Mobile Advertising: Trends & Challenges

With mobile marketing becoming the clear trend nowadays, companies are leveraging the app-install ads implemented by Facebook, Google and Twitter. The three Internet behemoths are also developing ever more sophisticated products like video ads and deep linking ads that target customers who haven’t visited a certain app in awhile. Twitter has also launched Twitter Moments to allow advertisers build deeper promotions through providing immersive experiences. Pinterest launched its Promoted Pins, which introduced shopping and Cinematic Pins to better showcase the product and to lead customers directly to the product landing page.

Google has also initiated the universal app campaign, which are generated on the fly by the system to fit the most relevant ad inventory and placements available. The system rotates the ads and adjusts bids automatically to get the most downloads for the app. For example, according to Google, if one line of text is performing better than another, the system will show the better text more often.

Nevertheless, ad spend by mobile developers is also skyrocketing. According to industry experts, the combination of new entrants to the space, and increasing budgets have driven overall spending up nearly four times what it was one year ago. A large portion of the expense is allocated to mobile Web designs and building responsive websites so that these brands are getting a version of the Web that is built to the expectation of mobile devices so as to boost the ad engagement.  The cost of an ad has also been driven up by private marketplaces, which are alternatives to open bidding and priced the ad five to six times higher in terms of cost per thousand impressions. Google ads are markedly less expensive than that of Facebook, as publishers pay $1 to $3 for a thousand impressions, compared with $9 to $12 CPMs on Facebook. On Facebook, the cost per install is sometimes more than $15, which is a reflection of oversaturated app-install advertising on Facebook.

In addition, viewability on mobile is also an issue. The most prevalent trend is placing the ads high up on the page, where readers are likely to see them on first glance. Others are touting the fixed bottom navigation areas that have become more popular owing to the new scrolling paradigms. According to industry experts, despite high impression generated by high-top advertisements, readers would be diverted away from the website after seeing the ad, making it undesirable for the publisher. Another problem is that if a mobile user doesn’t load at a lightning-fast speed, users will not end up viewing it, as the average mobile user starts scrolling on a website 13 seconds after content begins loading, compared with 24 seconds for that of desktop readers.

Publishers and mobile developers also summarize key factors that make an ad stand out. Brands have discovered that the better the targeting, the more valuable would the ad impression be. Moreover, ads that are more artistically creative and deploy new format have kept performing well in terms of impression and generated revenue. Advertisers also realize that banner-based ads don’t translate to mobile, and that native and personalized content are much more effective.

Related Links:

• http://digiday.com/platforms/mobile-ad-market-dependent-app-installs-growth/
• https://support.google.com/adwords/answer/6247380?hl=en
• http://digiday.com/platforms/inside-pinterests-plans-win-advertisers-maybe-beat-twitter/
• http://digiday.com/brands/heres-twitters-first-promoted-moment-looks-like/
• http://digiday.com/publishers/publishers-latest-thinking-mobile-ad-placement/
• http://integralads.com/data-metrics/viewability/

Brands & Publishers’ Snapchat Initiatives

With its branded geofilters and video advertisements, Snapchat has emerged as one of the hottest marketing channels for brands. Retailers are customizing their campaigns for this medium to capture more Millenial audiences, which compose of 71% of total Snapchat users. Below are several tactics that have been proven to be useful to brands.

As Snapchat’s name suggested, it is much more effective to feature short and snappy contents, since the app’s millennial audience could be quick to hit skip. According to stats from sponsors, since 70% of audiences stop watching Snapchat videos after 3 seconds, brands should get their message out in two seconds, or else most won’t see it. In addition, brands choose to feature ads that are native and organic to the platform, which normally leads to higher completion rates. Brands that featured creative and customized Snapchat campaigns have witnessed substantial rate of favorability lift, such as the Snapchat Live Story for the MTV video music award, which saw a 28 percent completion rate, leading to a 50% increase of impressions and click-through of webpages related to MTV. According to the representatives from Viacom, since “Snapchat is where ads are pure, 100 percent in view of the screen, not hidden anywhere”, brands should narrate more creative and unique story-based contents.

Snapchat’s Discover channel, an original media feature that was unveiled this January, also opened multiple possibilities. Compared with other channels, Discover ads are less expensive in that Snapchat has agreed to let the publishers strike their own advertising deals with brands making the Discover ads cost approximately $0.15 per view. In addition, rather than leveraging algorithms to target audiences, Snapchat counts on editors and artists to determine what is important.

