2011 Mobile Marketing Outlook

CONTENTS
PAGE PAGE
3 EDITOR’S NOTE: Mobile steamroller transforms 27 Gaming moves from dedicated devices to mobile
content, commerce and marketing phones, tablets
By Mickey Alam Khan By Dan Butcher
6 Traditional ad networks will clamor to join mobile 28 Legal analysis: Governing by putting a square peg a
ecoystem round hole
By Giselle Tsirulnik By Andy Lustigman
8 Mobile ad spend to increase noticeably 31 Differentiation will be more of a challenge for OEMs
By Giselle Tsirulnik By Dan Butcher
11 Mobile tops agenncy priorities to meet client needs 32 Having a cross-platform mobile strategy tops publisher
By Dan Butcher to-do list
By Rimma Kats
14 Associations look to support mobile marketers
By Dan Butcher 34 SMS calls to action will be all over traditional media
By Giselle Tsirulnik
16 Majority of consumers to make use of mobile banking
36 Artists rely on mobile to make live music events
in 2011
more engaging
By Rimma Kats
By Rimma Kats
17 Verizon getting the iPhone will affect all carriers
38 Top mobile stats to remember in 2011
in 2011 By Giselle Tsirulnik
By Dan Butcher
40 Mobile SEM to become key aspect of all multichannel
19 Anytime, anywhere easy shopping to be commonplace efforts
By Giselle Tsirulnik By Giselle Tsirulnik
21 Brands advertising mobile content will have advantage 42 Mobile social networking: location, location, location
By Rimma Kats By Giselle Tsirulnik
23 Brands will develop deeper relationships via mobile 44 Mobile technology to augment what consumers do in-
databases/CRM store
By Rimma Kats By Rimma Kats
25 Email is all about contextual relevance for mobile 46 Expect testing of mobile TV/video monetization
consumers models
By Dan Butcher By Rimma Kats
Mickey Alam Khan Dan Butcher 401 Broadway, Suite 1408

Jodie Solomon
Editor in Chief New York, NY 10013
Associate Editor Director, Ad Sales
mickey@ Tel: 212-334-6305
dan@ ads@
Fax: 212-334-6339
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PAGE 2 Mobile Marketer MOBILE OUTLOOK 2011

EDITOR’S NOTE
Mobile steamroller transforms content, commerce and marketing
T he outlook for mobile advertising, marketing and media

is dynamite, backed by firepower from Apple, Google,
Microsoft, Research In Motion and an array of retailers and
Moreover, Facebook still
relies on a 1990s revenue
model: clicks on banner
brands that get it. ads next to user-generated
content. And how to mon-
While projections on mobile advertising still can’t be etize the Like feature when
trusted – safe to say that brands will spend more than brands are already using it
$1 billion on display, rich media, search and text ads and launching Facebook
– one thing can be said for sure: 2011 is mobile’s year pages to great success –
to lose. for free?
Mickey Alam Khan
As editors and reporters Giselle Tsirulnik, Dan Butcher and In the mobile context,
Rimma Kats so ably demonstrate in Mobile Marketer’s Mo- around 200 million Face-
bile Outlook 2011, all facets of mobile marketing are gain- book users use the service on their mobile phone. Facebook
ing currency with brands, ad agencies, publishers and re- hasn’t shown how it can monetize mobile when eventu-
tailers. Thank-you to them and art director Rimma for this ally in three years or so mobile will be the primary form of
Classic Guide that should be read cover to cover. social-networking access.
Of course, for all the enthusiasm about mobile, budgets are Privacy: A Do Not Track law may not harm mobile as
still not where they need to be. much as online since it is hard to cookie mobile sites.
But marketers do collect data via applications, especially
After all, it is expected that sometime this year or next, one the app stores. What will such legislation from the Fed-
out of two subscribers nationwide will have smartphones eral Trade Commission mean for mobile advertising and
enabled with Internet and applications. Just imagine how database marketing?
that will change consumption of content and marketing,
communications and conduct of commerce. Silence from mobile marketers in the privacy area may
mean consent to straitjacketing mobile advertising and
Marketers will get religion. As reported daily in Mobile marketing to a point where neither the consumer nor the
Marketer and sibling publication Mobile Commerce Daily, marketer benefits. Speak up and speak now.
the nation’s leading brands are now increasingly bringing
mobile to the front of the bus. Apple dominates: Does Steve Jobs ever rest? Expect
Apple to dominate the airwaves, newsprint and on-
Marketing needs to be where consumers are, and consum- line chatter with a new version of the iPad tablet, an
ers are conducting much of their work, play and personal iPhone for another wireless carrier besides AT&T and mile-
lives on mobile devices, be it phones or tablets. stones achieved in applications – a half-million sometime
this year.
So here are some trends and influencing brands seen from
this perch in mobile and the overall digital space: Of course, banish the thought that Apple will share ap-
plication usage and deletion data on an aggregate basis or
Social networking: Facebook will cross 700 million users. that it will lower its 30-percent take from revenue gener-
While social networking is now ingrained communications ated in the Apple App Store. Flash on mobile devices? Not
behavior, the jury’s still out on Facebook’s ability to mon- on Mr. Jobs’ watch.
etize. It is hard to see a networking audience buy from a
store on Facebook, but who knows? Google dazzles with numbers: Google will dangle stats on

the number of Android-supported mobile phones and de- the world of retail. Its mobile application and site are a
vices and how it surpasses any other smartphone platform. Trojan horse in a retailer’s store. Expect more consumers
Well, if only those numbers could be monetized. to use Amazon’s mobile presence to search and compare
prices while at a rival retailer’s store. A race to the bottom
Google has yet to show how it will monetize its mobile for offline retail? Perhaps.
offerings, aside from display ad revenue derived from the
AdMob mobile ad network purchase last year. EBay bids for success: The world’s No. 1 mobile retailer
will hold on to its title. Eventually, most eBay transactions
Indeed, Google’s danger is that these new mobile ventures will close on mobile. The one online-only retailer, along
are still backed by a company whose primary source of rev- with Amazon, that has got mobile right.
enue is search engine marketing on the traditional Web
– how 1998. And what happens when most search activity Publishers: A mobile presence will not save publishing,
migrates to mobile – can Google support its 20,000-plus but it’ll be a must. The biggest dilemma will continue:
engineers on mobile revenue? how to monetize mobile readership? Mobile ad revenue
will not suffice. And consumers have shown a marked
Oh, and what if Facebook launches its own search engine reluctance to pay for news content online or on mobile
within the new walled garden? – bar The Wall Street Journal, Consumer Reports and the
Financial Times.
Research In Motion plays catch-up: The BlackBerry
maker just cannot articulate what it stands for and why The mobile editions will sooner or later cannibalize on-
new customers should buy its devices over Apple’s or line and print. Publishers are running out of time to
Android’s. How long before Apple and Google crack the come up with new ideas. Tip: ditch print, stick to on-
enterprise market? line and mobile, cut overhead and stay lean and mean.
But knowing publishers, these steps will be forced
Microsoft – spend now: Please buy a mobile advertising on them.
or mobile commerce company – or Research In Motion.
Microsoft cannot let Apple and Google divvy up the mobile Mobile advertising: Agencies need to bundle mobile buys
field between them. with online. Don’t discount mobile. Mobile ads – banners,
rich media, search, SMS, voice and sponsorships – will
Tablet remedy: Sorry, the category belongs to the Apple boom with more inventory becoming available.
iPad. It’s not just the device, it’s the experience and the
applications and the marketing and the buzz and Mr. Jobs. Fragmentation: Here to stay. Live with it – disparate op-
What does Samsung’s Galaxy Tab and Research In Motion’s erating systems, browsers, screens, ad units, phones and
PlayBook have over the iPad? A smaller screen, Flash and devices and app stores. No solution in sight, so why worry?
faster Internet? Wait till iPad 2 is out. It is what it is.
Mobile commerce boom: This year and the years ahead People to keep an eye on: Steve Jobs, Mark Zuckerberg,
belong to mobile commerce. All retailers must have mo- Jeff Bezos and Angry Birds.
bile commerce sites and applications. To not have a mobile
presence is to lose a customer, once and for all.
Mobile Web: Betting long on mobile Web. Mobile sites

will be a requirement, while applications will remain
a preference.
Mickey Alam Khan
Amazon: The world’s largest online retailer is set to change mickey@napean.com

AD NETWORKS
Traditional ad networks will clamor to join mobile ecosystem

T
he 2011 year will be extremely positive for mobile
ad networks, with significant growth in advertising
inventory. This will be driven by a change in attitude
from publishers looking to grow their mobile businesses
and spurred by the arrival of new mobile platforms.
Expect emergence of both vertically-focused ad networks

in specific categories such as automotive and travel, as
well as the emergence of networks focused on specific
geographic footprints such as different countries.
“Fasten your seatbelts,” said David Gwozdz, CEO of

Mojiva, New York. “Mobile adoption is coming fast and
networks need to be prepared.
“To avoid being caught off guard, ad networks need to

test a lot,” he said. “They need to find out what advertis-
ing is going to work, what inventory will sell well, and
how sales and marketing will get them there.
“As far as traditional display ad networks that are consid-

ering going mobile, they don’t need to bite off a big piece
of the mobile pie right away. They just need to nibble a
lot in order to find the right recipe that will work.”
Networks’ task: win more friends

The greatest issue, challenge and opportunity are
all lumped together in data, according to Mojiva’s
Mr. Gwozdz. bile versus PC Internet will result in shifting of budgets
accordingly,” he said.
The 2011 year will see many of the inconsistencies indus-
try-wide exposed and, ultimately, resolved. Ken Harlan, president of MobileFuse, New York, said
mobile ad networks must offer distinct points of
According to Paran Johar, Los Angeles-based chief mar- differentiation and opportunity for both publishers
keting officer of Jumptap, mobile will be integrated into and advertisers.
digital planning and measuring tools.
“I see tremendous opportunity for networks to bet-
“Integration into tools like DoubleClick and agen- ter assist advertisers with regards to providing greater
cy trading desks will begin taking place in 2011,” Mr. control over the specific and unique placements where
Johar said. their campaigns will appear, while at the same time
helping publishers to increase the value of their inven-
“This clear quantification of performance and ROI of mo- tory,” Mr. Harlan said.

across multiple devices including tablets, PCs and con-
nected television will be a reality in 2011.
This behavioral shift will dramatically change through

Android- and Apple-powered TVs and will plug right into
the mobile application ecosystem, allowing mobile video
to gain scale rapidly.
“As Internet consumption shifts from PC to mobile so

will the gold rush to mobile,” Mr. Johar said.
“While many PC and digital companies have been cau-

tious with their mobile investments, their attention will
mirror the shift in consumer behavior and place more
emphasis on mobile accordingly,” he said.
Recommendations
1. Be flexible in your approach while working to
deliver the greatest value possible to advertiser
and publisher.
2. Do a better job of listening to publisher and

advertiser partners.
3. Be a partner and not just an inventory gateway.
4. Invest the resources to provide better consumer in-

“I also see a role for networks to serve as the representa-
tive on behalf of the advertiser to collaborate with pub-telligence and target-
lishers for unique value-add opportunities that benefit ing, more compelling
all parties such as content integration, in-content sup- creative, value-added
support, enhanced con-
port and editorial/advertorial feature activity,” he said.
sumer interaction, com-
“Along this same idea, the networks can do a better job prehensive reporting and
of representing opportunities that complement publisher customer service.
initiatives and highlight their unique opportunities for
consumer engagement.” “While 2010 was
an amazing year in
Video gaga terms of pure net-
Mobile commerce’s connection to mobile advertising will work growth and adoption of mobile media as an
take off in 2011, Jumptap’s Mr. Johar said. advertising channel, it was still very much edu-
cational for both publishers and advertisers,”
In contrast to 2010, mobile video will take center-stage Mojiva’s Mr. Gwozdz said.
in 2011.
“In 2011, we are poised to go beyond education,” he said.
Allowing consumers to shift their viewing experience “We’ll see less talk and more action.”

