mobile marketer outlook 2010

8/9/2019 Mobile Marketer Outlook 2010

1/46

Mobile MarketerTHE NEWS LEADER IN MOBILE MARKETING, MEDIA AND COMMERCE

www.MobileMarketer.com

TM

A CLASSIC GUIDE

$395

TM

Sponsored by

MobileOutlook2010
http://www.mobilemarketer.com/http://www.mojiva.com/http://www.mojiva.com/http://www.mojiva.com/http://www.mobilemarketer.com/


2/46

PAGE 2 Mobile Marketer MOBILE OUTLOOK 2010

3 EDITORS NOTE: Mobile marketing gains statureby Mickey Alam Khan

4 LIFES GOOD: Expect 100-150percent growth in mobile budgetsby Richard Ting, R/GA

8 AD NETWORKS: Mobile ad networks can expectmore consolidationby Dan Butcher

10 ADVERTISING: Agencies, brands prepare formobile advertising clutterby Giselle Tsirulnik

12 BANKING AND PAYMENTS: Financialinstitutions to embrace mobile servicesby Chris Harnick

14 CARRIER NETWORKS: Wirelesscarriers to ramp up on-deckadvertisingby Dan Butcher

16 COMMERCE: Mobile commerce to evolveconsumer shopping habitsby Giselle Tsirulnik

18 CONTENT: Struggling to stand out in thecontent arenaby Chris Harnick

19 COUPONS: Mobile coupons willmake the cut for consumersby Jim Buckley, Valpak

22 DATABASE/CRM: Mobile database/CRMinitiatives to help drive salesby Dan Butcher

23 EMAIL: Email marketers to focus more on thesmall screenby Dan Butcher

25 GAMING: Monetizationstrategy key issue forgame developers

by Chris Harnick

26 INTERNATIONAL: A global snapshot of mobilemarketings evolutionby Draftfcb

37 LEGAL: Expect additional legal challenges asmobile maturesby Gonzalo E. Mon, Kelley Drye & Warren

38 MANUFACTURING: Will all mobile phones besmartphones in 2010?

by Dan Butcher

39 MEDIA: Mobile will not save the print industryin 2010by Chris Harnick

40 MESSAGING: Nothing comparesto ubiquity of SMS marketingby Giselle Tsirulnik

41 MUSIC: Mobile will continue to driveinnovation in musicby Chris Harnick

42 SEARCH: Will 2010 be the year ofmobile search marketing?by Giselle Tsirulnik

43 SOCIAL NETWORKS: Social media networks andmobile go hand-in-handby Chris Harnick

44 SOFTWARE AND TECHNOLOGY: Augmentedreality, smartphones and bar codes

by Dan Butcher

45 TELEVISION: 2010 will be about keeping upwith the audienceby Chris Harnick

46 VIDEO: Mobile video gets into marketingsbig pictureby Giselle Tsirulnik

PAGE PAGE

CONTENTS


3/46

The outlook for mobile marketing, media and commerce in 2010is just like this editions cover: peachy.As Mobile Marketer editors and reporters Giselle Tsirulnik, DanButcher and Chris Harnick explain in their succinct analysis of

mobile marketing, brands and agencies are now completely alertto the potential of the medium to influence branding and cus-tomer acquisition and retention.

Mobile Marketers Mobile Outlook 2010 is designed to supplybrands, agencies, publishers, retailers and mobile marketing firmswith the necessary intelligence to make smart decisions to includemobile into the multichannel marketing and retailing mix.

It is quite clear from recent market activity Google buying AdMoband Apple absorbing Quattro Wireless, Apple iPad and Google NexusOne launches, eBays record $500 million in mobile commerce lastyear that mobile is no longer considered a niche medium.

Buoyed by results of mobile campaigns initiated last year, manybrands are expected to ramp up their spending from six figures toseven. Richard Ting, mobile chief at No. 1 interactive agency R/GA,projects that mobile budgets will grow this year between 100 per-cent and 150 percent.

On a tear Of course, with growth comes upheaval and a change in statusquo. So expect some mobile sectors such as ad networks to un-dergo more consolidation.

Wireless carriers will face even more pressure with the increasedconsumption of mobile Web. The jury is still out whether con-

sumers will pay for mobile news content, while not hesitating tofork out 99 cents for a song or application.

Phones from all sorts of manufacturers, new and old, will domi-nate headlines. So will new mobile devices such as the Apple iPadand others of its ilk.

The big story this year will be the growing consumer acceptance

of mobile commerce. Better phones, easily navigable mobile siteswith transaction capabilities, more confidence in mobile paymentsecurity and hyperbolic press will simply boost the prospects formobile shopping and buying.

Retailers and marketers will discover fresh uses of SMS, mobilesites, applications and mobile coupons to drive traffic in-storeOpted-in SMS databases will continue to build.

Overseas, mobile marketing is at various stages of developmentas Draftfcbs excellent international roundup shows. That chapteis a must-read.

but tears as wellWith all the hype and exuberance, expect some pinpricks.

Concerns over privacy and targeting will be further heightenedCarriers will need more pushing to accelerate the common shortcode provisioning process. Carrier networks will strain to bear data

traffic that is growing almost in line with Moores Law.

Also, Apple, Amazon, Google, Microsoft, Nokia, Dell and othermanufacturers and software companies will vie to promote theirown walled-garden mobile devices. So standards for mobile con-tent and commerce will rend apart.

And lets not forget the maze of lawsuits that these same manu-facturers are lobbing at each other, crying foul over copyright lawExpect more legal wrangling.

In other words, mobile is beginning to look just like a regular mar-keting medium.

We hope you enjoy this read, and are emboldened to take the nextstep in mobile marketing.

Many thanks to our editorial staff, Mobile Outlook 2010 colum-nists and ad sales director Jodie Solomon, as well as art directorRob DiGioia, who worked on this edition and, as usual, summedthis effort best: Its not Outlook its look out!

Mickey Alam KhanEditor in Chiefmickey@

mobilemarketer.com

Giselle TsirulnikSenior [email protected]

Dan ButcherStaff Reporterdan@

mobilemarketer.com

Chris HarnickEditorial [email protected]

Mobile Marketer covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer, MobileMarketer.com, the MMarketer Daily newsletter, MobileMarketingDaily.com, MobileCommerceDaily.com, MCommerceDaily.com, the Mobile Commerce Daily newsletter, MobileNewsLeaderClassic Guides, webinars, events and awards. 2010 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission. February 4

Jordan CrookEditorial Assistantjordan@

mobilemarketer.com

Jodie SolomonDirector, Ad [email protected]

401 Broadway, Suite 1408New York, NY 10013Tel: 212-334-6305Fax: 212-334-6339Email: news@mobilemarketeWeb site: www.MobileMarkete

For newsletter subscriptions:http://www.mobilemarketer.conewsletter.php

For advertising:http://www.mobilemarketer.cocms/general/1.html

For reprints:[email protected]

Rob DiGioiaDirector, EditorialDevelopment

[email protected]


EDITORS NOTE

Mobile marketing gains statureBy Mickey Alam Khan
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.mobilemarketer.com/newsletter.phphttp://www.mobilemarketer.com/newsletter.phphttp://www.mobilemarketer.com/cms/general/1.htmlhttp://www.mobilemarketer.com/cms/general/1.htmlmailto:[email protected]:[email protected]:[email protected]://www.mobilemarketer.com/cms/general/1.htmlhttp://www.mobilemarketer.com/newsletter.phpmailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


4/46

G

oodbye, 2009 you were a great year for the mobileindustry. The amount of chatter, buzz and generalawareness of the arena skyrocketed to previously

unseen levels.

As more brands began to better understand the strength, ef-fect and ubiquity of mobile, they also began to reserve thinslices of marketing budgets specifically for the medium.

On top of that, technological advances in handsets and carriernetwork speeds, along with the proliferation of applicationstores, helped to open the doors of a once-creatively stagnantarm of advertising.

Let us reflect on the monumental progress the industry hasmade over the past 12 months, and spend a moment lookingforward to what may come in 2010.

My top thoughts for 2009:

R.I.P. dumbphonesIn 2009, smartphone growth was unprecedented.

Every major carrier nationwide now has a go-to smartphonewith access to an application store, enhanced browsing fea-tures, GPS capability, an unlimited data plan and connectivity

into existing social networks such as Twitter and Facebook.

Even non-smartphones (also known as dumbphones) havebegun to deliver on these more advanced features, thus fos-tering an even more widespread adoption of mobile Web andmobile application services.

Price points for smartphones have also significantly dropped,making the barrier of entry into the smartphone world almostnon-existent.

IPhone application explosionThere is not much that can be said here that the general pop-ulation does not already know. More than 3 billion downloads,140,000-plus applications the numbers speak for themselves.

