Friday, January 25, 2013 | Edited by Daniel Moores
||More SMBs Pay Attention to Mobile
Small and medium-sized businesses (SMBs) are showing increased enthusiasm for local advertising, with its ability to target a specific consumer, in the region or around the corner.
Digital advertising offers among the newest and most effective local targeting, and SMBs plan to invest heavily in the channel in 2013, resulting in a dramatic increase in local ad dollar investment.
According to a report from Borrell Associates, "2013 Local Advertising Outlook: Get Ready for the Rebound," U.S. local digital advertising will reach $24.5 billion in 2013, to take a 25% share of total local ad budgets.
That's an increase of 31% over 2012, and nearly four times Borrell Associates' prediction for overall growth in ad spending. It's also well above the 17.6% rise expected for national digital advertising.
Local digital budgets will go primarily to targeted display ads and paid search, which together will account for 60% of total local digital advertising. Social media was not broken out in the study, but included in targeted display and search spending.
Social is an especially important local digital format, offering information on a user's locale and interests, and showcasing ads for nearby businesses "liked" by friend connections. Among U.S. SMBs, Facebook was the No. 1 online format where these businesses reported planning to place ads, with nearly three out of 10 expecting to do so.
Mobile also has a significant role to play in local SMBs' efforts, offering real-time access to users out running errands or looking for a nearby restaurant. Three-quarters of SMBs reported familiarity with the channel in 2012, up from only 40% in 2011. Coupons, text messages and creating mobile-optimized sites were among the primary tactics SMBs reported using on mobile.
There also appears to be opportunity for mobile vendors to reach out to more SMBs. More than four out of 10 respondents reported to Borrell Associates that they had never been pitched by a mobile vendor about mobile advertising.
Of those who have used mobile advertising, a solid 83% said they were at least somewhat likely to use it again in 2013.
Broken out from online spending, 25% of SMBs planned to increase mobile budgets this year.
(Source: eMarketer, 01/23/13)
||Top Mobile Technologies to Watch Out For in 2013
It is evident that mobile has captured the attention of many top brands, and technologies such as QR codes and augmented reality have helped pave the way. Now, marketers are looking for the next big trend that will drive customer interactions and, ultimately, sales.
Mobile is becoming the go-to medium for many companies and marketers are integrating it into their day-to-day initiatives. In 2013, marketers must make a bigger investment into the space and look at new technologies to help develop deeper relationships with consumers.
"Mobile provides marketers a wealth of creative opportunities to get their messages in front of mobile subscribers -- for example, geo-fenced advertising, scanable codes, Shazam, and interstitial ads on music and video apps," said Tim Richie, vice president of North American sales and account management at Open Market.
"Ultimately, each of these technologies aims to do the same thing: drive consumers to action by putting a powerful message in front them when they are open to receiving it," he said. "This trend and the technologies that support it will gain momentum in 2013, helping marketers deliver more value.
"Businesses are facing many technology challenges today -- sharing data across systems and teams, managing multiple vendor solutions, and increasing user demands. This year, companies will look to consolidate systems, and leverage cloud-based solutions for cost savings and improved SLAs. Technology that is modular, flexible and enables a number of use cases will be most attractive to enterprises."
To be most effective, marketers need to deliver a message that resonates with the consumer at a relevant time via the appropriate messaging channel.
The extent to which a marketer can execute on this objective dictates their success, per Mr. Ritchie.
Marketers should aggressively seek out flexible messaging systems that facilitate their communications to consumers across multiple channels.
"Over several years, marketers have struggled to identify how mobile fits into the marketing mix," Mr. Ritchie said. "Initially, it was an interesting experiment, then Apple ushered in the age of mobile applications which became a key mobile strategy.
"Increasingly mobile has become a business-as-usual communication channel alongside more traditional communication and advertising methods," he said. "The real growth in mobile adoption for businesses in 2013 won't be sexy.
"Businesses will find ways to leverage mobile to replace or augment existing systems and processes to become more efficient and reduce costs."
Last year, many were speculating that 2012 was going to be the year of mobile payments and near-field communication.
That proved to not be the case.
However, mobile payments and NFC are seeing a great outlook this year.
Mobile payments will no doubt play a big role this year.
Consumers are becoming more comfortable making purchases using their smartphones and companies such as Starbucks, McDonald's and Dunkin' Donuts are making it easy for consumers to order their favorite meals and beverages and pay for it using their mobile phone.
Furthermore, Apple has helped in making mobile commerce a success through its recent Passbook implementation, which helps build on loyalty.
"We should see more mass availability of mobile payments," said Jeff Hasen, chief marketing officer of Hipcricket, New York.
"While its ridiculous to think that the mobile wallet will make cash extinct by Tuesday, businesses will successfully compete if they make the in-store buying experience painless through Square and the like," he said. "The wallet hype will continue but is years from becoming a mass activity.
"Overall, mobile will get more of the marketing spend with those who succeed being more pragmatic than groundbreaking with brand new mobile products. SXSW will get lots of headlines, but it's not the place to go to build a foundational mobile program."
According to Wilson Kerr, vice president of business sales at Unbound Commerce, Boston, 2013 will be all about mobile-triggered consumer interactions.
"Now that having an integrated mobile commerce site is established as essential, my prediction is that the next big trend will be around tracked mobile-triggered consumer interaction, at the point-of-sale," Mr. Kerr said.
"Brands and retailers can drive incremental, secondary, add-on sales and tracked consumer engagement by tapping real-world mobile 'triggerpoint marketing' opportunities," he said.
