Posts by Brad Chamberlin, Interactive Media Buyer/Planner

Marketing, Monetization and Privacy, oh my!

WAP’s and apps seem to be top of mind for clients, marketers and industry experts alike for the last 6 or 12 months.  This sort of focus tends to cause us to rush into mobile development without a clear strategy and solid privacy policy.  Earlier this month, I was able to attend the Digiday Mobile Summit in order to ensure we weren’t blindly following this trend just because.

One speaker really stuck out to me because of his candid views on mobile and its current role in marketing.  Matt Szymczyk of Zugara stated that marketers tend to only think as marketers and gloss over the needs of the consumer.  His exact statement was “Think like a consumer, not a marketer.”  While it seems like a pretty obvious statement, I think we, as marketers, are always chasing that next big idea that’s going to wow our clients or the industry.  This blind ambition comes at the expense of catering to our consumers.  The main question we need to ask ourselves is “What problem does this ‘next big thing’ solve for the consumer?”

QR codes are a perfect example.  In their infancy, I prepared a deck that discussed what they were and how we could utilize them to help tie the online experience to the offline world, dragging metrics and analytics behind it.  In my excitement I had failed to consider that the consumer wasn’t educated on this new technology and assumed adoption would be as inevitable as the demise of feature phones.  My mistake was solving for a marketing need, not a consumer need.  To this day, QR codes aren’t widely used or even understood by the vast majority of the population (except for young affluent males, according to ComScore) because they don’t solve a problem or enhance the consumers’ lives in any significant way.

One company that has enhanced consumers’ lives is Kiip.me.  Brian Wong (CEO of Kiip) sat on a panel discussing what publishers could learn from gaming.  Contrary to what his young age would imply, he had some unique insights into marketing that I found interesting.  If you’re unaware, Kiip (pronounced ‘keep’) goes beyond standard banner ads to provide consumers tangible rewards in a virtual environment.  For example, if I’m able to clear an Angry Birds level with 3 stars, I could be shown a voucher for a small order of fries at Carl’s Jr. (Hardee’s for you Midwest folks), where I’d simply have to provide my email address to obtain.  As Mr. Wong put it, the moment you reach the achievement is euphoric and Kiip monetizes that moment.

As a gamer, I can appreciate the moment you unlock an achievement and the feeling associated with it.  While the achievement itself is intangible, everything leading up to that achievement makes it a sensational moment.  Whether you’ve battled your way through a dungeon for 15 hours or you were finally able to make the cement block fall on top of the little green pig, the accomplishment makes all the effort and frustration worth it.  Adding to the elation by giving me something I can actually use?  That’s absolutely amazing and I will likely always have a positive perception of the advertiser, despite having to provide a small bit of personal information.

I must caveat that by saying that I’m in the minority when it comes to privacy and personal information.  To me, providing a bit of personal information in return for free content is a tradeoff I’m willing and able to accept.  I’m even fine with companies tracking my behavior online to help target ads that they think I’d be more inclined to be interested in.  However, the discussion by Chris Babel (CEO of TRUSTe) and Leslie Dunal (VP of Privacy, Policy and Trust at Yahoo) really make me question my previously held beliefs (a discussion with my director about privacy and worst-cast-scenarios afterwards didn’t help).

What has caused me pause, both personally and professionally, was the realization that the vast majority of mobile applications (and even some websites) don’t have a privacy policy and those that do have more holes than Swiss cheese.  Take that and compound it by the ability for nefarious types to hack into databases on a whim (not even government databases are safe) and I’m taking my online privacy a lot more seriously.  I will actually read through privacy policies now, looking not only for how they’ll use my information, but how long they intend to keep my information on file – which is the bigger threat, in my opinion.  Marketers need to also ensure the companies they are working with and the applications/websites they may represent have a solid privacy policy.  If you’re considering building your own application and/or mobile site, I encourage you to visit www.truste.com/mobile for more information on privacy.

Interactive marketing future is now

I’m sure everyone reads every bit of research that comes out nowadays (I mean, why not.  It’s all so riveting).  However, I think if you’re going to take on the numbing task of reading a research report, you should consider the Interactive Marketing Forecast released by Forrester.

Forrester asserts that by 2016, advertisers will spend $77 billion on interactive marketing — as much as they do on television today.  Search marketing, display advertising, mobile marketing, email marketing, and social media will grow to 35% of all advertising spend as they are embedded in the marketing mix.  They expect this growth to help firms become adaptive, kill off daily deals, re-emphasize marketing’s “p’s,” and turn consumer electronics into audience-targeting tools (the 4 “P’s” referenced are Product, Packaging, Placement and Price, just as an FYI).

Of course, this sort of research isn’t new.  Ever since 2002-ish (after online marketing began recovering from the bubble burst), there’s been research upon research that showed an ever increasing online marketing share.  Will it live up to this $77 billion forecast?  Only time will tell.  I’d say of all these listed (search, display, mobile, email and social), mobile and social will have the greatest impact on advertisers’ digital spend.

This assumption isn’t hard to back up when you look at research conducted by ABI, which predicts that mobile subscriptions will reach 6 billion by the end of 2011 and when you consider that the Earth’s population just surpassed 7 billion, that’s massive.  While not all of these connections will have high-speed access, it shows a trend that will only continue to grow.

Layer this into a survey conducted by Razorfish and Yahoo that showed 80% of respondents use their cell phones regularly while watching TV (70% of those multitasking at least once a week and a staggering 49% doing it every day).  38% of these respondents stated that their mobile browsing habits were related to what they were watching on TV, which leaves a huge gap in reaching these distracted viewers.  It really underscores the importance to buying an audience, not a medium.  A client’s plan should never focus exclusively on one medium, but should try and reach their consumers wherever they are.

And last, but certainly not least, mobile drove 14.3% of Black Friday online traffic and 9.8% of sales. This more than doubles the online traffic from last year and triples the mobile sales from last year.  With the surge of smart phones and tablets, if you don’t have a digital marketing strategy in place, you need a swift kick in the rear.  The future isn’t coming, it’s here.

iPad likely means even more fragmented ad budgets

If you haven’t heard about the Apple iPad, you clearly live in a cave; though to be completely honest, when was the last time Apple wasn’t launching a new product or being rumored to be? Apple’s propensity to outdo itself on a regular basis aside, the iPad is on track to rewrite history and redefine the print industry like its predecessor, the iPod, did for the music industry.

In May, Apple announced it had sold one million iPad’s in just 28 days, beating sales of the iPhone, which took 74 days to sell the same number of units. So, what does this really mean for the ad industry? Even more fragmented budgets. Advertisers aren’t going to carve out a specific iPad budget, so that means agencies are likely to portion out a piece of either the online or the print budget to fund a foray into this “new” medium.

The good news, however is that the iPad could breathe new life into the floundering world of magazines and newspapers, allowing purchase and consumption in a way consumers never had before and perhaps higher ad perception. Additionally, with everyone doing their best to “go green”, this is a way for advertisers to place those oh-so-wonderful print ads while still saving trees! The caveat being that placing the ad will probably cost 400% more, but “dems the breaks” for being an early adopter. My suggestion is to just do it and see what happens.

Full disclosure: Brad is an interactive media planner and sees things through a digital lens. He is also a self described Google lover, so take it for what it’s worth.