Mobile Outlook 2014 Mobile Marketer - THE NEWS LEADER IN MOBILE MARKETING, MEDIA AND COMMERCE
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Mobile Marketer TM A CLASSIC GUIDE
February 2014
$595
THE NEWS LEADER IN MOBILE MARKETING, MEDIA AND COMMERCE
www.MobileMarketer.com
Mobile
Outlook 2014
CONTENTS
PAGE PAGE
3 INTRODUCTION 27 HOME FURNISHINGS
Growing mobile usage calls for more budgetary allocations Home furnishing retailers step up tablet efforts for inspiration
By Mickey Alam Khan By Lauren Johnson
4 ADVERTISING AGENCIES 29 LEGAL/PRIVACY
The struggle to adapt to mobile continues for many ad agencies Biggest areas of legals concern will be SMS, locaiton and
By Chantal Tode non-essential patients
By Chantal Tode
6 APPAREL AND ACCESSORIES
Apparel and accessories live dangeriously, double mobile 30 MARKETING
marketing investments Mobile marketing becomes more strategic as understanding
By Kari Jensen deepens
By Chantal Tode
8 ARTS AND ENTERTAINMENT
Arts and entertinament brands get back to basics 32 MEDIA/PUBLISHING
By Rebecca Borison Publishers look beyond streamlined reading to enhance mobile
experiences
10 AUTOMOTIVE By Lauren Johnson
Automakers hone in on targeting to justify mobile investments
By Lauren Johnson 34 NONPROFITS
Nonprofits must tackle new SMS issues as mobile’s importance
12 BUSINESS TO BUSINESS grows
Hyperlocal focus underpins business-to-business 2014 By Chantal Tode
mobile investments
By Lauren Johnson 36 POLITICS
Politicians embrace segementation to better target constituents
14 CONSUMER ELECTRONICS on mobile
Consumer electronics leverages mobile to be “it” brand By Rebecca Borison
By Kari Jensen
37 REAL ESTATE
16 CONSUMER PACKAGED GOODS Real estate industry embraces mobile for real-time information
Segmentation, personlization will boost CPGs’ mobile success By Lauren Johnson
By Lauren Johnson
39 RETAIL
18 EDUCATION Retailers to benefit as contextual relevance leaps forward
Surge in mobile education creates opportunities for marketers By Chantal Tode
By Kari Jensen
41 SOFTWARE AND TECHNOLOGY
20 FINANCIAL SERVICES Beacon technology brings lcoation strategies into focus
Financial services up investments in activity-based marketing, MMS By Rebecca Borison
By Rebecca Borison
43 SPORTS
22 FOOD AND BEVERAGE Sports marketing tap mobile to play to fans’ competitiveness
Location and timing are key for food and beverage sector By Rebecca Borison
By Rebecca Borison
44 TELECOMMUNICATIONS
24 GOVERNMENT Wireless carriers seek bigger role driving relevant mobile
Government builds on mobile apps and Web sites in 2014 brand engagements
By Kari Jensen By Chantal Tode
25 HEALTHCARE 45 TRAVEL
Healthcare prescribes patient-centered, technology-driven Travel unleases mobile marketing and soars to new heights
mobile solutions Kari Jensen
By Kari Jensen
Mickey Alam Khan Chantal Tode
401 Broadway, Suite 1408
Editor in Chief Associate Editor
New York, NY 10013
mickey@ chantal@
Tel: 212-334-6305
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Fax: 212-334-6339
Email: news@mobilemarketer.com
Web site: www.MobileMarketer.com
Lauren Johnson Rebecca Borison
Editorial Assistant For newsletter subscriptions:
Associate Reporter
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lauren@
mobilemarketer.com mobilemarketer.com
For advertising:
http://www.mobilemarketer.com/cms/general/1.html
Jodie Solomon Kari Jensen For reprints:
May
Director, Ad Sales Staff Writer reprints@mobilemarketer.com
Content Assistant
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mobilemarketer.com mobilemarketer.com mobilemarketer.com
Mobile Marketer covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer, MobileMarketer.com, the Mobile Marketer Dai-
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PAGE 2 Mobile Marketer MOBILE OUTLOOK 2014
INTRODUCTION
Growing mobile usage calls for more budgetary allocations
T he outlook for mobile advertising, marketing and me-
dia is bright for 2014 – but it could be brighter. What
is obvious is the wholesale consumer migration to mobile
way out for media then is to charge for consuming con-
tent – take a hit in the first year or so, but readers will
come around if the content is unique and the media brand
media for content, commerce and communications. But strong. But that trigger has to be pulled this year and next.
marketers have been rather slow in catching on. The deterioration in the fiscal health of media brands is
a danger to the growth of mobile advertising. There is
As this edition of Mobile Marketer’s Mobile Outlook 2014 no sugar-coating that. And no, native advertising will not
points out, marketers across categories are embracing pay the bills, not when advertisers realize that it is hard
mobile in the multichannel – OK, omnichannel – mar- to measure and that consumers may get turned off if ads
keting mix with gusto. But their progress seems at times get confused for content.
a little too cautious for their own good. This is not the
year to prevaricate or wring hands or even ask ques- On the other hand, retailers are getting mobile right, even
tions over the efficacy of mobile – that horse has long if brands are overly cautious. Mobile has become the wir-
bolted. The discussions this year should center on budgets ing and plumbing of retail, with impressive progress in
and integration. integrating mobile calls to action in-store and in the vi-
cinity. Much to their credit, retailers in the Fortune 100
Plumbing and wiring are developing sophisticated mobile programs including
Marketing spend follows eyeballs, but that is not happen- everything from acquisition to retention to reactiva-
ing with mobile. Why advertising agencies are still coy tion initiatives. That is where other sectors should look
about mobile spend is a puzzle. Why marketers are not for inspiration.
questioning conventional wisdom on media spend alloca-
tion based on audience aggregation is also puzzling. If PLEASE GO THROUGH this Mobile Outlook. Editorial team
they are waiting for a catalyst or a hallelujah moment, do members Chantal Tode, Lauren Johnson, Rebecca Borison
not expect that in mobile. and Kari Jensen have broken a leg to offer up the best
intelligence on what to expect in mobile this year. Much
Indeed, mobile usage is growing by stealth. By some ac- thanks to them and to ad sales director Jodie Solomon for
counts, more than two-thirds of all mobile phones in U.S. their hard work. Also, many thanks to our awesome art
hands are smartphones with the ability to do everything a director for putting together this edition.
computer can and then some. Consumption of some cat-
egories threatens to become a one- or two-medium af- Overall, mobile usage is up. Online companies are restyl-
fair: news, books, travel and entertainment, for instance. ing themselves as mobile firms. Smart marketers are in-
But advertising is not trending in that direction, and for tegrating mobile across departments. The discussion this
that brands and agencies have to jump off the fence, pull year has to center on how much more money to allocate
the trigger, show their hands – choose the cliché, but they to integrate mobile into overall marketing and retail ini-
have got to integrate their brand presence into consum- tiatives. Those sitting on the fence may find the land sold
ers’ mobile lifestyles or else. on either side.
