5 Reasons Why Every Brand Needs to Think About Mobile First

From Mobile Marketing Watch, By Kevin McGuire

 

The reality is that mobile is no longer about the phone, it’s about being connected. Many predict that mobile Internet traffic will soon surpass that of traditional wired broadband. For enterprise brands and agencies, this trend is proving to be a disruptive force that is completely changing the way that marketing and advertising campaigns are being developed. Here are the five reasons that every brand needs to think mobile first.

 1.  Large and Growing Audience:  According to CTIA, there are more than 300 million mobile phones in the U.S., which is almost on par with our current population of 312 million people. From a global perspective, there are more than 5 billion mobile subscribers. The rate of adoption for mobile is incredible, especially as compared to personal computers. In June 2008, Gartner reported that 1 billion people had PCs and estimated that number would reach 2 billion by 2014.

2.  Consumer Demand:  Unlike traditional methods of marketing/advertising such as direct mail, online banners and e-mail, mobile campaigns are based on an opt-in or expressed user actions like browsing or using an application. As a result, consumers are more likely to be engaged and responsive. According to a 2010 Harris Interactive poll, 42 percent of men and women between the ages of 18 and 34 identified themselves as interested in receiving text alerts from marketers.

3.  Ability to Personalize:  Mobile numbers are tied to a person, where an internet connection is not. The demographic, geographic and device-type information tied to a mobile number gives marketers and advertisers the ability to create highly personalized campaigns.

4.  Superior Response Rates: According to an Opus Research report,  mobile marketing/advertising is far superior to that of traditional online campaigns with response rates that are often twice to 10 times higher. In terms of ROI, that’s a staggering number.

5.  Constant Access:  Mobile phones are our constant companions, providing almost unlimited access to the content we crave, regardless of location or time of day. According to a recent CNBC article, 75% of people polled never leave home without their mobile phone.

AOL Patch Ad Sales Leaders Are Suddenly Gone

Nicholas Carlson | Sep. 21, 2011

Patch, AOL’s very expensive bet on local news blogs, lost its director of sales today – a month after AOL’s SVP of local ad sales also bolted.

 

Scott Colontonio quit today for a job at Google’s New York office, where he’ll be joining commerce field sales team, a source familiar with the situation tells us.

Colontonio announced his departure during a conference call today, another source says.

Colontonio’s departure comes a month after AOL SVP of local sales Mike DeLuca left the company.

AOL still depends on its declining Internet access for almost all of its profits, and Patch is one of its biggest bets. It is said to be investing $160 million in the division just this year. Patch has more than 840 editors and a few hundred sales people around the country. It isn’t close to profitable. (More on this tomorrow.)

In June, we talked to a self-described “disgruntled” Patch ad sales person, who told us the project has been a “disaster.”

He blamed two things. The product – “they’re selling a branding advertising campaign to small businesses that should never put their first dollar in that bucket – and Patch sales leadership.

“It’s leadership, or lack thereof. They have the wrong people in leadership capacities, partly because they were so hasty in building the model and trying to be first to market that they forgot that quality people are essential to getting anything off the ground.”

Briefed on the details of this story, a Patch PR person stalled for hours.

Get ‘Em While They Last: ‘Daily Deal’ Sites Dying Fast

The online business of serving up daily deals has attracted millions of dollars in venture capital and spurred dozens of clones of market leaders Groupon Inc. and LivingSocial Inc. Now the industry is starting to shake out.

Nearly one-third of all daily-deal sites nationwide—or 170 of 530—have shut down or been sold so far this year, according to daily-deal-site aggregator Yipit.com, including sites with names such as Scoop St. and RelishNYC. Even big operations such as Facebook Inc. and Yelp Inc. that could capitalize on their large audiences to build a daily-deals business have recently pulled back on the service.

The daily-deals business has turned into an “arms race,” with competitors spending money to attract subscribers and hundreds of employees and making it more difficult for other sites to keep up, said David Ambrose, the 26-year-old co-founder of Salesscoop LLC’s Scoop St., which was sold last month to rival BuyWithMe Inc. for an undisclosed sum.