Brands often feature fresh contents on Discover so as to cross-promote. Sony Pictures has also purchased its own Discover channel to promote the newly released Bond installment “Spectre”, which will be labeled as “Sponsored” on the Discover tab. and will be loaded with cast interviews made specially for Snapchat, behind-the-scenes videos from the movie’s exotic shooting locals, as well as even sendable filters. Universal Studio has also purchased a sponsored snap story for its low-budget horror movie “Oujia” last year, which was simply composed of a trailer for it displayed on user’s Recent Updates list but wasn’t interactive or shareable like the channel for “Spectre” is. 

In addition, Snapchat has developed its first call-to-action style ad last week. The ad for the Activision game, “Call of Duty: Black Ops 3” ran on the Daily Mail’s channel in the Discover section. It requires users to swipe up to view a full trailer, a mechanism that served to create a lean-in experience— a video view that requires an action. Similar to the results from interactive Snapchat Ads, showing that whenever the users actually click on the ads they are more likely to complete it, the two-minute call-to-action type ad has generated almost 30% completion rate, radically higher than that of Autoplay videos on Facebook, which amounts to a mere 10%.

Snapchat has also announced last week of its confirmed 6 billion daily view count, just days after Facebook reached 8 billion video views per day. Even though most videos are personal messages that friends send to each other and therefore not tied to advertising, Snapchat’s video-oriented approach has allowed it to usurp the crown as the focal point of youthful Internet usage largely due to the storyline nature of its contents. Retailers have been utilizing the Live Story framework to post video montages from special events like fashion runway shows or sports stadium. Sprite also ran a campaign last month, which started with 15 different Snapchat codes printed on cans that lead users to videos of fifteen celebrities sharing Sprite-related stories. Sprite is said to ship additional cans slapped with Snapchat logos that lead consumers to other users’ accounts on the messaging app. Sprite has also set up a pop-up retail location in New York this summer to offer people nearby special filters to put on their Snapchat photos.

With more hypes generated through custom filter overlays and additional sticks, Snapchat is said to attract more teenagers and twenty-somethings that are often disillusioned by traditional advertising. Through producing original and customized contents, as well as by generating interactions among fans via brand stories, retailers could talk directly to younger customers to promote the brand and the products.

Related Websites:

•       http://digiday.com/platforms/snapchats-new-ad-invites-people-click-view-brands/
•       http://digiday.com/platforms/snapchat-went-20-million-photos-day-6-billion-video-views/
•       http://digiday.com/platforms/mtv-drew-12-million-views-snapchat-vmas/

Mobile Screen Sizes and the Importance for Marketing

After reading several articles on the iPhone launch coming this week, I noticed that there not only seems to be a correlation of screen size and market share for Apple and the iPhone, but also that there is a connection between screen size and mobile marketing.  An article on Marketing Week quotes, "Analysis shows that those using 'phablets' - a screen size above 5 inches, big for a phone but small for a tablet - are more likely to engage with personalized, real-time advertising.  Mintel's report reveals that 43% of consumers with a six-inch or larger handset would allow brands to target them using their location, compared with 21% of those with a phone under 5 inches."



Source:
https://www.marketingweek.com/2015/09/07/what-the-new-iphone-means-for-mobile-marketing/?ad_55ef15dc32d33=55ef15dc32d85


It appears that as screens get larger, people tend to start to do more on their phones beyond viewing videos.  Although I think there will always be a need for laptops and tablets, the rise in screen sizes are enabling people to do far more with their phones.  This puts a might higher emphasis on mobile marketing as people are spending more and more time on their phones and are leading more of their lives on their phones.  

This proves that it is more important than ever to ensure websites are responsive and that the consumer experience on mobile is a high priority.  

Source:
http://mashable.com/2015/02/02/mobile-screen-habits-brandspeak/

QR code is extremely popular in China but why not in the U.S.?

