Coca-Cola exec: Mobile connects offline to online world

From: By Rimma Kats, Mobile Marketer, April 15, 2011

SAN FRANCISCO – During a mobile session at ad:tech, a Coca-Cola executive said that mobile needs to be integrated organically into marketing campaigns to drive innovation and consumer experiences.

The executive shared best practices and examples of creative campaigns that have been executed to engage consumers on their mobile devices. The panel was moderated by Jeff Crowe, partner of Norwest Venture Partners, San Francisco.

“We’re all about a Coke in one hand and a phone in another,” said Tony Francis, a member of the global connections team and responsible for the strategic direction and integration of mobile within marketing communications at The Coca-Cola Co., Atlanta. “Mobile is event driven, out of home and connects the offline to the online world.

“In terms of live events we do see higher participation,” he said. “Consumers really want to interact with our brands and really integrate compelling experiences into this.”

Other panelists included, Vijay Pullur, founder and CEO of SocialTwist, Mountain View, CA, Michael McDowell, manager of shopper marketing at Sara Lee, Downers Grove, IL, Dorrian Porter, founder and CEO of Mozes, Palo Alto, Brad Klaus, cofounder/CEO of Extole, San Francisco, and Michael Ceorgoff, director of partner marketing at redbox, Oakbrook Terrace, IL.

Case study
Coca-Cola ran a mobile campaign during the Essence Music Festival.

The three-day festival featured seminars and live music performances by speakers and artists in the African American community.

There were more than 40,000 attendees. Coca-Cola was a presenting sponsor at the event and was featured in a mainstage moment.

During the show, attendees were encouraged to text the keyword CELEBRATE then space followed by their first and last name to the short code 66937.

The company was giving away tickets to its BBQ event to the first 500 entries, as well as four VIP passes.

The company found that in 30 seconds, 3,145 people pulled out their phones for a chance to win.

Twenty percent of users that engaged opted in for an ongoing connection with the brand and 16 percent of the audience engaged with Coca-Cola digitally at the concert more than once.

“Roughly 16 percent of attendees participated and one in five opted in for an ongoing connection with the brand as part of Coca-Cola’s database connection to build their relationship with their customers,” Mozes’ Mr. Porter said.

“We learned that mobile worked really well around passionate people at live events,” he said.

Mobile phenomenon
According to Coca-Cola’s Mr. Francis, the company sees the value of mobile, especially since it is a highly personalized device.

“The mobile phone is a phenomenon,” Mr. Francis said. “It’s the new remote control of consumer’s lives.

“Mobile helps gets recruitment for us,” he said. “It gets people drinking our product, but only if we’re doing it right.”

“It’s important to drive innovation through mobile with digital vending, mobile wallets, mobile vaults and consumer experiences.”

Teen Smartphone Purchase Plans at Record High

From Mobile Marketing Watch Posted on 07 April 2011

More and more US teenagers are entering the US smartphone market.

According to the findings from a new survey by Piper Jaffray analyst Gene Munster, teen attitudes toward smartphones – and, in particular, those made by Apple – have never been stronger or more favorable.

Based on the input from the 4,500 students surveyed, 37% of teens expressed plans to purchase an iPhone in the next six months. For one of Piper Jaffray’s bi-annual surveys, this figure represents an all-time high.

17% of teenagers presently own an iPhone, which is an increase from 14% six months ago.

Corresponding to the growing interest in iDevices, Apple’s market share in portable media players has never been stronger in the teen market – 86%, an increase from 78% six months ago.

Equally impressive is the permeation of the tablet computer among teenagers. The survey found that 22% of students either own a tablet or have one in their house. What’s more, an additional 20% anticipate buying a tablet within the next six months.

Where there’s smartphones, there’s music and social media. 65% of teens report using peer-to-peer music sharing networks. The percentage of students who actually download music stands at 77%.

62% of consumers with web-connected mobile devices are buying goods via mobile

Mobile commerce may be maturing at a quicker rate than many experts have predicted, according to a report today from Adobe Scene7. 62% of consumers with web-connected mobile devices have purchased merchandise in a wide range of product categories using their mobile devices, the survey of 1,200 U.S. adult consumers who own these devices finds. Adobe notes in its report that the respondents’ mobile commerce adoption rate is significantly higher than current estimates for the overall population because respondents to this survey all own devices such as smartphones that connect to the web.

While more consumers are becoming comfortable shopping via mobile device, the Adobe Scene7 report finds they still don’t spend close to the amount they do via PC. The greatest segment of mobile shoppers, 45%, spent $249 or less via mobile during the last 12 months, the report says. By comparison, the average annual online spend per shopper in 2010 was $1,139, according to an estimate from research firm eMarketer.