As time passes, it is also becoming clear that mobile may
not be the panacea for certain sectors. News publishers,
much to their chagrin, are learning that advertisers are
not migrating ad spend to mobile in the numbers they
had anticipated. Add to that woes resulting from pro-
grammatic buying. The process of media buying now is Mickey Alam Khan
commoditized and ad rates are not holding up. The only mickey@napean.com
PAGE 3 Mobile Marketer MOBILE OUTLOOK 2014
ADVERTISING AGENCIES
The struggle to adapt to mobile continues for many ad agencies
By Chantal Tode
A
s the urgency continues to grow around the need tory available in mobile as a result of the expansion in
for ad agencies to take on mobile in a meaningful Facebook and Twitter impressions and overall growth in
way, something they have been slow to do so far, mobile content.
some will finally take plunge in 2014 while others will
get left behind. Agencies will need to be able to produce creative units to
fit the various mobile contexts.
The volume of mobile inventory is exploding, open-
ing up important opportunities for agencies to develop As mobile, Twitter and television continue to converge,
impactful campaigns for their clients. However, many agencies will also need to figure how to plan and buy
agencies will be challenged to put in place the proper these opportunities.
planning and execution capabilities to take advantage of
these opportunities. Further complicating planning and buying for agencies
will be the continued growth in programmatic buying,
“Agencies in 2014 are go-
ing to have to develop more
comprehensive and sophis-
ticated channel planning
processes to account for
new mobile modes and op-
portunities, will have to
learn how to measure new
social mobile and TV-mobile
integrations, and will have
to learn to shift dollars from
other channels to mobile,”
said Eric Bader, chief mar-
keting officer at RadiumO-
ne, San Francisco.
“If they don’t make progress
in those areas, they will get
stuck buying paid mobile
advertising on ad networks
and fall behind on new de-
velopments in mobile ad-
vertising that are productive
for their clients,” he said.
Increased inventory
One of the more signifi-
cant changes in mobile this
year for ad agencies will
be in the increased inven-
PAGE 4 Mobile Marketer MOBILE OUTLOOK 2014
Marketers need to get up to speed on responsive and
adaptive design, as well HTML5 to create rich and dy-
namic campaigns across screens.
“Invest in mobile, don’t treat mobile as an afterthought,
be experimental and think outside of the box,” said Anna
Bager, vice president and general manager of the IAB
Mobile Marketing Center of Excellence, New York.
“Just porting PC Web creative misses the rich interactive
opportunities of the platform,” she said.
Beyond the banner
There is still significant room for improvement in mobile
advertising experiences.
Agencies as well as the industry more broadly still try-
ing to figure out how best to engage with consumers on
small smartphone screens.
While there is widespread agreement that standard ban-
ner ads do not work on mobile, agencies are still strug-
gling to figure out what is the solution.
“This promises to be the year of successfully reach-
ing and engaging consumers on the small screen,”
said Marla Schimke, vice president of marketing at
Zumobi, Seattle, WA. “I believe agencies that move
beyond thinking about mobile advertising as just ban-
ners and start leveraging new interactive, engaging
mobile advertising formats will be the most successful
in 2014.
which grew significantly in 2013. Programmatic buying “This could mean working with brands to invest in build-
is expected to play an even bigger role this year, with ing native ad experiences on mobile or more effectively
more marketers investing in the space. monetizing and delivering their mobile content to con-
sumers,” she said.
Other challenges will include uncovering the secret to
developing campaigns that take advantage of mobile’s “Agencies are just now truly tapping into the real po-
personal nature to be relevant. tential of mobile advertising and I believe that in
the 2014 they will help brands evolve from sim-
Additionally, tackling the growth in native ad formats ply executing a mobile strategy to truly optimizing
and the need to customize campaigns for individual me- for the mobile experience through brand integrated
dia companies will be important. mobile platforms.”
PAGE 5 Mobile Marketer MOBILE OUTLOOK 2014
APPAREL AND ACCESSORIES
Apparel and accessories live dangerously, double mobile marketing investments
By Kari Jensen
A
pparel and accessories retailers will show no re- existing ones.
straint in 2014, spending up to twice as much as
in 2013 to build relationships with consumers “2013 was a year where brands invested a lot of atten-
via mobile. tion to commerce and not as much to marketing,” said
Sam Ganga, executive vice president, commercial divi-
Mobile savvy retailers will increase their social media sion at DMI Mobile Enterprise Solutions, Bethesda, MD.
presence in efforts to tie together in-store and mobile. “Two thousand and fourteen will be a year where brands
give both attention.”
To do so, apparel and accessory retailers will either es-
tablish mobile Web sites and applications or optimize Apparel and accessories retailers will more than dou-
ble their mobile marketing investments, according to
Mr. Ganga.
“The money will come from other channels,” he said.
“NFC and iBeacon will be used more widely in stores en-
abling new user behavior.
“Mobile advertising will start to integrate directly with
commerce to track from advertising to purchases.”
Upward mobile-ity
Experimentation will overtake timidity in 2014, resulting
in a year of “dressing dangerously,” according to Vogue
magazine’s January 2014 issue.
In the same vein, apparel and accessories market-
ers will no longer be timid when it comes to mobile in
2014, removing all restraints and investing fully in the
market space.
