from Toyota’s Toy division. This game arose from the real world truth that kids have a bit of a love hate relationship with cars: they love pretending to drive them but hate it if they are forced to be a passenger inside one for too long. So Toyota developed a game that enabled kids to drive the car in a virtual world (that precisely replicated the real world their father or mother was driving through) by deploying GPS tracking. Turning was made possible by the gyroscope and the driving was gamifi ed by adding points for good steering. All of this smart use of mobile technology was made relevant by that single real world truth which is why creatively it stands out.

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So Toyota developed a game that enabled kids to drive

by deploying GPS tracking. Turning was made possible

of mobile technology was made relevant by that single

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2. Be selective about which mobile technologies to useBackseat Driver is a great example of a native mobile application being deployed creatively. Indeed to have that level of interaction and access to phone’s hardware would have certainly required a native application to be built. However creativity in mobile is not just about apps anymore. Infact rich creative experiences also increasingly involve newer emerging mobile disciplines or technologies such as NFC (Near Field Communication) or HTML5. The mobile web language of choice (HTML5) is one of the fastest growing creative platforms for brands and offers a rich creative experience (with most of the functionality and interactivity you would expect from an app) but powered by the web rather than native programming code. The HTML5 approach has 3 major benefits over apps; firstly you build once for all platforms rather than individual builds for each, secondly you can update changes instantly rather than waiting for the user to update their app and thirdly it is generally significantly cheaper.

The above example for the movie American Pie the Reunion was developed using HTML5 and enabled the user to add a calendar entry for the opening weekend of the movie, view the trailer, connect to the Facebook page plus take a photo of themselves with the cast. All from within a mobile ad on a browser.

So if you are trying to create a branded experience think carefully before building an app; make sure you select the right combination of technologies and disciplines to match both your audience, idea and objectives.

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3. Build responsive creativity through dataMobile creativity is increasingly about being responsive. Responsive not only to the user interaction but also to the user environment. This is made possible by the new types of data points made available on mobile devices such as location, speed being travelled, or direction facing. These new data points should be considered part of the creative opportunity.

In this example from Sky the content in the mobile rich media execution is dynamically generated based on the user’s location data, with several thousand location-specifi c creative variations generated in real time and on the fl y. This enables Sky to feed into the ad creative how far away the nearest Sky WiFi hotspot is and then open up a map populated with the nearest hotspots once the user taps on the creative. once the user taps on the creative.

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4. Turn social experiences into mobile/social experiences Our fi nal area of creative opportunity lies at the intersection of social experiences, content and mobile. Smartphones are being crammed full of new gizmos every day many of which enable us to create and share content. That content may be similar in form to desktop (videos, blogs, photos) but the big difference is we carry our phones around with us all the time, which means that every moment has become a content production and sharing opportunity no matter where we are, who we are with, or what time of day it is. This presents a new creative opportunity particularly at events both large and small. This untapped opportunity is to enhance an event experience by integrating mobile deeply into its fabric not just from an operational perspective e.g. ticketing and maps but from a content curation perspective too: check-ins, photos walls, video perspectives; all connected socially and geographically.

Services like Clinch are starting to explore this; enabling event attendees to mix videos and photos with others around their location (using smartphone GPS) to create a collaborative multi-media view of the experience. Imagine the opening ceremony of the Olympic games fi lmed by even 10% of the attendees and you start to get an idea where this might go, with event sponsors and advertisers able to generate vast amounts of mobile content and earned media from real world activities.

perspective e.g. ticketing and maps but from a content curation perspective too: check-ins, photos walls, video perspectives; all connected socially and geographically.

Services like Clinch are starting to explore this; enabling event attendees to mix videos and photos with others around their location (using smartphone GPS) to create a collaborative multi-media view of the experience. Imagine the opening ceremony of the Olympic games fi lmed by even 10% of the attendees and you start to get an idea where this might go, with event sponsors and advertisers able to generate vast amounts of mobile content and earned media from real world activities.

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2.2 Ad serving

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2.1TrackingTracking mobile advertising has traditionally been a challenge however there are now many tools in the market that allow a brand or agency to see exactly which part of their mobile advertising is performing most effectively.

Just like the desktop internet a buyer can track from an impression right through to a conversion on a mobile site or mobile application. Its important to note however that mobile advertising is still maturing and so merely transplanting existing desktop tracking technologies on to mobile is unlikely to yield positive results. Below are some areas to consider when deploying campaigns.

Tracking media spendStandard and Rich Media Display

Like its desktop cousin it is possible to track from an impression or a click when running mobile display media. Media owners in most instances will provide impression and click data via their proprietary systems. Multiple ad-groups can be created and so a buyer can see which areas (across an ad-network) are performing best. Third-party tracking companies can also offer impression and click tracking however discrepancies can occur due to the unique nature of mobile devices and interrupted connectivity. Mobile specialist vendors are available however and these solutions tend to offer more features and granularity than desktop solutions.

SMS and QR

SMS campaigns should only be approached with clean, clearly opted-in databases. In the majority of cases tracking will be provided by the vendor that is sending out the messages on your behalf. SMS can be tracked and reported on by date and time sent and number of opens. If a click tracking URL is included within an SMS then these clicks from the message can also be tracked.

Tracking QR codes can be complex – many different QR code readers offer tracking which records the number of “scans” a QR code has received. They may not necessarily tell you how many consumers went through to the mobile site however. It is much better to use a third party vendor and create the QR code from their re-direct URL’s. This means that regardless of which QR code reader is being used by consumers you will be able to track the resulting clicks and therefore engagements.

re-direct URL’s. This means that regardless of which QR code reader is being used by consumers you will be able to track the resulting clicks and therefore engagements.

2.1Measuring mobile

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Tracking on mobile by David Fieldhouse, Director Mobile Future Group

Tracking mobile conversionsMobile internet sites

Mobile internet site conversions tend to be more difficult to track than on desktop (this is certainly true from impression right through to sale). Cookies on their own are not an effective method to track conversions (or clicks) on mobile and so a variety of other technologies (device recognition etc) are required to be accurate. Mobile specific container tags can be deployed across mobile internet sites to track landings, page views and conversions. It is possible to track sales value via mobile pixels however it’s recommended to use mobile specific technologies for this type of tracking.

Mobile applicationsThe majority of brands with apps are now spending money on mobile marketing to promote their app. Traditionally it has been impossible to track the source of your downloads and then to look more deeply into which media sources have delivered an in-app conversion such as sale, registration etc. This is now possible via bespoke tools offered by specialist third party vendors. While mobile internet sites can utilize container tags and pixels all mobile app tracking will require an SDK (software development kit) to be hardcoded within the mobile app. Campaigns can be tracked from click, to download, to user and then to sale. All these metrics can be viewed by country, network and creative which allows detailed information to be gleaned regarding your app users and also where those engaged users can be found.