Still, 62% is a strong sign for the future of mobile commerce, even among a group skewed toward smartphone owners. Mobile revenues are poised for big growth, many experts predict. U.S. mobile commerce sales are expected to hit $5.3 billion in 2011, up 83% from a year ago, according to Barclays Capital.

Users of iPhones, men and adults age 30-49 purchase more frequently, buy goods in more categories and generally spend more time shopping than their peers, the report also finds. Users of iPhones overall also spend more—66% report spending $250 or more on mobile purchases in the last 12 months. BlackBerry users rank second with 58% spending $250 or more.

Movies, music and games, according to Adobe, are the most popular buys, purchased by 43% of mobile shoppers. That was trailed by clothing, shoes and jewelry at 30%; electronics at 28%; and books, magazines and newspapers at 26%.

“Shoppers are reaching for their mobile devices to research products and prices at the point of decision,” the report, “Mobile Shopper Insights for 2011,” notes. “Curious consumers are scanning QR codes on outdoor advertising and in magazine pages to get more information about a brand or product. As the impulse strikes them, many shoppers are simply moved to purchase directly from their devices.”

The report finds most mobile shoppers are content with their experience. 80% rate their mobile shopping experience above average. And shoppers are about equally happy with m-commerce sites versus mobile apps. However, for some shopping activities such as researching products and comparing prices, a majority of respondents favor using mobile sites over apps. Two-thirds of the respondents say they prefer sites to apps for accessing product and other shopping content.

So what mobile shopping features do consumers most appreciate? Easy checkout , named by 57% of shoppers, is deemed a top feature, followed by product and pricing information at 53%. Visual information, such as full-screen product view, ranks third with 42%, followed closely by simple keyword search at 40%.

For visual tools, 54% say 360-degree spin is the aid that has potential to prompt them to buy. Side-by-side product comparisons (49%) and interactive zoom and pan (44%) follow. Respondents rank these features ahead of simple keyword search and customer ratings and reviews.

Full-screen image zoom with “next/previous” touchscreen buttons to navigate forward and backward ties with full-screen horizontal scrolling with dragging or flicking images left and right as the top preferred ways to scan pages or screens. Both of these viewing experiences were selected by nearly half of the respondents.

Women are more discriminating than men when it comes to mobile shopping. For example, easy checkout was rated important by 61% of women compared with 51% of men, and 44% of women say search is important compared with 36% of men. Women also place more importance on advanced visual features than men. They, more so than men, deem color-swatching and alternative images—such as an image of a sweater on a model or of a coffee table in a room—as significant. Women also appreciate a good deal more than their male counterparts. 42% of women compared with 35% of men say online promotions and coupons are important factors in their mobile shopping experience.

Men, however, like their mobile video. The presence of mobile video is one area that was rated by more men than women (38% versus 28%) to increase the likelihood to buy.

Adobe Mobile Experience Survey: What Users Want from Media, Finance, Travel & Shopping

Internet, Mobile Use Triples Among Young Demos

The average amount of time spent by 12- to-24-year-old Americans online has roughly tripled from 59 minutes per day in 2000 to two hours and 52 minutes per day in 2010, according to Edison Research’s American Youth Study 2010, which follows up on a similar survey conducted 10 years ago. The two studies provide a snapshot of a society undergoing radical transformation by digital technology.

The proportion of young Americans who own a mobile device has surged from 29% in 2000 to 81% in 2010, according to the 2010 survey of 1,533 young adults, conducted by Edison in September.

Among mobile phone owners, it found that 50% have used the devices to play games, 45% to access social networks, and 40% to listen to music stored on the device.

The Edison findings also checked in with the cohort from the first study, now ages 22-34, and found a decline in traditional media consumption. Ten years ago, 44% of this group said they started their day with radio, but that number has dwindled to 29% today. Of course, this might reflect changing schedules and behaviors, as individuals move into adulthood. However, other surveys have turned up similar findings.

For example, over the last five years, the number of kids and young adults who own an iPod or MP3 player has more than quadrupled, according to a new study by the Kaiser Family Foundation. The proportion of people between the ages of eight and 18 who own one of these devices jumped from 18% in 2004 to 76% in 2009, representing an increase of 322%.

Separately, the average number of radio sets in the homes of these Kaiser respondents decreased from 3.3 to 2.5, and the average number of CD players fell from 3.6 to 2.2 over the same period.