Challenges apparel and accessories retailers face
will include fragmentation in device sizes, operat-
ing systems and browser versions, increasing the
hardships of development and testing, according to
Mr. Ganga.
Tech-savvy customers will become more demanding, ex-
pecting more from user experiences, performance and
reliability of mobile services.
Showrooming will continue to be commonly used.
Competition also will increase, as other apparel and ac-
PAGE 6 Mobile Marketer MOBILE OUTLOOK 2014
cessories retailers and department stores offer similar
service and mobile marketing upgrades.
Mobilizing social
“Two thousand and fourteen will show steady increases
in the use of mobile marketing by the more successful
and innovative retailers,” said Perry Kramer, vice presi-
dent and practice lead at Boston Retail Partners, Boston.
“Specialty, fashion, and accessory retailers have the
greatest opportunity to drive conversion rates and an in-
crease in average transaction rates through the use of
social media,” he said.
Investments in mobile marketing will include making
sure brands are available on customers’ mobile devices
as well as on retailer-owned in-store mobile devices.
“Mobile marketing is a large piece of the rapidly chang-
ing and expanding move from a traditional single POS
experience to a broad set of customer engagement inter-
actions expected in retail,” Mr. Kramer said.
“These retailers are continuing to invest in a more full
circle view of the customer in their CRM environments,”
he said.
“This is a critical part of the holistic approach to a
customer engagement.”
To enhance the mobile shopping experience in-store, re-
tailers will also invest in in-store Wi-Fi services.
This will insure customers can not only access a retailer’s “The ability to tie this information to the location of a
Web site but also connect on social media. customer’s phone or social media transaction is a great
opportunity,” Mr. Kramer said.
“Allowing customers to use the store Wi-Fi for social
media approval of a purchase gives the retailer the abil- “There is no silver bullet in this area and several different
ity to do targeted marketing directly to the consumer models will all increase sales and customer retention,”
while in their store,” Mr. Kramer said. he said.
In 2014, higher end apparel and accessories retailers “However, sitting on the sidelines waiting for a perfect
who can afford the cost RF tagging merchandise should fit for you as a retailer will put you too far behind the
pursue it as a way to boost their mobile strategies. learning curve to quickly recover.”
PAGE 7 Mobile Marketer MOBILE OUTLOOK 2014
ARTS AND ENTERTAINMENT
Arts and entertainment brands get back to basics
By Rebecca Borison
M
obile marketing for arts and entertainment
brands saw a lot of innovation in 2013, and
2014 will be about getting back to the ba-
sics and implementing high-utility but simple tactics.
Arts and entertainment brands do not need to curb the
innovation necessarily, but they need to make sure that
the basics are solid.
That may mean offering reminders for showtimes or sec-
ond screen integration, or it may mean easy mobile tick-
eting and couponing.
“Over the last year, there have been a lot of interesting
innovations occurring with entertainment brands using
mobile technologies for marketing, from how the Despi-
cable Me app translates what Minions are saying as part
of the DVD release, to a start-up we are working with
that allows you to use inaudible sound in theaters to
trigger in-app messages,” said Doug Rozen, senior vice
president and general manager of MXM’s mobile prac-
tice at The Hyperfactory, New York.
“We think 2014 will be about getting back to the mar-
keting basics.,” he said. “Sometimes the coolest things
are just the simplest.
“For instance, we have one client where in a campaign,
we allow consumers to add the airing time of a show to
their calendar with just a touch of a button.”
Integrated experiences
With many channels, operators, shows and films having
their own mobile applications, one important opportu- However, he thinks that the brands need to work on
nity for entertainment brands is to link together experi- creating tighter integration between experimental cam-
ences for before, during and after a performance to cre- paigns and established tactics, while focusing on “shared
ate more valuable consumer engagements. screen” engagement.
According to Mr. Rozen, entertainment brands are cur- Bryon Morrison, president of mobile marketing at The
rently outpacing other verticals in terms of leveraging Marketing Arm, Dallas, believes that the biggest change
mobile to let consumers unlock content whenever and in 2014 for arts and entertainment brands will revolve
wherever they want. around home entertainment.
PAGE 8 Mobile Marketer MOBILE OUTLOOK 2014
“The console market will compete for digital spend, but Analyze and refine
that won’t be a dramatic impact on the spend against Beyond returning to the basics and focusing on second
mobile since they are two very different audiences,” Mr. screen, arts and entertainment brands should focus on
Morrison said. “What will be dramatic is the role the mo- analysis and refinement in 2014.
bile device plays in interacting with consoles.
Marketers should reevaluate their current mobile solu-
“As commerce moves to the console the mobile device tions and use analytics and research to make changes
has the ability to be a major influencer in that process, to their mobile program in order to more effectively
as well,” he said. reach audiences.
“The consoles that have done a good job building mo- “I think for the most part, our field has passed the point
bile into their experience, as Microsoft did with the of getting our mobile initiatives launched in the first
Xbox One, will likely make the process seamless between place to now being in a position to analyze and refine
the devices.” those mobile efforts,” said Allegra Burnette, creative di-
rector of digital media at the MoMA, New York.
“We’ve evolved from trying things out as we find our way
in the mobile space to being more strategic and compre-
hensive,” she said.
“Mobile is no longer a separate stream, but an integrated
part of our communications program, whether it takes
the form of a particular app, a mobile site, digital ads,
email or other social networks.”
PAGE 9 Mobile Marketer MOBILE OUTLOOK 2014
AUTOMOTIVE
Automakers hone in on targeting to justify mobile investments
By Lauren Johnson
A
utomakers will step up efforts to understand the brands in 2013 with the ability to bid against keywords
role mobile plays in the path to purchase with an in real-time to target consumers that made mobile
increased focus on targeting consumers with rel- searches for a competitor’s brand.
evant messages at each step of the research process.
According to Monica Ho, vice president of marketing at
In 2013, automakers continued to be a leading sector in xAd, New York, layering in location data on top of mobile
the mobile advertising space with brand-building cam- searches to make results more contextually-relevant will
paigns that tested a variety of different technologies. be important in 2014.