ADVERTISING
Mobile ad spend to increase noticeably
E
xperts believe 2011 will likely be the first time metrics, assets and budget and determine how to
that most advertisers will have more formalized integrate mobile.
mobile advertising line-items on their budgets
for the entire year. This is a big deal because it will sig-
Shift to mobile has already begun
nificantly affect the growth of the overall marketplace. “We’ll likely see the continuing shift of dollars out of tra-
ditional media into mobile specifically, which is an excit-
Mobile advertising spend will increase dramatically since ing trend,” said Andrew Koven, president of ecommerce
companies such as Google and Apple validated the in- and customer experience at Steve Madden, New York.
dustry by investing hundreds of millions of dollars in
the space in 2010. Indeed, 2011 will mark the end of the “Instead of shifting dollars from small digital budgets,
experimental phase of mobile advertising. mobile budgets will pull more from the overall marketing
spend,” he said. “I’d expect us to see between 1-5 per-
“Expect another up year for mobile advertising, cent of overall advertising budgets moving into mobile
with spending growth taking a sizable jump,” said depending on the mobile sophistication and category
Neil Strother, Kirkland, WA-based mobile practice leader of advertiser.”
at ABI Research. “More advertisers will launch mobile
campaigns for the first time. Continued fragmentation amongst operating systems,
devices, application environments and carriers will be
“Couple that with the current number of advertisers who some of the key challenges for advertisers.
will continue to spend on mobile, and you have a steadi-
ly-building mobile advertising ecosystem,” he said. With growth in multimedia forms of advertising, there
will likely be significant increases in mobile commerce
“Nonetheless, I caution that the overall spending will and mobile engagement.
still be small compared to both traditional and online
advertising, but mobile’s rise will be noticeable.” The biggest CRM opportunity is to build a true
one-to-one conversation with the audience
What to expect where factoring in user preference information,
The main challenges of mobile advertising are lack of lifestyle interests and demographics with location and
experience for new entrants, the somewhat complex na- past purchase history equates to a strong advertis-
ture of how to execute campaigns and the uncertainty er-consumer relationship and, ultimately, more sales,
about ROI. greater brand loyalty, engagement and virality, Steve
Madden’s Mr. Koven said.
The opportunities include a growing mobile audience
with smartphones, better targeting based on location Bigger budget
and greater awareness by major advertisers. Yahoo’s Mr. Cushman said 2011 will be bigger in terms of
budgets, clients and options.
The industry must focus on making sure brands and
agencies understand mobile is a marketing medium and Tablets are going to be big and there will be more in
not a strategy. terms of engaging and customizable advertising solu-
tions for this medium.
Paul Cushman, senior director of mobile sales strategy
at Yahoo Inc., Sunnyvale, CA, said that brands and agen- Yahoo will have new services specifically for retail and a
ices need to look at the broader digital strategy, goals, big play in local content in 2011.

“I expect greater spending on mobile reflected in larger 2. Be careful to not offer only discounts in the mobile
budgets that are in seven figures, and a few reaching medium. Marketers risk acquiring discount shoppers and
eight,” ABI’s Mr. Strother said. “Targeting based on loca- diluting their brand.
tion and context will improve.
3. Be thoughtful about how to target ads to custom-
“Also, the industry should have in place guidelines from ers by device, location, interests, time of day and
the Mobile Marketing Association and the Interactive acceptable frequency.
Advertising Bureau that standardize what and how mo-
bile impressions get measured, bringing greater clarity in 4. Look for ways to integrate mobile into what the mar-
this area,” he said. keter is already doing.
Steve Madden’s Mr. Koven expects more consolidation “Follow your target audience as they engage with you
amongst some of the ad networks akin to the early days on mobile devices,” Mr. Koven said. “Don’t shy away just
of Internet advertising. because you have little experience.
Recommendations “These are still the early days, but you need to build up
1. Focus on building mobile commerce/information plat- your competence in 2011 as mobile continues its march
form. This is the backbone of the mobile operation. from nice-to-have to must-have strategy,” he said.

ADVERTISING AGENCIES
Mobile tops agency priorities to meet client needs

By Dan Butcher
T
he exponential growth of the mobile market- space in a large way,”
ing ecosystem over the course of 2010 shows no said Paul Gelb, direc-
signs of letting up in 2011, and savvy agencies are tor and mobile practice
making mobile their top priority to meet the needs of lead at Razorfish, New
brand clients. York. “Clients that we
have been doing mo-
Agencies have had to evolve quickly to keep pace with bile with are expand-
the lightning-fast speed of innovation in the mobile ing significantly, and
space. While fragmentation will continue to be an is- expanding throughout
sue, the best agencies are using the mobile medium to their organization.
achieve reach, relevance and results for their clientele.
“The mobile work we’ve done has caught the attention
“The outlook for mobile in 2011 is continued exponen- of other stakeholders and we’re seeing mobile permeate
tial growth, with new brands and clients entering the throughout their organizations,” he said.
Shops will have to interpret

Like any other year, in 2011 mobile will present agencies
with opportunities and challenges.
However, 2011 promises to offer more bountiful opportu-

nities than 2010. But there will be challenges: fragmen-
tation, apples-to-apples analytics and privacy concerns.
The opportunities include a rapidly scaling audience with

more powerful mobile devices than before.
Many big agency networks will open mobile agencies in

2011, making the competition fierce.
The adoption growth of smartphones also continues to

be faster than projections, Mr. Gelb said.
“If you look at the 60 million smartphones in the U.S.

as of September—and that’s before all of the back-to
school shopping and doesn’t include the holidays—it is
more than twice the audience of ‘American Idol’ back
when Paula was still a judge and ratings were higher,”
Mr. Gelb said.
“With Android devices being sold for $40 and a lot of

buy-one-get-one-free deals, as well with the launch of
Microsoft’s Windows Phone 7, we’re looking at contin-
ued growth of smartphone adoption,” he said.
The increasing prevalence of smartphones is key for ity of big brands. This year will put mobile in the
marketers, because they know they have an audience limelight as the catalyst and communication hub for
to which they can deliver richer experiences via HTML5 entire corporations.
rich media, branded applications and integration with
social media. “Many marketers saw mobile in 2010 as a test opportu-
nity to learn and grow,” said Brenna Hanly, mobile cata-
Facebook Places, given its built-in audience of 150 mil- lyst at Mullen, Boston. “In 2011, we will see less trepi-
lion, has huge potential, per Mr. Gelb. dation and more confidence in mobile as a mainstream
media channel.
“Depending on what Facebook does with it in 2011,
it could have enormous benefits for marketers,” Mr. “4G will give rise to even better experiences in terms of
Gelb said. the mobile Web, rich media and video content,” she said.
“Lastly, brands will begin to see mobile as the connec-
Integrating mobile into multichannel efforts tive tissue between disparate elements and build it into
In the coming year, successful agencies will more campaigns more cohesively.”
fully integrate mobile into all of their clients’ consumer
touch points.
“As mobile permeates the client organization of where

and how we deliver these experiences, the number of
quality mobile experiences you can create continues to
grow,” Mr. Gelb said.
The 2010 holiday season was a landmark event for mo-

bile, with plenty of successful mobile campaigns that
have generated positive ROI. Smart brands will go all-in
with mobile marketing in 2011.
“In 2011, what we will have is a full year of bud-

get allocation in which the thought process or con-
text through which clients are looking at mobile is
through higher budgets,” Mr. Gelb said. “[Apple’s] iAd
shifted [brands’] perception on campaign size and
the high end of the budget size that should be spent
in mobile.
“It came in middle of year [in 2010] but now we have

full-year planning for a stake in the sand of $1 million to
$10 million executions,” he said.
Big step forward in 2011

Three key dynamics will make 2011 different from 2010,
according to integrated ad agency Mullen: less trepida-
tion, better experiences and more cohesion.
Clearly, 2010 put mobile on the map for the major-