However, the iPhone revolutionized the mobile industry andforced the hand of everyone from handset manufacturersand carriers to application developers to be more creativeand innovative in order to stay in the game.

The iPhone also gave industry cre-atives reason to pause and imaginethe infinite possibilities of this bur-

geoning medium.

Who would have thought that oneyear ago I would be using a mobilephone to shop for clothes throughthe Gilt Groupe application, watchlive baseball games through theMajor League Baseball application,and unlock rental cars using theZipcar application?

The progress is mindboggling, inspi-rational and incomparable.

Brands building digital ecosystemsGone are the days when mobile was treated as just a stand-alone medium. Smart brands and agencies understand the im-portance of creating fully integrated and complementaryexperiences across various digital mediums.

By integrating channels, brands can get more bang for theirbuck through the re-use of media assets, which leads to easielong-term maintenance.

Marketers want consistency of brand message and experienceacross each digital channel.

Consumers now expect to be able to type in a brands Webaddress into their mobile browser and view a fully mobile-op-timized site. Brands that are not delivering on this base-leveexperience risk alienating their mobile-savvy consumers.

Mobile can outperform other mediumsDue to increased recessionary pressures in 2009, marketers

began to shift budgets from traditional advertising to moremeasurable digital mediums such as mobile.

Accountability and ROI were paramount this past year, andcountless case studies emerged from the mobile landscape toshowcase the industrys ability to outperform other mediums

One important case study to highlight was the launch of the2010 Volkswagen GTI.

Richard Ting, VP/executivecreative director of mobile

& emerging platforms, R/GA

Expect 100-150 percent growth in mobile budgetsBy Richard Ting


LIFES GOOD


5/46

As an industry first, Volkswagen decided to orego traditionaladvertising, relying solely on an iPhone application to promoteand launch the new model. To date, the application has seen

more than 2.1 million downloads.

Whether or not this is a trend or the industry remains to beseen, but it could be the campaign that leads to more copycat

executions in the near uture.

Google buys AdMob, Apple nabs Quattro WirelessThe efect o Googles purchase o mobile ad network AdMob

and Apples buy o Quattro Wireless remains to be determined.But at $750 million and $275 million respectively, it is hard to

ignore the importance oGoogles third-largest ac-

quisition and Apples firstmobile ad buy.

Mobile display advertisingis growing, and while itstill aces challenges cen-tered on efectiveness, this

acquisition serves as vali-dation to the industry-at-large that there is a utureor paid display advertising

in mobile an idea thathas caused tremen-dous excitement in the

mobile realm.

Google sees the uture omobile advertising taking

of. However, in my opinion, brands in the mobile space mustlook beyond paid media and embrace owned and earnedmedia, as well.

Overall, 2009 was a great year, but we have barely scratchedthe surace o what is possible in mobile.

Top predictions for 2010While mobile has been slow to take hold or several years now,2009 saw the perect convergence o actors that encouragedthe industry to everishly embrace this next great medium.

Expect to an even greater explosion o growth in 2010. Hereare my top predictions or what to expect:

The return of marketing in mobile marketingFor the last ew years, the mobile industry has mostly relied onstandalone, one-of mobile campaigns based on ill-unded re-

quests by clients with surplus budgets at years end.

As mobile gains in strategic importance, we will begin to seesounder, insight-driven mobile marketing campaigns that tie

back into the larger strategic and creative brand experience.

The discourse in the mobile marketing industry will shit rombeing overly ocused on carriers and technology vendors to

more ocused on creative and marketing strategy.

With that said, I am not discounting the importance o under-standing carrier restrictions, standards and the various assort-

ments o technology platorms out there.

But the No. 1 question we all need to ask ourselves in 2010 is

What is the best experience that we can build or consumersthat creates a deeper brand engagement or that consumer?

It is a question that has been ignored or too long by mobile

marketing practitioners.

Larger budgets for mobileIn terms o growth, 2009 was unprecedented or the industry

but it was just the beginning. In 2010, I predict close to 100percent to 150 percent growth in mobile budgets.

Brands will begin to increase their mobile marketing spend to

und better planning, strategy, creative work and analytics allowing or more quality, integrated work to take place inthe medium.

By the end o 2010, expect to see a doubling o mobile stafsize, budgets and the number o projects that agencieswill produce.

Create fluid solutionsMassive ragmentation still exists across the industry. Thereare still many diferent platorms, devices, carriers and varied

regional mobile adoption rates.

Providing multiple entry points into a mobile campaign wilallow brands to access larger audiences. Brands must provide

the right solutions or the appropriate audience.



6/46

IPhone applications work for some audiences, but SMS andmobile Web need to be leveraged for those without iPhones orother smartphones.

Understand your audience and design and build accordingly.There is rarely a one-size-fits-all solution available for mobile.

Mobile and commerce converge and growExpect retailers to continue to leverage mobile to convertshoppers into buyers.

The ability to influence and aid a purchase decision at thatcrucial point of sale will drive growth in this area.

The statistical evidence so far is staggering. According to arecent Deloitte survey, 55 percent of users said that they willuse their mobile device to find store locations and 45 percentof users will use their devices to research prices.

Recent case studies and user studies point to even more suc-cess in this area in 2010.

In 2009, eBay CEO John Donahoe said that he expected eBayto generate more than $500 million in mobile-based commerce.

On Black Friday of 2009, eBays PayPal announced that mobile

payments experienced a 650 percent increase from that of theprevious year.

Owned and earned media emerge for mobileDespite the Google/AdMob and Apple/Quattro Wireless dealspaid media is not the only game in town for mobile. In 2010expect more brands to embrace owned and earned media.

In the same way that brands have owned destinations for theWeb, I predict that the same will be true for mobile, as morebrands build out their mobile site platforms.

In addition, expect more social brand experiences in mobileto drive mobile-initiated earned media for a brand.

Rise of non-iPhone applicationsWe are starting to see a bit of competition from Android andResearch In Motion as both platforms closed out 2009 on astrong note.

Motorola is on track to sell the one millionth Android-pow-ered Droid, which has surprised many by quickly developingsuch a large following in a matter of months.

The iPhone may still be king of the hill, but as more brands de-velop strategies to connect with wider audiences, not devel-oping applications for the Android and BlackBerry platforms



7/46

will not be an option by the end of 2010.

For every ad agency out there, now is the time to invest.

Grow your existing creative teams so that they are diverse

enough to create and design for mobile.

Start converting your Web-based programmers so that they

can also handle mobile programming duties. The demand is

there and the growing pains needed to handle this demand

will pay huge dividends in 2010 and beyond.

Market researcher Berg Insight predicts that mobile will ac-

count for 11.7 percent of the total digital ad spend by 2014.

From where I sit, I think those numbers are conservative, and

I am sure others in the mobile industry will agree. I

Richard Ting is vice president and executive creative directorfor mobile and emerging platforms at R/GA, an InterpublicGroup-owned interactive agency in New York. Reach him [email protected].


Mondaythrough

Friday.

Click HERE for your free

subscription to the

Mobile Marketer Daily

e-newsletter.

And HERE

for Mobile Commerce Daily.

Mobile Marketer

Mobile

CommerceDaily

THE NEWS LEADER IN MOBILE MARKETING,

MEDIA AND COMMERCE

THE NEWS LEADER IN MOBILE COMMERCE

AND RETAIL

TM
mailto:[email protected]://www.mobilemarketer.com/newsletter.phphttp://www.mobilecommercedaily.com/newsletter/?1http://www.mobilecommercedaily.com/newsletter/?1http://www.mobilemarketer.com/newsletter.phphttp://www.mobilecommercedaily.com/newsletter/?1mailto:[email protected]


8/46

I

n 2010, the mobile ad networks space will continue to eelthe ater-efects o Googles acquisition o AdMob andApples purchase o Quattro Wireless.

Expect more consolidation in the space. Moves such as theGoogle-AdMob and Apple-Quattro deals could encouragemore online players to join the mobile advertising space.

Both deals highlight the need or any strategic player in dig-ital media to have a mobile advertising solution in place, saidMichael Chang, CEO o Greystripe, San Francisco.

We expect big media and carriers who have been on the side-lines or mobile advertising to increase their in-terest in the space along with the digital mediacompanies like online ad networks and portals,he said.

Deals such as these make big brands awarethat mobile advertising dollars are nosmall potatoes.

As [Google chairman/CEO] Eric Schmitt hassaid in the past, mobile advertising will net big-ger revenues than online, Mr. Chang said.Every company needs to make a bold play on

mobile or risk being let behind.

Networks in play

While there are parallels between mobile andonline, mobile is a medium unto itsel, and thead networks can help provide brands with ed-ucation, as well as reach.

Googles acquisition o AdMob was significant because a lead-ing Internet company decided it did not have the mobile ex-pertise it needed in-house.