At the heart of the winnowing is the shifting economics of the daily-deals business. Setting up a daily-deals site—in which the site takes a cut of the online coupons it offers consumers—requires just a website, some emails and local merchants willing to offer a discount. But as the industry has started maturing, the costs of running such a business have soared.


In particular, the cost of acquiring subscribers who redeem a daily deal has skyrocketed during the past two years, said executives at daily-deal websites. While snagging early adopters who were curious about daily deals initially required little marketing, it now takes more spending to get to remaining consumers and to cut through the noise created by so many competitors.

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31% of U.S. Adults Prefer to Be Reached by Text Message [STUDY]

Almost one-third of U.S. adults prefer to be reached by text message rather than a voice call on their mobile phone, according to a study by the Pew Research Center’s Internet and American Life Project.

Three-quarters (73%) of U.S. adults text and 83% of U.S. adults are mobile phone owners.

The study found that when it comes to a preferred method of contact, 31% of adults would choose a text message, 51% would choose a voice call and 14% say it depends on the situation. Fifty-five percent of heavy texters — those who exchange 50 messages or more a day — prefer texting to talking. This is the first year Pew has polled the preferred contact method, says the study’s lead researcher Aaron Smith.

“It’s fun to collect a trend but asking new stuff is always really exciting, because we never really know what to expect.” Smith says, admitting he prefers to receive text messages.

Young adults between 18-24 text most frequently, sending on average 109.5 messages each day or 3,200 texts each month. The average mobile phone user in that group sends or receives 50 texts each day or 1,500 texts each month.

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Mobile Ads Six Times as Effective as Standard Banners

By eMarketer

SEPTEMBER 13, 2011 

Channel, location, size and placement all matter for telecom display ads


The telecom industry is one of the biggest spenders on online advertising. Between 2010 and 2011, telecom ad spending climbed by 7% to $3.62 billion and eMarketer estimates the industry will spend close to $4.6 billion on online ads by 2015. New research suggests the industry has unlocked some key findings in order to achieve high user engagement with its display ads.

 Perhaps due to the substantial resources telecom marketers are devoting to online advertising, the industry is enjoying higher-than-average user engagement with its ads. Research from ad solution provider MediaMind (formerly Eyeblaster) suggests that ad placement, banner sizes and the time in which users view ads have an impact on engagement metrics.

According to MediaMind, for every 1 million impressions, web users “dwell” on 70,000 telecom ads and click on 1,800. MediaMind defines dwell rate as impressions that are intentionally engaged with by touch, interaction or click, and by this metric the telecom vertical outpaces nearly all other categories thanks to a dwell rate of 7.5%. Telecom is tied for second-highest vertical in terms of engagement, and trails only the sports category.

 

Dwell Rate for Rich Media Ads Worldwide, by Industry, Q2 2010-Q1 2011

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Newspaper ad revenue declines for 20th straight quarter

By BtoB Media Business

Arlington, Va.—Overall newspaper ad revenue fell for the 20th straight quarter in the second quarter of this year, according to data compiled by the Newspaper Association of America. Aggregate newspaper ad revenue has not posted an increase since the second quarter of 2006.

Overall ad revenue declined 6.9% to $6.0 billion in the second quarter compared with the year-earlier period. Print revenue fell 8.9% to $5.2 billion in the same time frame. A bright spot was provided by online ad revenue, which increased 8% to $803.4 million in the second quarter.

 

Mobile Web Access on Pace to Top Wireline Usage by 2015, IDC Research Shows

Mobile Marketing Mobile Web Access on Pace to Top Wireline Usage by 2015, IDC Research ShowsWithin four short years, a majority of U.S.-based Internet users will access the web from their mobile devices, not their personal consumers.

According to projections contained within a new report from research firm IDC, the rate of mobile web use is set to balloon exponentially.

The predicted compound annual growth rate between 2010 and 2015 is 16.6%.

The newest release of the International Data Corporation (IDC) Worldwide New Media Market Model (NMMM) forecasts that the impact of smartphone and, especially, media tablet adoption will be so great that the number of users accessing the Internet through PCs will first stagnate and then slowly decline. Western Europe and Japan will not be far behind the U.S. in following this trend.

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