“The new rule; mobile first” Eric Schmidt. CEO Google
We agree with Eric, in fact at Brave New World we’ve been banging the drum to our clients and media agency colleagues for some time about the future being a mobile one. We believe functions like location based click to call are the future for retail brands as location makes mobile search more actionable .
We are constantly looking at the old agency models, we know there outdated, so it’s up to us small, flexible and freethinking agencies to drive new ways of working. Delivering great work that allows us to get closer to our customers, and create interesting and engaging ideas that people will not only like, engage with and ultimately share. Mobile advertising/marketing like most things that are new, can be hard too understand, well here’s what we think:
With observations such as ‘By 2013 mobile phones will overtake PCs as the most common web-accessed device worldwide’ and ’33% of all Google searches are now made by mobile’, it is easy to see why mobile is hailed as the key channel of the future. Indeed, the evolution of the mobile channel – from ‘basic talking brick’, to multi-media interface – has been impressive. (With 3000% growth in shopping searches made on mobile internet devices in the last 3 years.)
Now, phones can be used for web browsing, email, shopping, personal alarm clock, music, mobile TV, video, social networks, vouchers, micro-payments, cameras, navigation and gaming. (To name but a few functions.) To use the vernacular of the category, many marketing practitioners see ‘mobile’ as the ‘killer app’ for future growth. And with stats like those listed above, one can see why – there is huge commercial value at stake.
Nevertheless, with all the hyperbole, there should always be a note of realism. After all, if we believed everything futurologists told us, we would be using mobiles as hoverboards by now. That said, given exponential handset and software evolution, network advances and the myriad of media applications consumers now comfortably access via mobiles, we thought it invaluable to map out the trends that will really matter over coming years. Practical advice, that marketing practitioners should have acted on already (and trends that need to be firmly on their radar in coming years.)
1. Smartphones
While one should never forget the lowest common denominator handsets, the handset marketplace is definitely getting smarter. There are now 11.1m smartphones in the UK, with 70% YOY growth. All manufacturers and many consumers are aspiring towards smartphones. (NOKIA’s 5800 is now the UK’s most ‘popular’ handset – largely on the basis of aggressive contract pricing and the sleek – iPhone-esque – appearance of the handset.)
Many smartphones deliver greater connectivity over 2.5-3G, or WiFi and offer consumers genuine consolidation in terms of all their ‘work, rest and play’ media. (Telephony, mms, email, mobile internet browsing, downloadable apps and games, as well as video and music.) Integral GPS chips have further added the opportunity to serve location-based information, ads, or promotional offers close to point of sale.
In the wake of the iPhone, many manufacturers are optimising touchscreen interfaces to add to user experience and make ‘online all-the-time’ a wider reality. Indeed, touchscreen users access three times as much data as their key-pressing counterparts. Brands should be thinking not only how to harness apps – with Apple’s iAd and Admob able to serve ads inside apps – but also be thinking how they can use location-based info to target compelling offers close to point of sale. Given tariffs and handset costs, smartphones are particularly relevant for 25+ adults currently and increasingly for young adults – as top of the gift wishlist over coming years.
2. Data
Historically we had the Battle of Britain, increasingly we have the Battle of Bandwidth. With tolerable operating speeds on 2-2.5G across the UK (barring rural areas), 3G is where we are gunning for in the immediate future (predicted to be circa 90% coverage in Western EU by 2014).
The next battle on the horizon, is going to be between ’4G’ networks and WiFi. There is likely to be a degree of merging of technologies to create a richer experience for consumers across the board. Expect to see service speeds slowly creeping up, as we edge closer towards a nation breathing ‘online oxygen’ to help their business and social lives thrive.
The 3GppLTE (Long Term Evolution) network is likely to deliver 4G-esque ‘mobile broadband’ capabilities with data serving speeds of up to 100mps. What this means practically is that video, mobile TV, multiplayer online games, instant messaging and other ‘high-data dependent’ mobile functions will be a real working possibility for many. In terms of timescales, 2012 will start to see cell testing, while 2015-2020 will see these LTE technologies becoming commonplace.
WiMAX (using microwave technology to extend the reach of WiFi hotspots) will make ‘mobile broadband’ even more of a reality. With data usage bundled and ‘unlimited internet’ becoming the standard mobile model, brands should be thinking about how they can best deliver to smartphone users who already – to use iPhone as an example – use 10-20 times more data than other mobile phone users. One should also not forget the use of 3G dongles on netbooks and table PCs – who use on average a sizable 1.5gig of data per month (10 times that of the average smartphone user).
The implications for brands are – a need to deliver richer experiences to consumers, and think about how commercial sponsorship could facilitate the delivery of games, apps and video on demand (VOD) to mobile. Also, brands should think about the kind of data they can receive via return paths, to further refine their mobile marketing and CRM activity.
3. Mobile Internet
As networks evolve, we will see huge numbers of mobile devices capable of accessing the internet from phones, netbooks and tablet PCs (via WiFi, or 3G dongles). Brands must be prepared to serve them properly.