Paran Johar, chie marketing ocer o Jumptap, New York,orecasts that Microsot and Yahoo will also acquire mobilead networks.

The carrier play can help them become a more media-centricorganization, the Apple play can help them monetize unpaidree apps, while Microsot and Yahoo recognize that tocompete with Google they need experts in the field,

Mr. Johar said.

Besides AdMob, Quattro Wireless, Jumptap and Greystripe

other major players in the mobile ad networks space includeMillennial Media, Microsots MSN Ad Network, Mojiva, NokiaInteractive Advertising, AOLs Advertising.com and InMobi.

Brands rely on networks to attract eyeballs and publishers relyon them to fill their inventory.

The worlds biggest brands are working with mobile ad net-works or campaigns. For example, Adidas, Nike, Coca-ColaCo., PepsiCo, Jaguar, Procter & Gamble Co.s CoverGirl and

Comedy Central all tapped mobile ad networksin 2009 or their ad campaigns.

The mobile space is evolving quickly as newcompetitors enter the space and new devicesand operating systems gain traction, saidNicole Leverich, director o corporate commu-nications at AdMob, San Mateo, CA. This pres-ents our industry with great opportunities, and2010 will certainly be an exciting yeain mobile.

Ads add up

With new devices hitting the market and con-sumer adoption o smartphones rapidly grow-ing, ad networks are going to see moreinterest rom marketers in the mobileadvertising space.

While the various mobile ad networks may disagree aboutwho the top player is in the space, they all agree on one thingthe outlook or mobile advertising in 2010 is bullish.

We oresee continued growth in mobile advertising in 2010which will benefit all members o the ecosystemadvertisersagencies, publishers, app developers and networks, said LynnTornabene, New York-based chie marketing ocer oQuattro Wireless.

No matter whom you are trying to reachgamers, momsbusiness execs, in-market auto buyersyou can target themefectively on the mobile Web and in applications, at scale,she said. I

Mobile ad networks can expect more consolidationBy Dan Butcher


AD NETWORKS


9/46

GET THE BEST

MARKETING&

ADVERTISINGROIWITHSMS

Increase your ROI

by adding Mobile to yourcampaigns using SMS

Secure your Mobile Marketing address

Engage with over 270 million mobileconsumers

Deliver timely & informative content

Build targeted opt-in consumer

databases
mailto:usshortcodes.comhttp://www.usshortcodes.com/whitepaperC/mmn.html


10/46

A

dvances in targeting, in-

creased browser and device

capabilities, and richer met-rics are what will drive the mobileadvertising industry orward

in 2010.

In 2009 some o the largest brands

in entertainment, consumer pack-aged goods, retail and telecommu-nications integrated mobileadvertising into their media plans.

Expect to see even more brandsjumping onto the mobile advertis-

ing bandwagon in 2010.

We are bullish on mobile adver-tising, as weve been year overyear since our inception in 2006, said Mack McKelvey, vice

president o marketing at Millennial Media, Baltimore. Therewont be a year o mobile because mobile is here.

In 2010 brands will integrate mobile into their media spend,

as it was an efective and ecient medium to reach and en-gage consumers in 2009.

For example, automaker Honda's mobile banner advertisingcampaign to promote the launch o the Insight hybrid modelachieved a click-through rate o 27 percent. Honda was ableto build a mobile database o interested consumers and drive

them to its mobile site via the mobile banners.

Bigger budgetsA Millennial Media study ound that agencies and brands are

confident in the mobile campaigns they execute. When askedwhether their mobile campaigns met or exceeded expecta-tions, 87 percent o agencies answered yes.

Additionally, 97.8 percent o agencies surveyed said that mo-bile advertising is a valuable or indispensible part o the mediaplan, and all the brands elt the same.

When probed or specifics, 25 percent o brands anticipatespending less than $5 million on mobile advertising in 2010,up rom 12.5 percent in 2009. Agencies expected increased

budgets across nearly al

category ranges.

In 2009 some o the largestbrands used mobile to reach thei

target audience. Advertisers andpublishers created mobile destina-tions, as mobile delivers perorm-

ance on brand impact, interactionand conversion.

A vast developer community grew

which propelled smartphone man-uacturers to quickly react to con-

sumer demand, causing disruptionin the device industry.

And, when Google and Applechose to buy versus build a mobile ad network, it confirmed

that mobile is a distinct market rom the wired Web, with anenormous opportunity or advertisers.

New entrantsSome expectations or 2010:

Rich media ad units will prolierate Augmented reality will become popular

Number o campaigns will increase More multichannel eforts will include mobile advertising Mobile Web will become more cluttered with ads Metrics and measurement will become better

Consistency and screen issues will continue to be challenges

Entering into 2010, we already see huge demand rom new

entrants into mobile, as well as those advertisers who haverun successul campaigns this year, Ms. McKelvey said. Ad-vertisers will benefit rom network buys that help them access

more than 70 million unique users, with either precise obroad targeting solutions.

There are numerous roles that mobile can play in advertisersoverall media planning, several that no other medium can

match, she said. In 2010, mobile will take its place as aprominent and permanent component o the digitamedia spend. I

Agencies, brands prepare for mobile advertising clutterBy Giselle Tsirulnik


ADVERTISING


11/46

Better advertising through science. Only Microsoft Advertising connects brands to nearly half of the US wireless

web audience with integrated experiences across mobile, PC and gaming. Were driving extraordinary results for our

advertisers by combining audience insights harnessed across multiple screens with the powerful reach of mobile MSN,

Bing and our unparalleled relationship with Verizon Wireless.

Engage with your target audiencewherever they go

Innovative connections thatdeliver results

Learn more.

msftads.mobi | [email protected] You dream it.We deliver it.
http://www.msftads.mobi/mailto:[email protected]:[email protected]://www.msftads.mobi/


12/46

I

n 2010, consumers and financial institutions will become

even more comortable with mobile banking andpayments technology.

Consumers continue to adopt the

services, but security is still an issue.Mobile banking and payments willcontinue to give global access to un-

derbanked and unbanked consumers.

We believe the mobile banking andpayments industry is a massive mar-

ket opportunity that has the poten-tial to continue to take of in 2010,said David Schwartz, head o corpo-

rate and product marketing at Obopay, Redwood City, CA.

Mobile technology is already impacting the banking industry,and in the area o payments we believe it can have transor-

mational consequences or people o all economic back-grounds, he said. Adding mobile payments to the mobilebanking oferings in the market will do or mobile bankingwhat bill pay did or online banking.

Mobile banking will be a useul tool that people requentlytake advantage o in their daily lives, and it provides banks

with a sticky service to increase their customer satisactionand reduce their churn.

Banking on mobileThe global mobile banking market will hit $202 billion by

2012, per Edgar and Dunn. More consumers will use mobilebanking than online services by 2015, according to Mercatus.

Mercatus also ound that banks can improve customer acquisi-

tion by 60 percent by including mobile in their suite o services.

Given the growth the mobile banking and payments sector

has seen in 2009, more developments will be introduced asthe technology continues to improve.

Near Field Communication use has slowly been growing na-

tionwide, but do not expect consumers to ully embrace thetechnology this year.

This will not be the year or physical-world purchases using

your mobile phone in the United States via Near Field Com-

munication, as chip-prices, handset turnover and point-o-sale build-out will continue to push the vision o buying a

soda with your mobile phone to 2011 or 2012, said Ron Hir-son, coounder and senior vice president o products and mar-

keting at Boku, San Francisco.

Small businesses and merchants will continue to benefit rom

services such as Veriones iPhone mobile credit card reader.

Last year saw smaller financial institutions such as Texas FrostBank and CU*Answers, a credit union organization, roll out

mobile banking services such as alerts.

Macrogrowth to micropaymentsIt is obvious this sector is poised or growth, but will the car-

riers continue to miss out?

The carrier networks do not want to become banks, but con-sumers are using micropayment services or virtual goods and

social networks. The huge response to SMS appeals or Haitrelie eforts are proo.

Obopays Mr. Schwartz said in 2010 one o the biggest chal-

lenges companies in this market ace will be the adoption andincreased use o micropayment services and keeping up

with demand.

Mike Dulong, coounder andsenior vice president o busi-ness development at Billing

Revolution, Seattle, said 2010will be a period o explosivegrowth or the mobilecommerce space.

Consumers will adopt mobile

credit-card-based commercemuch more quickly than mar-ket researchers have ore-casted this is going to

move very quickly, Mr. Du-long said. Retailers willscramble to create secure,

c o m m e r c e - e n a b l e dmobile stores. I


Financial institutions to embrace mobile servicesBy Chris Harnick

BANKING AND PAYMENTS

David Schwartz, head of

corporate and product

marketing, Obopay


13/46

www.bango.com/wp

Increase your campaign ROI

with mobile analytics

Download today!