ASSOCIATIONS
Associations look to support mobile marketers
By Dan Butcher
W
ith increased scrutiny from the United States measure of industry health and growth, and the effec-
government, including the Federal Commu- tiveness metrics of mobile marketing as a consumer
nications Commission and the Federal Trade engagement medium.
Commission’s do-not-track proposal, industry associa-
tions must stay on the ball in 2011 to protect mobile • Education: the enhancement and regionalization of its
marketers’ interests. mobile marketing certification program as well as the
addition of MMA member and educational committees,
The Direct Marketing Association and CTIA-The Wireless and the development of mobile marketing training and
Association set best-practice standards for self-regula- certification courses—both in-person and virtual.
tion, monitor proposed government regulations and lob-
by on the industry’s behalf. The Interactive Advertising • Promotion: both the promotion of the industry and all
Bureau launched the Mobile Marketing Center of Excel- marketers learn from the three activities above, as well
lence at the end of 2010, while the Mobile Marketing as the members of the MMA.
Association tapped former IAB chief Greg Stuart as its
new president/CEO. • Protection: to work alongside its members and the
other leading players in the industry to ensure that the
“The MMA and the leadership derived from its member- MMA continues to enhance its consumer and commer-
ship have been a cornerstone in the mobile marketing cial self-regulatory principles, guidelines, standards and
industry for years, and this will not only continue, but best practice.
accelerate as the use and the diversity of mobile mar-
keting solutions accelerate,” said Michael Becker, San 2011 compared to 2010
Mateo, CA-based managing director for North America Mr. Becker said marketers will see a number of differ-
at the MMA. ences in 2011 compared to the previous year.
“The MMA and its members will continue to support “We entered 2010 with the mindset of a weak economy,
the industry in embracing and understanding the value- and the question on many marketers’ minds as to whether
generating engagements that can be had for both the or not mobile marketing was relevant,” Mr. Becker said.
consumer and the marketer through the proper use of “In 2010 we are leaving the weak economy behind us
mobile marketing and the practices of mobile advertising and the question of mobile marketing relevance.
and mobile commerce,” he said.
“Moreover, In 2010, in North America specifically, we fi-
“The MMA is aligning its focus to the needs of consumers nally hit the critical point of 20-plus percent penetration
and marketers.” of smartphone use in the market, the tablet computing
class of device has firmly taken hold as a new and unique
To this end the MMA will focus on: channel and the market has developed a healthy respect
for all the mobile media paths—SMS, MMS, email, voice,
• Industry standards and best practice: including ad- the mobile Internet, applications, content, proximity
vertising guidelines, its consumer best practices—not just channels,” he said.
for messaging, but all media paths—and best-practice
guidelines that demonstrate the effective use of mobile “In 2011 we’ll see continued growth, adoption and use of
marketing strategies and tactics. mass- and niche-market applications of mobile market-
ing solutions. Moreover, we’ll see growth in a wide range
• Measurement: measurement of consumer accep- of location, commerce and personal data management
tance and adoption, total industry spending as a proxy solutions. 2011 is going to be really fun.”
BANKING AND PAYMENTS
Majority of consumers to make use of mobile banking in 2011
By Rimma Kats
L
arge entities such as Chase and Bank of America in the mobile channel,” Mr. Warshawsky said. “Market-
made the rest of the financial services industry ing of the channel means that banks must continue to
realize the potential of mobile in 2011. drive consumer awareness of the capabilities and con-
venience that are available to drive adoption – all while
As more customers continue to leverage the convenience ensuring customers understand the inherent security of
of mobile services to stay connected and in control of the channel.
their finances, smaller banks will jump onto the mobile
bandwagon, using the mobile medium to communicate “With regard to marketing in the channel, customers
with customers. Mobile banking will be driven by grow- are highly sensitive to how they are communicated to
ing smartphone adoption and an increase in consumer via their mobile device,” he said. “We think the key is
comfort in banking via their mobile phone. to allow customers to choose how and when they are
communicated to, and to make sure offers are relevant,
“We believe the mobile banking and mobile payments timely and valuable.”
space will see significant activity in 2011,” said Marc
Warshawsky, senior vice president and mobile channel Mobile developments
executive at Bank of America, Charlotte, NC. “Bank of In 2010 banks developed mobile sites and applications to
America is on track to surpass 6 million active mobile keep up with their tech-savvy customers.
customers in early 2011 and has demonstrated our long-
term commitment to introducing new capabilities to In addition, SMS played a key role for those that did not
meet their needs. have a smartphone.
“We have conducted numerous trials to learn what our More consumers are handling financial transactions on
customers are looking for in the next generation of mo- their mobile device and are looking for their bank to have
bile banking and mobile payments solutions,” he said. mobile offerings.
“The biggest challenge in the mobile payment space
will be delivering solutions that provide relevant cus- “Financial transactions are one of the most popular uses
tomer value, a seamless and easy-to-use experience, of mobile phones and we see that trend continuing dur-
and confidence that customers are protected with ing 2011 and beyond,” said Christine Holevas, first vice
top-notch security. president of JPMorgan Chase, Chicago.
“It is not easy to deliver simultaneously on all of these “Keeping up with today’s mobile lifestyle and the
fronts and therein lies the opportunity – companies that ever-growing popularity of mobile banking is our
can provide all of these aspects in their solutions will challenge and opportunity,” she said. “Customers ex-
lead the way in customer adoption and satisfaction.” pect the latest banking tools and services that work
on the newest devices and systems from us more
Bank on change quickly than ever.
Mobile banking will change this year due to increases in
sophisticated devices. “We anticipate that we will see increased customer
adoption in 2011 of Chase mobile banking offerings
Additionally, customer adoption will drive mobile bank- including the native apps for iPhone and Android, text
ing providers to broaden their capabilities to keep up updates on accounts and Instant Action Alerts. These
with consumer expectations. services fit with today’s mobile lifestyle and customers’
demand for up-to-the-minute information about the
“There is marketing of the mobile channel and marketing banking accounts.”
CARRIER NETWORKS
Verizon getting the iPhone will affect all carriers in 2011

By Dan Butcher
T
he biggest development in 2011 will be the U.S. “Corollary to that, the truth of the matter is that carriers
wireless carriers’ continued rollout of 4G networks still have a lot of influence and control in the wireless
as LTE spreads nationwide to go head-to-head with space, and if they can figure out how to leverage that,
Sprint’s WiMax. they can make a lot of money,” he said. “Hopefully in
2011 they can develop better strategies, and you can’t
Verizon Wireless turned on the first large-scale 4G really discount them, as much as they’ve been beaten up
LTE on Dec. 5, which the carrier claims enables speeds over the last couple of years.
up to 10 times faster than its 3G network, but it is an
open question whether or not it will significantly af- “They have a lot of consumer data and a lot of relation-
fect consumer behavior in the near future. While bet- ships with subscribers, and while no one really talks
ter wireless infrastructure is necessary, in 2011 mar- about the carriers, they know who everyone is and what
keters may find themselves wishing that carriers device they are using, and they have a billing relation-
would pick up the pace on the issues that are most ship with consumers.”
important to them.
Verizon iPhone
“All of the things we are hearing [about carrier initiatives Now that Apple has brought the iPhone to Verizon
in 2011] such as billing or support for existing services Wireless, it is sending shockwaves throughout the
are not wildly innovative—not anything that will change mobile ecosystem.
their market share or improve their bottom line,” said
Josh Martin, senior analyst at Strategy Analytics, Boston. Everyone from rival carriers to competing operating sys-
“Carriers are being more reactionary than proactive. tems—especially Google’s Android and Research In Mo-

tion’s BlackBerry — will be affected. Johnson, spokesman for Isis, Bellevue, WA. “Isis
has paved the way by guaranteeing a market for
However, will the long-term damage to AT&T and the that technology.
benefit to Verizon Wireless be as great as everyone seems
to assume? “In 2011, we will see more contactless acceptance,
which has been a barrier,” he said. “Many of the big
“It is likely that some early iPhone adopters who POS terminal-makers are including NFC by default in
will be off-contract by the time AT&T’s exclusiv- most of their new POS hardware, so that constraint
ity with the iPhone comes to an end are just waiting begins to fall down as merchants replace pin pads
to churn to Verizon for their next iPhone upgrade,” and signature capture pads. The replacements will be
said Susan Welsh de Grimaldo, senior analyst at NFC-enabled.
Strategy Analytics.
“Some of the infrastructural hurdles that have dampened
“However, AT&T has smartly been making iPhone up- or prohibited uptake of mobile commerce will begin to
grades attractive not just to new users but to existing fall in 2011.”
subscribers, and we expect that they would focus on
strategies to promote upgrades and contract renewals
before exclusivity ends,” she said.
Other strategies to minimize the churn impact of los-

ing exclusive rights to the iPhone include a diverse
handset lineup.
That means AT&T would have to push other smartphones

and ramp up its Android offerings.
“AT&T’s share of net adds will fall with loss of

iPhone exclusivity, but this will be made up for in part
by growth in emerging device subscriptions, where
AT&T has been very active recently,” Ms. Welsh de
Grimaldo said.
Mobile commerce
In 2011 carriers will work together to lay the groundwork
to try to create a nationwide standard for contactless
mobile payments with Isis.
Isis is a joint venture between Verizon Wireless, AT&T

and T-Mobile USA, with participation from Discover Card
and Barclaycard.
“I think 2011 really marks the point of ignition for mo-

bile commerce and payments, certainly with the Isis
announcement, but also announcements from mo-
bile OEMs and OS-makers around NFC,” Jaymee

COMMERCE
Anytime, anywhere easy shopping to be commonplace

M
obile commerce will continue to change how
people shop, and the way retailers interact with
customers in 2011.
With technology such as bar code scanning, the aver-

age shopper will always have total pricing transpar-
ency. Location-based promotions have also gained
a lot of ground and will continue to affect what peo-
ple expect to gain when they are in-store or in a
competitor’s store.
“Social marketing has tied into the location-based pro-

viders very well, letting people gloat about becoming
mayors or experts,” said Jill Dvorak, senior consultant
of mobile commerce at FitForCommerce, Short Hills, NJ.
“Mobile marketing is another channel where a customer
can become a VIP to a retailer.
“Customers will also become accustomed to anytime,

anywhere, easy shopping,” she said. “We will also see an
increase of exclusive or invitation-only discounts and
promotions in the mobile channel just like we saw with
email marketing a few years ago.”
Performance is a challenge
Matt Poepsel, Lexington, MA-based vice president of
performance strategies at Gomez, said that perfor-
mance of mobile sites will remain a major challenge
in 2011.
aren’t equipped to handle the same content volumes and
Indeed, mobile commerce is not always a satisfying ex- types as a desktop PC,” he said.
perience for consumers.
“Some retailers, trying to deliver a consistent user expe-
The top 15 retailers’ mobile sites run slower, and perform rience across their traditional PC and mobile Web chan-
less consistently than their traditional PC sites. nels, maintain too much content on their mobile sites,
which impacts speed. Other retailers choose to strip
“Many retailers have yet to figure out mobile perfor- away too much content, leaving users wanting more.”
mance strategies that meet their customers’ expecta-
tions – which can be viewed as both a challenge and an The goal in 2011 should be to strike the proper balance
opportunity,” Mr. Poepsel said. between mobile site performance and functionality,
based on what customers want.
“For example, one way to improve download speeds on a
mobile site is to streamline content, since most devices According to FitForCommerce’s Ms. Dvorak, con-

tinued smartphone adoption and usage will be mobile site performance a key priority, per Mr. Poepsel.
an opportunity.
Also, 2011 will see many brand retailers who are not mo-
“To give some perspective on the pace at which mobile bile yet adding that functionality. Those retailers who are
is growing, think about this,” Ms. Dvorak said. “Online mobile should be expanding by launching across at least
retail in the United States is currently 5 percent of the the four major mobile operating systems in the U.S., per
retail total and mobile is poised to grow to this number Ms. Dvorak.
much faster than online did.”
Recommendations
Expanding role • Prioritize for the most important user segments. Un-
Recent analyst data indicates that mobile devices will derstand which browsers/devices represent the heavi-
have been involved in up to 28 percent of overall holiday est site traffic, and
sales in 2010. make sure the site
content fits and dis-
In 2011 retailers will move rapidly beyond this plays properly on
early stage of mobile commerce by making these devices.
• Tailor the mo-

bile site for the on-
the-go user. Skip
certain applications
that mobile users
will not likely tap.
• Brand marketers must review mobile analytics, mo-

bile acquisition and retention spend and how profitable
those customers are to their business.
• Treat mobile as its own beast, thinking of new inno-

vative ways to incorporate brand loyalty, affinity, excite-
ment, usage and revenue into marketing campaigns.
• Retailers should take mobile commerce serious-

ly and dedicate appropriate resources to this quickly
growing channel.
“In 2011 all marketers should be planning for mobile

commerce’s continuation,” Ms. Dvorak said. “Even if a
brand is not yet mobile, they should be collecting num-
bers and opt-ins for their eventual SMS database and
customer segmentation.
“This ensures that they will not have to start from scratch
when they are ready to market,” she said.