If you are using a third party tracking tool to measure app campaigns and downloads you should ensure the companies involved are privacy compliant and handle consumer data in the correct manner.

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25 28 01 04 07 10 13 16 19 22 25

Downloads

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Signups

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2.2Ad servingConsumer demand for mobile devices is driving exponential growth and creating unique opportunities for brands to engage with consumers in innovative ways.

Sophisticated mobile technology allows brands to deliver highly interactive, location sensitive and personalised ads to consumers. However the number of different mobile devices also mean there are big variations in device capabilities that impact on how ads are delivered to mobile devices.

To engage with consumers on the move, ad delivery on mobile needs to be simple and effi cient. After all, if consumers’ experience of mobile ads is poor, either because ads are badly targeted or due to technical problems, it is potentially damaging both for the advertiser and for mobile as an ad medium.

The fi rst step in getting to grips with ad serving on mobile is to be clear about how it differs from ad serving online.

The challenges of ad serving on mobileAd serving on mobile is complex. What’s more because advertising on mobile is much less mature than advertising online, it has attracted a large number of technology providers offering niche solutions. This has led to a high level of fragmentation in the market which prevents effi cient and simple delivery of mobile campaigns. So how can we simplify mobile advertising in general and mobile ad serving in particular?

One option is to reconfi gure online ad serving solutions for mobile. However as the table shows, there are a number of differences between online and mobile ad serving. Most online ad servers are not designed to deal with the level of complexity inherent in mobile ad delivery. Ad servers that have been specifi cally designed for mobile ad serving are best suited to delivering mobile ad campaigns.

Another solution is the rise of single mobile advertising platforms which remove the complexities of advertising on mobile. Providers of integrated solutions simplify the process of campaign delivery and are able to deliver better results because of the data driven real-time optimization that is possible in integrated systems.

54

to technical problems, it is potentially damaging both for the advertiser and for mobile as an ad medium.

The fi rst step in getting to grips with ad serving on mobile is to be clear about how it differs from ad serving online.

in general and mobile ad serving in particular?

One option is to reconfi gure online ad serving solutions for mobile. However as the table shows, there are a number of differences between online and mobile ad serving. Most online ad servers are not designed to deal with the level of complexity inherent in mobile ad delivery. Ad servers that have been specifi cally designed for mobile ad serving are best suited to delivering mobile ad campaigns.

Another solution is the rise of single mobile advertising platforms which remove the complexities of advertising on mobile. Providers of integrated solutions simplify the process of campaign delivery and are able to deliver better results because of the data driven real-time optimization that is possible in integrated systems.

55

2.2Measuring mobile

AdMaxim is an integrated mobile advertising solution which enables brands to reach consumers on the move anywhere, using precision targeting and real-time optimisation technology. Simply, we deliver the right message, to the right individual, at the right time.

Looking ahead Despite its complexity, advertising on mobile has huge potential. The growth in smartphones with the capability to carry high quality rich media (RM) means that RM is now an option for advertisers wanting to run mobile ads that are not only creatively immersive but which also outperform static ads. Major brands are increasingly able to deliver large scale, creatively engaging media rich mobile campaigns.

What’s more the mobile sector has launched a number of initiatives aimed at developing universal solutions for RM ads. The standardization of RM formats on mobile web and apps will enable brands to effi ciently create, deliver and optimize highly engaging ad experiences.

For more detailed information on mobile data & analytics, please refer to IAB Mobile “Data and Analytics Whitepaper” www.iabuk.net/mobiledataanalytics

by Sultan KhanCEO, AdMaxim

Online Mobile

Screen Sizes Boasts a small number of screen sizes which means that ad sizes are standardised.

The wide range of mobile devices means there are a large number of screen sizes and aspect ratios to deal with. To deliver ads that work on all commonly used devices, ad servers need to dynamically detect the screen size of each device being targeted and select the right ad.

Location Support Features mainly fi xed location based targeting since devices (PCs and laptops) are commonly used in the same location.

Offers dynamic real-time location based targeting enabling delivery of a wide range of ads and content relevant to a consumers exact whereabouts. Mobile ad servers need to be able to detect a consumers location and serve the relevant ad.

Video & Audio Support/Formats

Online browsers support standard video/audio profi les.

Mobile devices vary widely in the types of video and audio formats they support. Mobile ad servers need to maintain a database of device capabilities and must be able to detect device type in order to serve the correct format for that device.

Interactivity – Javascript Support

The majority of online browsers support fl ash and also offer standard implementation of Javascript which is fast becoming the technology of choice for building interactive rich media ads.

Not all mobile devices support fl ash and Javascript is the dominant technology being used for interactive ad types. Mobile ad servers need to be able to select the right type of rich media Javascript based ad, to match the ad being targeted.

Application Support and Marketplace

Online ad servers deliver ads to online web browsers.

The growth in mobile ads is huge which means that mobile ad servers need to deliver ads within mobile application on multiple platforms.

Difference between Online and Mobile ad Serving

56

M-Commerce

3

57

3.1 Near Field Communications

3.2 Vouchering/In Store

3.4 Loyalty

3.5 Mobile payments

58

3.1Near Field CommunicationNFC has arrived, industry analysts predict that 53% of smartphones will be NFC enabled by 2015 when it’s anticipated that NFC transactions will reach US$74 billion.

NFC generates both excitement and apprehension for consumers and businesses:

Concerns Excitement

Lack of NFC handsets Ease of use

Security & Privacy fears Variety of uses

Lack of commitment by large retailers Strong standards

One certainty is that with a rapidly growing population owning NFC enabled devices and NFC being used for payments, ticketing and marketing, it can no longer be ignored.

Apple launched the iPhone 5 on 12 September 2012 and to no-one’s surprise it did not include NFC, but the momentum already exists; Android, Windows and RIM based devices account for around 70% of all mobiles in use and are committed to NFC. Google activate 1 million NFC Android phones every week.

Security & Privacy fears Variety of uses

Lack of commitment by large retailers Strong standards

One certainty is that with a rapidly growing population owning NFC enabled devices and NFC being used for payments, ticketing and

Apple launched the iPhone 5 on 12 September 2012 and to no-one’s surprise it did not include NFC, but the momentum already exists; Android, Windows and RIM based devices account for around 70% of all mobiles in use and are committed to NFC. Google activate 1 million NFC Android phones every week.

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3.1M-Commerce

Under the bonnetNFC is easy: two NFC enabled objects in proximity can talk to each other, exchanging information without any effort or manual input.

NFC uses a wireless signal, antennae, integrated circuits and an electromagnetic field. Powered NFC enabled devices can talk to each other, but also one powered device e.g. a mobile, can communicate with a passive NFC tag that has no power. The tag gets power directly from the mobile as it gets near. These tags can be positioned inside or on any static object or printed material making it “smart”.