FREE White paper
http://www.bango.com/wphttp://www.bango.com/wp


14/46

T

he biggest opportunity or wireless carriers in 2010 will

be to generate revenue by ramping up on-deck advertis-

ing. I they do so, mobile advertising will experience

an explosion.

Carriers ace many challenges, not the least o which is deal-

ing with the double-edged sword o surging mobile Web

usage, which drives data revenues but at times pushes their

networks beyond capacity, afecting the user experience neg-

atively. Carriers expect the upgrade to 4G networksWiMax

and LTEto eventually solve those issues.

The increased acceptance and usage o smartphones, includ-

ing the iPhone, combined with advertisers increased sophis-

tication in using these devices to reach their customers, is

something were very excited about and see as a growing

trend, said Greg McCastle, senior vice president o advanced

ad solutions at AT&T, Dallas.

Mobile is becoming a line-item in marketing budgetsmobile

advertising is now on the table and an integral part o the

mix, he said. The outlook or 2010 is exciting.

Carriers want to avoid becoming a dumb pipe at all costs, and

they must diversiy their revenue streams to compete.

Additionally, carriers have an unbelievable amount o sub-scriber data to ofer brands in terms o targeting options.

Provisioning bugbearThere are issues that need to be resolved, or instance, short-

ening the approval process or SMS short code provisioning

the long lag times have been a common gripe o marketers

or a while.

Carriers have started to cast a wider net out o necessity, tak-

ing on the role o publisher and content provider, in addition

to advertiser and network operator.

While there are no shortage o challenges and issues that need

to be aced, maybe the carriers are actually starting to get it.

Marketers need to engage with consumers the way they ob-

tain and use inormationthats on the go, Mr. McCastle said.

Mobile advertising is here.

It should be part o every marketers integrated advertising

mix, he said.

One trend to look out or this year is the rise o emerging mar-kets. The sheer number o subscribers cannot be ignored.

In 2010, we expect that in emerging markets, mobile operators

who are under top-line pressure due to declining ARPU and in-

creasing customer churn, are going to aggressively pursue sub-

scriber data-driven marketing strategies to promote the right

products to the right customer segments at the right time, said

Vinod Vasudevan, CEO o Flytxt, Trivandrum, Kerala, India.

They realize that acquiring more customers no longer guar-

antees higher revenue, as evident rom third-quarter revenue

reporting o Indian operators, he said. Focus will be on gen-

erating incremental revenue rom existing subscribers.

ROI proofIn the end, it all comes down to measuring results and quan-

tiying return on investment.

Be it in emerging or Western markets, the value o mobile

marketing will be ully appreciated only i operators have an

accurate method to track responses across channels and

measure ROI, Mr. Vasudevan said.

Once operators are able to demonstrate the intrinsic value

o mobile as a marketing channel, mobile advertising as in

third-party brands using mobile as a channel or their adver-

tising will also take of in a big way, he said. I

Wireless carriers to ramp up on-deck advertisingBy Dan Butcher


CARRIER NETWORKS

Vinod Vasudevan,

CEO o Flytxt


15/46

For Publishers

A robust mobile ad serving, yield management, and reporng soluon for owners of mobile

content. Whether you sell your own adversing, manage third party sellers - or both - MAST

for Publishers can help you generate maximum yield.

For Adversers

Manage your clients' mobile media campaigns across all mobile content and every network.

From rich media and video to simple mobile banners, mOcean Mobile provides an intuive

real-me dashboard that ensures ease-of-use and ROI.

For Networks

Ulize the mOcean Mobile plaorm to power your own mobile ad network. Ensure efficiency

for your adversers and maximized yield for your publishers, all under your own brand.

For Apps

By ad-enabling your mobile apps, you can generate new streams of revenue. Use our flexible

APIs to deliver ads from our robust server network across any applicaon, regardless

of plaorm.

Ready to ride the mobile marketing wave?

For business and partnership inquiries, orto schedule a demonstration, please click here.

mOceanMobile.com

The most advanced

ad management platform

available for mobile.
http://www.moceanmobile.com/contactushttp://www.moceanmobile.com/contactushttp://www.moceanmobile.com/contactushttp://www.moceanmobile.com/http://www.moceanmobile.com/contactushttp://www.moceanmobile.com/


16/46

E

xpect leading retailers to enter the mobile commerce

space in 2010 through click-to-buy advertising, SMS

drivers and transaction- and shopping-riendly mobile

sites and applications.

In 2009 big brands such as Polo Ralph Lauren launched appli-

cations and sites, turning the mobile medium into an addi-

tional sales channel. In 2010, smarter phones with more

user-riendly Web browsing will move the needle or

mobile commerce.

From our perspective, the suc-

cess o mobile commerce will be

dependent on the evolution o

smartphone technology, the

speed o the mobile Web, a richer

Web-like user experience, the

convenience o one-click, stored-

account checkout and a brands

willingness to invest in an exclu-

sive, branded content experience,

merchandising strategy and ofer

strategy, said David Lauren, sen-

ior vice president o advertising,

marketing and corporate com-

munications at Polo Ralph Lau-

ren, New York.

We expect to see a big trend toward more robust mobile CRM

programs a brands ability to leverage consumer data to

drive relevant messages, products and ofers to your mobile

device, he said.

Impulse purchase channelWithout doubt, mobile commerce is going to change the way

that consumers shop in 2010 and beyond.

Impulse purchases and in-store price comparisons with mobile

commerce-enabled sites and applications will determine the

ate o multichannel retail this decade.

Mirroring ecommerces growth in the last decade, apparel and

accessories, entertainment, books, music and travel will be

among the key sectors to migrate to mobile. Items that require

steady replenishments are also good candidates or

mobile commerce.

Consumers are already used to making micropayments or

ringtones and donations in times o crises, so the resistance to

transacting on the phone will wear away with more use and

confidence o transaction security.

2009 was definitely the year o mobile but what we find is

that a lot o retailers elt as i they needed to take of rom

mobile in 2009 because o the economy, said Nikki Baird

Denver-based managing partner at RSR Research.

But consumer expectations are going to drive most o these

companies into the mobile commerce space in 2010, she said

Expect to see a lot o the latecomers moving into the mobile

commerce space in the first hal o 2010.

In 2009, Polo Ralph Lauren, Tommy Hilfiger, Gilt Groupe and

American Eagle Outfitters entered mobile commerce. Target

Amazon, eBay and Best Buy were among the leaders who ac-

celerated their mobile eforts to provide a seamless

shopping experience.

Bridging PC and storeIn 2010, retailers and brands will employ mobile coupons, ba

codes, product comparisons and user reviews to help con-

sumers make purchase decisions.

Brands and retailers will realize that mobile bar codes are aneasy and measurable way to mobilize any traditional media

rom print to packaging. The key to driving results is to give

the consumer something o value and communicate clearly

with a strong call-to-action.

However, the limitations o screen size, device capability and

the user experience on mobile sites and applications will de-

termine the growth trajectory o mobile commerce. Consume

expectations o digital media are high thanks to ecommerce

The biggest challenge we see or mobile commerce is its in-

ability to deliver a simple, Web-like user experience and the

technology behind most U.S. phones, Mr. Lauren said.

The biggest opportunity or mobile in the near-term will ac-

tually be its ability to leverage customer data to successully

bridge the digital commerce and physical retail experiences

like its ability to influence multichannel commerce versus just

mobile commerce, he said. I

Mobile commerce to evolve consumer shopping habitsBy Giselle Tsirulnik

COMMERCE


David Lauren, SVP of

advertising, marketing and

corporate communications,

Polo Ralph Lauren


17/46

Simple

MobileAdvertising

mojiva.com [email protected] 646-862-6201
http://www.mojiva.com/mailto:[email protected]:[email protected]://www.mojiva.com/


18/46

A

s more applications stream into the various smartphone

marketplaces, the challenge for mobile discovery

grows exponentially.

In 2010 companies and marketers

will continue to struggle to find

their footing, making search ca-

pabilities all the more important.

Now that major brands are get-

ting into the game, discovery of

mobile content will be the

trickiest issue.

I think 2010 is going to be a

great year for mobile content,

particularly in the United States,

said Scott Dunlap, CEO of Near-

byNow, Mountain View, CA.

Smartphones have reached crit-

ical mass, the tablet is changing the game and were seeing

media and gaming companies responding with more mobile-

optimized content.

NearbyNow has developed numerous applications for various

media companies including GQ and Seventeen.

Because of the proliferation of applications and other mobilecontent such as ringtones, content developers are finding it

easier to get paid for their work thanks to ad-supported mod-

els and paid content.

Sideliners will get nowhereMedia companies know the rules have changed. Standing on

the sidelines is no longer an option with Google and Apple

aggressively investing in research and development.

