Tag Archives: mobile

40% of Tablet /Smartphone Owners Use Them While Watching TV Almost 20% searched for product information, coupons or deals while watching TV

American consumers are increasingly connected and our recent survey shows they are increasingly multitasking when it comes to multimedia.

Roughly 40 percent of tablet and smartphone owners in the U.S. used their devices daily while watching TV, while only 14 percent of eReader owners said they watched TV while using their device every day.

And what are smartphone and tablet owners doing while watching TV? Checking email. Email was the top activity for both men and women during television programming and commercial breaks. In addition, women reported engaging in social networking more than men, while men checked sports scores more often.

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Advertisers should take note that while viewers may be splitting attention between two (or three!) screens, 19 percent of smartphone and tablet owners searched for product information and 13 percent searched for coupons or deals while the television was on.

Getting a Clearer Picture of the Digital Consumer and Your Customer

Most marketers and advertisers still don’t have a clear view of customer behavior. For every metric related to click-throughs, conversions and engagement, much of the data does not present a unified view of the customer. Instead, decisions are being made based on separate and distinct actions.

Consider the number of touchpoints a consumer has with a typical brand. Are they finding information or interacting with the brand on its website, via its Facebook page, on its Twitter feed, using a Groupon deal or through a mobile app? What about an in-person visit to a store or a call to customer service?

The challenge for marketers is not to track this data—they already do—but to aggregate it so they get a consistent view across all online channels and also account for offline behavior.

In fact, many marketers who believe they’re making decisions based on a unified view don’t
really have one. A survey from IBM found that among marketers that said they had an integrated view of customer behavior, only 30 percent were viewing mobile behavior and just 34 percent were looking at social media behavior.

The industry should continue to go toward enhanced audience data,  Offline data should begin to play a bigger role.”

No place is this holistic view more crucial than the retail industry, where customers may exist across almost every online and offline channel. In her keynote at the Shop.org Annual Summit in Boston, Stephanie Tilenius, VP of commerce for Google, said that for retail, “The lines between online and offline are going to blur and become one…The addition of the smartphone and new technology like geo-targeting and near field communication technology is going to enable new dialogue between retailers and their customers—much more of a one-on-one dialogue.”

The growth of smartphones and tablets is further muddying how advertisers and brands reach consumers, since much of the action mobile users take is done in an “offline” environment. For example, Nielsen found that roughly 40 percent of smartphone and tablet owners use their devices daily while watching TV. What are they doing? Checking email was the top activity, followed by surfing for unrelated information, and visiting social networks. Interestingly, these actions were done consistently during programs and during commercials.

Which is one reason apps related to TV shows have seen solid results on mobile devices. HBO, for example, created a rich media mobile ad campaign to promote the premiere of the third season of True Blood. The ad, developed by Medialets, was placed in iPhone apps from Flixster, Variety and inventory on Jumptap’s mobile ad network. The apps were populated with bloody fingerprints, which led to the messaging for the show. Both auto-expand and user-expand versions of the ad ran, and despite it being an interruptive experience, 7.9 percent of users watched the video in the auto-expand version, and 2.9 percent who received the user-initiated ad watched the trailer.

Watching buyer behavior

A clearer picture of how mobile and offline behaviors are beginning to merge comes from Tesco, the global supermarket chain. In South Korea, Tesco rolled out a virtual supermarket in the Seoul subway system. The pillars and screen doors of the Sonreung station became virtual displays of more than 500 of the market’s most popular products, including milk, apples, pet food and stationery. Commuters could scan the QR code beneath the desired item into their smartphones and the items would be delivered directly to their homes.

In fact, buying behavior is not just a multichannel issue, but the full decision-making process typically crosses between online and offline resources. A 2011 analysis that examines consumer behavior during the purchase path;  Smart consumers, they note, move frequently between online and offline options during research, decision-making and purchase.

Consider, for example, what consumers told them about shopping for clothing and footwear. Since it is mostly about look and feel, “going to a store to look at products and try them on is the most helpful thing people do.” However, they will go to the manufacturer’s website to see what is available, and once a purchase decision is made, they will use a price comparison engine to get the best price. Issues such as “speaking to specialized sales personnel” have lost favor, since many customers feel they have more expertise than the staff, they noted.