CONTENT
Brands advertising mobile content will have advantage

By Rimma Kats
W
ith the increasing consumer usage of mo- “Adapting to new, differing and changing technologies
bile devices for more than just making phone can be hard to keep up with, but we’re making sure our
calls, mobile content consumption will boom content APIs enable us to be adaptable as possible.”
in 2011.
Additionally, 2011 is looking positive for application
Brands are making sure that consumers can access their developers as smartphone usage continues to expand.
content in whichever way they prefer. The content pro-
vided should best reflect the brand, while at the same The new paradigm is tapping, not typing.
time take advantage of the flexibility and portability of
the mobile phone. Web vs. apps
In the coming years, consumers will expect to access
“Mobile provides another access point to our engaged more services via applications than mobile browsers as
audience,” said Angela Moore, vice president and site di- tapping applications to access information and Inter-
rector at FoodNetwork.com. net services grows in popularity over typing URLs, per
“We find that our audience is inspired by our program-

ming, and they go online to review more content, espe-
cially recipes, which they then use to learn new ideas
and plan their meals,” she said.
“With the extension to mobile devices, our audience

takes these recipes and content with them into the gro-
cery store to shop and into the kitchen to cook. We’re
with them every step of the way, from the couch to the
dinner table.”
Mobile content usage

In 2010, the Food Network let food enthusiasts browse
through 45,000 recipes via its applications for Apple’s
iPhone, iPod touch and iPad.
The company rolled out the application to engage fans

and give them access to their favorite recipes.
“In 2011, we plan to have a more [vigorous] offering of

content and products available via mobile,” Ms. Moore
said.
“We will build out mobile Web sites and applica-

tions across our family of Web sites – Food.com and
Cooking Channel – as well as build innovative ap-
plications that take advantage of the unique content
we have,” she said.

Ilja Laurs, CEO of GetJar. “Whether an app store makes it or not is largely due to
two factors – are they large enough to support tens of
The HTML5 versus applications debate will continue thousands of developers and are they open?”
in 2011.
Brands that understand and advertise on the mobile mar-
“Although most app stores will continue to grow in pop- ket today will have a competitive advantage in reaching
ularity as a concept in 2011, app-store-industry consoli- consumers tomorrow.
dation will become inevitable,” Mr. Laurs said.
Virtually all consumers have a mobile device, and as
“Just as there were thousands of search engines in ex- smartphones nationwide outpace feature phones in
istence 10 years ago, app stores will experience consoli- 2011, brands that understand and advertise on mobile
dation,” he said. “In five years, only six major app store platforms will reach consumers, while brands that do not
players will make it and, in 10 years, only two to three will lose out.
app stores will matter. All other app stores will become
app-store ghettos. Experimentation, education and exploration
The 2010 year was one of experimentation, education
and exploration for brands and providers.
New products such as the iPad tablet and the explo-

sive growth of the Android operating system have
turned major, positive disruptors in the market, becom-
ing the hoped-for salvation of many businesses such as
publishing and retailing.
“2011 will be the year critical mass is reached for the

number of smartphones and tablets of getting in con-
sumers hands,” said Michael Cartabiano, CEO of Thumb
Media Group. “Business verticals such as magazine
printing, distribution and publishing are re-inventing
themselves and going through many painful challenges
and won’t necessarily be able to reach the same levels of
profitability in 2011.
“2011 will be an incredible year of transi-

tion and growth for mobile,” he said. “The
launch of LTE networks, nominally known as 4G,
by carriers worldwide will begin to create a seam-
less global wireless network, a true mobile
media channel.
“It will greatly enhance the adoption and use of

smart wireless devices that support streaming mul-
timedia content, which in turn will stimulate even
greater proliferation of applications and the use of
mobile Web.”

DATABASE/CRM
Brands will develop deeper relationships via mobile databases/CRM
By Rimma Kats
U
sing the mobile medium to build databases of monly used CRM tactics geared towards databases
consumers interested in communicating with a of loyalists.
brand will be a continued practice in 2011, with
marketers placing calls to action on mobile Web sites, “Although SMS marketing has been in use for years, the
PC sites, out-of-home advertising, print ads and other increase in smartphone use will continue to fuel mobile
traditional media. marketing momentum and drive interest in all aspects
from SMS text, to apps, WAP sites and mobile com-
merce,” said Shira Simmonds, president/CEO of Ping
Mobile, Englewood Cliffs, NJ.
“Similar to the way email databases and relation-

ship marketing took hold nearly 20 years ago, mobile
databases will become a growing trend for market-
ers as a means to develop deeper relationships and
loyalty with consumers through the mobile device,”
she said.
“Mobile commerce will continue to grow in 2011, in-

cluding the ability to make purchases, view offers and
coupons and scan for competitors’ products, all on a
mobile device.
Mobile database
There will be some issues and challenges affecting the
mobile space in 2011.
Mobile security and threats

will become more im-
portant as devices be-
come sophisticated and
Web-enabled.
Additionally, businesses will

recognize that having an ap-
plication does not constitute
a full mobile strategy.
“Most businesses today typically report on the num-

ber of downloads and do not always know what is
After growing their database, marketers will employ happening inside their apps,” Ms. Simmonds said.
mobile CRM strategies to get the right messages out “Improved analytics will enable businesses to op-
in front of the right people at the right time. Mobile timize the mobile user experience [via CRM] and
coupons and sales alerts will be some of the most com- resultant outcomes.

and start with a fairly inexpensive entry point. Smaller
businesses should definitely start with something
basic like SMS, with a clear
call to action offering val-
ue to the consumer, and
increase efforts once they
start to get results.”
Mobile CRM
American Airlines has
frequently included mo-
bile in its initiatives in
2010. The company ex-
panded its mobile board-
ing passes to a total of
42 airports. This was part
of the airline’s mobile
CRM strategy.
“We anticipate smart-

phone adoption will in-
crease dramatically from
its market share today,
and tablets will be-
come much more common as the large number of play-
ers entering this space will drive down price points,”
said Marcy Letourneau, spokeswoman at American
Airlines, Fort Worth, TX.
Ms. Letourneau sees that a rapid adoption of An-

“As businesses realize all that they can accomplish droid phones and tablets will create new customer
with mobile devices, it will continue to have a di- touch points.
rect impact on marketing departments and smaller
businesses,” she said. “Small and large businesses will “The challenge is managing open-form factors and
begin utilizing location-based marketing to reach rapidly evolving operating systems,” Ms. Letourneau
existing and new consum- said. “As we develop customer-facing applica-
ers in close proximity to tions for the Android, BlackBerry and others, we will
their location. turn around employee-facing applications for those
platforms as well.
“The most important
component is plan- “With that said, we certainly anticipate that our
ning. Research, focus apps will target multiple platforms and take advan-
and set measurable tage of customer preference and location,” she said.
goals. Consider what “We will introduce more tablet applications as the
would work best for marketplace provides visibility into trends and
your service or product usage patterns.”

EMAIL
Email is all about contextual relevance for mobile consumers

By Dan Butcher
E
mail will remain the workhorse of online marketing
in 2011, but it will be a year of transition as market-
ers come to recognize how customer behavior and
preferences have altered the landscape to make mobile-
optimized email campaigns imperative.
Customers now use text, IM, social media as well as

email, and fluidly move between them so that a com-
munication that begins in one channel may end up being
consummated in another.
“While these have been watershed events with broad

implications that will continue to unfold in 2011, the
biggest one of all still lies ahead — message conver-
gence,” said Dave Lewis, chief marketing officer of Mes-
sage Systems, San Francisco. “2011 will be the year
when message convergence gets serious industry at-
tention as companies struggle to stay connected with
their customers.
“Knowing their customer

preferences, needs and
wants, message conver-
gence is where compa-
nies actually coordinate
their communications
to ensure that the right
message is delivered at The mobile phone will increasingly become the device of
the right time and in the choice for all consumers, the one possession that is never
channel that is most contextually relevant and appro- far from reach.
priate,” he said. “It is easier said than done, but it is the
only viable alternative to letting customers sort it out on And with those powerful Web-enabled devices,
their own. consumers will increasingly dictate the terms of online
communication, per Mr. Lewis.
“And it is in this world of converged messag-
ing where mobile email will rediscover its role “It’s already happening and will accelerate in 2011,” Mr.
and relevancy.” Lewis said. “Look to the recent Facebook announce-
ment [meshing email, SMS and instant messaging
Contextual relevance into one stream] as to where online communication
What do marketers need to keep in mind given that is headed.
many emails will be viewed by their target consumers
on a wide variety of mobile devices? In a single term – “In a real sense, consumers are redefining the boundaries
contextual relevance. between the offline and online experience, and that is

certainly a trend that will accelerate and take new forms constructed for viewing
in the year ahead,” he said. in a mobile environ-
ment,” Mr. Lewis said.
Opportunities and challenges “And given greater ac-
The opportunities and challenges for marketers in cess to various appli-
reaching mobile customers in the coming year cen- cations and social con-
ter on the same objective as they always have— nections, the broader
achieving relevancy. context in which the
message is deliv-
Marketers who are tuned in to the wants and ered and viewed can’t
needs of their customers and deliver messages how, be ignored.
when and where consumers want them will see
great success. “Marketers will need to
think more holistically about ways to influence and le-
Those who do not will be left to explain their dwindling verage that context in prompting response,” he said.
returns and declining brand loyalty stats.
“In short, it is not just about email anymore and market-
“While success demands greater segmentation in target- ers need to look beyond it.”
ing, it will also require attention to how the message is
Making mobile email social
Just as email marketers cannot ignore the explosive
growth of smartphone adop-
tion, they cannot disregard
the increasing crossover be-
tween mobile and social.
There is an opportunity for email

to help facilitate a cross-chan-
nel dialogue with consumers in
2011.
“With the explosion of social media, market-

ers need to be thinking not just email, not just mo-
bile—social networking is a very mobile experience,”
said R.J. Talyor, director of product marketing at
ExactTarget, Indianapolis.
“In 2011, marketers should be integrating not only their

mobile experience with their social experience, but also
mobile email that prompts someone to share something
via social channels, then be hit with a text message or
another mobile experience,” he said.
“We’re going to see a better experience for end-con-

sumers and opportunities for smart marketers in the
coming year.”