The level of innovation in mobile devices will be staggering

in 2010 and the rate of adoption will be faster than ever,

Mr. Dunlap said.

This will be the year of the handset. Manufacturers will focus

on features, design and other aspects based on the success of

the iPhone. Devices will need more memory for more capacity

because of the expanding content market.

2010 is when we should expect handset manufacturers to

finally start making smartphones that are going to be really

revolutionary in every respect and, as a result, were likely to

see a much more competitive and level playing field, said

Patrick Mork, vice president of marketing at GetJarSan Mateo, CA.

The battle of the app stores will culminate in a dramatic

change to the market over the next 12-18 months, he said.

Many application stores may fail because they will not have

solved the main issues of billing, discovery by consumers and

providing adequate return on investment for developers.

Conquering the trinityIn 2010, mobile marketers will need to attack the challenges

of reach, privacy and retention.

The dam will not break on mobile advertising until there are

multiple vendors with a reach of more than 10 million users

or the advertising industry begins to focus on personalized

messages optimized for conversion and engagement rathe

than reach. Mobile privacy is also going to be tested

and refined.

Most applications are abandoned within 60 days and mobile

Web sites have a hard

time retaining andlengthening visits.

In 2010, there will be

a struggle for eyeballs

as content and de-

vices hit the market.

My first advice to

content developers

would be start with

the iPhone and iPod

touch, Mr. Dunlap

said. Its a great

platform, the user

base is well aware of

how to download and

use apps, and its

showing no signs

of stopping. I


Struggling to stand out in the mobile content arenaBy Chris Harnick

CONTENT

Scott Dunlap, CEO,

NearbyNow


19/46

T

he current economic climate has changed the spending

behavior o American consumers. As people adapt to re-

cessionary times by cutting spending and tightening

belts, a new type o consumerism has been born.

Top economists believe this shit to conservative spending is

not a passing trend but will actually become the new nor-

mal, much like the change that occurred in consumer spend-

ing ater the Great Depression o the 1930s.

The ranks o Americans who state they have permanently re-

duced spending are continuing to rise, pointing toward a more

rugal consumer environment once the current recession ends.

A June 2009 Business Wire survey showed that 20 percent o

Americans say they have cut back or good on spending. To

capitalize on the demand or savings, businesses are increas-

ingly using coupons as a promotional tool to maintain or in-

crease market share, attract consumers to their locations and

introduce new products and services in this new economy.

In addition to their attractiveness to consumers, coupon pro-

motions are also winning avor with marketers who are being

held accountable to track and measure program efectiveness

and demonstrate the return on investment or programs.

The trackability o coupons helps marketers use their budgetdollars eciently and with clear, tangible results at a time

when ad spend is more closely scrutinized.

Beyond traditional print couponing, mobile couponing has

been growing along with other orms o digital coupons in-

cluding emailed coupons, online coupon Web sites and even

discount ofers marketing by social media channels.

According to Experian Simmons 2009, since last summer, the

growth in digital coupons has increased markedly: some 44

million adults printed coupons rom the Internet, which is a 21

percent increase rom the same period last year.

In 2010, Yankee Group expects the number o mobile coupons

redeemed in North America to rise tenold, with triple-digit

increases to ollow in 2011 and 2012.

Mobile couponing is on pace to continue to increase in distribution,

use and redemption. This is largely due to the increase in Internet

use, SMS texting, smartphone

adoption and mobile applications

leveraging the promotional vehicle

as part o a content ofering.

SMS text and MMS richmedia couponingHarris Interactive conducted a

survey and discovered that 42

percent o adults ages 18-34 and

33 percent o 35-to-44-year-

olds are interested in getting

opt-in mobile alerts rom their

avorite places.

The study also revealed that about 90 percent o mobile users

have made impulse purchases while shopping due to a sale,

with 22 percent o these shoppers doing so on a weekly basis

The findings o the study pose implications or advertisers as

these businesses can build their database o consumer con-

tacts in the orm o opt-in mobile numbers and additional in-

ormation captured rom registrations which can then be used

to advertise new products, specials and promotions.

To be successul in this space, a recent Valpak study o Echo

Boomers, also known as Generation Y or millennials, suggeststhat adults ages 18-27 are extremely interested in mobile

marketing but with some reservations.

When asked about mobile marketing in a Valpak-sponsored

survey managed by Cox Enterprises Inc. and Communispace

through its shared Project Echo program, respondents reported

some ear o disclosing their personal mobile number, handing

strangers their mobile phone and the potential expense to

them i they are too heavily messaged. However, more than

hal said they would be interested in receiving ofers rom

businesses that they requented or were o interest to them.

Study participants stated that dining and entertainment

coupons were among their most preerred categories. Overall

the quality o the text ofer and its relevance to their liestyle

were key to their satisaction and willingness to participate in

mobile marketing.

The challenges associated with both SMS and MMS

Jim Buckley, new mediabusiness owner at Valpak/

Cox Target Media

Mobile coupons will make the cut for consumersBy Jim Buckley

PAGE 19 MOBILE OUTLOOK 2010

COUPONS


20/46

(multimedia messaging service) couponing acing advertisersis how to reach consumers with their messages and ofers.

Legal restrictions surrounding messaging can hinder busi-nesses, so a pull-strategy with double opt-in is the best prac-tice to avoid pushing unwanted messages to consumers.

Used in conjunction with a print ad campaign, getting theSMS pull campaign out to consumers has the added criticaladvantage o an integrated media efort, which helps increaseROI and response result.

Mobile campaign challenges and opportunitiesThe first challenge to any mobile messaging campaign is ob-taining mobile opt-ins. This can be achieved by leveraging abest-practice approach with pull campaigns and using commonmarketing channels such as direct mail, print ads, point-o-sale

display and email messages.

Providing a targeted, com-pelling and relevant ofer to atargeted audience whichclearly understands what mo-bile messaging they will re-ceive and how oten they willreceive it is the key to building

a qualified and receptive opt-in mobile database.

Budget and requency are po-tential challenges when itcomes to planning. In short, it isbest to expect the unexpected.

It is critical to consider thenumber o customers and mes-

saging requency when there is a limited budget orSMS/MMS messaging. And i businesses are paying or eachresponse with a double opt-in, they must be sure to budget ora better-than-expected response.

These issues should be planned or in advance by the mediafirm, agency or messaging service provider, which should pro-vide an adequate estimate o response and thus help with po-tential stang, product and service delivery and otherplanning issues.

By tracking coupon use and redemption, as well as leveragingcustomer-provided preerences collected at registration, ad-vertisers can tailor their messaging to provide customers the

right ofer, at the right time, at the right location.

By measuring redemptions, businesses can monitor and tracktime-o-day and day-o-week to see peak use o the ofer andcorrelate that inormation to the success o anadvertising campaign.

Redemptions can also reveal promotional success by lookingat upsells and cross-sells as a result o the coupon or ofer.

SMS text message coupons will continue to grow in theiusage. But as more consumers adopt smartphones, the trendtoward providing rich media coupons electronic versions oprint coupons, bar coding or video ads with ofers such asthose provided with mobile applications will also continueto grow.

According to Scarborough Research, 8.6 million, or 8 percento U.S. households currently acquire coupons via text mes-sages or email.

Whether businesses use SMS texts, MMS images or videos toprovide coupons that incentivize consumers to make pur-

chases at their locations, mobile couponing is here to stayBut perhaps the most important aspect is that businesses canlearn more about their customers to develop loyalty programsbased on customer-provided inormation and track responseand redemptions associated with mobile coupons.

Mobile application growthMarket research firm IDC projects the number o applicationsor the iPhone will nearly triple to an estimated 300,000 bythe end o 2010 and that there will be 50,000 to 75,000Google Android applications, up rom 17,000 in 2009.

Mobile coupon applications should see similar growth ratesas retailers and other industries look to reach consumerscloser to the point o sale.

Location-based services (LBS) use GPS to serve consumerscoupons, ofers and discounts within a given location and area logical fit or businesses looking to increase their advertisingreach and target consumers with intent-to-purchase behavior



21/46

Mobile coupon applications that usegeotargeting are an efective way orbusinesses o all sizes to promote their

products and services to consumerslooking to save at their avorite stores.

Mobile applications eaturing couponcontent have the added advantage obeing able to track when and where o-ers are searched or, served up, viewedand redeemed.

The mobile application market is currently highly ragmentedand is complicated by a combination o closed and opensource mobile operating systems, device-dependent systemsand applications, and wireless carrier rules and control desires.

Many other mobile applications will increasingly incorporatecoupon content as a content value-add as platorms becomemore open.

In the uture, as mobile coupon, discount and ofer data eedsare implemented across open platorms, these data pusheswill help drive the growth in mobile applications.