NFC is a form of RFID, which has been used for many years for contactless communication using a specific radio frequency of 13.56Mhz. NFC only works at close proximity, which is defined as < 10cm by ISO 14443.

NFC M-CommerceMost NFC awareness relates to payments and ticketing, using a mobile to make payments or gain access through the barriers at stations, rather than using cards.

Mobile payment schemes are normally made available using a mobile application that is effectively a “digital wallet”. Digital wallets offer more than storing payment card details as they also have built-in loyalty schemes and access to coupons.

In the race to offer digital wallets, many partnerships have been created. Recently some larger US merchants including Wal-Mart and Target have come together to create their own offering called Merchant Customer Exchange (MCX).

Recent initiatives:

• Wal-Mart US announced that NFC payments will be accepted in their stores

• UK Post Office has NFC available in 11,500 branches

• EC have approved plans by the UK’s leading carriers in a joint venture to launch commercial NFC services in the UK

• The Turkish carrier Turkcell has implemented a mobile digital wallet application and payment terminals, with many retailers handling NFC payments

Consumer concerns about NFC payments include personal data being hacked, mobile transactions being less secure than credit and debit card transactions, and fraudulent charges in the case of lost or stolen mobile phones. In fact with proper security measures and specific regulatory guidance in place, mobile payments can be more secure than traditional payment methods.

NFC—the future is here by Chris Humphries, CEO, ZipNFC

60

3.1 M-Commerce

NFC beyond paymentsNFC combines the physical and digital worlds and due to ease of use, is a major step towards ubiquitous computing. There have been many pilots taking place in the UK and other markets offering a variety of different platforms for consumers to try out their new NFC mobiles.

Outdoor site owners are expanding their OOH NFC enabled sites across all major markets with some good results. JCDecaux tested NFC campaigns in Reading during March 2012 working with Kinetic and GroupM brands including Unilever, EA, Mercedes and H&M. Test results and feedback are featured in the chart below:

There are too many examples of NFC non-payment uses to detail here. One example is using NFC to simplify connections between devices, by automating the sharing of connection details and removing the need for pairing and searching.

This is a key paradigm of NFC as it can remove the need to search or scan and thus automate tasks. Consumers can thus be directed to relevant content, offers or information based on where they are down to the store, floor, department or product and time of day.

You can’t ignore it, so embrace it

NFC is coming of age and now included in mobile, tablet, PC’s and wireless peripheral devices. Retailers are implementing NFC in their stores, digital wallets are here and consumers are aware and eager to try NFC.

Would use NFC again

Positive experience

Video downloads

Average redemption

Highest redemption

85%

78%

28%

7%

18%

62

3.2 Vouchering/In StoreIn these times of austerity, UK shoppers are increasingly looking to get more value from their shopping experience. As a result, we’re seeing an explosion in coupon usage.

72% of UK shoppers are using coupons regularly1, while 51% are basing purchasing decisions on coupon availability2. In parallel, smartphone usage amongst UK shoppers is massive, with 64% now owning a smartphone3 and over half of these using their phone to enhance the shopper experience4.

This includes the likes of price comparison look-ups, searching product reviews and, of courses, seeking offers. Amongst smartphone users, nearly half find and use discount offers via their phone to help with shopping, and 71% say they’re more likely to visit a restaurant if mobile coupons are available5. The portability and connectivity of mobile technology means that brands, retailers and hospitality providers can reach shoppers directly, in a relevant, contextual way in order to incentivise an immediate purchase.

But the smartest brands, retailers and leisure businesses need to consider how these promotional coupons can bring value to their business, beyond driving fickle traffic from cost conscious customers looking for a bargain. Managed properly, mobile coupons close the loop between digital marketing and the high street. A good starting place is the 3 R’s of mobile promotions –reach, redemption and reporting.

Reach

Using mobile to issue a coupon, drives customer acquisition through any type of media, from mobile, and online affiliate, to traditional media, or even in-store. This flexibility allows a target audience to be reached through an integrated, scalable media campaign. It also provides customers with an immediate call to action –clicking in-app, filling out a simple data entry form, or SMS opt-in, which increases response rates.

Mobile apps, such VoucherCloud or O2’s Priority Moments loyalty app, allow advertisers to reach an audience seeking deals within close proximity using location-based technology. In a recent campaign, O2 partnered with an Eagle Eye client, running a campaign to acquire customers and re-engage with lapsed customers. The unique coupon code was delivered directly in-app, using geo-targeting. Maximising the convenience for customers resulted in a high offer acceptance rate to redemption rate. More importantly, 57% of these were new customers and 11% were lapsed customers.

Online affiliate networks, such as Money Supermarket, now issue coupon codes via mobile SMS. These are a good option for customers who like to plan but still want the simplicity of mobile delivery. Moreover, from our experience, using mobile SMS as a reminder of when coupons are due to expire sees a spike in redemption rates.

1 Valassis

2 Aislebuyer

3 Savvy Marketing

4 Ofcom

5 Punch Mobile Marketing

63

3.2M-Commerce

Closing the digital loop by Andy Smith, Client Services Director, Eagle Eye

In-store, the prevalence of WiFi hotspots and the 4G network rollout offer huge opportunities for retailers to deliver offers to customers, whether it’s on their behalf or a third party brand (e.g. an FMCG offer in a grocery store). Furthermore, according to on-device research, 71% of smartphone users who connect to an in-store WiFi network would be interested in receiving offers. This provides an immediate and contextual communication channel for incentivizing customers to ‘purchase now’ through timed offers. It also contributes to a rich multi-channel experience that improves conversion and enables the collection of low cost data to enhance CRM.

The issue with mobile couponing is the lack of ‘physical proof’ (e.g. paper) and visibility for marketers to understand the full impact their campaign is having in-store. This is where digital redemption plays its part.

RedemptionNo matter who is offering the customer offer, digital redemption is key.

Digital redemption is where the coupon can be accepted by entering a unique code into a POS/Chip & PIN terminal, by scanning a barcode or via NFC. The combination of unique code identifier plus digital redemption means the retailer is protected, as every coupon redeemed is recorded in an automated real-time way. For marketers, the combination of this process captures a wealth of data.

ReportingFrom a marketer’s perspective, the power of unique code issuance for digital redemption is essential for accessing the real-time performance data that is needed to monitor campaign performance, from coupon issuance to redemption. It also provides information such as location, time, date and basket size. This is a powerful tool for informing comms strategy and providing media spend accountability directly to an in-store sale. Depending on the opt-in, mobile also provides a low-cost data collection route in order to build customer intelligence, and re-market to loyal customers with personalised promotional incentives and rewards.

Done correctly, mobile couponing has the potential to revolutionise the marketing industry. Not only does it close the loop between marketing and in-store sales for marketers, but it gives them direct access to a plethora of data that can inform strategy, maximize performance and keep customers loyal.

