THREE ESSENTIAL
FOCUSES IN MOBILE
MARKETING
By Eric Koeck
Center website: www.fox.temple.edu/gbm
Smartphone Penetration
• Last Year (2013)
• 1.40 billion smartphone users
• Roughly 1/3 of mobile users
• Roughly 1/5 of world’s population
• Projected to reach 1.76 billion smartphone users by the end of
2014 (up 25% from 2014).
• By 2015, it is projected that 15 countries will have greater than
50% smartphone penetration.
• China has the largest smartphone user base by far in 2014
with 520 million users (Second = USA with 164 million).
• By 2017 eMarketer projects that over a third of the world’s
population and about half of mobile users will have a
smartphone (2.73 billion smartphone users).
Mobile vs. Television
Mobile vs. PC
• US adults spent more time
on mobile devices than PCs
for the first time in 2013.
• Mobile ad spending has
increased by over 100% in
each of the past two years.
• Mobile advertisements are projected to represent over
half of all digital ad spending in the US by 2016.
• By 2018 mobile ad spending is projected to reach $54
billion in the US, which would represent 68.5% of total
digital ad spending.
Source: eMarketer
Mobile Internet Usage
• “By the end of this year, we (Yahoo!) will have more mobile
traffic than PC traffic. – Marissa Meyer (Yahoo! CEO)
• In 2010, internet research firm comScore predicted that
mobile users would surpass desktop users in 2014.
Mobile Socialization
• 91% of mobile users go online to socialize compared to
79% of traditional computer users.
• Instant Message (62%)
• Forward e-mails (58%), content (40%), and photos (38%)
• Post comments on social networking sites (45%)
• Connect to people on social networking sites (43%)
Source: Ruder Finn Survey
Influencer Marketing
Word of Mouth Marketing
Network Value
Network Value at Sony
• Implementing influencer marketing through a partnership
with the social media analytics company Pursway
• Combines Sony CRM databases with the Pursway
Connect Social Relationships database
• Identifies topic-based Influencers and Noninfluencers
within the company’s CRM databases using advanced
mathematical algorithms and big data.
• Pursway’s Sony marketing campaign generated 300
percent more sales than control groups.
Pursway Connect Database
• Currently contains information on 100 million people in the US
• Takes everything publicly available online (thousands of sources) and
combines everything
• Facebook
• Twitter
• YouTube
• Skype
• Blogger
• Emails
• Connecting millions of data points
• Relationships
• Interests
• Activities
• Locations
• Values
Topic-Based Influencers
• 15% of Sony’s customers are “Influencers.”
• On average, 2-3 of an influencer’s friends will buy
because of them.
Social Media Popularity
• The 2014 World Cup is a great example of the power of
social media.
• 88 million people generated more than 280 million
interactions (posts, comments, and likes) on Facebook
during the World Cup final game on July 13.
• 350 Million people generated 3 billion interactions about
the World Cup on Facebook between June 12 – July 13.
• 672 million tweets were posted on Twitter about the World
Cup throughout the tournament.
Social Media is Mobile
• By the end of the year
mobile ad spending will
compromise:
• 68 percent of Facebook’s
revenue
• 84 percent of Twitter’s
revenue
• More than 70 percent of all
time spent on social media
occurs on smartphones.
Source: CIO.com
Facebook Ad Campaigns
How Mobile are Social Networks?
Facebook’s New Advertising Focus
• Facebook’s traditional role in marketing strategies was
building brand awareness and engagement (Social CRM).
• Facebook ad initiatives are shifting to direct-response
advertising with a focus on conversion and sales.
• This presents a greater opportunity for Facebook to use
analytics for targeting direct-response advertising at their
users (Targeted Marketing).
Source: Soshable.com
Source: Soshable.com
Source: Soshable.com
Continuous Customer Engagement
• “The ability to interpret and evolve an understanding of an
individual in order to engage in a productive manner in
any brand interaction”
• Continuously Connected Customers
• 71 percent of of smartphone users compare prices at stores.
• 92 percent of consumers research online and seek opinions via
media before a purchase.
Source: IBM
Continuous Customer Engagement
Targeted Marketing
Big Data
Intent Targeting
Predictive Analytics
Defining Big Data
Volume
Variety
Velocity
Source: IBM
Defining Big Data
Volume
Each day:
11 billion texts sent
2.8 billion YouTube videos watched
5 billion Google searches performed
Source: IBM
Defining Big Data
Variety
Sources:
Consumer Transactions
Communication Devices
Online Behavior
Streaming Services
Networked Devices and Sensors
Source: IBM
Defining Big Data
Velocity
There is a need for real-time analytics to
maximize value.
2.5 quintillion bytes are generated each day.
World’s data is doubling every 1.2 years.
Source: IBM
Source: IBM
1. Efficiency and Effectiveness
2. Increasing Market Diversity
3. New Technologies
Big & Small Data Analytics
• Big data proffer managers market trends and competitor
intelligence, and small data proffer precision targeting at
each individual customer level.
• Coupling the strength of both, managers can uncover
unique insights via Big + Small data analytics and
customer targeting strategies.
• By better understanding the “when, where, and how” of
targeting strategies, managers can harness the potency
of real-time big data to improve micro precise customer
value proposition for higher business revenues.
Local Response
• LocalResponse helps marketers respond to social intent.
• Targets marketing efforts based on a consumers’ social
media activity.
• They analyze over 13 billion tweets, Facebook posts,
Foursquare check-ins, Pinterest pins, and article shares
per month.
Possibilities
• Someone who tweets “I’m hungry” may see an
advertisement for McDonalds.
• LocalResponse works with over 20% of Fortune
500 advertisers.
Predictive Marketing Analytics
• Customer Lifetime Value = the amount of net profit a
customer generates over his or her lifetime
• Use predictive analytics to estimate the customer lifetime
values of customers.
• Rather than focusing on customers with the lowest cost
per acquisition, target customers with the highest value.
• Find at-risk customers and win them back with outreach
campaigns to minimize churn rate.
Three Essential Focuses
• Network Value
• Taking Advantage of the Social Factor of Mobile Devices
• Utilizing Influencers and Word of Mouth Marketing
• Social Customer Relationship Management
• Continuously Engaging with Your Customers
• Improving Customer Satisfaction and Gaining Insight
• Targeted Marketing
• Using Big & Small Data to Increase Efficiency and Effectiveness
• Intent Targeting using Social Media Information