The size of the prize now – stats on mobile internet:
18.9m users
1 in 10, (1.89m) have made a purchase using the mobile internet
- 81% using it once per week or more
- 46% using it daily
- 35% using it weekly
- 40% of those using it are considered heavy users
Nearly all brands should be thinking about not only an online presence, but a ‘mobile online presence’. Increasingly, consumers just want delivery in their chosen channel and brands that aren’t set up to do so, risk falling out of favour. 44% of users blame the brands (not the kit) for a bad mobile internet experience.
Building on this, brands should also be contemplating not just online mobile brand content, but optimising their sites against mobile search (mSEO) and also multiple call to action options e.g. order now on iPhone/order now on Android. Only if marketers are thinking in real terms about a Mobile Content Management System (MCMS), can they deliver the excellent experience consumers expect now, and the seamless experience they will expect tomorrow.
Manufacturers will make a lot of operating systems in coming years, which are meaningful in terms of their respective abilities to deliver optimal online content speedily. As infrastructure advances – both with handsets and retail – brands should consider mobile as a means to deliver sales – via scannable bar/QR codes and vouchers/promotional ticketing.
Also starting to be tested in 2010 (and becoming mainstream from 2012) are Near Field Communication (NFC) chips. These are smart chips – like the ones used in Oyster Cards for wave and pay transactions. Brands need to be aware of these – with potential application for micro-payment, one-touch social interface, Mobile ID verification and even transport.
4. Mobile Advertising
Promoting your brand through users’ mobiles will become hugely important – with the market set to explode in 2010 onwards.
Mobile advertising arguably became really significant with the launch of the iPhone 3G. In 2009 we have seen major consolidation of players and techniques to make the marketplace a serious proposition for brands moving forward. This was particularly underscored by Google and Apple acquiring Admob and Quattro respectively – specifically to meet their needs for provision of mobile advertising. Given the massive growth in mobile usage, it is not surprising that Q4 2009 saw the best-ever quarter for mobile advertising – with (anecdotally) double the ads being placed, versus any other quarter so far.
Consolidation has also brought significant reductions in costs both for placement and costs per click. That coupled with development of new ad formats and functionality – such as location-based, or image search based ad serving – make mobile advertising an area brands should really be thinking about. Here are just some of the ad formats that will be likely to develop over the next two years:
- Expandable banners
- Flash banners
- Feed integration – putting live update information into the ad space
- Location-based ad serving – delivery of ads local to point of conversion
- Image recognition ads – serving ads appropriate to consumers’ image searches
- Sponsored apps – with Steve Jobs launching iAd – sponsoring app provision is not only going to be big, it’s also a commercial/consumer win-win. (It gives something to the consumer for free and places the sponsor’s ad in a context where the consumer is likely to be more receptive to it.)
Brands should think about how their ads will be reflected in mobile search, and how they can use this to their best advantage. In addition, sponsored apps and location-based ad serving (mentioned earlier) are both things that should be top of mind.
5. Location Based Technology
Location based technology is particularly stand-out functionality, as it allows ads to be served based on consumer interest and location. A recent gym recruitment campaign – based on the network’s understanding of the recipient’s liking for exercise, and proximity to the gym chain in question – led to a 6.8% response rate. Location-based communities like ‘Foursquare’ – that reward micro-community ambassadors for acting as area ‘Mayors’ and sharing local info with other users – are also of significant note to brands.
6. Augmented Reality (AR) and Voice/Visual search
The placement of products and brands into the real/virtual world will grow rapidly, and smartphone handsets will become more capable of delivering this to the mass-market. ‘Layaring’ – named after the Dutch company ‘Layar’ (leading specialists in the field) – is probably one of the most immediate and valuable AR applications available.
‘Layaring’ describes AR information, layered over a real live camera street view to deliver valuable branded information, or offers, literally to the man/woman on the street.
Voice and Visual search will increasingly develop in coming years – as processing power allows – to cross-reference visual/voice input with an online database. The database will then deliver availability and pricing information quickly and easily to consumers in retail.
7. SMS
Simple will still sell – so text will still be massive. (80% of the market use it.) It’s the primary route for engaging mass-market consumers – particularly older ones (55+) – and will remain so for some time.
You can also turn a simple entry mechanic into ECRM – encouraging consumers to participate further with interesting promotional stats on winners, or sharing further added-value offers. Not forgetting of course that virtual rewards (in terms of digital mobile content) could increasingly be valuable as the “plus 1000s of prizes” in future promotional marketing.
Conclusion
Ultimately, the future of mobile comes down to a beautifully integrated service for consumers and that goes for everything from handset interface, network performance, apps, and a very real value exchange.
Essentially, as with most brand interaction, forewarned is forearmed. This is a clarion call to review your mobile marketing strategy and prepare to deliver an outstanding mobile experience for consumers (before your competitors do), or just call us and let us help you.
Dan.
For further information please: emailus@brave.co.uk