Purchasing(Instore)

Reporting & Crm

Digital Media & Traditional Media

Customer(On Mobile Device)

Closing The Digital Loop

64

3.3 Loyalty and CRMCustomer relationship management (CRM) is the process of managing a brand or businesses’ ongoing interaction with their customers. With the advancement of technology and automation it is becoming an incredibly powerful retention tool for most forward thinking companies. Getting it right is essential; the cost of retaining a customer is a tiny fraction of the cost of gaining a new customer. The value of an effective CRM strategy is clear to any business.

The core of all CRM strategies is the nurturing of each customer. The key is to make them feel more than just a number, to ensure that if they want to be heard, that you as a business can hear them and to make sure that any communications are timely and relevant to the timeframe they are made in.

Clearly, and in the context of the subject of this guide, mobile devices provide the perfect environment to be delivering all or part of every CRM service.

Mobile is one of the most personal “activities” there has ever been. Short of personal face to face interaction, the mobile device is by far the most efficient and importantly engaging way to communicate with friends, family and colleagues via voice, email and text. It is no wonder that most people would rather lose their keys or wallet than their phone.

There are three rules when considering integrating mobile into any CRM strategy:

1. Respect how customers feel about the medium – it’s personalThe personal relationship people have with their mobile makes it perfect as a medium for building a close relationship with customers. People’s mobile devices are with them more often and more closely than their partner, spouse or parent. So just like in any relationship, treat them with respect and be mindful that people’s mobiles are part of their personal space.

2. Integrate CRM from the startThose most likely to buy again, and most cost-effective to market to, are previous customers. Think about mobile activity in terms of campaigns and create big ideas or really smart small ideas to encompass the whole range of activity to not just recruit but retain customers too. Go beyond making sure you ‘close-the-loop’ in the mobile consumer purchase journey; think early about the relationship ripple-effect you can build out from each loop.

65

3.3M-Commerce

by Mick RigbyFounder & Managing Partner, Yodelmobile

3. Understand the psychology of mobile useThere are two types of cognitive processes; intuition and reasoning. Intuition is fast, spontaneous, effortless and emotionally charged, whereas reasoning is slow, deliberate, effortful and neutral. Consumers prefer to put low levels of effort into processing brand communications. That means CRM activity needs to appeal to consumers’ intuition and emotions as much as, or more than, their rational reasoning. So at each point of customer contact, ask yourself is it as creatively engaging, recognisably branded and simple as it can be?

Delivering CRM in mobileDelivering CRM through mobile can touch every aspect of the device from an outbound call via customer support to a native app that the customer can access information and interact with the business directly.

Some of the most effi cient usage revolves around the simplest solutions and SMS is by far the most effective.

SMS/MMS – once a customer has opted in to receive your SMS messages, you have access to a very inexpensive, time sensitive and relevant CRM service. It’s a doddle for an agency with an SMS based CRM management platform to support your CRM programme through mobile. And the breadth of what can be undertaken is vast:

The simplest use could be a message of welcome to a new user or thankyou for being a regular customer or a birthday message. Immediately strengthening the relationship with the brand. More complex solutions will provide valuable services or insight such as customer service Q&A’s, emergency notifi cations and response tools or offers, signups and requests.

Apps are excellent for CRM, but only when done correctly. The key to the success is understanding the context of why the individual downloads an app and in most cases they want to have a relationship with the brand. The brand must deliver on the expectations of the consumer.

Push messaging is one of the strongest CRM activities within apps. Applications deliver the ability to update the user with messages pertaining to the app and the brand’s services through the handsets. A great example of this done really well is the Metro Newspaper iPad edition that delivers a daily update on the key headlines via push.

Other mobile functionality such as Msites, calls and email can (and should) be integrated into a broader CRM strategy to enable the 24/7 and emotional connectivity delivered by mobile.

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3.4 Mobile paymentsMobile payments are seemingly all the rage at the moment and if the hype is to be believed we are well on the way to having cash and credit cards subsumed by our phones. Love the dream but the reality will be less.

Cash and credit will remain but, we will be doing a lot more with mobile payments be that NFC (covered in more detail earlier) or one where the phone is an enabling device SMS, Peer to Peer or simply traditional internet buying via a mobile device.

It is worth iterating that our reliance on credit and debit cards are simply behaviours. People migrate to the easier method when it presents itself. To date, mobile payments haven’t been the simpler offering but this is changing.

One should also consider that in the UK we are quite late to the game. Advanced tech markets such as Japan and South Korea have been using mobile payments for 10+ years, in fact 17% of all in-store transactions in S.Korea are via mobile. And mobile advanced “3rd world” markets are leaping the traditional desktop route straight to mobile. Kenya for example relies on texting money around to such an extent that 50% of their GDP flows this way (using payment and money transfer system M-PESA) giving rise to as far reaching uses as farmers buying insurance to take animals to market to bars that operate cash free (and therefore robbery free).

Countries are proving that a transaction society based on a mobile payment model can flourish.

Closer to home we see many examples of overt and covert examples of mobile payments. Overt is where the payment transaction is led by the user such as in a Starbucks where you can use the loyalty card on your phone and scan the QR code generated. Or in OASIS using PayPal InStore where they scan the unique barcode generated.

Apple have been great at pushing mobile transactions in the US where you can, via an app, walk in to the Apple store find the product you want to buy, scan it yourself using the phone’s camera then pay for it with the card synched to your iTunes account and have the receipt emailed straight to you and then walk out with your product. All without ever dealing with an Apple attendant. Yes, they do random checks on you if you look like you are stealing, but then you just show your receipt and all is good. As is often the Apple way this is all about creating a simpler, quicker, frictionless experience.

Even the black cab has got involved with the likes of Hailo meaning you never need ask to stop at a cash machine on the way home again.

On the covert side the partnership between AMEX and Foursquare is a great example; whereby checking in to a partner location, your synched card matches up when you make a transaction and then credits with a reward. All the while unbeknownst to the shop assistant processing your transaction.

67

3.4M-Commerce

Dominating the headlines in the US is the new payment offering called Square from one of the creators of Twitter. Starting off with the principle of having a small device that plugs into your phone’s headphone socket and created a portable card swiper (magnetic stripe cards only so not immediately transferable to the UK) it has progressed to geo-fencing. Users register their card with the app and then when they walk in to a participating store their photo and name (along with previous orders etc) appear on the merchant’s ipad or iphone and then can process the order just by tapping the photo. The buyer doesn’t even need to take the phone out of their pocket. A note of caution geo-fencing offerings are still very battery intensive for the consumer.

All of these offerings share one thing in common, they are not replacing your credit card they are simply displacing the need to bring your credit card out.

A company worth watching is Dwolla, it is a peer-to-peer offering where the buyer and seller connect direct via their bank accounts and bypass the traditional transaction system. As such no need to pay the c.2% fees that are normally levied on merchants (all transactions below $10 are free and all above are fi xed at $0.25). It is already processing up to $50M a month.

