Mobile Strategy Lacking for Many Marketers

Even fewer have a strategy that works. Studies find consumers do research on smartphones, but make purchases on tablets

Regardless of what device you’re using to read this blog, here’s a stat that may startle you: Only one in six (16%) marketers has a formalized mobile strategy according to a new report from the CMO Council. That’s depressing when you consider that there are more than 6 billion mobile phones in use worldwide and they’re one of the most common tools that consumers use to do their research.

CMO’s latest mobile advertising report reveals that mobile relationship marketing (MRM) was the single most investigated, tested and piloted marketing activity of 2012. However, because it’s still hard to measure the effectiveness of mobile marketing, many marketers still have doubts about the ROI they’re getting from mobile. More troublesome: researchers found that among marketers who do have a strategy in place, only one in seven (14%) are satisfied with their results.

Lack of case studies and other barriers

Meanwhile, the majority of marketers (77 percent) say the lack of case studies demonstrating best practices is a hurdle. Other challenges include the ongoing fragmentation within mobile media, such as devices using different operating systems like Android and iOS, as well as the lack of a common technology platform for mobile analytics. CMO’s findings seem to mirror an IAB study launched last week that found a “lack of understanding” about mobile among both brands and agencies. That, according to IAB, is still the largest barrier to bigger mobile advertising budgets.

Phone = research; Tablet = purchase

Researchers now conclude that the smartphone is the device for research while the tablet is the device for purchasing. According to Nielsen and a separate study by the Global Web Marketing Team at Lenovo, nearly two thirds (65%) of consumers used smartphones only for research while one third (32%) used smartphones for research and purchasing. For tablets, almost half (47%) used them to do research and the same percentage used them both for research and purchasing.

When asked whether they preferred to download an app or use a mobile website to research and purchase products, 11 percent of consumers said they prefer to download an app, 33 percent said a mobile-optimized website and more than half (56%) said it doesn’t matter as long as they are satisfied with the information they are given. The key takeaway here folks is satisfaction with the results.

Macro View

The current market pullback is a little disconcerting, no doubt. But our view is that it’s more a function of the looming March 1 sequester deadline and Italy’s political instability than a signal of a true market correction.

There are still plenty of signs for optimism. Last week the Fed said it would continue to buy bonds until the labor market improves, which bodes well for keeping interest rates steady. Although jobs and manufacturing data remain disappointing, the housing market keeps improving. A report from the National Association of Realtors (NAR) showed existing home sales rose 0.4 percent last month pushing the supply of homes on the market to a 13-YEAR LOW! Meanwhile, NAR said the median price of a home nationwide is 12.3 percent higher than it was at this time a year ago.

Conclusion

The financial and economic cycles are increasingly decoupled. While the steepest phase of the stock market recovery may have already occurred, we’re still in the earlier stages of the economic recovery. Many business and consumers are just starting to shake off their slumber and pessimism. Good luck happens when preparation meets opportunity. Seriously. If you haven’t done so already, get your mobile house in order before it’s too late!

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TAGS: mobile, MRM mobile relationship marketing, CMO Council National Association of Realtors, Lenovo, tablets and smartphones for research, Nielsen

TV Not Going Away, but Viewers Multi-Tasking

TV Not Going Away, but Viewers Multi-Tasking
Don’t be fooled by rosy stock market and economic indicators  

Sixty percent of U.S. consumers still want to watch their shows on TV, but these same consumers also want their smartphones and tablets by their side, according to a new report from KPMG International. Sunday’s Super Bowl telecast/advertising fest will likely bear that out.

Researchers said that 42 percent of U.S. consumers say they watch TV and access the Internet via a laptop or PC, while one in six (17%) watch TV and access the Web via a smartphone. The study also found that more than one in five (22%) watch TV and use a social networking site at the same time.

In a prepared statement, Paul Wissmann, national leader of KPMG's U.S. Media & Telecommunications practice, said: "The introduction of smart TVs is an indication of how the digital transition is accelerating to coincide with the demand of today's consumers to access anything, anywhere and at any time. The smart TV is beginning to reveal itself as the next disruptor."

The study said that one in seven (14%) U.S. consumers polled prefer to watch TV via their mobile or tablet for greater flexibility--mostly coming from what the report called "mobile-centric consumers" 25-34 years old.

Our Take: What may surprise many B2B marketers is that urban consumers in China, Brazil and Singapore are proving to be bigger consumers of digital/mobile media than in the U.S. and they also tend to have higher rates of smartphone/mobile device ownership.