Other companies are looking to move offline behavior online in an effort to get a clearer measure of what customers are doing. It’s old hat for stores to ask for a customer’s email address at the moment of sale, or to have a place for customers to sign up for special offers. Today, these same stores are turning to mobile devices to empower their customers to share their experiences because these engagements can be tracked. “The mobile device is increasingly blurring the lines between online and offline integration,” said the CEO of a frozen dessert chain. “We are actively working on innovating mobile technologies that will allow our customer to engage online as part of the in-store experience.”

At Lucky Brand Jeans, online and offline are integrated to provide more of a unified view. The chain operates more than 170 retail stores across the U.S., and it also operates a well-trafficked webstore. Yet its customers exhibit different behaviors depending on which segment they come from, according to Charlie Cole, Lucky Brand. The company has an email list of 1.1 million names, of which more than half are verified Lucky Brand purchasers. Cole notes that 500,000 of the names are from people who typically buy in-store, and 100,000 buy only online. Offers vary depending on that buying behavior–it would be silly to tempt an in-store buyer with free shipping, for example. “There’s surprisingly little cross-over,” Cole says. “People are creatures of habit. I don’t want to pound them with offers [that are not appropriate].”

In-store customers can be notified of specials via email, and on the flip side, Lucky Brand also wants to be sure to have in-store offers that can be delivered in-person to online buyers. Lucky Brand is able to identify online customers if they make a purchase in a brick-and-mortar store (based on CRM data), and can provide them with offers that can be redeemed online at the point of sale. “We have some online exclusives such as shoes and we will give an offer such as free shipping at the point of register to shop for those exclusives online,” Cole says. The key, he notes, is to maximize the value and service given to these cross-channel customers, who are Lucky Brand’s most valuable.

Lucky Brand also tries to segment its offers based on other online and offline behavior metrics. For example, customers that buy its jeans at full price behave quite differently from those who only respond to discounts. The company is willing to retarget full price shoppers who have visted its site, but does not do this when a person is identified as a discount purchaser. “It’s really about pushing someone across the finish line,” says Cole.

Ultimately, it all may come down to adapting Web analytics to a multichannel world. Marketers will need to think about how they are tracking offline behavior and how those actions can be incorporated into online systems, and vice versa.

Shift in future TV habits as content goes cross-platform

 

A new study finds 54% of broadband Internet users watch TV content streamed or on an alternative platform weekly.  Non-traditional viewing now accounts for 10.8 hours a month, or 7% of total viewing time, with 149.4 hours still dedicated to traditional TV.

Horowitz Associates’ Multiplatform Content & Services 2011 says 18-34 year-olds spend substantially more time with TV content across all platforms.  Incidence of non-traditional TV viewing is higher among young adult broadband Internet users, with three-quarters (74%) of 18-34 year-olds doing so weekly— accounting for 10% of their total viewing time.  Broadband users 18-34 who watch on non-traditional platforms also spend more time with traditional TV, reporting an average of 167.7 monthly viewing hours—18+ hours more than average.

On non-traditional platforms, YouTube remains the most popular destination.  Study findings suggest, however, that TV brands developing a strong online and mobile presence can translate their success to new platforms.  ESPN is the most frequently mentioned destination for sports on the PC/laptop and on mobile devices.  CNN (closely followed by YouTube) is the main destination for news, as is HBO/HBO GO for those who view premium TV content.

As business and revenue models for non-traditional platforms evolve, the study suggests an increase in customers’ receptivity to online advertising.  Among broadband Internet users, self-reported incidence of clicking on banner and pop up ads increased by 127% since last year.

Content is content, and whomever owns it is going to get eyeballs and ad support for it, regardless of the way it is distributed. Many of the spots created for traditional TV are the same spots that roll into mobile and online TV programming. The money still gets spent on the traditional network and production company content holders, many of which are current networks that have migrated programming online. The losers in this migration may well be the cable operators and satellite companies from folks cutting the cord. For instance, Time Warner Cable just lost 128,000 video subscribers in its residential services in Q3.

Google to Marketers: Get Better at Mobile search growth rates rivaling those on desktop

Google, which recently shared some big numbers from its mobile advertising business, has some advice for marketers hoping to join in its success: make your mobile presence presentable, now.