Away from merchants one of the core education pieces for getting people involved in mobile payments is being driven by the banks and phone operators in the form of sending money to your mates via text (Pingit and O2 Wallet).

Finally we can’t ignore that for a huge swathes of the population we are already using mobile payments simply by purchasing online via mobile devices.

by Oli NewtonHead of Strategic Partnerships, Starcom MediaVest Group

connect direct via their bank accounts and bypass the traditional transaction system. As such no need to pay the c.2% fees that are normally levied on merchants (all transactions below $10 are free and all above are fi xed at $0.25). It is already processing up to $50M a month.

Away from merchants one of the core education pieces for getting people involved in mobile payments is being driven by the banks and phone operators in the form of sending money to your mates via text (Pingit and O2 Wallet).

Finally we can’t ignore that for a huge swathes of the population we are already using mobile payments simply by purchasing online via mobile devices.

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Integrating mobile

4

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4.1 Mobile and other media

4.2 Mobile regulations

4.3 Building for mobile

4.4 QR codes

4.5 Augmented Reality

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4.1 Mobile and other mediaThe launch of the iPhone in 2007 was the catalyst for the explosion in mobile technology that we have all witnessed over the last few years. This mass adoption of technology has impacted the way consumers engage with traditional forms of media.

Gone are the days of passive consumption, replaced with a new era of interactivity and experience. No longer does advertising work in silos, truly effective communications are governed by the intertwined relationship of a variety of overlapping elements. The key for today’s marketers is in understanding this relationship, and constructing strategy and campaigns around the behaviours exhibited by today’s consumers.

In 2008, a study by the UK Post office commissioned by YouGov coined the phrase ‘nomophobia’, the fear of being out of mobile phone contact, or in other words the fear of going about your normal day whilst having left your phone at home. This study found that 58% of men and 48% of women suffer from this phobia, whilst also comparing stress levels induced by the average case to be on par with those of ‘wedding-day jitters’ and trips to the dentist. This study was conducted in 2008, when smartphone adoption levels were at less than half of today’s levels. Indeed a recent study by Ofcom revealed that the level of smartphone addiction exhibited by UK consumers is on the rise, with 81% of smartphone owners never turning them off, and 68% of us sleeping with them on our bedside. On average each smartphone owner uses their device for an average of two hours every day, approximately 12.5% of waking hours. We are now addicted to our smartphones, and this will continue to grow as we find an increasing number of uses for them in our daily lives.

The fact that we take these devices everywhere with us means they are fast becoming our primary method of obtaining information, wherever we are. Ease of use and speed of access, makes them the perfect tool with which to conduct further research when a sudden thought or influence sparks a need for deeper engagement. According to Google, smartphone usage in conjunction with other media channels is widespread, with 53% of smartphone owners watching television whilst using their device, 18% using their smartphone while reading a newspaper, and 26% of PC surfers are doing so whilst using their smartphone. These behaviours are giving rise to new technologies such as Shazaam, Zeebox, Blippar, Aurasma amongst others, all designed to leverage this need to engage further via our smartphones. Even traditional search has benefitted from our smartphone addiction, as the relationship between TV viewers using their smartphone to search for more information is well documented. According to a recent Performix study, 66% of smartphone owners regularly use their device to search for more information whilst continuing their TV viewing. This shows the importance of brands catering for this behaviour and thinking about the experience a consumer will access when searching for more information on their smartphone. No longer is it good enough to simply run a TV campaign in isolation.

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4.1Integrating mobile

The popularity of ‘second-screening’ has been illustrated by some great case studies emerging as a result of this year’s superbowl. For the first time Shazaam worked with TV ad partners such as Toyota, Best Buy, Bud Light, Pepsi and Fed Ex as well as enabling the halftime show and the actual game itself. Consumers could use their app to access more content on their smartphones. Shazaam reported millions of consumer interactions, just showing how popular this phenomenon is now becoming. Flurry (the in-app analytics firm) also released some very interesting data surrounding this years Superbowl:

Coin toss

Kick off

Battleship movie ad

Return from commmercial break

Tax act ad

Coca-Cola polar bear ad

Madonna halftime show

Giants drive (field goal)

Return from commercial break

Last minutes of 4th quarter

Flurry used all the data they gathered to plot the number of smartphone application sessions that took place during the Superbowl. The chart shows a steady build in application use during the game, as perhaps people lost focus and began to seek other forms of entertainment or news as the game progressed. Interestingly, there was a marked decline in the number of app sessions that took place during the Madonna halftime show (apparently the most watched part of the Superbowl), as well as a decline during the last few minutes of the game (apparently there was a tense finish to the match). This data is a great illustration of the way consumers now use their smartphones for additional information and entertainment, and when focused on their primary screen, use of the secondary screen declines.

We are still in the early stages of exploring the relationship between mobile and other media channels. Up until now we have seen brands experiment with QR codes, SMS short-codes, augmented reality, and mobile keywords in an attempt to provide consumers with an easily navigable way of deepening their level of engagement via their second screen. The emergence of NFC technology will deepen this relationship between smartphones and other media channels, always placing the smartphone at the heart of this relationship. Consumers do not differentiate between screens and devices, they expect to be able to access enjoyable brand experiences in all places at all times. Successful communication strategies need to understand that running media channels in isolation is no longer an option, and it is the smartphone that is increasingly being used as the link, and is therefore fast becoming the most important media channel.

by OMD

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App sessions started per second in US during Superbowl

2

1 35

67

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9

8

10

1 6

2 7

3 8

4 9

5 10

72

4.2 Mobile regulationsA tipping point for mobile• We have reached the end of a digital beginning1.

The mobile advertising industry, previously concerned with evangelising the virtues of the device, now faces an even tougher challenge: delivering results in an increasingly competitive environment. This is no small task, particularly as more businesses turn to mobile and consumer attention becomes a gradually scarcer resource. The solution, fine-tuned customisation of advertising, is coming under threat as a result of changing rules about mobile privacy.

From challenge to opportunity• Mobile privacy policies today are written in shades

of grey – they are guided by online and offline advertising rules but not yet constrained by a dedicated regulatory framework. This uncertainty won’t last: a small but well publicised number of data mishandlings have recently placed mobile advertising under close scrutiny from regulators. Mobile users are calling for cross-industry safeguards in an extremely technical and fast-moving sector, one where policymakers do not yet grasp all the nuances of innovative business models. At its worst, this trend could result in stringent mobile privacy rules that place an unnecessary burden in a still nascent industry.

• To prevent this impasse, businesses should act swiftly and proactively tackle consumer concerns in a way that does not hinder future innovation in mobile advertising. This is no easy task, but industry has an invaluable resource to solve the conundrum: a decade of experience of online advertising. Applied to mobile, the experience of the PC era teaches us a valuable lesson: consumers want privacy safeguards to prevent data mishandlings from outliers, not to shift away from personalised content and advertising.