Following the China Digital Marketing Group on LinkedIN, I came across one discussion about QR code a few days ago. Then I suddenly realized that I have not scanned a single one since I came back to U.S. after my summer vacation in my hometown---Shanghai, China. When I was in Shanghai, I used QR code very frequently. I would add my friends on WeChat by scanning their QR code ID. I downloaded apps and requested subscription and push service by scanning QR code on posters, computer screens and advertising boards on subways. Every time I came to a restaurant, the first thing I would do was to scan the QR code on the small advertising board stood on the table to follow the official account of the restaurant on WeChat. And then I could get coupons, free drinks or discounts as a first-time customer.  I even made payments by scanning the small square which would directly connect me to the interface of AliPay ( an app like Paypal). All I need to do then is to confirm the payment amount and click "Pay", without typing in any digits. But since I came back to U.S. in late July, I only used QR code for two or three times to board the airplanes. 

After doing some research, I find that there are two big reasons pushing up the popularity of QR code in China. One is WeChat and the other is the growing number of Chinese mobile internet users. 

In September 2012, Huateng Ma, the CEO of Tencent (company that owns WeChat), emphasized the huge potential of QR code in O2O (online to offline) and the company's strategy to push QR code on China's Internet Conference. Later, the QR code scanner function was built into WeChat. Being the most popular social network and an all-purpose mobile platform in China, WeChat definitely promoted the QR code's usage and commonality as users can now interact with the various functions such as making payment, getting information push service etc. in WeChat with those little squares so easily. It is more personalized and customer-oriented. You don't have to type in anything. You won't be bothered by switching among different apps or webpages. The high usability and network externality brought by WeChat make QR code a mania in China.

The other powerful hand is the huge population of mobile internet users. According to the China Internet Network Information Center's (CNNIC) 35th "China Internet Development Statistics Report", by December 2014, about 85.8% of internet users, which is about 557 million, connect the Internet through mobile devices.  And among the 1.29 billion mobile users, by February 2015, about 48.8% of them are mobile broadband (3G and 4G) subscribers (Data via Sina Tech).  Network externality has grown exponentially along with the widespread coverage of Internet and increasing number of mobile internet users, which has made QR code a very powerful and involving tool in people's life. 

Finally, back to the question why QR code has not become popular in U.S. I think a key reason is that none of the popular social network apps in U.S. has incorporated or emphasized the QR code scanner function. There are some QR code scanner apps available in Android market and IOS App Store. But as a separated application, the most exciting power of QR code---easing interactions with various other platforms, is limited. Breaking the barrier to network externality is important for QR code to become popular in the U.S. market. 

Reference: 

http://www.cac.gov.cn/2015-02/03/c_1114237273.htm

http://www.cnn.com/2015/02/03/world/china-internet-growth-2014/

http://www.cac.gov.cn/2015-02/03/c_1114237273.htm

Facebook Marketing for Financial Institutions

A recent article in the Financial Brand talked about the role that Facebook plays in financial services marketing, particularly with regard to mobile.

http://thefinancialbrand.com/51395/facebook-mobile-marketing-in-banking/

Traditionally, banks have been very hesitant to move into mobile marketing. This occurs for a couple reasons

1. Regulatory - many banks have compliance groups that worry about selling on a mobile device. Given these concerns, the advertising would be focused on brand-building, which is hard to attribute to actual sales, so often would be overlooked.
2. Its a new channel - making the switch to a new channel is always difficult. Since most customers do not actually complete the transaction and fund while on their mobile device, it is very tough to make the business case for mobile marketing

 In the article, they talk about the large number of customers that login daily on their mobile device and monthly more broadly. Given this volume of customers and the attention that consumers give to their mobile device on News Feeds and Instagram, this is clearly a medium that will only grow over the next couple of years.

Location-based Mobile Marketing Trends

Use of smart phones to shop and access information about different products and services is no longer a trend but a part of most of our lives. According to a survey conducted across a sample, one of the trends that clearly emerged was increasing number of smartphone users are keeping their mobile phones near to them nearly for the whole day. The day starts and ends for most of us with checking email, meetings etc. on our mobile phones.

According to Pew report, more than three quarters of smartphone users use location based services. Consumers are found to be very receptive to location based tracking which is widely adopted, irrespective of age, gender, ethnicity, education and income. Location-targeted campaign spending is dramatically growing as studies show that location-targeted campaign spending at the local level would account for $5.8B in mobile ad spending by 2016, up from $664M in 2012 while the whole location-targeted campaign market (national and local) would grow from $1.6B in 2012 to $9.9B in 2016.