Going forward, the challenge will be to incorporate mo- Additionally, programmatic ad buying will be a big area
bile into every step of the often long car-buying process. for automakers around techniques such as real-time
bidding, giving marketers have the ability to target
“Autos are unique compared to many other industries as
the path to conversion is much longer,” said Amy Peet,
senior manager of digital marketing at Chrysler Group,
Auburn Hills, MI.
“Examining user’s behaviors and media consumption will
help to determine where mobile plays in the involved
process of trying to sell a car,” she said.
“We are also looking to vendors to increase their tar-
geting capabilities for household device stitching so we
are able to effectively market messaging throughout the
consumer’s path to purchase.”
In the right lane
With more consumers researching and comparing vehi-
cles on their mobile devices before visiting a car dealer,
automakers significantly geared up their mobile efforts
in 2013.
In particular, geo-conquesting, or the ability to geo-tar-
get messages around a competitor’s location, became a
way for automakers to gain a competitive advantage.
The notion that consumers will buy a car through
their mobile device is still far-fetched and therefore
automakers will need to continue to focus on driv-
ing foot traffic to dealerships through location-based
mobile advertising.
Additionally, search was a big priority for many auto
PAGE 10 Mobile Marketer MOBILE OUTLOOK 2014consumers with relevant ads instantaneously on mobile proving mobile’s value versus desktop will still be a prior-
sites and applications. ity for Chrysler and other auto brands in 2014.
Given that automakers are constantly looking to quan- To stay ahead this year, auto marketers will need to run
tify and measure a campaign’s impact, the sector is one test campaigns and work to find the tactic that is most
of the areas where real-time bidding’s impact will be felt effective at building context.
the most in 2014.
For example, Chrysler plans to hone in on daypart-
“To drive automotive conversions, marketers should pro- ing, location and behavioral targeting this year. Ad-
vide targeted and timely information to provide real val- ditionally, cross-screen targeting and attribution are
ue including clear communication of location and price, top priorities.
as well as ad targeting based on user search intent,” Ms.
Ho said. “[Our priorities for 2014 include] proving that mobile can
be just as efficient, if not more efficient, than desktop,”
Proving mobile’s worth Chrysler’s Ms. Peet said. “However there are different ac-
Since there is often times not a clear path to purchase, tions the users are looking to accomplish.”
PAGE 11 Mobile Marketer MOBILE OUTLOOK 2014BUSINESS TO BUSINESS
Hyperlocal focus underpins business-to-business 2014 mobile investments
By Lauren Johnson
W
ith mobile becoming more of a mainstream Driving sales leads
medium for business-to-consumer brands, According to Mr. Schwartz, B2B companies can re-
business-to-business companies will step up alistically expect about 30 percent of traffic coming
their mobile initiatives in 2014 to connect with custom- from mobile.
ers who are increasingly conducting business from their
smartphones and tablets. Therefore, mobile search should be a top priority for B2B
marketers to take advantage of business prospects that
For 2014, B2B will catch up in some mobile areas that are increasingly looking for information while on their
B2C have already found to be successful. mobile devices.
With location-based services increasingly becoming Marketers should also ensure that all search re-
more sophisticated, B2B marketers will look to harness sults lead to mobile-optimized experiences so that
mobile to lure in local business. consumers are not forced to pinch and zoom to
read content.
“Hyperlocal will come to B2B on mobile the same way
2013 was the year of hyperlocal for B2C and retail mo- Additionally, the market for real-time and programmatic
bile marketing,” said Howie Schwartz, CEO/founder of media buying will continue to grow.
Human Demand, New York.
Since lead generation is a top goal for B2B brands,
“B2B marketers will start to embrace location as a key marketers in this sector will significantly benefit from
way to target prospects,” he said. real-time bidding as a way to buy mobile media to
PAGE 12 Mobile Marketer MOBILE OUTLOOK 2014market development for North America and strate-
gic advisor at Somo, New York.
Additionally, loyalty will be key for B2B in establish-
ing lucrative, one-on-one relationships.
B2B brands that are able to successfully leverage
mobile for loyalty purposes will benefit with more
business owners running their organizations from
their mobile devices.
For example, Office Depot reports that B2B con-
tracted clients spend 12 percent more than B2C
members.
Going into 2014, B2B marketers will have to sell
mobile as more than a technology to secure budget
allocation.
target consumers in real-time as they are searching Instead, B2B marketers should approach mobile strategi-
for keywords. cally spread across the entire organization.
While attribution is one of the biggest challenges “This means that business will have to invest in their mo-
for mobile marketers with advertising, click-based bile capabilities, their people, process and technology,”
attribution can still be an effective measure for Mr. Becker said.
the sector.
“They have to develop the processes and invest in the
“Click-based attribution on mobile is perfect for education and training of their people to take full ad-
lead generation and does not rely on cookies,” Mr. vantage of all that mobile has to offer their business,”
Schwartz said. he said.
Going beyond the basics
Mobile has moved from being a siloed medium to
an integrated part of a media mix in the past few
years for B2C brands.
Despite B2B companies being a bit slower to mo-
bile, brands will boost their budget spends and test
out more sophisticated forms of mobile marketing
in 2014.
Take mobile video, for example.
B2B brands will more heavily invest in mobile video
this year to tap into the channel’s informative and
empathetic quality, according to Michael Becker,
PAGE 13 Mobile Marketer MOBILE OUTLOOK 2014CONSUMER ELECTRONICS
Consumer electronics leverages mobile to be “it” brand
By Kari Jensen
C
onsumer electronics brands and retailers will pur- needle forward in terms of driving a purchase in-store,”
sue their 15 minutes of fame in 2014, waging mo- he said.
bile marketing campaigns to garner loyalty and
name recognition. “If I walk into a Best Buy, and they realize I’ve been in the
TV section for a few minutes, they can send me a coupon
Omnichannel marketing strategies will tap mobile rich to buy a particular HDTV for 20 percent off if I buy it in
media, video, sound recognition, geofencing and oth- the next 30 minutes.”
er mobile tactics to support up in-store efforts and
offset showrooming. Watchable consumption
Additionaly, audio content recognition will play an
Consumer electronics will create ads that convey theirs increasing role.
as the most desirous brand or device and tap into a
growing fashion connection. For example, the Viggle app enables users to check into
a particular show, and then the app recognizes that a
“Biometric research shows that users feel confident commercial is on, and can give the users a new ad op-
making a purchase within the banner if they recognize portunity based on what is being shown on the TV.
the brand and if the ad is on a recognizable site,” said
Walt Geer, vice president product strategy at PointRoll, “Understanding what someone’s watching brings new
New York. opportunities,” Mr. Geer said.