Building world wide wisdom• The IAB is working with partners across borders

to support a business-friendly approach to mobile advertising, providing privacy safeguards for mobile users without constraining the sector’s future potential. In the US, the IAB is spearheading the development of self-regulatory guidelines under the umbrella of the Digital Advertising Association (DAA). These guidelines feed on international best practice and provide a meaningful reassurance to consumers that their data will be respected. As soon as this self-regulatory framework is published, IAB UK will work with their counterparts across both sides of the Atlantic to implement these guidelines throughout Europe.

• Delivering global standards has a double objective: providing certainty for international businesses and consistency for consumers. European regulators have traditionally had a less pragmatic approach to privacy regulation than their counterparts in Asia, Australia and the Americas. In the EU, the current review of the data protection directive has opened a ‘pandora’s box’ that could create insurmountable obstacles for a range of mobile services without even addressing mobile advertising directly. Add to this an extremely fragmented digital single market2 with a myriad of national regulations that international businesses often struggle to decipher. The result is a patchwork of rules that will hinder entrepreneurship, innovation and competitiveness across Europe’s digital industries.

1 PwC (2012) Global Entertainment and Media Outlook 2012-2016

2 Bruegel (2012) New ICT Sectors: platforms for European growth

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Mobile privacy: between regulation and innovation Marta Costas, Mobile Regulatory Affairs Manager, IAB UK

Three steps towards mobile trust• Until cross-industry guidelines are agreed

internationally, ensuring that mobile users’ privacy is respected will remain the responsibility of every business operating on mobile. Consumers are increasingly savvy about customised advertising and they are not averse to this practice. Many understand the value of advertising as a source of funding for content and innovative services; filtering ads to meet users’ preferences is then perceived either as a logical next step or as a valuable process to help consumers find what they seek. IAB research shows that three fifths (59%) of online consumers prefer to see a smaller number of relevant ads than a high number of non-relevant ones3.

• However, mobile users also want to retain a degree of awareness and control over customised advertising. It is in businesses’ best interest to help reach this balance, taking steps to meet three core goals:

1. Improving transparency—this includes providing accurate and easy-to-understand information about what data is collected and how is it used. Perhaps more importantly, when providing information businesses also have an invaluable opportunity to proactively educate consumers on how personalised advertising helps to fund high-quality content and innovative services that are free at the point of use.

2. Enabling choice—access to information will be meaningless, when not counterproductive, if consumers are not given options to influence how their data is used. Even when they are not used, privacy dashboards and easy to use control mechanisms have a positive impact on consumer acceptance of relevant advertising.

3. Respecting the mobile context—much like advertising campaigns, privacy notices on mobile devices should be designed on a way that resonates with its target audience. Privacy policies will seldom be effective if they do not communicate in the language best suited to mobile: short, clear and to the point.

• These three principles are best met applying a ‘privacy by design’ approach to mobile advertising – i.e. addressing privacy as an integral part of the mobile experience. This is no mere formality: integrating transparency and choice as a core element of the advertising strategy (rather than a bureaucratic add-on) will provide reassurance that consumers’ needs are reviewed at every stage of the process. With all eye on the mobile marketing industry, building consumer trust is the only effective tactic to ensure that the sector is not eventually caught between the vast opportunity of mobile innovation and the pending threat of privacy regulation.

3 IAB & ValueClick (2012) Consumers and online privacy

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4.3 Building for mobileOne of the hottest topics facing today’s marketer is whether to invest in native apps, or to focus on delivering first class mobile optimized sites. Or both.

The case for AppsThe mobile internet was a slow starter, with clunky handsets, costly data and poor browsing technology stalling adoption. This created a vacuum for apps to gain traction and multiply, rapidly. By March 2012 Apple reported 25 billion app downloads, tracking at 1 billion per month, a number matched by Google Play.

For the marketer, the logic for investing in apps is compelling, though there are significant costs.

Personalisation

When I download an app, it becomes “mine”, creating an easy, convenient, instant one-to-one shortcut to the chosen brand.

Payment channel

Through iTunes, Apple established a convenient, secure and trusted channel for music lovers to download and pay for music. iTunes then added other goods and services, and apps, paid for using the same payment channel.

Preference

According to Flurry, the majority of mobile time by users is spent using apps rather than mobile sites: time spent with apps measures 90 minutes per day against 75 minutes for sites.

The most successful apps deliver a clear consumer benefit. If you can’t provide one of the following benefits, an app is unlikely to win with download volumes or regular usage, and you should jump straight to ‘The case for mobile internet’.

Consumer benefit Examples

Utility Access to social networks, bank details, identify music

Entertainment Games, music or film downloads

Information News, sport, travel, weather updates, currency exchange

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As a rule, the apps which access other handset functions deliver highly personalised experiences are most likely to achieve repeat usage. Consider harnessing the cameraphone, photo-library, contact book, calendar, social media profiles, GPS, accelerometer, and browser. API plug ins, including Google Maps, weather updates and Facebook Connect allow the app to aggregate highly personalised data, updated in realtime.

5 top recommendations for producing great apps

We’ve highlighted the five most common challenges brands face when launching apps, and solutions for each.

by Rob Thurner Mobile Consultant and Trainer, Burner Mobile

Challenge Issue Solution

Audience reach 50% of mobile users are yet to adopt smartphones, so audience reach is capped.

Research handset ownership and usage for your target audience.

Discovery With +/- 1 million apps available, creating stand-out in the app stores is critical. Apple and Android prioritise apps based on popularity (downloads) and quality (ratings & reviews).

Use traditional channels (all media channels, word of mouth, PR) digital channels (online ads, email, social media) and mobile channels (sites, ads, mobile, app store marketing) to drive awareness.

Cost Developers need to re-code apps multiple times for platforms’ different software development kits (SDKs) – iOS, Android, BlackBerry, Java.

Examine mobile traffic on your site to confirm the handsets being used, and prioritise the SDKs in your app build plan.

Revenue Gaming, media, entertainment, retail and travel apps are generating significant revenues. The majority of apps don’t. Apple and Android take 30%, Microsoft takes 20% on download and in-app revenues.

Evaluate all revenue channels: download costs, in-app payments, advertising, sponsored apps, and bear in mind 95% of all app users won’t pay for any app activity.

Project management This one is fundamental, as weak project management results in a rushed and stressful app build, resulting in sloppy testing (50% of apps are launched with bugs), leading to negative reviews, hence poor visibility in the app stores.

Build sufficient time to define suitable app features, hire experts iOS/Android coders, test on multiple handsets, and allow enough time for approvals (up to 10 weeks for Apple).

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Integrating mobile4.3

The case for mobile internetMobile internet browsing is growing 150% year-on-year, and mobile analysts predict mobile browsing with surpass PC browsing in 2013.

Today’s smartphones boast HTML5 browsers which provide clear benefits for brands and users alike, including better provision of rich media, the ability to access and use data submitted in previous browsing sessions, and accessibility regardless of signal strength.