GAMING
Gaming moves from dedicated devices to mobile phones, tablets

By Dan Butcher
W
ith an increasing number of developers and pub-
lishers creating games for more sophisticated
smartphone and tablet devices, consumer adop-
tion of mobile gaming will continue to increase in 2011.
From the popularity of Angry Birds and the rise of vir-

tual currency and rewards to the blending of mobile,
social and gaming, 2010 saw many interesting trends
develop. In the coming year, those trends will only in-
tensify as consumer interest in mobile gaming continues
to grow and the selection of mobile games gets better
and more varied.
“The outlook for mobile gaming in 2011 is good,” said Challenges

Tuong Nguyen, Richmond, VA-based principal analyst of However, with opportunities always come challenges.
mobile devices, technology and service provider research
at Gartner. “I expect to see more in terms of selection and Building games to be distributed in Apple’s iTunes App
quality—in turn, drawing in more consumers, expanding Store and Google’s Android Market are no-brainers for
the overall market.” developers. But beyond those two, fragmentation be-
comes an issue.
Shift to mobile
Mobile gaming has moved increasingly from dedicat- Developers want to cast as wide a net as possible. How-
ed devices such as the Nintendo DS and Sony PSP to ever, developing for a range of individual platforms can
mobile phones. be time-consuming and expensive.
That has encouraged large developers such as EA and In terms of monetization, developers continue to try out
smaller ones such as Rovio, creator of Angry Birds, various models and hybrid solutions, from ad-support,
to focus on games for feature phones, smartphones pay-per-download and subscriptions to micropayments
and tablets. and virtual currency. No single method is going to win
out. Savvy developers and publishers will try a range
The boom in mobile applications, in general, and the of models.
successful distribution models of app stores have
helped developers generate revenue from quality “Monetization continues to be a challenge,” Mr. Nguyen
mobile games. said. “The growing opportunity also adds an element of
choice—which platform to develop for—and competi-
“The opportunity is largely in the mobile space and tion, with developers flooding the market as they see
the new platforms on which they can develop,” opportunity arise.
Mr. Nguyen said.
“Consumers win out,” he said. “Providing them with choic-
“How will 2011 be different from 2010? Increased mar- es will open up the market opportunity for developers.
ket opportunity, competition and choices,” he said. “Now
that Android devices are in full swing, Google’s Android “None of these options are one-size-fits-all—it depends
Market will be more significant in the coming year.” on the game and the target market.”

LEGAL/PRIVACY
Legal analysis: Governing by putting a square peg a round hole

By Andy Lustigman
W
While mobile marketing continues to develop tion that the terms of a
significantly given the primary importance program being market-
that consumers place on the devices coupled ed on the Internet must
with their tremendous advances in technology, the law be disclosed clearly
in this area continues to lag. and conspicuously.
Though mobile marketing continues to develop signifi- To determine whether

cantly given the primary importance that consumers the terms of a program
place on the devices coupled with their tremendous are clear and conspicu-
advances in technology, the law in this area continues ous marketing, the FTC
to lag. looks at the Four P’s of
disclosure: prominence,
Marketers and their lawyers are finding that the regula- presentation, placement
tory guidance and enforcement relating to this technol- and proximity. Andy Lustigman
ogy is emanating not out of Washington, but rather out
of the state of Florida and through the workings of a few Prominence requires that the disclosure be in type size
class-action attorneys who are otherwise establishing that is large enough for consumers to notice and read,
nationwide standards. and that there be a sharp contrast between the disclo-
sure and the background.
Marketing restrictions
The Federal Trade Commission is the primary federal reg- Presentation requires that the wording and format be
ulator overseeing advertising of goods and services. easy for consumers to understand based free from dis-
tractions that compete for the consumer’s attention.
While the FTC has not enacted regulations specifically
governing mobile marketing or SMS campaigns, it has Placement requires that the disclosures be located in an
brought enforcement actions against advance-consent area that consumers would look for disclosure.
negative-option Internet marketers under its gener-
al enforcement power prohibiting unfair or deceptive Finally, proximity requires that the disclosure be close to
advertising practices. the claim that it qualifies.
Typically, the FTC has brought enforcement actions The language and placement of required program terms
against these programs under the unfairness prong must be examined to be sure that the terms are reason-
claiming that a reasonable consumer would not appreci- ably and adequately disclosed to the target consumer.
ate that he or she was enrolling in a subscription-based
program that would be automatically charged to a par- MMA best practices
ticular payment method. Like the FTC’s general standards, the Mobile Marketing
Association has issued a Best Practices Guide govern-
As it relates to online advertising, the FTC has issued a ing, among other things, the enrollment of consum-
business compliance guide known as the Dot Com Dis- ers into a subscription-based SMS program through
closures which details the FTC’s positions on Internet the Internet.
marketing requirements.
While the guide does not have the force of law, the
The Dot Com Disclosure Guide highlights the FTC’s posi- guidelines are considered by a compilation of accepted
industry practices, wireless carrier policies and regula- Here, the cases have been initiated by class-action
tory guidance for marketing practices. plaintiff’s firms. A number of major settlements have
recently been reached relating to mobile content as
Wireless carrier Florida settlements well as SMS messaging being transmitted without
Despite the FTC’s oversight of national advertising, regu- sufficient consent.
latory enforcement relating to mobile marketing con-
tinues to emanate primarily from the state of Florida, For example, in one case, the appellate court found that
which has now inked settlements with all the major Simon & Schuster and its marketing partners violated
wireless carriers – AT&T, Verizon, T Mobile and, most the TCPA when it sent text messages to promote Stephen
recently, Sprint. King’s novel, “The Cell.”
While these settlements are directly with the carriers Although the plaintiff agreed to receive promotions
and not the marketers and are limited to Florida, be- from Nextones “affiliates” and “brands,” the Ninth Cir-
cause the carriers bill for the content, their terms es- cuit found that Simon & Schuster was not an affiliate of
sentially establish the standards by which industry Nextones based on a formal analysis of the meaning of
must operate. the terms.
Among the terms of the Nextones neither owns nor controls Simon & Schus-
settlement set forth in an ter. Furthermore, Simon & Schuster was not a brand
Assurance of Voluntary of Nextones.
Compliance, the carriers
are required to include in Therefore, Simon & Schuster could not rely on the
their contracts with third- consent that Ms. Satterfield provided to receive mes-
party marketers vari- sages because it was not a brand or an affiliate
ous restrictions relating of Nextones.
to type, placement and
content of cost and other The court remanded the action to the trial court to
important disclosures. continue the litigation.
Given the broad restrictions placed on the carri- Although the amount of damages for a single unau-
ers which act essentially as the billing agent for thorized message may be small (i.e. $500), when all
third-party service providers, companies that wish of the messages are combined, the amount of liability
to provide paid content must be sure that they are is extraordinary.
in compliance with the detailed requirements of the
Florida settlements. Therefore, rather than risk up to $90 million dollars in
liability, defendants in the Satterfield action have sought
Class actions marketing to settle the matter.
Under the Telephone Consumer Protection Act of 1991,
a person transmitting an SMS message for commercial Under the terms of the settlement, defendants agreed to
purposes must first have the recipient’s prior express set up a $10 million cash settlement fund.
consent to receive the message.
Approximately $7.7 million will be used to make pay-
The scope of consent has been very narrowly construed ments of up to $175 to each claimant who received
in recent class-action decisions and the liability as a re- the text message at issue, and $2.275 million in attor-
sult of sending a mass SMS message without sufficient neys’ fee will be paid, in addition to payments to the
consent is enormous. class representatives.

Other class actions have been brought around the not authorize.
country, claiming lack of authorization to receive
mobile messages. These cases were settled on a global basis with a redress
fund of $9 million, as well as attorneys’ fees of up to
For example, a class action lawsuit has been filed against $1.835 million.
the publisher of Rolling Stone, Us Weekly and Men’s
Journal magazines, Wenner Media LLC and a marketer of In addition, the defendants also agreed to adhere to cer-
subscription products, Consumer Benefit Services Inc., in tain standards for the sale, marketing and refunding of
the United States District Court for the Northern District unauthorized mobile content.
of Illinois, alleging, among other things, that the defen-
dants made unsolicited text message calls to promote Conclusion
paid subscriptions to their products, including maga- As it relates to legal standards, mobile remains a medium
zines, identity protection services and discount clubs, still in its infancy without clear guidance by federal or
purportedly in violation of the Telephone Consumer state authorities.
Protection Act.
Instead, mobile marketers are faced with trying to com-
Defendants face potential liability of $500 per text mes- ply with laws enacted long before the development
sage sent to each recipient. of the medium as it currently stands, and enforce-
ment by private plaintiffs instead of federal regulators
As to marketing claims, the plaintiff brought a class- who can establish a balanced, nationwide industry-
action lawsuit in the Circuit Court of Cook County, Illi- public approach.
nois, on behalf of a proposed class of mobile subscribers,
alleging that certain defendants were involved in charg- Andrew Lustigman is principal partner of The Lustigman
ing mobile subscribers for mobile content that they did Firm, New York. Reach him at andy@lustigmanfirm.com.

MANUFACTURERS
Differentiation will be more of a challenge for OEMs

By Dan Butcher
A
s various handset manufacturers and operating new breakthrough apps recently.
systems battle it out for supremacy, competition
will be at a fever pitch throughout 2011. “NFC chips are promising for driving mobile payments,
but there are challenges around standards and how the
Apple’s iOS, Google’s Android and Research In Motion’s pie is divided,” he said. “Tablets represent a somewhat
BlackBerry are the three leading operating systems in mobile opportunity, but they are more than simply large-
the United States, while Nokia’s various platforms still screened smartphones.”
have wide reach abroad. In addition to a refocused Palm
under Hewlett-Packard’s umbrella, devices based on Mi- Dialing up
crosoft’s Windows Phone 7 operating system will make While the technological progress achieved over the
a splash in 2011. course of 2010 has set the stage for advancement in the
following year, 2011 will be different from the previous
“All bets are off if the iPhone moves to Verizon, a move year in significant ways.
more likely now that the carrier has launched its LTE
network, but we will see Windows Phone 7 back in the NPD’s Mr. Rubin said that more competition will return
game,” said Ross Rubin, executive director of industry to the smartphone market with HP’s Palm and Micro-
analysis at the NPD Group, New York. “Android should soft’s Windows Phone 7 driving new products, at least
continue to command a healthy percentage as well. one major new version of Android and a likely new
iPhone, as in years past.
“Without further significant changes to its operating
system and app support, RIM will continue to be at a The industry will see broader adoption of higher-speed
disadvantage with consumers,” he said. data branded as 4G, paving the way for more video ser-
vices such as on-demand television shows and videocon-
Challenges lie ahead ferencing, per NPD.
While steadily increasing mobile usage and consumer
adoption of higher-ticket smartphones and tablets offer In addition, 2011 will see more adoption of peer-to-peer
plenty of opportunities for handset manufacturers in the networking technologies such as Wi-Fi Direct, Bluetooth
coming year, they will face 4.0 and NFC.
challenges as well.
Marketers should carefully monitor developments re-
With the touch-screen in- lated to the various handset manufacturers and mo-
terface becoming a de facto bile operating systems in the coming year to make sure
standard and many differ- their campaigns are targeting the right audience and are
ent manufacturers building optimized for the pertinent mix of devices.
on the Android platform,
differentiation will be more “More consumers will have access to devices that can
of a challenge in 2011. access the Internet at higher speeds and have higher-
resolution displays,” Mr. Rubin said. “This should enable
“The touch-screen slab has richer advertising.
become a commodity and
Android has lost much of “Continued growth in location-based services should
its novelty,” Mr. Rubin said. also do more than ever to bridge the gap between mobile
“We have not seen many marketing and bricks-and-mortar commerce,” he said.