“I see people starting to think about how to push the Marketers in 2014 will create campaigns with product
PAGE 14 Mobile Marketer MOBILE OUTLOOK 2014relevance, geo-fencing and duplication in mind.
Going forward, consumer electronics mobile marketers
will strive to engage consumers on mobile devices in
ways that are customized, tailor-made and interactive.
Privacy will become a hot topic in 2014, as consumer
devices obtain and share more information.
Wearable mobility
Consumer electronics brands will also increasingly play
up a growing fashion connection.
“Two thousand and fourteen promises to be an excit-
ing time for technology lovers, as consumer electronics
meets fashion,” said Dale Carr, founder and CEO of Lead-
Bolt, Los Angeles.
“Get ready for wearable devices - Google Glasses and
Pebble Smart Watches - to gain consumer acceptance,
as well as TVs that integrate Web widgets and mobile
technology to facilitate the discovery and purchase of
the items you see in movies/shows – directly from the
screen,” he said.
“[For example], say you’re watching Top Gun. Like
Tom Cruise’s aviator glasses? Just click on your TV to
view the product details, and make the purchase from
your screen.”
As wearable devices and cross-platform integration gain
momentum, marketers will look for relevant ways to Also, the development of more branded apps and subtle
promote these new environments and engage consum- branded integrations - such as branded playlists - for
ers with them. the sake of building long-term, loyal audiences will rise
- versus direct marketing efforts.
“Mobile devices will continue to attract the lion’s share
of attention from marketers and app developers, devices “Additionally, the free app economy is alive and well, as
due to their ability to reach consumers anytime, any- free - or freemium - apps continuing to drive the mar-
where,” Mr. Carr said. ket,” Mr. Carr said.
“In 2013, it became second nature for shoppers to use a “If Gartner predictions are true, by 2017, annual app
mobile device to showroom,” he said. downloads are expected to reach 268.7 billion, by which
point 94.5 percent of app downloads will be free, and
This year will see mobile apps bringing even deeper in-app purchases will be generating 48 percent of rev-
search and targeting capabilities. enues,” he said.
PAGE 15 Mobile Marketer MOBILE OUTLOOK 2014CONSUMER PACKAGED GOODS
Segmentation, personalization will boost CPGs’ mobile success
By Lauren Johnson
W
hile 2013 was the year that big consumer and does not work with mobile.
packaged good brands such as Mondelēz In-
ternational began to embrace mobile’s poten- For example, some CPG brands such as Campbell’s Soup
tial as part of the purchasing cycle, they will need to tested leveraging past purchase data in 2013, and more
personalize campaigns at a hyper-local level this year for marketers will experiment with the technology in 2014
these investments to pay off. for an accurate understanding of which products con-
Once stereotyped as a slow moving industry in mobile,
CPG brands significantly stepped up their mobile efforts
last year with applications, targeted advertising and
leveraging data.
With more brands now pouring money into mobile, the
next big push will be around personalization and creat-
ing tailored campaigns that hone in on a brand’s most
lucrative spenders.
“We’ll likely see companies embracing more of a person-
based approach to targeting, profiling and segmenting,
embracing not just the second-screen concept for cam-
paign strategy, but recognizing that consumers are en-
gaged with a variety of media throughout their day and
along the path-to-purchase,” said Tim Jenkins, CEO of
4Info, San Mateo, CA.
Moving metrics
One of the biggest CPGs to test mobile this year was
Mondelēz International, which allocated 10 percent of
all 2013 marketing spend to mobile for its brands.
The goal for Mondelēz and other CPG giants in 2013 was
to prove that mobile worked.
Often this meant that brands relied on taps, clicks and
impression metrics and primarily pinpointed location to
target consumers.
Additionally, CPG marketers considered brand aware-
ness and non-conversion key performance indicators
as successful.
However, CPG marketers will expect more from cam-
paigns in 2014 as they get a better grasp on what works
PAGE 16 Mobile Marketer MOBILE OUTLOOK 2014sumers are likely to buy. This data can then either be “By combining in-store location, past-purchase history,
used to target against a brand or push offers to consum- purchase intent, purchase cycle and numerous other
ers that already have a preference for a product. data points, CPG marketers have an unprecedented abil-
ity to influence the consumer the instant before they
Additionally, more sophisticated forms of location-based make their purchase decision,” he said.
targeting, including geo-fencing and geo-conquest-
ing, will give brands new ways to target consumers at “That’s not only cool, but it’s the future of retail. An
granular levels. environment where the brand is engaging a consum-
er with the level of personalization that consumers
On the content side, CPG brands will rapidly roll out re- love and expect from their favorite ecommerce sites
sponsive sites in 2014, according to Stephen Burke, vice like Amazon.”
president of mobile at Resource, Columbus, OH.
Moreover, the focus on personalization will be critical.
“We will see more brands explore the value of person-
alization driven by engagement with owned mobile
properties and also more activity with retailers to ex-
plore ‘test and learns’ around mobile engagement,” Mr.
Burke said.
Measurement challenges
As CPG brands delve into more personalization, mea-
surement will continue to be an issue for marketers.
Location-based targeting is a big opportunity but also a
challenge for CPG brands given their massive reach.
To target consumers on a hyperlocal level requires that
marketers have a great deal of information on a con-
sumer that can be spun into a targeted ad in real-time
when a shopper is making a split-second decision be-
tween brands at the grocery store.
In fact, research from Catalina Marketing has found that
30 percent of advertising is wasted on consumers who
do not buy a product.
Additionally, two-thirds of advertising is focused on a
tiny group of consumers who only represent two percent
of a brand’s sales.
“One of the most influential places for a CPG brand is in
the store and in the aisle,” said John Caron, vice president
of marketing at Catalina Marketing, St. Petersburg, FL.