5 top tips for producing great mobile sites Here are the five most common challenges and solutions for each.

Challenge Issue Solution

One site or two? Should you transcode (“screen- scrape”) your main website into a standard mobile template to create a separate site, or optimize your site for mobile?

Create one site, hosted on one URL, fed by one CMS rather than building a separate site, which requires duplicated content updates.

Right content Agree on a clearly defined content plan (news & info, entertainment, mCommerce).

Offer content which mobile users want to access on their handsets: maps, info, shopping, social networking and coupons are most popular mobile internet activities.

UX Smaller screen size and lack of keyboard make easy, simple navigation critical.

Use simple navigation; vertical not horizontal navigation. Icons are easier to access than text links, and appear more "app-like".

Personalisation Personalised content maximizes page views, extends dwell time, attracts repeat visits.

Build in behavioural, location and time based components. See Responsive Design section.

Promotion Mobile users want to find you quickly and easily on the mobile internet.

Use all media channels to drive traffic; use trackable links to detect which evaluate channel efficiency.

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HTML5 success story case study – FT.comFT.com built an HTML5 based web app, then removed its app from iTunes. Its consumer benefits are explained in the second screen grab below. The web app attracted 2 million users 10 months after its launch, with mobile now driving 12% of subscriptions and 19% of traffic to the newspaper’s digital offering.

Switching to HTML5 was an attempt to scale quickly across different devices and platforms: “The origins of the web app come from thinking more broadly about our mobile strategy, and particularly how we are going to cope with developing for numerous different platforms”, says FT.com’s Rob Grimshaw.

Responsive design Though in its infancy, responsive design automates the overlay of contextually relevant content matching the profiles of mobile users. For example, if you’re targeting heavy social media users, responsive design allows you to import, automatically, customers’ social media feeds to display product recommendations. If you’re after deal junkies, you can hook into their loyalty programmes and deliver time and location sensitive mobile coupon offers to optimize sales conversion.

Apps have taken the initiative, and brands’ budgets, but with the advances in HTML5 browser technology and enhanced mobile search, it’s likely the importance of apps will diminish. After all, there is only one internet, to which every mobile user has access.

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4.4 QR codesQR codes are now being used by a significant number of UK consumers as they appear in growing numbers in advertising, media content and on packaging with brands seeking a way to disseminate large amounts of product information, whilst minimising the amount of advertising space required on point of sales material and offline media such as popular magazines and newspapers.

QR codes are easily recognisable; taking the form of a two-dimensional, black and white square barcode which when scanned by a smartphone is automatically translated into a message or web link related to the product advertised. Once the QR code has been scanned, the customer can choose to investigate further directly from their own phone. According to recent research conducted by mediascope/IAB Europe, 42% of all UK smartphone users are interested in QR codes with 12% of consumers having successfully scanned a QR code with their mobile phone camera according to research carried out by Joule and Kinetic worldwide. This figure increases to 20% among 18-24 year olds and 15% for 25-34 year olds.

NFC smart tags work on a similar principle in that a small electronic chip containing an advertising message is embedded in an item of printed or outdoor marketing media. When a user places their NFC-enabled smartphone (such as the Nokia Lumia 610 NFC) near the chip, data is transferred automatically to the smartphone screen. NFC technology in consumer devices is fast gaining popularity, but it will be another 12-18 months before smart tag usage becomes mainstream with consumers.

But when should you consider using QR codes as part of a marketing campaign? Below are some examples on how QR codes can become relevant depending on your campaign objectives: The best way to consider using QR codes for marketing purposes can be seen as follows:

Coupons:“Virtual” coupons are a quick way to offer both online and offline discounts or rewards.

Include a QR Code on your printed ad and your customers simply “scan and click” to take advantage of the offer.

Branded marketing materials: QR Codes give your customers and prospects real world hyperlinks that connect your printed materials with online content such as video, audio, special landing pages, and much more.

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Drive traffi c to your websiteUse QR Codes to drive more traffi c to your website. Put a QR Code for your URL on all your marketing materials to make it easier for your mobile customer to fi nd you online.

Travel/mapsMake it easy for your customers and prospects to get to your shop. Include a QR Code that links to an online map.

Price checking & online orderingUse QR Codes on catalogs, menus, price lists, and other promotional materials and your customers will scan, click, and order online.

SchedulesQR Codes link schedules – whether transit timetables or event sessions – directly to mobile phone calendars. Scan, click, and view anytime.

by Microsoft

Great Example of using QR codes as part of a social gaming experience:www.vimeo.com/13874935

An innovative use of QR Codes :www.youtube.com/watch?v=7YB1EacnnUw&feature=player_embedded

Some good examples of QR Code usage in marketing campaigns:

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Price checking & online orderingUse QR Codes on catalogs, menus, price lists, and other promotional materials and your customers will scan, click, and order online.

QR Codes link schedules – whether transit timetables or event sessions – directly to mobile phone calendars. Scan, click, and view anytime.

Great Example of using QR codes as part of a social gaming experience:

www.youtube.com/watch?v=7YB1EacnnUw&feature=player_embedded

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4.5 Augmented RealityAugmented reality (AR) noun, A technology that superimposes a computer-generated image on a user’s view of the real world, thus providing a composite view.

Augmented reality is not as new as you might think. For years AR’s been used in the helmets of fighter pilots, negating the need to look down at the control panel. Today, AR has gone mainstream and anyone with a smartphone can access this cutting edge technology.

AR is actually in use all around you. You might think you have never witnessed AR, but you probably have. Did you watch Andy Murray win his momentous victory at the US Open? Or did you see any football, cricket or rugby matches on television this summer? If so, you have seen augmented reality for yourself. Layering information like trajectories, offside lines and player movements over live video is augmenting reality.

The advent of smartphones has placed AR in the hands of you and your customers. Companies such as Layar, Blippar, Kudan, Aurasma and Harmony Park are all productising AR. Presented either as standalone apps, or as white-label modules inside larger apps, these tools allow you to create engaging experiences for your users.

AR technology is developing at an astonishing rate. The triggers required to activate AR started out looking like QR codes. They soon became slightly more sophisticated, with a custom image and a black tracking border.

Now we have true image recognition and tracking. We can now track any image, opening the door to allow AR to sit anywhere. This means brands don’t need to tamper with their logos to augment them, or change any of their products to incorporate augmented reality.

One of the reasons AR has taken off is thanks to Qualcomm. They are an interesting company that you may not have heard of despite there probably being multiple bits of tech in your phone that they have made, from 3G and 4G modems to processors like the Snapdragon S4.

The cool thing about Qualcomm is that they are developing an image recognition engine and giving it away for free. This opens up the world of AR to a great number of development houses who would otherwise have to invest a lot into developing their own.

