Strategic White Paper

Marketers going mobile – what are my options?

Mobile marketing strategies explained: A Clash Group White Paper

1. Rich media mobile advertising2. Location-based mobile advertising3. In-App mobile advertising4. Retargeted mobile ads5. Video6. Mobile specific affiliate networks7. Value for money – pay on results8. Any questions

“It is marketing 101 to place your ads where your customers are, so why are more companies not taking their marketing dollars to mobile? It's not a question of what can we do on mobile anymore, it's a question of what can't we do. Individuals all over the world now rely on these pocket-sized devices to work, watch TV, access their diary, play games, tweet, facebook, facetime, bank, learn, research, buy … the list goes on.”

“So why? It's not the cost - mobile ads remain relatively cheap compared to other outlets like television or the web. It’s certainly not lack of awareness – marketers have been reading about the rise of mobile for years. This paper aims to guide marketers through their options so that they may make the most informed decision when choosing which mobile strategy to implement to gain the highest RoI.”

Simon Wajcenberg, CEO, Clash Group.

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Introduction – Everything you need to know about mobile advertisingAccording to the Chief Marketing Council, only 16% of companies have a mobile marketing strategy in place despite being in a market where there are over one billion active smartphone users worldwide, ready to engage with content and potentially generate a sale. Marketers are playing catch-up. There is, however, a plethora of mobile advertising technologies and services available to reach consumers where they now spend the most time online - on mobile.

Constant and rapid innovation has left the mobile advertising landscape highly fragmented. CMOs have been left reeling by the speed of developments and unsure which 'next big thing' will best suit their campaign. This guide explores the mobile marketing opportunities available for marketers attempting to navigate the mobile marketing field.

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1: Rich media mobile advertisingThe popularity of smartphones - and now tablets - with large touchscreen interfaces and superior browsing experiences has exploded. And with good reason – these devices are not just easy to use but offer a heightened user experience, making everything from banking, shopping and tweeting to e-mailing and watching catch-up TV more convenient and engaging.

Smartphone Ownership

Provide consumer interactionThese advanced platforms can cater for advanced ads that combine maximum creativity with maximum use of available technology. Rich media mobile ads are a world away from rich media web-based ads which simply involve the use of video or imagery. With rich-media mobile ads, it is all about interactivity. Brands can engage consumers in an unprecedented fashion, having them touching, shaking, swiping and even blowing on the advertisement they see in front of them.

Fans of the brandRich media mobile ads are ideal for marketers who want to drive click-through-rates but also go beyond traditional metrics and towards creating a unique and memorable brand experience with the aim to nurture real ‘fans of the brand’. Alternative - arguably more meaningful - metrics can then be recorded such as video play time or game play time.

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2: Location-based mobile advertisingLocation-based advertising isn’t new. Since the rise of regional and local newspapers in the nineteenth century, advertisements tailored to a local area have been common. They work because they are relevant. The same concept applies to location-based mobile ads, only this time the advertiser can deliver a relevant ad tailored to an individual, based on their location in real-time.

Right ad, right person, right place, right timeLocation-based mobile ads harness location data gathered from sources such as GSP level data or IP address analysis. Consumers who are out and about, on the high-street, on the bus or in a nightclub, can be targeted with relevant ads, offers and messages based on where they are geographically, in real-time.

These consumers are already readily mixing their digital and real worlds. They are thus more likely to respond positively to a location-based ad that reflects the long-standing marketing goal of ‘right ad, right person, right place, right time.’

Drive bricks and mortar footfall It is companies who want to drive footfall into stores and influence spend, such as retailers, restaurants and bars operating in a bricks and mortar context, who will find location-based mobile ads most beneficial. A burger bar targeting nearby consumers at lunch-time with personalized 30% discount vouchers is going to see instant results, for example.

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3: In-App mobile advertisingApps - additional functions that deliver entertainment, information and services to users - are now a way of life for smartphone and tablet users. There are currently 775,000 Apps available in the iPhone App store and a similar amount in the Android Marketplace. According to recent surveys conducted by Harris Interactive and Ask.com, around 70%

of smartphone users have downloaded and used at least one App.

Facebook Opportunities for in-App advertising are soaring as users become increasingly loath to pay too much for an App download – driving prices down and need for revenue from ads up. Generally, the ad sits inside the App and is visible to the App user whilst they engage with the App's content.

Facebook on mobile web, especially on iOS, fails to lend the user as good an experience as if the site is accessed via an App. With 1/7 of the world on Facebook and more and more users downloading the App, a stir was caused amongst advertisers when Facebook announced it would be offering in-App ad space from October 2012.

These ads appear within users' Facebook news feeds, providing prime placement for games and other ads with engaging content. Facebook reports that in-App ads are experiencing an incredible 50% higher CTR and significantly higher conversion rates than ads on normal mobile channels.

It's personalIn-App ads are suited to brands who want to reach out to consumers on a personal level – the consumer has taken the action to download the App and is choosing to engage with it. By ensuring your ad is well suited to the App it sits inside, the consumer is more likely to engage. In-App ads are also ideal for marketers who want to direct consumers to download their own App - the consumer is already in 'App-mode,' relaxed and willing to browse more entertaining, informative content.