“Businesses need to be ready for mobile as soon as they can, particularly this holiday season,” said Surojit Chatterjee, Google’s lead product manager for mobile search ads. “You need to have a mobile site irrespective of whether you think people will actually make purchases from it. How good your site looks on mobile determines how people think about your business.”

Even though mobile advertising is still in early days, he said, mobile search volume is growing at a rapid clip. Over the past two years, Google has seen mobile search queriesgrow fivefold—a growth rate he compared to the early days ofdesktop search.

According to research firm Forrester, while 13 percent of the U.S. population searched with a mobile device in 2010 (90 percent with Google), mobile searchers will account for 28 percent of the U.S. population by 2015.

Early experiences now can have lasting consequences, Chatterjee said. Citing analysis from Gomez, another research firm, he said that 60 percent of users indicated they would be unlikely to return to a mobile site if they had trouble accessing it once and 40 percent said they would actually visit a competitor’s site. Beyond that, 63 percent said they would be less likely to buy from the same company through other channels (online or in the store).

“Users are looking at the mobile site to make conclusions about the business as a whole,” Chatterjee said.

Given the increasing number of smartphone users, he said as the holidays approach it will be ever more likely that consumers will try to reach marketers on the go.

This holiday season, Google expects that 44 percent of total searches for last minute gifts and store locator terms will be from mobile devices.

While Google has a clear lead in search now (on mobile and desktop), some industry watchers have wondered whether the search giant can maintain its top position as more consumers transition to mobile devices.

Its earnings report earlier this month, however, gave Wall Street a reason to have some confidence in CEO Larry Page’s belief that mobile search could be as big for Google (if not bigger) than desktop search.

In a rare move, the company broke out revenue from mobile advertising and said it was on track to bank more than $2.5 billion in that category in the coming year, and grew twofold in the last year.

Chatterjee said its success comes from building specifically for the new medium and catering to user behavior on the platform. For example, leveraging research that users tend to act more quickly after a mobile search, Google recently launched new ad formats that let users download apps from a mobile ad or reach a specific destination with a mobile app they already have on their phone.

A user searching for a pair of boots from her mobile phone, for example, can now go directly from an ad to a shopping app on her phone, so that she can more easily complete a purchase.

Other mobile features capitalize on the interest in local information—according to Google, 40 percent of mobile searches on Google are related to location. Two years ago, the company released a click-to-call feature that lets smartphone users call a business directly from an ad. This month, Google announced that proximity to a business would be a factor in mobile search ads ranking.

“We are building specifically for the medium,” Chatterjee said. “We are really, as an industry, speaking to the mobile user and taking into the account the signals we have on mobile phones, the constraints on mobile phones and the user behavior trends on mobile phones.”

Online advertising becoming as important as spot TV

According to Q3 2011 research from media buying solutions provider STRATA, clients are becoming just as focused on digital media as they are on spot TV. US ad agencies reported 34% of clients were thinking most about online advertising in Q3, compared with 24% the previous quarter. Meanwhile, the number of clients whose primary focus was on spot TV dropped from 41% to an almost-even 35%.

The online marketing tactics in use by the agencies surveyed did not change much, with online display, search and social media coming out on top, their usage rates stable from quarter to quarter. On social media, similarly, priorities remained the same, with Facebook, YouTube and Twitter the clear leaders, though LinkedIn, in fourth position, gained ground.

The number of agencies purchasing mobile advertising for their clients also stayed relatively stable, at 23%, but the types of ads they were creating began to change. In Q3, display advertising took an even larger lead over SMS. More than half of agencies said they are now creating more mobile display ads for their clients than other mobile formats, compared to just 16% of agencies that are still mostly creating SMS ads.

The mobile devices being targeted by those ads were changing, too. Agencies cut their interest in BlackBerry by half between Q2 and Q3, according to STRATA. Still, Android-targeted efforts lagged behind iOS-focused ones.

eMarketer forecasts display will take 33% of mobile ad dollars in 2012, pushing it ahead of SMS and even with mobile search spending. It also estimates that the iPhone will lose its spot as the No. 1 smartphone in America by the end of this year, when Android’s share will far surpass it.

Retailers Ramp Up Mobile Sites and Apps

With the holiday shopping season rapidly approaching, more consumers than ever are expected to turn to their phones to research and make purchases this year. At least half of mobile consumers view their device as a holiday shopping resource for product information, coupons and sale information, according to a recent Mojiva survey.