PAGE 17 Mobile Marketer MOBILE OUTLOOK 2014EDUCATION
New surge mobile education creates opportunities for marketers
By Kari Jensen
M
obile instruction will be among education’s nology used in education, and we will see an expand-
best practices in 2014, opening up new oppor- ing library of apps that are educational and engaging,”
tunities for hardware manufacturers, brands said Daylene Long, chief marketing officer and partner at
and education companies. Vernier Software and Technology, Beaverton, OR. “In the
education market, I project that we will see an increase
Education companies, brands and institutions that inte- in the number of devices that compete with iPad.
grate mobile in their marketing plans will engage con-
sumers, including students and instructors. “Chromebook, the Amplify Tablet, and tablets using
Microsoft 8.1 are getting a lot of buzz in educational
With smart devices increasingly being used for teaching technology,” she said.
and learning, competition will increase among hardware
manufacturers for a piece of the pie. Mobile methods
Tablets greatly enhanced elementary and secondary stu-
“I think we will continue to see a surge in mobile tech- dents’ learning and instructors teaching, according to a
PAGE 18 Mobile Marketer MOBILE OUTLOOK 2014study released in November 2013 by Project Tomorrow.
As of September 2013, 24 percent of Americans ages 16
and older own an e-reader, while 35 percent of Ameri-
cans ages 16 and older own a tablet computer, according
to the Pew Research Center.
About 62 percent of respondents to The 2013 National
Survey on Mobile Technology for [Kindergarten through
grade 12] Education cited that they are looking for apps
that are engaging.
About 43 percent said they were looking for apps
that personalize instruction to meet the needs of
different students.
About 36 percent stated they were looking for apps that
provide interactive learning.
Data direction
As mobile technology continues to evolve, so, too,
will the ways that mobile can be put to use in an
educational environment.
“In science education, we are going to see a big shift
in the type of data-collection technology available for just begun to understand and take advantage of mobile’s
hands-on experiments,” Ms. Long said. capabilities, from contacting students, parents and in-
structors, to disseminating information, to tracking data,
“In 2014, we can expect to see innovative sensors that to helping systems raise funds.
collect scientific data and wirelessly transmit that data
to tablet devices for students to analyze and share,” To meet consumers’ increasing mobile demands, edu-
she said. cation systems will need to adopt messaging systems,
such as Twitter, Facebook and SMS, according to Scott
Moving ahead in 2014, mobile device management - Goodstein, founder and CEO of Revolution Messaging,
configuring, monitoring, updating, securing, filtering, LLC, Washington, D.C.
deploying apps, erasing devices remotely - will continue
to be a leading challenge for educators, according to Communication systems that lack mobile components
Ms. Long. and are not mobile friendly only will serve to frustrate
consumers, per Mr. Goodstein.
“It’s a huge issue for education, which means that it
presents a great business opportunity for mobile mar- “The real challenge to meeting these changing demands
keters,” she said. is that they will need to weigh the costs of mobile pro-
grams, against the speed and the reliability of these new
Education brands, companies and institutions have only services,” Mr. Goodstein said.
PAGE 19 Mobile Marketer MOBILE OUTLOOK 2014FINANCIAL SERVICES
Financial services up investments in activity-based marketing, MMS
By Rebecca Borison
I
n 2014, financial services marketers will expand their
focus in mobile marketing to include more activity-
based marketing and MMS strategies.
While inbound marketing has become more popular re-
cently, activity-based marketing must be embraced to
take financial services to the next level. Inbound mar-
keting waits for a consumer to make contact with the
company before applying marketing efforts, but activity-
based marketing works in the context of an activity be-
ing performed by a consumer.
“Historically, banks’ point of interaction with customers
or prospects is the point of purchase when the consumer
is ready to buy the house and now needs to find a loan,
or when the consumer is sitting down with the car deal-
er negotiating price,” said Ron Shevlin, senior analyst at
Aite Group, Boston.
“Activity-based marketing changes the point of inter-
action for banks, moving that point much closer to the
identification of the need or want for the product or ser-
vice,” he said.
Activity-based marketing
Activity-based marketing is similar to asking “Would you
like fries with that?” at a quick-service restaurant.
For financial services marketers it means creating a
new point of interaction. A few current examples are
USAA’s Auto Circle application, Commonwealth Bank of
Australia’s home buying app and Caixa Bank’s ticket-
purchasing app.
Unlike with other verticals, however, financial institu-
tions tend to face more pushback internally when look- DDB Chicago. “Financial institutions are known for being
ing to innovative mobile tactics. very large and slowing moving which can be difficult in
the fast paced world of mobile.”
One of their challenges in 2014 will be overcoming the
reluctance to innovate and move forward in mobile. Rich messaging
While financial services widely banked on SMS for mar-
“An issue the financial industry faces is speed,” said Dirk keting in 2013, expect to these organization expand into
R. Rients, senior vice president and director of mobile at richer messages going forward, with MMS as a way of
PAGE 20 Mobile Marketer MOBILE OUTLOOK 2014paigns. They can message their consumers to remind
them about payments and bills, or they can encourage
app downloads.
Traditional means of communication such as direct mail
and print advertisements are costly and show little ROI,
with most consumers throwing it out.
SMS has a higher capability of reaching consum-
ers at a lower cost, and MMS takes the creativ-
ity level of the message to the next level, leading to
more engagement.
With MMS, it is important to have consumers opt-in and
to send targeted, relevant and valuable content.
One pitfall financial services will need to be careful to
avoid in 2014 is sending messages too frequently or at
inappropriate times.
“Text message marketing is appealing for financial ser-
vices companies because it’s ubiquitous, almost any
phone can do it and most people use it, and because of
its open rates which at around 95 percent are signifi-
cantly higher than that of email,” Mr. Citron said.
“But consumers are now more used to creating, sharing
and consuming rich media and SMS doesn’t allow for
that,” he said.
“In the last few years some marketers turned to apps
as a way of sharing rich media, but they lack the wide-
delivering better ROI. MMS brings high engagement, spread reach of text messaging, so they failed to deliver
with rich media and a widespread reach. the same ROI.”
“Two thousand and fourteen will see more financial
services marketers engage in MMS as a way of reach-
ing consumers,” said James Citron, founder of Mogreet,
Venice, CA. “SMS has been the dominant medium for text
message marketing for some time but that will change
in 2014.”