MEDIA
Having a cross-platform mobile strategy tops publisher to-do list
By Rimma Kats
P
ublishers such as Conde Nast, Hearst and Time Sports Illustrated.
Inc. began to understand the potential of mobile
publishing, advertising and marketing in 2010. In“We have found that with each product introduction, us-
2011, a cross-platform mobile presence will top their list
ers have migrated to our content,” she said. “2011 is sure
of priorities. to bring new developments across the media landscape,
and we will continue to connect with our audience in
Most media giants already have at least one application
their favorite spaces and produce unique opportunities
and a mobile Web site. In 2011, these media companies
for our advertisers.”
will focus on expanding their distribution to include
Android, BlackBerry, Windows Phone 7 and iPhone. SMS,
Frenemies
image recognition and 2D bar codes will become far
More readers are moving away from online and into
more mainstream in print media.
mobile. However, publishers need to view mobile as
another source of monetization and not as a threat
“It’s an exciting time to be a part of the media indus-
to online.
try,” said Kim Kelleher, vice president and publisher of
Sports Illustrated, New York. “During the past year, a
Mobile can be an additional channel for revenue if
myriad of new channels and devices have provided ad-
treated properly.
ditional touch points for our readers to connect with
Media brands need to monetize with ads on mobile sites
and applications, in addition to online and print.
Paid mobile content may also be an option for some

media brands.
Code language
Sports Illustrated has rolled out its content across vari-
ous mobile platforms. In addition to engaging smart-
phone users, the publication reaches readers who have
feature phones via SMS.
“At Sports Illustrated, we have built a strong baseline

audience across all of our mobile platforms, but to
maintain and grow that audience we’ll need to sus-
tain our commitment towards providing exclusive
and engaging content for our readers to consume,”
Ms. Kelleher said.
“There is an enormous demand for unique prod-

uct-specific content and developing that materi-
al will be the key to growing our audience this year,”
she said.
Undoubtedly, 2010 has generated a lot of momentum for

Mobile publications
“This year promises to be a time of growth for media
brands that have embraced innovation and adjusted
to the consumer’s desire for on-the-go media,” Ms.
Kelleher said.
With the entrance of tablets, more magazines are opt-

ing to take their issues to the iPad and incorporating
rich-media videos, which is something they cannot do in
their magazine.
Publishers realize the importance of the mobile medium

and in 2011 will begin to test content on a subscription
basis to monetize their mobile presence.
Media brands will stop focusing solely on the iPhone

and Android platforms in 2011. A majority of read-
ers may not have smartphones and it is important for
them to be where their readers are – across all platforms
and devices.
“The mobile audience is growing rapidly and market-

ers need to embrace the opportunity to reach con-
sumers across multiple platforms,” Ms. Kelleher said.
“Marketers should look for solutions that al-
low their brand to weave through print, digital and
mobile platforms.
media brands and their publications.
“Mobile presents an opportunity for varied and geo-lo-
QR codes have played a key role in activating print media cated messaging,” she said. “As technology continues to
for magazines such as Allure, Lucky and People. improve, the ability to target our audience with person-
alized content will continue to grow and the opportuni-
Not only do bar codes present major opportunities for ties are going to be endless.”
advertisers to engage with consumers, but publishers
can use them to offer exclusives to users such as behind-
the-scenes videos and gallery photos, making the read-
ing experience more engaging.
Allure recently used 2D bar codes for its annual beauty

issue where it offered readers a chance to win items daily
by scanning the code.
The magazine’s use of Microsoft Tags as an entry point

into the magazine’s annual free stuff giveaways resulted
in 444,572 scans, making it the largest mobile bar code
campaign to-date.

MESSAGING
SMS calls to action will be all over traditional media
S
MS will continue to be part of the personal com-
munication mix in 2011, as it still will have the
most reach and be the most used mobile service
by consumers.
While the proliferation of smartphones continues, bring-

ing more and better mobile Web and application expe-
riences with it, this does not diminish the importance
of SMS.
“The Red Cross Haiti fundraising campaign showed the

world that there is tremendous value in text marketing
and fundraising and that text continues to be the key
component of any mobile strategy,” said Joshua Kittner,
senior marketing consultant of digital engagement at
the American Red Cross, Washington.
“Our results are already having a significant positive im-

pact in the number of short codes leased for nonprofit
and for-profit organizations,” he said. “This should con-
tinue well into 2011.
“With all these new entrants we expect increased com-

petition for donor dollars, which should increase the
marketing creativity in this sector while driving costs
lower for all.”
Issues, challenges and opportunities

The first challenge is awareness, according to David So far, this has not slowed down SMS usage, and it ben-
Berkowitz, senior director of emerging media and inno- efits MMS since it is now easier to create multimedia
vation at 360i, New York. content from mobile devices.
It is hard for messaging to compete with applications, Applications, in particular, are a threat in two ways.
HTML 5 Web sites, iAd, mobile video, mobile social media
and location-based services. First, consumers are increasingly turning to applications
such as TextPlus, GroupMe and Kik to chat instead of
The second challenge is getting pricing right and accepted. text, and Facebook’s new messaging service will eat into
this, too.
For ads appended to SMS content, pricing is relatively
straightforward, generally sold on a cost-per-thousand Next, applications can directly send notifications to the
basis, and there are possibilities to buy SMS ads on a device that do not rely on SMS.
performance basis.
According to Jeff Hasen, chief marketing officer of Hip-
The third challenge is the rise of smartphones. cricket, Kirkland, WA, companies including Macy’s, Arby’s
will have sizable data plans, so MMS becomes more
viable. More brands are now employing richer messages.
There is reason to believe the MMS growth will continue
in 2011.
“SMS has come a long way, but still suffers from the tag
by creatives and others that it is the least sexy mobile
execution,” Mr. Hasen said.
“That is why we continue to preach the pyramid strat-

egy where you employ SMS for reach, then build on
richer applications that deliver better brand experiences
but reduce the number of people who can participate,”
he said.
“MMS still has to build consumer awareness and accep-

tance. In addition, many brands are unwilling to spend
on MMS because they don’t want customers or prospects
to have to pay for MMS that is outside their plan with
a carrier.”
Recommendations
1. Understand business goals and target audience. If
the target consumers and prospects all have one brand
of smartphone, then the marketer is golden. But that is
not likely.
and MillerCoors moved product, built databases and loy- 2. Start first with reach via SMS, then see how the mar-
alty, and viewed text messaging as an indispensible tool keter can further engage subscribers with MMS, and
in each brand’s reach strategy. then send offers via text or other actions that bring value
to them.
The very fact that these brands and thousands of oth-
ers have built valuable databases proves that SMS will 3. Marketers should also seek a clear understanding be-
remain in the core strategy and mobile toolbox. fore running any mobile programs.
Picture growth 4. Balance the portfolio. SMS and MMS are the
Expect to see more prominent calls to action that invite blue-chip stocks.
participation via text.
“Expect the integration points to be different,” 360i’s Mr.
Much like Arby’s used text in the introduction of the Berkowitz said. “Mobile social media presents an oppor-
Roastburger on the Jimmy Kimmel show, major brands tunity to allow people to interact with people, places and
are inserting SMS calls to action to encourage trial, sales content in new ways from their mobile devices.
and to build loyalty. SMS calls to action will proliferate
in 2011. “SMS and MMS can facilitate deep interaction at live
events, and there are fun ways to use it with digital out-
When it comes to MMS, more mobile subscribers of-home media,” he said.

MUSIC
Artists rely on mobile to make live music events more engaging

By Rimma Kats
M
obile is letting artists connect with fans like “Fans have not only increased their use of mobile de-
never before and labels, musicians and man- vices, but have come to rely on them in their day-to-
agement companies need to recognize the im- day interactions with their favorite artists or bands,”
portance of the mobile platform as the most personal said Dorrian Porter, CEO of Mozes, Palo Alto, CA. “This
and effective medium of connecting directly to music trend has led to their acceptance of being directly
fans in 2011. contacted on their mobile phones with information of
their choosing.
Artists are using the mobile medium to build buzz around
an upcoming album or tour. Additionally, companies such “While the use of mobile technology may have been an
as Shazam are rolling out mobile applications across var- up-and-coming tactic in 2010, it will be a must-have
ious smartphone platforms to keep music lovers up-to- for any digital and marketing strategy in 2011,” he said.
date with their favorite musicians. “The fact is if you can provide fans with information they
want and need, they will be open to your requests.
“With higher percentages of fans not able to attend

shows or purchase albums due to the economic down-
turn, the music industry needs to be able to specifically
track the success of their artists and events and deter-
mine ROI.”
Music engagement
Universal Music Group, which uses Mozes’ mobile en-
gagement platform, has been active in the mobile space
this past year.
The company has expanded its lineup of direct-to-

consumer mobile content and services for Spanish-
speaking and bilingual music fans and is letting users
connect to their favorite artists by personalizing their
mobile device.
“Issues and challenges for 2011 include providing rel-

evant and desirable content to fans,” Mr. Porter said. “In
order for the mobile experience to successfully engage
and sustain fans, the content must be seen as desirable,
or there is a high likelihood they won’t stick around for
long to receive more.
“There are many opportunities for us,” he said. “Mobile

commerce, mobile location-based services, mobile apps,
the integration of mobile and social media, and a focus
on mobile activation at live events, where a fan is most
passionate and open to engaging with you.”

Mobile adoption loves what he is doing, loves sharing it and always wants
Companies and music labels are seeing how they can in- to communicate his thankfulness to his fans.
tegrate mobile to engage with consumers and have re-
cording artists and musicians interact with fans. “Mobile has proven to be one of the quickest and easiest
ways for him to do this,” he said.
Artists can be with their fans both on the stage and off.
Consumers can opt-in to receive personalized messages It is essential that fans feel invested in and genuinely in-
from their favorite artist and stay in touch with them as the-know about their favorite artist.
they go on tour or listen to the latest album.
Making a connection with a fan on their most personal
Mobile makes the time at live music events more engag- device at a time when they are the most passionate lets
ing for fans by letting them express their excitement, artists establish an ongoing relationship with that fan
participate directly and even share their experience on well beyond the live music event.
Facebook and Twitter.
“The key is that the passion and excitement generated
“Smartphone adoption will drive even more compelling from a live music event can be captured with mobile
engagement scenarios around live music events,” Mr. engagement and continued after the experience for the
Porter said. “Justin Bieber, in particular, is an artist who benefit of both the artist and fan,” Mr. Porter said.