Whether you use conventional TV, mobile or video as part of your marketing arsenal there is no one-size fits all solution. Just like consumers, your clients and prospects have more choices than ever for consuming, engaging and sharing their information. Whether they’re 25-34 or 55-64, you need to take a holistic approach to reaching them.

As our good friend John Graham, president of the American Society of Association Executives is fond of saying, “They want it when they want it in the format they want.”

And if you don’t give it to them “how they want it” they’ll go somewhere else who can.

Macro View

The major stock indices are at or near their highest levels since 2007 and coming off their longest consecutive daily winning streaks since 2004. Initial jobless claims hit a 5-year low last week and spending on residential construction is growing at a faster rate than at any time since 1994.

Today’s meeting of the Fed policy-making committee indicated that the Fed will likely continue buying bonds to hold down borrowing costs since the economy remains weak.

So we’re all good right?

Sorry to make your champagne go flat, but recent surveys of investor sentiment have shown a big uptick. Come again? The American Association of Individual Investors reported that half (46%) of its members felt bullish, up nearly eight percentage points from a week earlier—and well above the long-term average of 39 percent. By contrast, only one in four (27%) felt bearish as of Jan. 9, a nine-point improvement from the previous week. As the Wall Street Journal reported recently, that ain’t good for investors who are historically poor readers of peer sentiment.

Here’s why. In the past, increasing ebullience has portended poor future returns. For example, in the 12 months leading up to October 2007, when the market hit its peak, investors put $207 billion into U.S. stock mutual funds and ETFs, according to investment-research firm Morningstar. On the other hand, in the year before the market bottom in March 2009, they took out $44 billion.

So despite the firm economic indicators we pointed out above—which should be good news for your clients’ and prospects’ businesses—they’re most likely investors in the financial markets. If we have the correction that many pundits expect, they’ll be feeling less likely to spend on their businesses when they’re feeling less flush about their portfolios, retirement accounts and college savings plans.
In other words, things are looking promising, but no one’s ready to exhale.

Conclusion


The stars are never going to be in perfect alignment to make completely worry free decisions about investments, capital expenditures, advertising and hiring. If you’re a marketer, you’ve got to keep the lead pipeline full at all times.

Rob Ingraham, EVP of Global Exchange Events told us today he started his company in 2010 when the trade association business was in the depths of the recession. His firm, which facilitates meetings between vendors and suppliers has been doubling every year, and is on pace to do so again. “A downturn not when you take and hide; it’s when you have a great opportunity to go after market share.”

You don’t need to spend recklessly, but you do need to spend. Trying to time the demand cycle is about as easy as timing the financial markets—or buying gas for your car one gallon at a time when you feel the price is right. Sooner or later you’ll run dry—usually at a very bad time in a very bad place.

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Yes, Smartphone Users Are Responding to Ads
Response rates higher for smartphone users who’ve paid for content

A new survey by Frank N. Magid Associates for the Online Publishers Association confirmed what many B2B marketers have long believed--people ARE seeing and responding to mobile advertising delivered to their devices. And, if they’re paying for that content, then their more likely to be paying attention to you.

The OPA-Magid online survey found that nearly half (44%) of the U.S. Internet population owns a smartphone and within that group:

·         93 percent said they regularly access content and information

·         59 percent access the Internet

·         58 percent check email

·         47 percent check weather information

·         31 percent watch video

·         29 percent access news

Among those who consume content on their smartphones, nearly 40 percent say they have responded to mobile advertising. What’s more, 15 percent of smartphone users who consume content on the phone have clicked on an ad, 12 percent have used a special offer or coupon, and the same number have made a purchase either on a PC or at a store after seeing a mobile ad.

Focus on those who pay for content

Interestingly, researchers say ad response rates seem to be higher among smartphone users who have paid for content. One out of four U.S. smartphone owners (24%) have paid for digital content, according to the OPA survey, with 22 percent paying for video, 21 percent for entertainment, 21 percent for books, and 19 percent for weather content. Of those respondents, nearly four in five (79%) have taken action after seeing an ad, with 31 percent clicking on an ad, 30 percent using a special offer or coupon, 27 percent making a purchase on a PC, and 24 percent making a store purchase thank to a mobile ad.