Social Media is also increasingly adding the information with most of the posts, say photos or a simple textual post, with the location information from where it is being sent. This wealth of information is being especially used by retail giants to mine and provide a customized local ad or promotion specific to a person. This trend is also growing and expected to grow even further.

But, often the location based marketing has faced many challenges – the two key ones related to privacy and security of data. This has been perhaps one of the key reasons many people including teenagers do not select location tracking on their mobile phones. But the trend has changed dramatically especially in last two to three years with more people ready to share their location. This has been primarily possible due to the related practices evolving especially asking for consent to share the location information of the customer before actually sharing it. Equally important is the continuous enhancements in securing this customer data as it contains personal information based on the customer behavior.  Accurate Customer Behavior Information is something virtually every business entity today especially retail giants would like to acquire, mine and subsequently use to their advantages especially for targeted marketing.

The diagram below encapsulates the discussed trend of location based services being used on mobile phones.

 

 

References / Sources:

http://www.biakelsey.com/Company/Press-Releases/130122-New-BIA-Kelsey-Report-Emphasizes-Localization-Opportunity-for-National-Mobile-Ad-Campaigns.asp

http://www.pewinternet.org

http://www.onlinemarketing-trends.com/2011/09/ther-state-of-location-based-mobile.html

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjtdQ3CrrsuM1yMU-Z0-k-rxtjvQpCA62_iobulbTkz7jbS43hdSz1WPHqunVeiDK7v8-ispmXCjn-yT2Ipvw6cy9-2SIiBF01xipuqNmX6q6JBr15qYQFB_ARTxf57lpf7-jcfrw/s1600/232108.PNG

 

 

 

Tumblr Expands Sponsored Capabilities

Tumblr has introduced “Tumblr Sponsored Apps,” a new mobile ad unit to attract more advertising dollars. The new ad unit will allow publishers to target the Tumblr community with creative sponsored posts that are designed to encourage users to download mobile apps from the iTunes App Store and Google Play through an “Install App” button.

The main difference between Facebook and Twitter’s mobile app install ads and “Tumblr Sponsored Apps” posts is that Tumblr’s posts are overlaid with an “Install [the app]” call to action. These posts will initially show up on mobile users’ dashboards, but will also be displayed as regular posts on Desktop without the “Install” message. Essentially desktop users can still organically see the sponsored posts associated with the ad and will be able to further reblog or share the content.

Max Sebela, creative strategy manager at Tumblr explained, “The core is that the native functionality allows marketers to talk to the community the same way any advertiser would be able to on Tumblr. Users don’t just download the app, but they can also share the content that is treated like other posts on Tumblr.”

The platform debuted “Tumblr Sponsored Apps” with three business partners: Gree, Big Fish, and TwoDots, all of which are gaming companies. In addition to the sponsored posts and mobile app ads, Tumblr will test a variety of ad formats in the “Tumblr Sponsored Apps” program to gauge its online community’s interest.

Tumblr says currently it has 400 million global monthly unique users, and 65% of its users access content through the mobile app. Its total mobile engagement has grown 84% year-over-year.

Sources: Tumblr, TechCrunch, ClickZ

The best mobile campaigns of 2014

In the ever-changing landscape of mobile, this year brought many new and innovative strategies. This was the first year the marketing and advertising industries have truly explored a variety of mobile technologies and strategies to engage with consumers. If we jump in our DeLorean and venture back to 2012, we would see a few brands experimenting with augmented reality, but mostly doing the same thing, just in different ways. Technologies such as iBeacon and other powerful location solutions, in-depth and real-time analytics platforms, and advanced coding techniques have given rise to a do-anything mobile world.

Check out this interesting article as a perfect complement to our coming mobile marketing class,

http://www.imediaconnection.com/content/37783.asp#multiview

Mercedes-Benz allows Instagram users to create Custom Cars

Before social media, automobile manufacturers used websites to promote car customization.  Now, Mercedes-Benz is allowing car configuration on Instagram to promote its new car, the GLA, among millennial consumers.  Mercedes-Benz is introducing Build Your Own GLA, a program which lets users create their own custom versions of the car on Instagram (@GLA_Build_Your_Own).  

Instagram users choose their preferences among different components, such as color, wheels, roof, and grill options.  Users can easily navigate from one component to the next, through different accounts, and step-by-step by tapping on their mobile screens. There are 132 possible unique configurations of the car.