Top mobile stats to remember in 2011
E
xperts agree it is inevitable that 2011 will mark an to IDC.
incredible shift in marketers’ budgets, as more is
allocated to the mobile medium. 3. When it comes to mobile Internet display ads, Google
is tied at first place with Apple with 19 percent mar-
Here are some stats that are indicative of what to expect ket share and independent ad network Millennial Media
in the year to come: comes in second place with about 15 percent per IDC.
Google dominates mobile search advertising, with an ad
1. Fifty-seven percent of consumers would be interested revenue market share of 91.4 percent per IDC.
in opting in to a brand’s loyalty club via a mobile social
networking application such as Facebook. 4. 2011 will see almost $2 billion for mobile online
advertising, according to IDC.
2. Google dominates mobile advertising, with a market
share of 59 percent of total spending including search 5. Brands need to create a mobile Web presence and
and display advertising, followed by Apple with 8.4 per- invest in applications, since 48 percent of consum-
cent and Millennial Media at 6.8 percent, according ers prefer the mobile Web and 52 percent prefer
applications, according to Moosylvania.
6. A Moosylvania study found that 30 ap-

plications were the norm per smartphone.
But most mobile application users (85 per-
cent men and 75 percent women) report-
ed that they only use about 10 of them on
a regular basis. This should give market-
ers pause before jumping on the mobile
application bandwagon.
7. A 2008 DotMobi study showed 150,000

mobile-ready Web sites, while the 2010
study showed approximately 3 million
sites, representing an incredible two-
year growth of more than 2,000 per-
cent. And that growth level significantly
outpaces early desktop growth. In 1996,
there were 150,000 desktop Web sites.
Two years later, there were 2 million
sites, a growth rate of only 1,333 percent
compared to the mobile Web’s 2,000
percent growth.
8. Mobile advertising is four to five times

more effective than online advertising,
on average, according to InsightExpress.
9. Sixty-one percent of wireless carriers

RESEARCH
surveyed by Airwide Solutions thought that coupons or A whopping 42 percent would use their smartphone to
vouchers would become the dominant form of mobile shop or browse online, 39 percent to read reviews and 38
marketing by 2015. percent to check product availability.
10. The industry was abuzz when it came to Apple’s iP- 12. Mobile advertising made noise this quarter, but 97
hone and the potential for marketing via the platform. percent of agencies claim their clients are not requesting
But comScore research shows that there is a new player platforms such as Apple’s iAd, according to media buying
in town, reaching more than one in five smartphone sub- and selling software provider Strata.
scribers in the United States. Google’s Android-enabled
devices now reach more than one in five U.S. smartphone 13. ABI Research forecasts that 11 million tablets will be
subscribers. With a total of 58.7 million people in the shipped this year, which means that the audiences on
U.S., that is a big chunk of the smartphone market. devices such as the iPad are growing and becoming more
valuable to mobile advertisers and marketers.
11. Seventeen percent of smartphone users planned to
use their smartphones in the holiday shopping process, 14. Seventy-two percent of developers say Android is
56 percent of them to compare prices, up from 45 per- best positioned to power a variety of connected devices
cent in 2009, according to Deloitte. More than one out in the future, compared to 25 percent for iOS, according
of 10 (12 percent) of consumers said they would turn to to Appcelerator.
social networks for information such as gift ideas and
coupons, discounts and sale information for the 2010 15. A Scanbuy study found that mobile bar code scan-
holiday season. Of the consumers who planned to use ning grew 700 percent in just nine months (January-Sep-
a smartphone in the holiday shopping process, 46 per- tember), with more people performing scans in a single
cent would use their devices to get product information. month than all of 2009 combined.

SEARCH
Mobile SEM to become key aspect of all multichannel efforts
A
s more advanced smartphones enter the market, time to optimize their campaigns, so 2011 will be a year
the volume of mobile searches will increase ex- of deep engagement in the mobile channel.”
ponentially in 2011. Mobile search engine mar-
keting will move from a niche advertising opportunity to Seminal performance
an important part of any media campaign. According to Google, challenges in 2011 will stem from
making sure that advertisers are ready for a large volume
Mobile SEM will lead the way in educating advertisers in mobile search.
about the value of mobile search – with new formats
that do not exist on desktop such as click-to-call, offers With this challenge come opportunities for adver-
and new hyper-local formats. tisers who have optimized for mobile and have a
solid strategy.
“There is a lot of experimenting and educating ahead,”
said Michael Slinger, head of mobile search advertising Dennis Glavin, group product manager of mobile search
sales for North America at Google Inc., Mountain View, advertising at Microsoft, Redmond, WA, said advertisers
CA. “Many advertisers and agencies have not yet had are still learning how to capitalize on clicks from mobile
search. The 2011 year will bring opportunities to agen-
cies that can deliver high-quality, post-click landing
pages and special offers.
“While there are issues facing mobile SEM, there is tre-

mendous opportunity for companies that get on board
early, similar to how Amazon did in 1996 when SEM was
in its early stages,” said Paul Cushman, senior director of
mobile sales strategy at Yahoo, Sunnyvale, CA.
“Amazon learned a lot about performance and their cus-

tomers before their competitors, despite issues that exist
again today with analytics and conversion, local search
and keyword optimization,” he said.
On the opportunities side, smartphones provide rich-

er location data, creating a rich opportunity for SEM
campaigns to drive offline commerce, Microsoft’s Mr.
Glavin said.
Search is local
Yahoo’s Mr. Cushman said that advertisers will drive in-
novation with rich media, improved analytics and con-
tinued expansion in local search. The connection of the
digital and physical worlds will also continue but it is
probably too soon for visual search.
While there were more searches from advanced smart-

phones in 2010 than feature phones, smartphone users
were a minority of mo- Best practices recommended by Yahoo’s Mr. Cushman:
bile subscribers, Micro-
soft’s Mr. Glavin said. In 1. Bid up to ensure the top position. Unlike the PC, con-
2011, smartphones will sumers are only going to see one ad unit on mobile.
constitute the majority
of mobile searches and 2. Go local, leverage geographical terms
mobile searchers.
3. Ensure copy and landing page is aligned to “right
These searches will span now” needs
local information, social
networks and the Web, but all from a mobile device with 4. Always have a powerful call to action
considerably less real estate for ads.
“There is a lot of opportunity in mobile because it is a
“Not only will these ads get noticed, but the relative rapidly emerging market with increased advertiser en-
uniformity of the browse experience across iPhones, An- gagement and budgets and search volume growth from
droid, Windows Phone and other advanced smartphones smart and feature phones,” Mr. Cushman said.
will constitute critical scale for SEM for mobile,” Mr.
Glavin said.
Google’s Mr. Slinger agrees that new ad for-

mats and quickly accelerating query volume is the
main difference.
Recommendations
Mr. Slinger suggests that marketers fix their landing pag-
es, build mobile-specific campaigns, test new formats,
run broad keywords to find those that perform well on
mobile, rethink the definition of a conversion and make
sure it makes sense on a mobile device.
Microsoft’s Mr. Glavin said marketers should be looking

at what the mobile search data is telling them.
The data suggests that consumers are using mobile in

two scenarios: the search-at-home scenario where the
phone is just easier to use than a PC and a true mo-
bile search scenario where a user is out in the real world
looking to spend her money.
“In both cases, consumers want fast easy access to in-

formation and commercial transactions,” Mr. Glavin
said. “Marketers who want to take advantage of mo-
bile SEM should be looking at how they can deliver to
these consumers, but also look at how they measure
mobile conversions.”

SOCIAL NETWORKS
Mobile social networking: location, location, location

M
obile social media marketing will be centered
on location in 2011, according to a Carrabba’s
Italian Grill executive.
There will be a steady, but gradual movement with less

reliance on the gaming portion of location-based social
applications and more emphasis on the ways brands can
provide more value to the consumer through branded
experiences, incentives and offers.
“Overall, there will be steady growth in this space

throughout next year,” said Jamie Miller, marketing man-
ager at Carrabba’s, Tampa, FL. “People will continue to be
cautiously optimistic and sensitive over privacy issues.
“Brands will have to navigate effectively throughout this

space where consumers feel secure with sharing infor-
mation but are also being engaged by brands in a man-
ner that will lead to greater, more fulfilling experiences,”
he said.
The biggest advancement in the mobile social network-

ing space in 2010 was Facebook announcing that 220
million of its 550 million users were mobile.
Facebook’s number of mobile users will grow exponen-

tially in 2011.
Check in with demo

As more mobile social applications are being adopted by with marketing.
the mainstream, opportunities exist for these applica-
tions to allow for greater tracking and usage metrics. For example, Carrabba’s used Foursquare to promote
deals at 232 of its locations nationwide.
Once this is accomplished, more information will be made
available to brands and they will be more educated on One promotion asked users to show that they are the
user profiles, demographics and location, and be able to Mayor of Carrabba’s and enjoy a complimentary dessert
craft meaningful, direct marketing messages. with the purchase of an entrée.
Mobile social networks are great ways to segment a Carrabba’s Foursquare promotion saw 6,987 total
brand’s most loyal customers are. check-ins and 178 mayors.
Loyalists are incredibly social and are great at word Providing rewards via mobile social networks through
of mouth. Making them happy will ultimately help check-ins will continue as a trend in 2011.
Checking in on check-in • Always test. Start small with the test. Starting with
The mobile social networking space will slowly evolve to one store or market and establishing small wins in this
a more granular medium that will result in customized space will arm the marketer with the necessary key
messaging for users that are meaningful to them but learning to expand the test without jeopardizing the
will also be aligned with a brand’s customer relationship user experience.
management strategy, per Mr. Miller.
• Stay current. This is a space that is evolving almost
“This, coupled with greater trackability, will arm brands daily. Become a voracious reader of news, technology,
with the necessary tools to be nimble in the marketplace best practices and case studies.
while meeting the wants and needs of the consumer,”
Mr. Miller said. “Advertisers can use mobile social networks to help tar-
get an audience of influencers who might further engage
Mobile social network marketing and loyalty programs with their brand directly through these social networks,”
will become more mainstream in 2011, with consumers Mr. Coury said.
increasing their usage of the check-in.
“While some advertisers might use this information to
As more consumers use smartphone devices, they will determine who to target, others might find the results
become empowered and moved to use mobile social net- just as helpful in deciding who not to target,” he said.
works, like some of their friends already are.
Recommendations
Andrew Coury, analyst at Myxer, Miami, said that users
who participate in location-based social networks are
extremely social by nature, more so than those who use
traditional social networks.
These mobile social networkers tend to be opinionated

and do not mind being vocal and outspoken when it
comes to brand loyalty.
Mobile social networks are a powerful medium that

have proven to resonate with consumers and when ex-
ecuted properly, brands can align with that consumer-
driven passion to successfully accomplish their goals and
objectives, per Mr. Miller.
A few considerations on entering this space:
• Ensure that the marketer’s mobile social program

aligns with all of its current marketing initiatives –
both digital and traditional. This is imperative. The
greater the distinction between a brand’s mobile initia-
tives and offline initiatives, the greater the opportunity
for consumer confusion, which will ultimately lead to
consumer alienation.

