On November 7, I led three sessions at Ad:Tech NY on mobile.
You can find two of three presentations I delivered on my Slideshare account here. Because I received so much feedback on these, I decided to share with you
the “narrative” that goes with the first presentation. The slides are fine, but
obviously miss the context of me talking to them.
Until last month I had the pleasure of being VP, Global
Connections at Anheuser Busch InBev, the world’s largest beer brewer. I oversaw
all consumer touch points, meaning media, digital, sports & entertainment
marketing, CRM, licensed merchandise and the like. This meant that a day could
involve negotiations with the world’s soccer governing body FIFA about our
World Cup contract, discussions with measurement partners like Syncapse or
Marketing Evolution, negotiations with ESPN or Facebook about our global presence,
etc.
And yes, somewhere in there we also talked about mobile. With
over 1 billion smart phones worldwide, and with countries like Brazil having
more phones than people, we can truly say that the phone is now a personal mass
medium.
(Photo courtesy of MorgueFile)
And this medium is beginning to represent a significant
business, with IAB reporting an increase in mobile generated revenues of 95% to
$1.2 billion dollars, and mobile shopping representing $ 580 million in sales
value. So many are calling 2012 finally the year of mobile. Some even call it
the DECADE of mobile, as consumer penetration has far outpaced Advertiser and
Commerce value for a number of years.
Personally, I call this the ERA of mobile, because to me it
is less about commercial value or the number of phones sold, or us being smart
about how we use this fabulous new touch point as a medium to connect brands
with consumers and consumers with brands. It is the ERA of mobile because as
consumers we are unhinging ourselves from cables and desks at an unprecedented
rate and carry more computing power in our pocket today then we had from our
computers not so long ago.
Mobile also shows all sorts of promising qualities for
targeting. Obviously certain content will drive certain audiences, but in
principle, you can get to all of them through mobile platforms.
During the recent Hurricane Sandy disaster people were scouting their neighborhoods for electricity to charge their devices or to find
a wifi or phone signal, indicating their dependence and attachment to mobile as
something they can’t do without. Gyms were offering free access to their facilities
with “power and shower” access for displaced citizens. So where the basic human
necessity used to be shelter and food, today’s requirements are shelter, food
and power/wifi.
And because of the rise of multi-tasking, mobile is turning
people onto, or perhaps even back to old media like TV, where mobile becomes
the new instant water cooler platform for sharing and venting. The same is true
for print media, who are discovering new ways to bring quality journalism to
audiences, with, apparently, as a positive side effect more engagement for the
ads as well.
At the same time, not all is rosy in mobile land. The
advertising industry, and especially the kind of advertisers I know best (Fast
Moving Consumer Goods companies), who typically have very large budgets at
their disposal, have yet to truly understand the mobile opportunity.
According to a study from the CMO council, 37% of
advertisers are still evaluating if the medium offers anything of value to them
as an advertising medium at all. And just 14% are actually happy with the
results from their mobile marketing efforts. Does this mean that General Motors
will soon denounce mobile as something that does not work, like they did with
Facebook?
Colgate sheds some very honest light on the problem by
declaring that it will take time before mobile will be woven into their
marketing activities. The publishers are also very honest when they say they
still have quite a bit of work to do to sort out their self proclaimed mess. So
we are all still very much learning, or as the New York Times put it,
re-learning advertising in the Mobile Era.
Today’s Mobile Ad Spend is at $ 2.6 BLN, growing double
digit.
But that is only about 2% of total ad spend. So there is a discrepancy
between the mobile world according to consumers and the ad industry.
So here are two reasons why I believe FMCG advertisers are
still struggling to understand the mobile marketing opportunity.
1. The industry is
incredibly silo-ed
Any large advertiser will brief their campaign to a
collection of different agencies: creative, media, digital, PR, perhaps
specialist agencies in social, sports marketing, or even mobile. One can argue
that advertisers are very much part of doing this to themselves. It means that
as an advertiser, you need to direct that very large orchestra of players into playing
one and the same tune.
At the same time, all these agencies are all individually peddling
their strategies for connecting with consumers, as are mobile ad networks and
large mobile players like Google, Facebook and Microsoft. And I haven’t even mentioned
traditional media owners with a significant digital play like ESPN, the TV
networks or even the NYT.
All of them have shown you slides that state “we are now
living in the mobile decade”, that “the time to invest is now”, and “here is
how we propose you, the advertiser, should do that”.
So – in your confusion – what do you as advertiser resort
to? Numbers!
2. “Show me the data!”
This is perhaps the first and foremost reason: advertisers who
ask, nay demand, to see the ROI of mobile to their business.
Never mind that we have lived through decades of TV
advertising without the merest of ROI to brand results. That has changed
somewhat since the early 2000’s especially thanks to large advertisers such as P&G
and Coca-Cola, and smart companies like Marketing Evolution.
But I would like to quote my friend Joseph Jaffe, who when asked
by a major advertiser to proof that his proposed digital strategy was going to
work, answered by asking if the advertiser had any proof that his non-digital
strategy was working. It remained eerily quiet in the room.
I am of course not saying that we don’t need proof. But I
don’t think we can single out lack of proof as the main reason why, as Colgate
put it, it is taking so long to weave mobile into the fabric of marketing. If
mobile marketing represents only 2% of Advertising Budgets, than surely that is
not a hugely risky investment. The 2% can be an experiment to learn. Let the
98% do the heavy hitting.
There is also a challenge around defining ROI, and that is whether or not we can agree on the right definition of ROI. And here, we have to accept that
the answer is “It depends”… It depends on your category, your brand business objective,
your position in the market, your target, etc. I showed this simple construct
for ROI objectives in my presentation.
Sadly, it seems that either set of KPI’s are largely ignored
in favor of eye ball counting. That to me sounds like the old days of reach and
frequency on TV:
As said before, consumers know what they use their mobile
device for. It is not a standalone platform, tool or activity. Many activities
that start on mobile continue onto other devices, as is shown in this data
point from Google’s Multi Screen World research. Equally, the Google study
revealed that other journey’s start for instance on a PC and end on mobile. The
challenge for advertisers is to offer seamless, easy access, everywhere, at anytime,
on any one device. The added challenge is to ensure it is also engaging and offers
a true two way opportunity to connect.
So what I would recommend to all people who are working in
the mobile sphere is to STOP thinking about it as “mobile”.
I have a rule that any person coming in with a presentation that
states something like “mobile”, “mobile strategy” or “mobile plan” has to leave
the room. Immediately. Recommending a mobile strategy is about as dumb as
saying you recommend having an internet strategy.
As an advertiser or brand, you need to ensure you offer the
consumer full access to all of your digital activity through a mobile device.
That means that if you plan a website activity, it needs to be fully mobile
friendly. If search is part of the plan, it needs to work through any device,
mobile included. If you are activating through social media, then functionality
and ease of use should have the same low threshold whether it is accessed on a
laptop, tablet or mobile phone device.
So that is, to me, the real challenge. Can we move beyond
thinking of mobile as a stand-alone silo, and instead think about the desired
consumer experience and outcome. The consumer as the starting point to develop
Connection Strategies. Mobile included.
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