“Instagram has been a very important platform for Mercedes-Benz and continues to grow in popularity among the younger millennial consumer that we are trying to introduce the brand to,” said Mark Aikman, department manager, digital marketing and CRM at Mercedes-Benz USA. “‘Build Your Own GLA’ allows us to talk to them where they are and provide them with an interactive experience within Instagram. Instagram is also a very visual platform, and we fortunately sell very aesthetically appealing products that work well on it,” Aikman added. He added, however, that the key was to always come up with great organic content suited to the platform itself, since even though Instagram has ads now, they can’t be redirected to another landing page. Through this GLA campaign, Mercedes-Benz will be looking at engagement metrics such as overall likes, comments, and additional followers.

Mercedes-Benz isn’t the only automaker with innovative digital campaigns recently.  Acura allows fans to custom cars entirely on Twitter. Lexus developed an Oculus Rift motion simulator to give users a virtual test-drive.  Chrysler gives users virtual factory tours.

It is interesting to see how different types of consumer companies adapt to the changing millenial preferences of how they consumer content.  Brands are now embracing social media to connect with their customer, no matter how young or old.  Mercedes-Benz's Instagram campaign is a strategic marketing tactic that targets millenials and introduces them to the luxury automaker.  The best way to measure the effectiveness of the campaign will be to see how many sales of the GLA are attributed to this digital campaign.


Source: http://digiday.com/brands/mercedes-benz-lets-users-build-custom-car-instagram/

Four Key Steps to Engage the Millennial Traveler

Every destination we step in from the chilly breathtaking glaciers along the hiking paths of El Chaltén to bustling charming metropolises like Seoul and Buenos Aires – millennials are constantly on the move. Travel brands must develop strategies to attract this new tech savvy traveler as they grow in number and affluence. With millennials expected to outspend baby boomers by 2030, the below strategies will help travel brands engage this valuable consumer.

1. Go Mobile

The millennial traveler is all about booking on the go – whether in the subway to the next important meeting or on the impromptu night out brainstorming vacations with friends. Mobile travel gross merchandise sales are slated  to reach $26 billion this year, an amount more than double that spent in 2013. In fact, by 2017, mobile travel sales will account for one third of all digital travel sales – reaching $55 billion.

Customer engagement via mobile is no longer a bonus companies can provide, it is a necessity they must offer if they want continued millennial loyalty and further bookings and perks purchased through them.

2. Use Targeted Marketing

With the data of all search queries available to travel companies, information on traveler trends per age and type of traveler is readily available. Getting ahead of the traveler’s mind and determining the millennial traveler’s needs and destination desires becomes easier. Travel brands looking to plant the idea into the traveler can now create custom incentives, messages and offers to give the millennial booker what they crave.

3. Personalize the Communication

Alongside custom messages and deals matching each traveler’s style of vacation exploration, millennials are expecting more and more personalized recommendations to be sent directly to them while already on the trip. If there’s a show happening that aligns to that person’s interests in Berlin, they want the travel brand to remind them of this experience with a ticket link. Travel brands are then rewarded for their forward-thinking as millennials tend to share and boast about their travel experiences across highly connected social networks that reach potential new Gen Y travelers for the brand.

4. Convenience is Priority

The constantly moving millennial expects that life keeps up with them wherever they may find themselves. Any spontaneous idea must be able to be satisfied for the millennial to commit to a travel brand. Instant service, quick feedback, and around the clock problem resolution are all noted and shared with friends when discussing a vacation’s flow.

Engaging the Millennial Traveler

The emergence of new technology has made it possible for brands to understand their customer and tailor strategies to retain the millennial traveler as a customer for years to come.

One company leading in this space is inGuest by Revinate. inGuest gives hotels a platform to better engage with guests across their preferred channels, whether it’s Web,  mobile,  or in-person.  By collecting preferences and data while guests are talking with hotel staff regardless of channel, inGuest can integrate this information with existing hotel systems to enhance guest profiles. Having access to these guest profiles allows hotels to personalize all aspects of service as well as future targeted messages to prompt a new booking. Thus, travelers are engaged across all parts of their journey.  

Source:

·         http://skift.com/2014/10/15/4-strategies-to-better-engage-the-millennial-traveler/

·        http://skift.com/2014/05/23/mobile-travel-sales-in-u-s-forecast-to-reach-one-third-of-all-digital-sales-by-2017/