"QR codes mean adding mobile triggerpoints at point-of-sale is easy and economical. NFC will start to become ubiquitous in smartphones in 2013 and, as such, is something smart marketers are learning about now."
While most brand and retailer marketing departments lag behind, consumers are thirsty for more ways to interact and engage via mobile.
"The potential of mobile is no longer the story," Mr. Kerr said. "The story is now the day-to-day reality, regarding the fact that mobile is poised to drive the lion share of tracked consumer interaction and related purchases.
"PayPal saw a 250 percent increase in mobile payments in 2012 and expects to process $20 billion in 2013," he said. "Additionally, 15 percent of all ecommerce in 2013 will be conducted via mobile and tablet commerce is growing faster than mobile did.
"A mobile site is no longer something that can be covered by a screen scraped derivative of an ecommerce site. Mobile and tablet commerce sites should be powered by an API ecommerce integration, so they can be distinct channels with distinct mobile marketing opportunities."
This year we're going to see companies take the technology that exists and make more use of it, per Vanessa Horwell, chief visibility officer of ThinkInk PR.
"I don't think we're going to see an explosion of NFC, but we're going to see more utilization," Ms. Horwell said. "Also, the key things we're going to see will revolve around data and analytics.
"We know that consumers are engaged, but how are businesses and marketers going to use that data?" she said. "They have to do something actionable with the data.
"That's going to be the challenge for any types of marketers. Taking action with all that information. That's a key thing this year."
(Source: Rimma Kats, Associate Editor, Mobile Marketer, 01/23/13)
||The Tablet: A-List Device, B-List Medium
The tablet -- whether the latest iPad, Kindle Fire or Galaxy S -- is surely the Angelina Jolie/Ryan Gosling of the media world.
Irresistible to look at, touch, hold and generally be seen with, it's attracting far more attention than can be justified by any one device, let alone one so modest in terms of real reach and impact in the larger media ecosystem.
The tablet -- as a general category -- is undoubtedly exciting and laden with potential. But like all entrants to an established landscape, its potential won't necessarily be realized easily. Don’t get me wrong. I'm an enthusiast for the device and all it represents -- I love my Kindle Fire HD.
But nothing exists in isolation -- least of all in the media category. For the tablet to realize it's potential within the lives of consumers and as a tool for content publishers and marketers, it will be dependent on what takes place around it.
Cross-Platform in Microcosm
Some of the biggest challenges facing the industry today -- from content distributors through advertisers -- come from the complexity of the cross-platform manner of media consumption. Many of the most urgent questions informing our immediate and future fiscal welfare focus on businesses learning to better monetize new patterns of consumption. The tablet represents all of these challenges in one device.
Arguably the most multifunctional of all devices, it represents a perfect storm of consumer control. So far, the magazine and newspaper industries illustrate that things don't play out as quickly as we may like and the overall level of advertising on the platform is also not in line with prior projections.
When is Mobile Not (Quite) Mobile?
The tablet is mobile, but it's not a mobile phone. Those who talk about lumping together their ad approach to both media will likely achieve some degree of fiscal efficiency at the production end of things, but lose efficiency in communications and ultimately marketing ROI.
The User Experience
All media provide a unique user experience. But the full potential of the tablet will only be realized if we approach the device and its use in a manner that reflects those characteristics perceived benefits of users.
Context of Use
Part of the double-edged sword of mobility is the matter of where people will use tablets and for what purpose. Geographic use (at home, traveling, at work, etc.) are all aspects of user context and the more we understand about where people are likely to use tablets, the better we'll be able to shape messaging.
Likewise, the matter of the social setting -- the difference between use when alone versus with the family will be significant for some in the industry. And then there’s the much-discussed matter of concurrent media use and second-screening while watching TV.
Different Platform, Different "Ad" Formats?
If the tablet really does offer so much potential, how likely is it that it will be dependent on the historically embedded intrusive model of advertising? Surely something this exciting and different holds the potential for something beyond a glorified print, rich media or TV ad? Can the industry come up with the ultimate tablet-friendly format that will cost-effectively engage users?
It Won't Be About Time Spent
As we've seen before, the expected increase in time spent with tablets won't be enough to see an accelerated shift in budgets to the platform. If it were, the online and mobile communities would be happier. TV isn't about to surrender its share. While some money will move from print to the platform, the best hope for real revenue growth is the pro-active leveraging of the properties of the tablet itself.
In the Oscars of the media, the tablet may well qualify for Best Device, but the big prize of Best Medium is still some way off. And there's a world of difference between the two.
(Source: Mike Bloxham, Online Media Daily Commentary, 01/23/13)
Daily Sales Tip: Best Example of Being Media Agnostic
We hear major agencies and media consultants talk about being media agnostic. The best example of the media agnostic are your local retailers. They don't care what media they use; they want to drive sales.
Often as they search for the best media to achieve their advertising objectives, they know too little about the benefits of using radio. Never take for granted they know radio and radio's multi-media properties:
There are a lot more facts supporting "Why Radio" on rab.com. Use them in your conversations, proposals and media kits.
- Advertisers can reach new customers with radio that reaches 93% of Americans 12+.
- Advertisers can reduce wasted advertising expenditures by targeting specific lifestyles using radio's various formats.
- Advertisers will drive listeners to their websites with 1 out of 4 Americans initiating a search because of something they heard on the radio.
Source: John Potter, SVP/Professional Development, RAB