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4: Retargeted mobile ads: Retargeting on desktop is well known to be a highly successful marketing tool - 95% of users leave a site without making a transaction, but once retargeted they are 70% more likely to complete a purchase. Now, this powerful advertising technique is being exploited onto mobile.

With 38% of the smartphone population making a purchase on mobile last year, the scope for generating sales is vast. Clash Group have found that retargeted mobile ad campaigns generate, on average, an impressive 40% conversion rate from previously abandoned leads.

Mobile Shopping

Re-engage Until recently, mobile retargeting has been impossible due to strict mobile privacy regulations. Now, new mobile retargeting technology has been developed in compliance with privacy regulations and securely maps anonymously held keys to a given user.

It is estimated that just 2% of online shoppers make a purchase on their first visit to a web or mobile site. Brands can now re-engage consumers who have previously shown an interest in the products or services available on their mobile site but never actually committed.

Drive successful leads Marketers looking to generate successful leads to their company's m-commerce site will reap the benefits of retargeting on mobile by bringing back the 60% of mobile shoppers who leave their mobile shopping basket agonizingly full but do not complete the purchase.

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5: Mobile video ads: overlay, pre and post-rollWith the increased availability of 4G LTE-enabled devices and network access, tablets and smartphones are becoming the most popular ways for people to experience online video. YouTube executive Robert Kyncl reported in October 2012 that its mobile views quadrupled in 18 months whilst eMarketer predicts that more than 73 million people will watch mobile video in 2013, a 20% increase from 2012.

'Clickability' Pre-roll mobile video ads are inserted prior to video content while post-roll ads are inserted after content is completed. Such ads allow for different levels of interactivity and will normally be clickable. Overlays are small, semi-transparent ads that can be clicked on. They sit across the bottom of the video, show up for 15 seconds into the video and last for 10 seconds.

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Younger audiences respond more favourably to overlay on mobile videos, while older audiences are happy with pre-roll service. Using the right platform, brands can match their video delivery to the appropriate audience age profile as well as target by genre, geography and devices to eliminate waste that may occur from an inefficient video campaign.

Memorable

Using the right network, brands can reach up to some 250 million video visitors per month via 600 million video streams as well as 1500+ web sites, 5000 Facebook Apps, iPhone Apps and widgets on 200,000 blogs. Overlay, pre and post-roll ads are well suited to campaigns looking to build brand awareness amongst a specific audience with interactive, quality content – 47% of people who see a video ad recall the brand correctly. More than this, the 'clickability-factor' lends these ads well campaigns tasked with driving leads to websites and call-centres.

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6: Mobile specific affiliate networks:The traditional advantages of web-based affiliate marketing – cost-effective customer acquisition and brand awareness building - are now available in the mobile sphere.

Exploit surge in mobile internet usage A recent study by Accenture reveals that 69% of internet users gain access through a mobile device. Mobile specific affiliate networks, such as Clash Group's Impact-

Mobi, allow brands to exploit this surge in mobile browsing and run fully targeted international campaigns with the transparency to see which sites are generating the most successful leads so that the frequency of ads on a particular site can be increased or decreased accordingly.

Reaching the masses The use of an affiliate network dedicated to mobile will suit a marketing campaign aiming to generate successful leads on mobile without wasting any budget. It is also ideal for brands wanting to maximize brand awareness - mobile users in 220 countries, meaning a potential 60 billion monthly impressions, can be reached.

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7: Value for money There are over one billion active smartphone users around the world - with this mass uptake of mobile devices, it would be easy to launch a mobile advertising campaign that achieved no real results. If a target audience needs to be reached then a mobile advertising campaign that can deliver ads directly to those most likely to become a successful lead is needed to drive real RoI.

Pay on results only basis

Some agencies run on a pay on results only basis which immediately ensures clients will get the best possible ROI. Clash Group can confidently offer such a service thanks to cutting-edge technologies that ensure successful leads are delivered.

Getting it right There is new 'eye-scanning' technology that tracks eye movement to establish the most successful digital advertising creative for a campaign. It enables advertisers to scan eye movement and user focus such as most appealing colors, positioning and screen layout. In this way, advertisers can tailor creative offerings to appeal to highly relevant leads and help optimize sales conversion rates for businesses in any sector.

An interactive voice response (IVR) capability for click-to-call mobile ad campaigns presents ad respondents with automated voice options relating to their needs, to ensure that only pre-qualified leads - which have a high chance of conversion - are connected to the call center. In this way wastage is kept to a minimum and advertisers are able to get the most out of their responses.

Retargeting technology – discussed in section 4 of this paper – further enables the advertiser to reach the right consumer by retargeting those who previously expressed interest in products and services on a company's website but failed to complete a purchase.

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8: Any questions?Clash Group is a full service digital performance media company based in New York and London that offers targeted advertising services in both mobile and wider digital markets. Everything we do is driven by results. Contact us with your questions on info@clashgroup.com.

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