Retailers, likewise, are ramping up mobile operations to capitalize on the growing appetite for m-commerce. A new report indicates that 37% of retailers now have mobile sites — up from 12% last year and 4% in 2009.

More stores are also embracing mobile apps. One in four (26%)  retailers have at least one mobile app, up from 7% in 2010. Nearly a quarter (23%) have an iPhone app, and 10% an Android app. Few are creating apps for other smartphone operating systems such as Windows Phone 7, WebOs and BlackBerry.

A smaller group of retailers (18%) have both a mobile site and an app, and 26% have a mobile site optimized for each of the most popular smartphone platforms. The results are based on an annual audit analyzing Internet Retailer’s Top 500 companies on their rate of mobile adoption.

The top 10 when it comes to m-commerce: Amazon, Armani Exchange, Barnes & Noble, Buy.com, Cabela’s, Gilt Groupe, The Home Depot, Newegg, Walgreens, and Wal-Mart. The ranking is based on various factors including having a mobile site, rendering a home page correctly, offering a checkout/booking capability, and having an app.

Not only have they implemented mobile-optimized sites to support a wide range of devices, but they have taken initiatives a step further with exceptional transactional functionality and well-designed apps that meet customer needs.

The study pointed out that mobile adoption, and specific mobile tactics, can vary widely by industry. The health and beauty, food and drug, and mass merchant categories, for instance, skewed much higher than flowers, gifts, hardware and home improvement in launching iPhone apps — 66% compared to 36%.

Only 20% of companies in the music/books/video vertical have mobile-optimized sites compared to nearly 70% in the office supplies category and more than half among apparel sellers. Less than half of retailers are putting up mobile sites to date — probably because they don’t see a big upside yet to building out a mobile presence.

Forrester study in June estimated that retailers in 2011 can expect just 2% of their online Web sales to be conducted via mobile. While m-commerce will grow 40% each year for the next five years, it will still only reach 7% of sales by 2016.

Report: Mobile Ad Spend to Hit $1 Billion, dramatic increase in banner, search, rich media, and video ads predicted

EMarketer has released analysis of mobile ad spending that predicts decreased investment in message-based ads and dramatically increased investment in banner, search, rich media, and video ads on the mobile platform.

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As the iPhone 4S is released, featuring the Siri personal voice assistant that understands what you mean when you talk, it’s clear that smartphone technology is stepping forward. The increased presence of these high-tech tools, as well as decreasing costs, has pushed smartphone ownership toward becoming the “norm.” eMarketer predicts that smartphone ownership will reach 38 percent in the U.S. by the end of this year.

The increase in smartphone ownership coincides with a significant increase in mobile ad spending, which should reach $1.23 billion for U.S. advertisers by the end of the year, up 66 percent from last year’s $743 million figure. eMarketer predicts that the figure will continue to see escalating growth, reaching $4.4 billion by 2015.

Total investment isn’t the only big change, though. Advertisers are focusing less on message-based ads (ads sent via text message, usually after the mobile user sends a subscription message via short code) and more on visual and search ads. While message-based ads are currently in the lead with 36.1 percent of spend, eMarkter predicts that will have changed by the end of 2012.

eMarketer specifically predicts that rich media and search ads will win 33 percent of spend each, leaving message-based ads at 28.2 percent of spend. This divide will grow further in the coming years, with eMarketer’s 2015 figures showing messaging at just 14.4 percent to search’s 40.2 percent and rich media’s 36.4 percent.

The fastest growing segment, however, is video advertising. While it still holds a very small portion of the mobile ad market (at 4.7 percent currently), eMarketer predicts video “will grow at a compound annual rate of 69 percent between 2010 and 2015,” reaching 9 percent of ad spend (an estimated annual figure of $395.6 million) by the end of 2015.

eMarketer’s figures are based on “mobile advertising estimates from other research firms, company data from major mobile ad networks and vendors, marketers’ mobile marketing strategies, and smartphone and tablet adoption and usage trends.”

Speaking of advertising, online advertising hit a new high in the first half of this year, $14.9 billion, the IAB announced last week – with $7.3 billion of that from search advertising.