Coupon clickers

According to a December 2009 Borrell Associates study, some400 billion coupons will have been distributed nationwide in2009, with a 2 percent average redemption totaling $40 bil-lion in consumer savings $87 million o that rom mobilecouponing and resulting total purchases exceeding thatvalue by a large actor.

The increase in coupon use will likely outlast the economicdownturn as marketers gain a deeper understanding o howcoupons afect shopping behavior and as more companieslearn how to successully employ them.

Local businesses are embracing coupons this year, with thevalue o their coupons jumping more than 50 percent, accord-ing to Borrell Associates.

Consumers are interacting more with mobile marketing as theylearn their phone capabilities and acquire newer technology.

In November 2009, a comScore MobiLens study revealed that

U.S. smartphone adoption increased 63 percent to more than33 million users and touch-screen mobile phone adoptiongrew 159 percent to 23.8 million users in August 2009 rom

the year-ago period.

Media buyers are using mobile advertising more, as it is inter-active and allows them to do more with less.

BIA/Kelsey predicts that mobile local search ad revenues wilgrow to $130 million by 2013, and that mobile local searcheswill increase to 35 percent o all searches by 2013.

More companies are leveraging mobile couponing as a vehicleor engaging consumers, given that they are highly desired in-centives that drive transactions at the point o sale.

According to a November 2009 Juniper Research study, theavailability and convenience o digital coupons are attractinga newer and younger base o consumers, many o whom useTwitter, Facebook and other orms o social media.

These trends are expected to contribute to a projected 300million global coupon users, who will generate close to $6 bil-lion globally in retail redemption value by 2014.

The outlook or mobile couponing is bright due to the new

economy, growing consumer demand or mobile coupons, theincreased availability o mobile messaging platorms andemerging technological trends.

As more rich media applications such as Adobe Flash pro-jected to be supported on most smartphones by the thirdquarter o 2010 are distributed, and the number o opensource operating systems such as Android increases to acili-tate mobile application development, technology and com-munications innovations will undoubtedly increase theapplication and use o mobile coupons.

Also aiding in the growing acceptance o mobile coupons isthe role o broadband 4G/LTE wireless networks deployed tosupport HD video, gaming and more powerul mobile applica-tions. Expect mobile coupons to grow at a ast clip. I

Jim Buckley is new media business owner at Valpak/Cox TargeMedia, Largo, FL. Reach him [email protected].

mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


22/46

B

rands large and small are using the mobile channel asa customer relationship management tool to build theiropt-in database and inspire consumer loyalty, and that

trend will increase exponentially in 2010.

When used properly, mobile enhances the database/CRM ini-tiatives o every business sector, rom consumer packagedgoods, ood-and-beverage and hospitality companies to big-box retailers, sports teams and high-ashion labels.

We expect to see mobile marketing and mobile commercecontinue to grow in importance and adoption as retailersocus on their most loyal customers andstickiness, said Kevin Grieve, CEO o Moca-pay, Denver. The industry experts are pre-dicting mobile commerce and SMSmarketing are going to take of in 2010, andgiven our own indicators, we do too.

Database-building and CRM are two essen-tial aspects o marketing, and both fit nat-urally with the mobile medium. Whenexecuted properly, database/CRM initiativesdrive sales in a big way.

Mobile CRM tactics range rom asking con-

sumers to opt-in to an SMS club via a key-word and a short code to receive promotionsand alerts, mobile coupons and virtual mo-bile loyalty cards, which are oten associ-ated with VIP clubs or requent-buyer programs.

Loyalty playsSo what are the vital components o a multichannel data-base/CRM strategy? The answer is seamless integration acrosseach channel and consistent consumer experience.

Marketers must avoid making mobile an island or standalonemedium. Make mobile part o the overall marketing mix. It isalso important integrate mobile with a brands socialmedia strategy.

Another tried-and-true piece o advice is to keep it simple orconsumers, especially when it comes to database registrationand redemption o coupons.

Despite ast growth in the space, there will be challenges.

Retailers with a trusted brand and pre-existing relationships

with consumers will have an advantage over lesser-known brands.

Businesses and consumers are still going to have trust and se-curity concerns about opting into mobile marketing and mo-bile payment programs.

First and oremost, marketers must ollow the Mobile Mar-keting Associations best practices to make sure their mes-

sages are not perceived as spam.

Another challenge is to understand ROIwhich typically means some level o inte-gration with the point o sale during con-sumer redemption o an ofer.

A challenge will come rom how to migratea customer rom a one-time mobile market-ing campaign to an ongoing relationship,Mr. Grieve said. This can be accomplishedby rewarding profitable consumer behaviowith incentives, which can easily bewrapped into their loyalty program.

Consumer controlTo overcome these challenges, marketersneed to make sure they put control into the

consumers hands allow them to adjust the requency omessages that they receive rom the retailer or brand.

As a direct channel that people opt into, marketers must besensitive to their mobile messages so they are not wearingout their welcome to the point where a customer chooses toopt out.

Marketers need to make sure the providers they work with areocused on the end-consumer experience.

Consider what reporting will you receive, how oten can youtouch the customer and what innovative services can you addinto the mix to build and retain customers to ultimately in-crease your sales, Mr. Grieve said. I

Mobile database/CRM initiatives to help drive salesBy Dan Butcher


DATABASE/CRM


23/46

B

rands and marketers will be more ocussed on mobile-optimizing their email campaigns in 2010. This will ensurebetter customer experiences and higher response rates.

A Radicati Group study oundthat 139 million people aroundthe world accessed email via theirhandhelds in 2009 and this num-ber is going to grow to more than1 billion users by 2013. With mo-bile phone owners outnumberingPC owners our to one, marketersthat do not mobile-optimizeemails will be let in the dust.

The mobile email space is keep-ing pace with the explosive

growth o mobile Web browsing, said Deborah Hall, manag-ing director at Web2Mobile, Toronto.

The first companies that em-brace optimizing their content ormobile will not only improve theperormance o their communica-tions, but also gain insight as towhat platorms users are con-

suming content on their sites Research In Motion, iPhone andAndroid, she said.

Measurement is important be-cause analytics that tell mar-keters what devices are visitingthese properties help to shape astrategy or applicationplatorm choices.

Email is killer appWhen 80 percent o the trafc toan email newsletter comes romiPhone devices, it might makesense to optimize or this plat-orm and look at building aniPhone application or iPhone-riendly Web presence.

Marketers need to consider whether their customers are read-ing emails on a smartphone. Additionally, the device and op-erating system o choice is also important to know.

Based on that, marketers need to figure out i their email cam-paigns are designed to look well and perorm well on thesmall screen.

By always being on, and with the customer, mobile is rein-venting email as the killer app, said Deirdre Bairdpresident/CEO o Pivotal Veracity, Phoenix. Marketers wholeverage the efciency and convenience aorded to con-sumers by mobile email will be able to use the channel to drivesignificant incremental Web and in-store sales.

The time to optimize email campaigns or mobile devices isnow both in terms o design and the customer experience,she said.

More marketers are expected to identiy mobile users and im-plement mobile email marketing de-sign and coding best practices.

Smart emailMany marketers in the space believethat mobile has the ability to over-

come the difculties acing PC-cen-tric email marketing.

We at Yesmail are optimistic thatmobile email adoption will only in-crease in the coming year, saidManny Ju, director o product man-agement at Yesmail, Portland, ORAll industry studies have shown thatreading o email remains among thetop data usages o smartphones.

As the market or smartphones con-tinues to expand worldwide, we seethe importance o marketers toproperly address mobile email notonly in terms o screen layout, butalso in terms o timeliness o oer,he said. I

Email marketers to focus more on the small screenBy Dan Butcher


EMAIL

Deborah Hall, managingdirector, Web2Mobile


24/46
mailto:[email protected]


25/46

T

he mobile gaming sector, dominated by the Apple iPhone in2009, will continue to battle its biggest problem in 2010:monetization.

The iPhone changed the ace o mobile gaming with applica-tions rom brands such as Volkswagen and video game man-uactures including Electronic Arts. But the question or manystill remains: Do consumers preer ree, ad-supported gamesor pay-per-download?

Without a doubt 2010 will be a rocket ship or mobile gamingand we will see the continued growth o mobile gaming com-panies that nail the platorm and user experience, saidMichael Chang, ounder/CEO o Greystripe, San Francisco.

All through 2009 we saw thousands o developers jump intomobile with incredible innovation, he said. Hit games likeTower Bloxx 3D by Digital Chocolate, Sheep Launcher by Kro-nos and Tower Madness by Limbic were both simple andhugely addictive.

Gaming will be the tip o the spear or broader app genresand content types in mobile.

Greystripe is a mobile ad network and game developer.

Brands in-handIn 2009, Electronic Arts EA Games division launched mobileversions o several well-known games such as Connect 4and Monopoly.