According to Mr. Citron, MMS is growing at a rate of
about 40 percent year over year and yields three times
the engagement as SMS.
Financial services can leverage MMS for all sorts of cam-
PAGE 21 Mobile Marketer MOBILE OUTLOOK 2014FOOD AND BEVERAGE
Location and timing are key for food and beverage sector
By Rebecca Borison
F
ood and beverage marketers need to do a better sumers tend to make dining decisions based on time
job of embracing the key benefits of mobile such as and location.
location and timing in order to take their strategies
to the next level in 2014. “When placing ads for restaurants it is important to be
attentive to two primary targeting factors: timing and
While quick-service restaurant chains such as McDon- location,” said Shuli Lowy, marketing director at Ping
ald’s, Pizza Hut and Dunkin’ Donuts are already very Mobile, Beverly Hills, CA.
active in mobile marketing, expect a broader array of
restaurants, cafes and bars to leverage geolocation and “Restaurants should aim to reach people in meal de-
real-time marketing to help drive store traffic. In gen- cision-making time frames, in other words just before
eral, this sector has a lot to gain from mobile since con- lunch or just before dinner,” she said. “Consumers should
encounter ads when their stomachs are empty, not full.
“Locational proximity is also an important targeting pa-
rameter and the appropriate strategy will vary based on
the nature and size of a restaurant chain. It is particu-
larly important to pre-plan the locational focus as more
finely geo-targeted ads are typically sold at a premium.”
Unique channel
One of the benefits of mobile over traditional desktop
advertising is that brands can leverage real-time and lo-
cation. Mobile ads can take advantage of a phone’s GPS
and flexible characteristics.
One key use case is geo-fencing. Consumers will be more
likely to go to a restaurant that is nearby, so restaurants
can use geo-fences to target closer consumers who may
be more influenced by an ad.
Similarly, a consumer will most likely not want a ham-
burger at 10 a.m., so a restaurant such as Burger King
would be wise to leverage dayparting with its advertising.
“All food and beverage marketers know that mobile
plays a key role in lead generation, loyalty, and brand
engagement,” Ms. Lowy said. “Figuring out how to navi-
gate and optimize the mobile experience requires an un-
derstanding of the mobile influence in the each brand’s
purchase process.”
As marketers understand that mobile has so much to of-
fer, they will realize that the channel must be approached
PAGE 22 Mobile Marketer MOBILE OUTLOOK 2014in a unique manner. Social video
After getting the basics of mobile Web and mobile ads
Copying a desktop ad onto mobile will not cut it in 2014. down, food and beverage marketers should get creative.
Marketers need to embrace the unique qualities of the The merging of mobile and social is the perfect combina-
channel to optimize campaigns with features such as tion for food and beverage retailers. They can leverage
geolocation and dayparting. the immediacy of mobile and virality of social to forward
creative efforts.
“Brands will stop treating mobile like desktop,” said Pa-
mela Naumes, director of brand engagement at Bolt- Restaurants and others in the food and beverage sector
house Farms, Bakersfield, CA. “Brands are evolving their can create a strong social media presence using fun and
mobile advertising strategy and will move away from one witty videos.
that’s driven largely by banner ads to one that mirrors
the mobile behavior of the consumer driven by insights.” “We think that the main difference in 2014 will be the
growing emphasis on social video,” said Todd Leeloy, gen-
eral manager at OrangeSoda, American Fork, UT. “Ser-
vices like Vines and Instagram Video will continue enable
users to evolve from photos to short videos shared with
friends.
“The Food and beverage industry is positioned in a unique
position between artistry and lifestyle,” he said. “There
are opportunities to showcase products and events
through mobile videos that could really drive virality,
loyalty and revenue.”
PAGE 23 Mobile Marketer MOBILE OUTLOOK 2014GOVERNMENT
Government builds on mobile apps and Web sites in 2014
By Kari Jensen
F
ollowing some recent successes in leveraging mo- book messaging in government.
bile to support various agencies’ outreach efforts,
government will ramp up efforts to optimize exist- “The real challenge to these local governments try-
ing offerings and establish new mobile Web sites and ing to meet these changing demands is that they will
apps in 2014. need to weigh the costs of mobile programs, against
the speed and the reliability of these new services,” Mr.
With mobile giving government a way to easily engage Goodstein said.
consumers by simplifying, streamlining and enlivening
content, expect agencies and municipalities of all sizes “Simply put busy governments and organizations don’t
and levels to begin leveraging mobile in order to keep have the bandwidth, budget or capacity to deal with the
pace with businesses. amount of carrier red-tape to set up and run SMS pro-
grams and will look to cheaper options if the CTIA, MMA,
“Government had some huge successes in using mobile and carriers don’t get their act together and streamline
effectively in 2013,” said Scott Goodstein, founder and the process and bring the costs down,” he said.
CEO of Revolution Messaging, LLC, Washington, DC.
“[For example,] Text4Baby gave consistent and timely “There are so many rules and changes to the MMA play-
information to low-income pregnant women, while the book, CTIA’s auditing system, Neustar’s registry, set up
Federal Emergency Management Agency’s text message costs, monthly fees, etc. that local governments could
shelter look up system gave users the ability to text in simply use other messaging options. These other options
their ZIP codes during a disaster and easily find their include 10-digit phone numbers, Twitter, Facebook mes-
closest shelter. saging, and possibly iMessaging in the near future.
“FEMA’s system was used during several earthquakes, Building consumer confidence
hurricanes and fires this past year,” he said. The government will continue to need to reassure users
of their privacy, and to safeguard user data, especially in
Stepping up mobile light of NSA revelations.
As more consumers rely on their mobile devices, the gov-
ernment is going to have to meet their needs by offering “The government needs to assure consumers that new
mobile apps and optimized sites. safeguards are in place for their transactions, for user
data and ecommerce,” said Chad Estes, executive vice
“Citizens will start to become more and more frustrated president of product management at Blinq Media, Atlan-
if our government Web sites are not mobile friendly and ta. “The government should continue to be a strong ad-
if their user experience does not include a mobile com- vocate, lowering any barriers that could slow the growth
ponent,” Mr. Goodstein said. of mobile, especially when it comes to online taxation.