Conclusion

Again and again we see that free only takes you so far. As B2B marketers are learning, not all clicks are created equal. Throw the “braggable metrics” out the window and focus on engagement stats from those who are truly engaged with the content environment in which you’re reaching them. That’s where your real leads are. Everything else is just fishing for “tire kickers.”

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TAGS: Advertising, mobile, research, tablet, Frank N. Magid Associates, Online Publishers Association

Be Ready for Surge in Pent Up Demand

While we’re seeing some encouraging signs on the Euro zone crisis, the U.S. jobless front and the U.S. financial markets, these are fickle indicators which should be taken with a grain of salt. If you’re a business owner, B2B marketer or media owner, we have some more solid signs of optimism for you to sink you teeth into.

Car sales surge

Auto sales in the United States climbed 14 percent in November as lower gas prices and a wider availability of Japanese models helped the industry achieve its highest selling rate in more than two years, automakers and analysts said last week. Chrysler was up 45 percent over November of last year, Ford was up 13 percent and GM 7 percent.

Cyber Monday

Meanwhile, ComScore, reported that online shoppers spent $1.3 billion on Cyber Monday, a 22 percent increase from last year, at that time the biggest online shopping day of the year. IBM Benchmark said online spending had climbed 33 percent. What’s more, a National Retail Federation survey found that 14 percent of shoppers said they would use mobile devices to shop, up from 7 percent last year.

Technology spending for business in midst of fastest transition ever
The International Data Corporation, whose technology analysis and predictions influence a lot of corporate purchases, foresees the creation of a new high-technology industry in the convergence of mobile devices, social networking, and cloud-based computing and data storage. As a result, the company says in a new study, many industry giants will scramble to sustain relevance, and some upstarts will achieve leadership positions or be purchased.

Frank Gens, IDC’s chief analyst, who led the study, said, “The incumbents are facing a huge transition.”

Spending on the new technologies will reach nearly $700 billion, or about 20 percent of the $3.5 trillion in hardware, software, and services spent on information technology worldwide, IDC said. What’s more, researchers said spending on the new technologies is growing six times that of traditional computer servers and personal computers, and by 2020 will be 80 percent industry growth.

If the IDC predictions hold true, the tech industry could be undergoing its fastest-ever transition. Earlier transitions, like the move from mainframe and mini computers to personal computers and client-server technologies, led to the rise of giants like Oracle and Microsoft, and the downfall of older stalwarts, like Digital Equipment Corp. and Wang Laboratories.

This time will be no different, Mr. Gens said, adding: “Hewlett-Packard will be challenged. Microsoft, Intel, SAP, RIM, Oracle, Cisco, Dell – they are all facing the next transition, competing to be around in 2020. At least a third will fade away.”

Mobile devices

Mobile devices, which earlier this year outshipped personal computers worldwide, will in 2012 generate more revenue than PCs for the first time, IDC said. Shipments of mobile devices will outstrip PCs by two to one, and 85 million mobile applications, or apps, will be downloaded. More money will be spent on mobile data networks than on networks tethered by lines.

The rapid transition to mobile, driven by an explosion of tablet computers, will challenge both traditional computer software companies like Microsoft and beneficiaries like Apple, which is seeing the dominance of its iOS operating system challenged by the open source Android operating system developed by Google.
“By 2013 we’ll know who the leaders are,” Mr. Gens said. “Android will be there, iOS will be there – will Windows 8 put Microsoft there? By the end of the year we’ll know if putting a PC operating system onto mobile was a good idea.”

The increasing number of people and machines online will additionally create an explosion of digital data. IDC said that the amount of data stored in 2012 would increase 48 percent from 2011, to 2.7 zetabytes, or 2.7 billion terabytes. By 2015, the firm said, the total will be 8 zetabytes.

Recommended Reading

No matter how old you are or what stage of life you’re in, we’d like to recommend David Brooks’ recent NY Times editorial series Life Reports.

You can draw your own conclusions, of course, but as marketers and innovators, two things really grabbed us. First, when people take stock of their lives, most regret the risks they DIDN’T take, not the ones they did take. Second, you should measure people by the progress they make in their lives, not by the natural talents they possess.

OUR TAKE: Now if the time of year when many of us reflect on where our businesses and personal lives stand relative to where we thought they’d be a year ago. It can be a gut-wrenching exercise. Just remember that no matter how you measure it, make sure you’re using the right metrics to make your assessment. Also, take time to reflect on everything that DID go right, not just things that came up short.

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