Paid game applications that acted as brand extensions dom-inated the charts o Apples App Store.

In 2009 movie studios used the mobile gaming space to mar-ket films with both paid and ree applications and that trendwill continue as more entertainment entities go mobile topromote properties.

EA and ellow game publisher Glu Mobile will continue tocannibalize the demographic, but where are the traditionalvideo game big players such as Microsot and Nintendo?

Sony has the Playstation Portable and Nintendo has the Nin-tendo DSi, but Microsot is missing rom the dedicated hand-held gaming device world.

Playstations parent company Sony has gotten into the mobilegaming application arena with various properties, but Nin-tendo is nowhere to be seen. There is no Super Mario Brothers

application or the iPhone.

As devices gain in popularity and capabilities, could they even-tually act as the video game system controller? Not in 2010but it is a possibility.

Stepping up to the plateGreystripe said 2010 is already starting of with a bang. It hasseen first-quarter bookings grow even ater the holiday sea-son. More brands are recognizing the space, especially mobilegames, and budgets are reflecting it.

Growth comes rom undamentals such as more brands allo-cating online and traditional media budgets into mobile.

Mr. Chang said companiesin the industry should belooking at convergencestrategies in 2010.

As mobile joins with on-line, companies that justthink o themselves as

pure mobile advertisingservices are going to bein trouble.

Mobile advertising has fi-nally become about buyingan audience and deliveringrich media, Mr. Changsaid. Greystripes opportu-nity in 2010 is that we candemonstrate to brandsthat mobile advertisingcan be more efective andengaging than their onlinemedia buys.

Mobile advertising is ahuge opportunity or brandadvertising, he said. 2010is looking bright. I

Monetization strategy key issue for game developersBy Chris Harnick


GAMING


26/46

T

he world will be a more hospitable place or mobile ad-vertising, marketing, media and commerce in 2010. Thereasons are obvious: better handsets, more afordable

data plans, wireless carrier eforts and growing marketer ac-ceptance o evolving consumer behavior on the go.

Challenges remain, as this international sweep o the outlookor mobile will show. But that is only expected as mobile findsa place on the marketing table, with the requisite elbowingrom skeptics.

To create a snapshot o the current mobile scene around theworld, select experts in advertising agency Dratcbs globalnetwork ofered perspectives on the current and expectedstate o mobile advertising, marketing, media and commercein their respective markets. The questions asked included:

What is the state o mobile marketing and media inyour market? Are consumers receptive to mobile advertisingand marketing? What are the local challenges or mobile marketing, mediaand commerce? What is next or mobile in your country?

Here are responses rom Dratcb executives in key markets

engaged in mobile advertising, marketing, media and com-merce. Thank-you to the Dratcb executives or their timeand insight. Mickey Alam Khan

AUSTRALIAAlex RoperHead o digital & directDratcb Melbourne

Major mobile services providers have recently completed up-grades to their mobile networks based on High Speed PacketAccess (HSPA) technologies.

High-speed mobile broadband coverage has also been ex-panded to many regional centers in Australia.

In 2009 there were roughly 25 million mobile subscriptions inAustralia or a population o around 22 million individuals.The countrys mobile industry roughly generated $15.5 billionin revenue in 2009, and a stronger inrastructure or mobilehas meant mobile media has continued to grow.

With iPhones now ofered by all major network providers andretailers in the Australian market, the uptake o the devicehas been swit and will continue.

Users are becoming accustomed to 3G services and contentand downloading iPhone applications, with many local brandsnow producing applications or their product or service.

Ocial figures show that 45 percent o phone owners have3G-enabled phones. Over hal use their mobile phone to getinormation at least once a month and 51 percent use it tosource entertainment content.

There are growing opportunities or brands to provide brandedcontent around search.

That said, one-third o 3G handset users type URLs directly in

to the phone browser with maps being the main inormationthey seek. This all points to huge opportunities or clients tointegrate mobile marketing into their campaign activity aspeople become more comortable with using their mobilephone to seek inormation.

Figures show 50 percent o users purchased content or theimobile phones in the last 12 months.

Browsing the mobile Internet rom a handset is in its inancyin Australia relative to other advanced economies, but 3Ghandset uptake in the last 12 months is growing now at

around 60 percent o users and mobile browsing and mobilecontent will soon be an expectation or most mobileusers here.

Network providers are seeing the trend and are making datapackages more afordable one-third o users now have dataincluded in their plan to win customers over ater makingdata packages unafordable or some time.

A global snapshot of mobile marketings evolutionBy Draftfcb


INTERNATIONAL


27/46

Overall, there has been an increase in the acceptance o ad-

vertising on mobile devices since 2007 and the numbers are

set to continue upward.

Users o mobile devices are happy to receive advertising in ex-

change or ree mobile content or special ofers. It is very

much about a air exchange with brands. Users want some-

thing o value i marketers are going to contact them on their

personal communication device.

The primary challenge or mobile marketing is in competing

with the Internet and television, both which continue to be

the primary portals or inormation.

With users still coming to terms with relying on their handsets

to conduct many o the day-to-day tasks they still assign to

the Internet, mobile marketing must still gain traction

in Australia.

As more key inormation, banking and news sites become op-

timized or mobile, it will become an increasingly efective

channel or marketers. And the outlook is extremely positive.

Although mobile service subscription rates are now between

110 percent and 115 percent o the population, growth is likely

to continue or the oreseeable uture.

Australian carriers are likely to have more than 25 million mo-

bile subscribers in 2011 as migration and business adoption

continue to drive these figures.

AUSTRIA

Florian Zelmanovics-Perl

Chie operating ocer

Dratcb Partners

There are 10.68 million mobile users in Austria and a mere 4

percent are using their phone solely or its talk capabilities.

SMS, videos, photos, music, Internet surfing, emailing and

even paying with the mobile device is becoming much

more common.

In a ew instances, perormance-based mobile marketing has

been very successul and is beginning to influence

traditional thinkers.

Consumers in Austria have become very receptive to mobile

advertising and marketing, especially i marketers are able to

provide them with an added value through special promotions

Austrias digital market seems to be behind other internationa

markets and, thereore, it will take more time to increase the

awareness o the importance and impact o mobile

marketing investments.

Meanwhile, due to the rise o smartphones and iPhones pro-

moted through very attractive provider packages, an increase

in mobile applications and mobile data trac can be expected

in the coming months.

BRITAIN

Leo Ryan

Planning director or digital

Dratcb London

The state o mobile marketing and media in Britain could best

be described as developing.

Despite years o interest and enthusiasm, it is really only the

recent advent o all-you-can-eat data plans that has made

mobile afordable or consumers to access the Web regularly

and or longer periods o time.

Consumer reception levels seem to reflect those o othe

media. Banners receive low click-through rates, but surely that



28/46

is to be expected rom a ormat adapted badly rom print toonline and now even more poorly to a mobile device.

Consumer-shared viral messages achieve cut-through but arehard to predict. The costs associated with orwarding MMSmessages tend to inhibit the most likely audiences teens rom passing them on as they tend to be on pay-as-you-go packages.

The mobile version o direct SMS is efective depending onhow targeted it is and the quality o the ofer provided. The in-teresting exception to standard media behavior is the waythat mobile applications have changed themarketing landscape.

Essentially the same as widgets are to the Web, applicationshave really taken of in conjunction with the popularity o theiPhone and subsequent ofers rom Nokias Ovi, Googles An-droid Marketplace and Research In Motions BlackBerry App-World applications stores.

Challenges or mobile in Britain are not necessarily any difer-ent rom those in other markets, but there will need to be bal-ance in the space balancing marketers need to gain accessto their target audiences and peoples need or privacy in ahighly personal environment.

Mobile spam is already regarded ar more negatively thanspam over email, so British regulator OFCOM is likely to stepin very quickly i mobile marketing is being abused.

The uture belongs to useul marketing applications andnot shouty broadcast advertising. This is especially true on adevice that is ubiquitous, pervasive and personal.

We currently describe this as a mobile phone, but it will morphinto something that looks more like a Web-enabled thingythan a voice-enabled whatsit.

CHINA

Patrick KoGeneral manager CRM/interactive/dataDratcb Shanghai

Mobile marketing in China includs SMS, MMS, telemarketingand mobile Internet, though the first three are much more

popular as they are oten part o direct marketing programs.

With the release last year o the 3G license o China MobileChina Unicom and China Telecom, many stated that China hasfinally entered the 3G era.

In the next ew years the industry expects more consumers toadopt 3G mobile phones. In turn, mobile Internet marketingas well as media, will be much more popular and developed.

Even while SMS and MMS marketing are more popular among

marketers, consumers are much more receptive to mobileInternet marketing.