In 2014, governments will play catch up to try and meet “The government may even consider developing some
their mobilized population’s demands. kind of incentive, monetary or not, to increase the adop-
tion of smart mobile devices in order to promote the
Local governments, schools, and special service organi- growth of this important market,” he said.
zations will need to adopt messaging systems. However,
they are likely to face some challenges with traditional “At the bare minimum, make your Web site work on mo-
SMS messaging that could bring about a bigger role for bile phones and tablet computers,” Revolution Messag-
alternative messaging strategies such as Twitter or Face- ing’s Mr. Goodstein said.
PAGE 24 Mobile Marketer MOBILE OUTLOOK 2014HEALTHCARE
Healthcare prescribes patient-centered, technology-driven mobile solutions
By Kari Jensen
A
s the complex United States healthcare system one basic model that will be commonly seen in 2014.
continues to frustrate consumers and providers, MediSafe alerts designated caregivers when a patient is
expect healthcare brands to devote more re- being non-compliant.
sources to mobile marketing in 2014 in order to enhance
user support. Other more innovative solutions are expected in 2014
but could face challenges if they are overly complex.
Mobile wields enormous potential and possibilities,
which healthcare and medical entities are just begin- “[With MediSafe] the caregivers are then given options
ning to tap. They can look to top mobile retailers, such to text, call or email the patient in the very moment
as Target and Walmart for inspiration and best practices
for engaging consumers and increasing mobile traffic
and sales.
“Mobile marketers are still trying to break the code of
how they can interact with people on a long-term basis
and move the compliance needle,” said Michael Mat-
thews, managing director and founder of The Mobile
Culture, New York. “We’ve tried text reminders to utility-
based apps and the quantified self, but those mainly ex-
perience short-term success.
“The burn-out rate is high and will always be when we
focus on the patient who just wants to forget they even
have a health issue,” he said. “So, in 2014 you’ll see more
of a true focus on the patient’s support group.
“No patient wants to let their family, friends or [health
care provider] down and technology will help broaden
the patient’s accountability to them.”
Fitness and mhealth
An increasing number of mobile device owners and a
rise in mobile sophistication are driving the demand for
smartphones and mhealth care products.
There are more than 40,000 health and medical mobile
applications, according to Happtique.
The global mobile health, or mhealth, market is estimat-
ed to reach $58.8 billion by the end of 2020, according
to Reportlinker.com.
MediSafe, a mobile medication management system, is
PAGE 25 Mobile Marketer MOBILE OUTLOOK 2014when they need it most,” Mr. Matthews said. “It’s already recently, the launch of
seen high adherence rates for Type 2 Diabetics. the health insurance
marketplace, there has
“Even radically innovative products like the Tellspec Food been an ever-growing
Spectrometer, launching August 2014, that beams ingre- demand for patient-
dients found in your food over to your phone or Alive- centered, technology-
Cor’s smartphone heart monitor accessory will require driven solutions, in-
greater involvement outside of just the patient in order cluding mobile apps.
to survive,” he said.
In response to this
Coverage and care demand, insurers and
Since the implementation of healthcare reform and, more providers have been
devoting more re-
sources to mobile marketing and innovation, not only
to attract more customers, but also to insure seam-
less delivery of care for patients entering the care
delivery system.
“In 2014, this spending influx will give rise to more so-
phisticated, interoperable mobile health technology that
will break down barriers in communication in the health
care environment from the patient to the hospital ad-
ministrator, ultimately leading to better coordinated
care,” said Jon Tilton, senior vice president, digital at
Togo Run, New York.
“In 2014, I envision a healthcare delivery system that will
see massive quantities of patient-driven data that will
need to be collected, synthesized and stored,” he said.
As a result of these developments, providers will be in-
creasingly engaging with patients through mobile ap-
plications, from scheduling appointments to monitoring
their health.
New mhealth mobile applications will enable a shared
decision-making process between the physician and the
patient, delivering actionable information in a timely
way throughout the continuum of care.
“From medication management therapy to remote pa-
tient monitoring, mobile technology will be used to in-
crease evidence-based data to insure physicians can di-
agnose symptoms and treat patients in real-time through
mobile technology,” Mr. Tilton said.
PAGE 26 Mobile Marketer MOBILE OUTLOOK 2014HOME FURNISHINGS
Home furnishing retailers step up tablet efforts for inspiration
By Lauren Johnson
H
ome furnishing marketers that prioritize tablets
for inspiring consumers with creative ideas will
be more successful with mobile this year than the
retailers purely looking to drive sales through smaller-
sized screens.
Mobile commerce has continued to grow significantly
year-over-year for the past few years, and 2014 will be
no different. However, getting consumers to transact for
big-ticket items including furniture, artwork or other
home goods will likely continue to be a stretch for some
home furnishing retailers this year.
“[Home furnishing retailers will use mobile] primarily as
an effective browsing channel, as home furnishings are
less of an impulse buy than say, clothes,” said Bob Moul,
CEO of Artisan, Philadelphia.
“Consumers want to see a lot of detail and sharp images,
so tablets will be the better form factor than phones,”
he said.
Tablet-led inspiration
In 2013, home furnishing companies including Pier One
Imports, Sherwin Williams and IKEA rolled out new mo-
bile initiatives to target an increasing group of tablet
and smartphone owners that are turning to their de-
vices as their first resource when making major home
design changes.
Although there are certainly consumers who are buy-
ing big-ticket items straight from their mobile devices,
the vast majority of mobile commerce is happening for
smaller, everyday purchases such as coffee.
for consumers, home furnishing retailers that get tablet
With the bigger screen-size, it seems like the tablet experiences wrong risk not only relevance, but a bigger
would be the first place for many of these retailers with opportunity in driving foot traffic and sales.
mobile investments. However, retailers are still getting
the hang of creating tablet-optimized sites and applica- Home Depot and IKEA are already tackling the growth
tions and many home furnishing marketers have identi- in tablet use with augmented reality tablet app features
cal presences on smartphones and tablets. that let consumers virtually pull objects into a picture
frame to give consumers a better perspective on the size
As tablets inch closer to replacing laptops and desktops of a product.
PAGE 27 Mobile Marketer MOBILE OUTLOOK 2014You can also read