In June 2008, Coleman Insights found that daily radio listening by teenagers was on the downswing, losing share to the new media options. Specifically, Coleman found that 84% of the 14-17 cohort listen to music daily on an MP3 player, iPod or computer, versus 78% for radio.

A second Coleman study found that the 15-17 cohort favors iPods and MP3 players as primary destinations for listening to music — with 41% choosing the personal devices, compared to just 22% for FM radio.

Mobile Users Prefer Mobile Web not Apps

Even though mobile apps seem to get all the attention these days, consumer sentiment towards the debate between apps vs. the mobile Web show preference for the latter, in a big way.

eMarketer came out with data yesterday detailing a poll by Keynote Systems for Adobe that shows overwhelming consumer preference for mobile browsers to access virtually all mobile content.  Games, music and social media were the only categories in which users would rather use a downloaded app than browse the mobile Web.

The retail category in particular shows an overwhelming preference for mobile Web access across nearly all mobile shopping tasks mentioned.  Whether it was researching product and price info or sharing that information socially, mobile users would rather fire up a browser than a dedicated app.  Interestingly, When the Adobe survey asked about a preference for using regular or mobile-optimized websites on their mobile device, they preferred regular sites in both the consumer products-shopping and media-entertainment categories.

According to the report, this preference suggests “a low awareness of optimized experiences for the mobile web,” but users could also be frustrated with the limited functionality many mobile-optimized sites provide.  These results fall in line with most marketers in the retail space who say mobile apps don’t make sense for brand retailers.  For example, during his keynote at the Mobile Shopping Summit in New York recently, a Kenneth Cole executive said that — especially with the rise of HTML5 — his company’s focus is on the mobile Web going forward.

“Looking at the mobile sites of mass merchants, look-up sites and brand retailers, they are all using different design templates and tactics to get their message across,” said Tom Davis, vice president of ecommerce at Kenneth Cole Productions.  “This year we put our toe in the water, but we expect sales driven by mobile devices to be bigger than some of our bricks-and-mortar stores.

Comscore: Mobile Content Usage

MoblogChart-B1This must be unofficial Appalooza week. With new reports from Nielsen and the Pew Research Center on mobile apps already this week, comScore weighed in Wednesday with its own quarterly findings on mobile use, including apps.

The Web measurement firm found 31.4% of U.S. mobile users had downloaded an app for the three-month period ending July, up from 29.8% the prior quarter. Those figures correspond closely with the data Pew released yesterday, showing 29% of mobile users had downloaded an app in the last month. The comScore sample is a bit broader, including cell users 13 and older as opposed to only adults.

But the small uptick in app use tracked by comScore didn’t come at the expense of Web browsing. One third (33%) of mobile subscribers went on the mobile Web, up from 31.1%, as of April. Other mobile content categories saw slight gains as well. People accessing social networking sites or blogs via handsets increased from about 20% to nearly 22%, while the proportion of mobile music listeners went from 13.8% to 14.5%. The mobile gaming population remained flat at just over 22%.

Texting remained by far the most pervasive non-voice mobile activity, with two thirds (66%) of mobile users exchanging messages.

Looking at U.S. market share among smartphone platforms, comScore provided further evidence of Android’s rapid ascent, with 17% share, up from 12% in the previous quarter. The increase cut into the share of Apple’s iOS, which slipped to 25.1% from 23.8%. Microsoft’s Windows Mobile also lost ground, dropping to 11.8% from 14%. Palm remained the same with a 4.9% share and Research in Motion’s BlackBerry OS remained the top platform, with 39.3% share, down from 41.1%.

Gartner last week predicted Android will overtake BlackBerry as the world’s second largest smartphone operating system by year’s end and by 2014 will have a nearly 30% market share, rivaling that of Symbian. For now, rising smartphone sales continue to benefit all players.

In the U.S. 53.4 million people own smartphones, up 11% from April, according to comScore. That amounts to 22.8% of mobile users with high-end phones. Nielsen has projected smartphone penetration will surpass that of regular phones by the end of 2011.

When it comes to phone manufacturers, Samsung remained at the top, with a 23.1% market share, up a percentage point from April. Second-place LG was roughly flat at 21.2%, followed by Motorola, which fell to 19.8% from 21.6%, RIM,  at 9%, and Nokia at 7.8%. The Finnish phone giant took a big step toward turning around its sagging fortunes in the U.S. with the hiring of former Microsoft executive Stephen Elop as CEO. Nokia Chairman Jorma Ollila said Tuesday he’ll step down in 2012.