Statistics indicate that 38.4 percent o mobile users in Chinaare receptive to mobile advertising and marketing; 9.3 percento users say they can absolutely accept it; and 19.4 percent ousers say they do not accept it.

Moving orward, mobile in China aces three main challengesThe first is measurement o mobile marketing programs, whichis not ully developed yet.

The second is the access speed o Chinas mobile Internet. Themajority o Chinas mobile phone users are still using non-3Gdevices and networks, which means the Internet access speedis very slow, setting obstacles or users as well as advertisers

The final challenge is the demographic structure o mobile In-ternet users. Compared to computer Internet users, the mobileInternet user base includes more students and blue-colla



29/46

workers who, because o educational background and lowerincome, alter the learning curve.

The next trend or mobile in China centers around 3G.

Because o the aster access speed o the 3G network, Webbrowsing, movie/music downloading, mobile commerce, gam-ing and GPS have all increased.

Also, as the price o 3G mobile phones decreases in the nextew years, more users will be switching devices. As o October2009, the total number o 3G mobile users had reached9.77 million.

Increased iPhone usage is another possible trend in Chinasmobile industry, though the price is high (4,999 renminbi, or$730), and there is currently no WiFi unction on the ChinaUnicom iPhone.

FRANCE

Clemence AlengrinJunior strategic plannerDratcb Paris

In France, 12 million to 15 million mobile Internet users, ormobinautes, are surfing the Web each month, but mobilemarketing remains discreet.

Mobile marketing market is just starting in France, and it isgoing to grow slowly.

While companies such as Coca-Cola, McDonalds and INPEShave begun mobile advertising initiatives, there are two typeso marketers in the space: those that have Web sites and wantto promote them and those who are just starting in the space.

A new tool called Evaliant Mobile was created by TNS MediaIntelligence and provides a good snapshot o mobile in the

country. Seventy-nine active marketers accounted or the1,083 mobile advertisements created.

While basic mobile advertising ormats such as SMS and MMSare used, consumers do not appreciate these ormats becausethey are too intrusive. Instead, they preer 2D bar codes, whichgive them inormation when they ask and want.

Thirty-three percent o mobile Internet users preer going toa brands Web site as opposed to receiving mobile advertisingand 60 percent o consumers expect good service and valueoferings rom mobile advertising.

Pumbby, a company that pays mobile users or receiving ad-vertising, currently has 12,000 subscribers in France.

The current problem with mobile advertising in France lies inthe ormat. Marketers need to be innovative and ofer solu-tions that clients like. Creatively, French marketers are still arein a prehistoric stage.

And moving orward, 2D bar codes will get another lookin France. LGs association with Scanbuy integrates a bar codereader with the mobile device, making it easier to get inor-mation on brands. This new technology may enable wider useo mobile tags, which is not really the case in France.

INDIA

Bharat WadhwaInteractive headDratcb+Ulka New Delhi

To a majority o Indians, mobile phones are their primary per-sonal gadget and no longer a shared device.

Mobile phones are expanding their zone o influence in a con-sumers lie beyond communication to lie management social networking and entertainment including gaming.



30/46

About 25 million mobile users are active GPRS users, indicat-

ing the growth o browsing. Consider the ollowing:

On average, Indians use their mobile handset to access theInternet more than two days per week, which is slightly below

the number o times in a given week they spend browsing the

Internet on a computer

Ninety-two percent o mobile Web users in metros access

the mobile Web when at home

Fity-six percent o mobile Web users who noticed a banner

ad went on to visit the mobile site o the advertiser

Marketers seem to be lagging behind consumers in embracing

the mobile platorm.

Overall mobile advertising spend is a paltry 2 percent o total

advertising spends, not considering the VAS-based revenue

generated by wireless carriers. But signs are evident the mo-

bile platorm is gaining acceptance.

SMS is the avored delivery mechanism. About 37 percent o

urban mobile users have been solicited with marketing mes-

sages involving ringtone downloads, wallpapers and games.

The Indian telecoms industry regulator stipulates mobile mar-

keting intervention only with user permission, which has acted

as a deterrent or marketers since a database is noteasily orthcoming.

The volume o SMS spam that subverts regulations has cre-

ated a situation where consumers are shutting out marketing

messages on SMS or other delivery mechanisms.

Other current mobile marketing practices include:

Inormation about special promotions

Promotional response mechanism

Lead generation

Voice ads

Downloading ringtones, wallpapers and games

Entertainment products such as movies and music

Financial products including banking, investment

and insurance

Travel products such as airline and railway tickets

From a pure media perspective, mobile as a platorm is seen

as direct contact and partial engagement.

Technology is holding back marketers and advertisers rom

leveraging the medium in a more engaging ashion. The delayo the 3G rollout has been the biggest damper rom

this perspective.

Compounding the technology issue is the complexity o rolling

out mobile commerce even in the current technology platorm

Mobile commerce is also afected by low bandwidth, which is

preventing banks rom setting up mobile payment gateways

and establishing a secure back-end or the mobile

commerce prolieration.

Another inrastructural task that marketers need to take up to

make mobile commerce work is developing a merchant base

that will accept mobile commerce transactions.

Voice-to-data is the biggest shit expected in the Indian mo-

bile industry in the uture and this is expected to be driven

by 3G.

The urban mobile user is expected to aggregate his or her dig-

ital presence through the handset, allowing marketers to ex-

tend their digital engagement strategy on to the mobile

platorm with contextual and behavioral targeting.

The rural mobile audience is rather underleveraged by mar-

keters across media. Given the mobile subscriber growth in

rural markets, it presents an opportunity to reach out and en-

gage the rural audience in their own language. Voice delivery

can circumvent the literacy issue.

MUMBAI

Satish Ramachandran

Vice president

Dratcb+Ulka Mumbai

Mobile as a media platorm is opening up in a variety o ways

in India.



31/46

While explosive growth in the subscriber base averaging 14million new users per month in 2009 has been the norm,trends such as the emergence o the mobile Web, mobile

commerce, downloadable applications and customer serviceapplications are key areas to watch.

Mobile subscribers in India totaled 488.4 million at the end o Oc-tober 2009, according to the Telecom Regulatory Authority o India.

The Indian mobile marketing industry is currently valued atapproximately $27 million, a number that is expected to reach$75 million in 2012, per the Mobile Marketing Association,Asia-Pacific. That means 17.5 percent o all digital advertisingspend in 2012 will be mobile-led exciting growth, especiallyi you consider it currently stands at a mere 2 percent o dig-ital advertising, per JC Digital Outlook, India, 2009.

Brands that have done exceeding well in the space have ap-proached mobile as an integrated brand messaging platorm,but locally, there are some undamental challenges that hinderthe growth o mobile as a viable marketing channel.

Lack o knowledge and inormation among users, low level osmartphone penetration and lack o regulations and guidelinesall ofer their own unique challenges or marketers.

Five key trends are on the horizon or mobile in India:

1. The much-awaited 3G revolution2. Emergence o mobile as a targeted medium3. Mobile payments and commerce4. The coming era o VAS operators5. Localization o content

ISRAEL

Eyal KorzenStrategic plannerShimoni Finkelstein Dratcb

Israels mobile communications market is saturated and in-cludes our major wireless carriers.

In act, there are more mobile subscribers than peoplein Israel.

Merrill Lynch figures show that in 2008 there were 8.909 mil-lion subscribers with a penetration rate o 123.7 percentMany adults in Israel have more than one mobile phone.

Diculties in growth through new customer acquisition andvoice tarif competition have led the carriers to ocus on mo-bile data, regularly launching new value-added products.

Many 3G services have been launched by three major carrierswith significant numbers o subscribers.

Apples iPhone was only ocially launched in December 2009and is expected to increase the applications usage. Success inselling mobile content and applications is essential to combatalling average revenue per user (ARPU).

Mobile advertising in Israel continues to lag behindother countries.

Most advertisers are still unamiliar with this new media, and

the budgets allocated to it are relatively low.

However, in 2009 there was an increase in the number ocampaigns using mobile phones.

One o the major mobile advertising companies announcedthat during 2009 it launched more than 100 mobile cam-paigns and activities, a 60 percent growth rom the year-ago period.

In a highly-regulated market where customers can easily blockor cancel an advertising service, the main challenge is to find

a platorm that will encourage customers to receivemobile advertisements.

Entertaining and creative content, coupled with ree give-aways, will help Israeli consumers become more receptive tothis platorm.

A large-scale mobile campaign usually includes SMS messages



32/46

sent to subscribers, banners on mobile Internet portals, and

the establishment o a mobile site. Usually, this site ofers

marketing ringtones, games and textual content.

Experts claim that mobile marketing in Israel is just a step

away rom a breakthrough. In just a ew years it will be a

standard medium used in every major campaign.

PUERTO RICO

Carmen Cedr

Vice pre

mobile marketer outlook 2010

Documents