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Utilising all these advancements in mobile hardware and software is a complex job, but one company has gained notoriety by making reaching users easy and fun. Blippar, founded in 2010, have created interactive experiences for Heinz, Wrigleys, The Sunday Times, Ingear and even Justin Bieber. By utilising a single app which downloads new content as it is made available, Blippar have consolidated what could have been a fragmented supplier business into a household name (well nearly).

One of the latest examples of AR has come out of Sweden, with Ikea’s new catalogue. Essentially, they have brought it to life with the use of AR allowing users to see 3D renditions of their products, like tables and chairs. Ikea have even pushed this a little further to show important movements of furniture, for example how a table would expand or where the drawers come out of a bed. This enhances the catalogue so it is more than a series of pretty pictures, to a useful and engaging tool.

Of course these are all stepping stones. In the end we will be moving towards tech like the Google Glass and perhaps one day AR contact lenses like the ones portrayed in the amazing short fi lm Sight (which is well worth a watch on Vimeo).

Technology will cease to get in your way, because it will be small and unobtrusive. Doing things will be quicker and easier. For example imagine having directions projected in front of you, so you will never get lost again. Plus it allows you to have a connection with inanimate objects, you will walk up to a tube station and a notifi cation will pop up telling you the Piccadilly line is running late perhaps you should take the bus.

This is the power of augmented reality; it bridges the gap between the virtual world and the real world. Enhancing our experiences, informing and entertaining us.

by Maani SafaGlobal Innovation Director, Somo

An early example of augmented reality in Audi’s Guide to Le Mans iPad app

Google Glass

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The Future of mobile

5InMobi is a mobile technology company that enables brands, developers, and publishers to engage global consumers. Agencies and advertisers leverage InMobi platforms to create HTML5 rich media ads. Developers and publishers use InMobi platforms to acquire users and monetize their mobile content worldwide.

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Just five years ago, mobile users primarily looked on their phone as a way of making calls, or sending and receiving texts. Today, they want it to be a portable entertainment device. In a change driven in large part by the might of the iPhone, many no longer see calling as the primary function of a mobile phone. For these users, their Android, iPhone or Windows Phone is TV, computer, xBox and wallet. Crucially for the advertising industry, no other device is as prevalent worldwide (estimates put the numbers of mobile handsets as triple those for TV; four times those of PC internet users; and five times those of desktop PCs).

This morphing of the phone from a communication device to an entertainment hub has led to ‘content’ (in the form of games, apps, news, social media and information), becoming king of the mobile ecosystem. Content is driving how people are using their phones, how they’re discovering new ideas and information, and importantly how they’re subsequently sharing it. We all learnt the financial model that this drives with the evolution of the web; content drives eyeballs, and proximity to that content has advertising value.

For an example of how content is driving the mobile market we need only look at Rovio’s jaw-droppingly successful ‘Angry Birds’ franchise. In June the game hit the staggering one billionth download figure, which included the 50m downloads which Angry Birds Space achieved in little over a month on launch. August saw global superstars Green Day get in on the act too, with ten new levels featuring the band and an exclusive track available to those who bought the game.

That a concept as simple as Angry Birds can generate such incredible download volumes (and thus consumer attention) and such phenomenal brand loyalty on a mobile (and we haven’t even taken into account the theme parks, TV advertising, and brand endorsements it also enjoys) highlights the massive opportunity for rich, engaging advertising alongside this content. Tapping into the entertainment market – and thus a potentially whole new audience – with the Green Day tie up was an advertising masterstroke, and shows how thinking creatively outside of the mobile landscape can bring about new opportunities.

Alongside these changes, we’ve also seen the development of mobile technologies and behavioural analytics, which has revolutionised insight into how consumers use their devices, and has driven contextualisation and personalisation on the mobile. It’s this personalisation element, and its next evolution as ‘predictive context’, which is one of the most exciting developments for advertisers and brands.

Predictive context builds on the concept of context-awareness – devices and applications changing their behaviour to reflect the current situation, e.g. increase the font size on your email client when you are walking; or switching on the heating when you’re driving towards home at the end of the working day. As with all application/service innovation market development will come from the creativity and imagination of the developer community, but given the ever increasing number of ad-supported applications, mobile advertising will evolve as predictive context is introduced to create new kinds of advertising experiences.

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5.1 The Future of Mobile

This combination of content and context demonstrates the most powerful part of the mobile opportunity for advertisers – the mobile as the hub. Put simply, advertisers must not treat mobile as a silo in the planning schedule.

The mobile is the only device into which every other advertising medium can be truly integrated: QR codes in print, augmented reality in OOH or print, interactive services alongside live TV, games and apps alongside multimedia content – all of these are a huge opportunity for advertisers, and all of them rely upon the consumer’s own mobile device as the point of interaction. No other advertising platform is able to tie everything together with such high levels of personalisation.

Mobile must become a media-agnostic advertising platform that sits horizontally across all other elements of an advertising campaign, and in so doing it becomes the unifying glue which can bind separate entities together. There are parallels to be drawn from social media – when the likes of Twitter and Facebook first became crucial avenues to engaging with consumers, they were treated in silos, which only went to further fragment the media landscape. These platforms now sit across and within overall media planning campaigns, and for the true potential for mobile advertising to be reached, the same approach needs to be taken.

Through integrating mobile across the media planning landscape, the insight and analysis driven from the results will become even more valuable, and constantly drive refinements, alterations and innovative new approaches to mobile marketing.

As with any new approach, there are elements that need managing carefully from an industry standpoint. In this case it is personalisation and context which need careful consideration. There’s a fine line between giving consumers the ideal adverts and promotions for their own lifestyle and habits, and becoming a Big Brother style intrusion on their behaviour.

It could be said there’s an element of having one’s cake and eating it – consumers want personalisation, but without the insight-sourcing that drives it – but in order for the opportunity to be harnessed, a perception change needs to take place. Personalisation technology must not compromise the consumer, nor feel like spam or an intrusion – two major problems with previous solutions. We are now at a stage where we can use behavioural analysis without compromising data storage or personal information, and it is imperative this message gets through to the end user in order for it to be a success. Achieve this and the industry will boom.

We’ve come a long way from the first ‘mobile advertising’ in 2000, where news was sent, via SMS, to subscribers along with sponsor information. Now the industry better understands the importance of relevance, personalisation, demand and value.

Excitingly for brands and advertisers, the technology and infrastructure is now there to deliver rich content to consumers, and the appetite is there too. Most importantly, the expectations consumers have about what they want on the mobile are able to be met – the technology has caught up with the idea.

GetBrilliant

with IAB training in 2013

Our 2013 training schedule is now available for booking! Whether you’re new to the industry or looking to top up your skill set, we have a fantastic range of courses to keep you up to speed with all things digital.

Give our education manager Joanne a call on 020 7050 6959 or email [email protected] to book a place or find out more.

www.iabuk.net/training@iabuk

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