SOFTWARE AND TECHNOLOGY
Mobile technology to augment what consumers do in-store

By Rimma Kats
M
obile technology will advance to the point
where brands increasingly turn to tools such
as image recognition and 2D bar codes to
engage with consumers.
Companies such as Microsoft, Scanbuy, SpyderLynk and

Pongr bring new ideas to the table for businesses that
want to keep up with tech-savvy customers.
“Mobile is an increasing part of what we do in everyday

life, and we want to be a part of that daily interaction,” said
Aaron Getz, general manager for Microsoft Tag, Seattle.
“Phones are becoming smarter and their capabilities are

constantly improving, and with that brands have more
opportunities to connect with their customers using this
technology,” he said.
Mobile challenges
Fragmentation in the industry continues to create chal-
lenges with brand and consumer adoption of bar codes.
The mobile space is still nascent and there is a lot of op-
portunity to capture market share.
Brands can leverage the power of mobile technology to

engage their audiences in creative ways, including when
and where the consumer wants to be engaged.
Experimentation is key
“Based on the momentum we’ve seen in the last six According to Jamie Thompson, cofounder and presi-
months and the increasing usage of smartphones, we dent of Pongr, Boston, brands and agencies will focus
expect to see usage of bar codes to continue to rap- on three major areas in 2011 – direct-response mar-
idly grow,” Mr. Getz said. “It’s clear that mobile us- keting, integration with social gaming and platforms
age is only going to grow and any good marketer that provide maximum reach when coupled with smart
knows that their brand has to find a way to infiltrate activation strategies.
that space.
Pongr has worked with Conde Nast and Hearst to en-
“Creating compelling mobile experiences is key if you hance the static pages of a magazine and let readers
want to grab your customer’s attention and help add shop, watch videos and browse products.
value to their interaction with the brand,” he said, “And
mobile is not just another avenue for marketing, but a By adding a digital interaction to a static print advertise-
way to augment what people are doing in stores and ment, brands are able to better track ad campaigns and
with their offline advertising.” engage readers.

“In 2011 marketers need to think big and be smart about
leveraging traditional media – tap into existing consum-
er behaviors rather than trying to force things that are
unnatural,” Mr. Thompson said. “Use technology wisely,
but focus on your brand.”
Bar none
Mobile bar codes are becoming increasingly popular.
However, many people still do not know how to use them
if they are not pre-installed on a smartphone.
Companies and brands using mobile bar codes have

to simplify the process to make it easier for their
target audience.
Companies such as Pongr and JagTag do not require a

scan reader. Users can simply take a photo of an object
and send it via email.
Other key parts that will play a major role in 2011 include
Flash and HTML5. While Apple may be ruling the mobile
ecosystem, its devices do not support Flash.
Companies creating HTML5-based mobile sites find it

difficult to creating sites with the new coding.
Be strategic Additionally, Mr. Wehrs believes there may be

Because mobile is at a point where it is a viable mar- some consolidation in 2011 and that there will
keting medium, brands will better understand how to be opportunity for technology providers to of-
allocate budgets in 2011. fer developers the tools they need to build on
core technology.
“In 2011, we expect to see marketers tying some of the
pieces together to generate some strong results around “My advice to marketers in 2011 is to start with your
loyalty and commerce programs,” said Mike Wehrs, CEO strategy and work your way down,” Mr. Wehrs said.
of Scanbuy, New York. “Then look for the right options that will fit those re-
quirements, and commit to them until you’ve really
“In 2011, we will see marketers deploy wide-scale and covered every angle.
integrated uses of mobile bar codes,” he said. “Most
importantly, our customers are starting to see real val- “Too many times, we see marketers that try something
ue in the level of engagement and mobile commerce for a few weeks on one type of media, just to check the
opportunities from these scans.” box,“ he said.
Mr. Wehrs believes that mobile is still a fragmented “Finally, when it comes to execution, work with the ex-
space, albeit giving marketers a wide number of options perts in the space, and always think about what will
across different activation points. make your consumer happy.”

TELEVISION
Expect testing of mobile TV/video monetization models

By Rimma Kats
E
xperts forecast that 2011 will be the year that mo-
bile video takes off, since the creation of rich media
and adoption of smartphones is already driving ad-
vertisers to do more video advertising.
Besides video ads, publishers will begin to incorporate

short videos into the content of their mobile sites and
applications, letting users snack on short clips while
waiting for the bus or standing in line at the gro-
cery store. Monetization models will be established
in 2011.
“We expect major growth in mobile video in 2011,” said

Sol Masch, director of mobile advertising at MTV Net-
works, New York. “Fragmentation is still an issue. Also,
multiple operating systems and 3G and 4G experiences
are issues.
“It’s getting more simplified, but there’s still a long ways

to go,” he said.
Mobile TV
Television networks such as NBC and ABC already let
viewers catch up on shows that they missed via mo-
bile TV. These are full episodes on mobile devices, with
ad support.
More networks and publishers will be testing the waters

in terms of taking their TV content mobile.
form on which they choose to access digital content.
This testing will come various monetization models, with
According to James Citron, cofounder/CEO of Mogreet,
subscriptions and ad-support topping the list.
2011 will be a watershed year for mobile video as it will
likely match the size of the mobile search and display
The question is, will mobile consumers be willing to pay
advertising business.
for mobile TV?
Mr. Citron said that there are four important events to
Mobile video drivers
anticipate in 2011.
With the rise of smartphones and tablets, the mobile
video industry will grow.
The first is the arrival of the million-dollar mobile
video budget.
Marketers cannot afford to overlook the fact that mo-
bile devices – tablets included – are becoming ever more
“Marketers are shifting dollars from their largest adver-
important for users and, in some cases, the primary plat-
tising budgets and re-allocating their spend across mo-
inventory will start to see mobile advertising revenue
near, or in some situations, eclipse the tethered Web.
As is the case with ESPN, mobile Web traffic often ex-

ceeds the tethered Web and with uniformly higher CPMs
of $30-$50 for mobile video ads, giving publishers better
monetization opportunities.
Publisher focus
With advertisers focused on mobile video, there will be a
big increase in publisher mobile video inventory.
Tiered data pricing will likely alter some mobile video

consumption patterns as consumers opt for more for
Wi-Fi browsing, per Mr. Citron.
“Marketers should create authentic and unique con-

tent for mobile,” Mr. Citron said. “The best performing
mobile video campaigns have unique, exclusive and
authentic content.
“Marketers like Steve Madden, Disney and Quiksilver

create mobile-specific content, which appeals best to
the mobile medium,” he said.
bile video,” Mr. Citron said. “When auto, consumer prod-

ucts and wireless carriers do this, the size of the overall
spend begins to quickly overtake the size of our current
mobile advertising budgets, which are largely display and
search-based today.”
There is also the ascendance of MMS.
“With true cross-carrier connectivity, MMS will become

an integral component of most every mass marketer’s
mobile video budgets,” Mr. Citron said. “The third is per-
sonalized video: Can you imagine if your television could
talk to you?
“Sophisticated mobile video advertisers will start to fully

leverage the personalized nature of the mobile device to
add personalization, content and location attributes to
their mobile video advertising campaigns,” he said.
High-trafficked mobile publishers with mobile video ad

A year in pictures

2011 Mobile Marketing Outlook

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Mickey Alam Khan Dan Butcher 401 Broadway, Suite 1408

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PAGE 2 Mobile Marketer MOBILE OUTLOOK 2011

Mobile steamroller transforms content, commerce and marketing

T he outlook for mobile advertising, marketing and media

PAGE 3 Mobile Marketer MOBILE OUTLOOK 2011

Mobile Web: Betting long on mobile Web. Mobile sites

PAGE 4 Mobile Marketer MOBILE OUTLOOK 2011

Traditional ad networks will clamor to join mobile ecosystem

Expect emergence of both vertically-focused ad networks

“Fasten your seatbelts,” said David Gwozdz, CEO of

“To avoid being caught off guard, ad networks need to

“As far as traditional display ad networks that are consid-

Networks’ task: win more friends

PAGE 6 Mobile Marketer MOBILE OUTLOOK 2011

This behavioral shift will dramatically change through

“As Internet consumption shifts from PC to mobile so

“While many PC and digital companies have been cau-

2. Do a better job of listening to publisher and

3. Be a partner and not just an inventory gateway.

4. Invest the resources to provide better consumer in-

PAGE 7 Mobile Marketer MOBILE OUTLOOK 2011

PAGE 8 Mobile Marketer MOBILE OUTLOOK 2011

PAGE 9 Mobile Marketer MOBILE OUTLOOK 2011

Mobile tops agency priorities to meet client needs

Shops will have to interpret

However, 2011 promises to offer more bountiful opportu-

The opportunities include a rapidly scaling audience with

Many big agency networks will open mobile agencies in

The adoption growth of smartphones also continues to

“If you look at the 60 million smartphones in the U.S.

“With Android devices being sold for $40 and a lot of

“As mobile permeates the client organization of where

The 2010 holiday season was a landmark event for mo-

“In 2011, what we will have is a full year of bud-

“It came in middle of year [in 2010] but now we have

Big step forward in 2011

Clearly, 2010 put mobile on the map for the major-

PAGE 12 Mobile Marketer MOBILE OUTLOOK 2011

Verizon getting the iPhone will affect all carriers in 2011

PAGE 17 Mobile Marketer MOBILE OUTLOOK 2011

Other strategies to minimize the churn impact of los-

That means AT&T would have to push other smartphones

“AT&T’s share of net adds will fall with loss of

Isis is a joint venture between Verizon Wireless, AT&T

“I think 2011 really marks the point of ignition for mo-

PAGE 18 Mobile Marketer MOBILE OUTLOOK 2011

Anytime, anywhere easy shopping to be commonplace

With technology such as bar code scanning, the aver-

“Social marketing has tied into the location-based pro-

“Customers will also become accustomed to anytime,

PAGE 19 Mobile Marketer MOBILE OUTLOOK 2011

• Tailor the mo-

• Brand marketers must review mobile analytics, mo-

• Treat mobile as its own beast, thinking of new inno-

• Retailers should take mobile commerce serious-

“In 2011 all marketers should be planning for mobile

PAGE 20 Mobile Marketer MOBILE OUTLOOK 2011

Brands advertising mobile content will have advantage

“We find that our audience is inspired by our program-

“With the extension to mobile devices, our audience

Mobile content usage