At the 2013 Ad Age Digital Summit it was impossible to go more than 5 minutes without hearing the words mobile phone, Smartphone or tablet. If you are a Business Development Manager, Social Media Manager or Digital Marketing Manager, Mobile Phones are or will become a major part of your world.
Here are four reasons why mobile phones may become the number one marketing focus:
Reason #1: Mobile Phone Payments to be $1 Trillion by 2015
Starbucks accepts over 3 million mobile payments each month from their 10 million mobile phone users according to Alexandra Wheeler, Starbuck’s VP Global Digital Marketing. We’ve all heard about payment Wallets like Google Wallet, Square and many others. You may have seen the Citibank commercials where they are sending money from their mobile phones. Ken Moy, Senior VP-Group Head, US Emerging Payments Lead from MasterCard expects every connected device to become a commerce device. Ken’s stats from the Yankee Group estimate that by 2015 there will be $1Trillion in mobile payments and that 19% of shoppers in 2015 would pay for their in-store purchases with their mobile phone.
Reason 2: The Facebook Effect – Share of Mobile Time
In the last 12 months Facebook has “mobilized” according to Rebecca Van Dyck, Head of Consumer Marketing at Facebook. Facebook has involved all of their developers and employees in their mobile initiative. Rebecca talks about how everyone at Facebook does mobile. To that end they have introduced their own Mobile Phone and some very key apps that are designed to be your “home” on your phone. Their “Chat Heads” combines SMS with Facebook chat into one application. Van Dyck states that Facebook users spend 28% of their Smartphone time with Facebook. The commerce metrics are evolving. In retail there is shelf space and now on mobile we have “share of phone”. With over 600 million daily users and 680 million mobile users monthly Facebook could very well be driving how we use mobile in the future.
Reason 3: Cross Platform Shopping
“Multi Screen Ad Campaigns perform 18% better” according to Lisa Utzschneider, VP Global Advertising at Amazon. When customers are ready to buy will you be ready to sell? Lisa discussed how Amazon has tailored its platform to conform to Smartphones, Mobile Phones, Tablets, Desktops or wherever you want to buy. “Start with the Customer and Work Backwards” is Amazon’s approach to Ecommerce. Her latest target is CPG goods like detergent, baby food and related products, 97.7% of which are currently sold in brick and mortar retail, for expectant and working moms for whom convenience and ease of use is critical. Couple that with MasterCard’s Ken Moy’s noting that over 125 million SmartPhones and 50 million tablets have been sold to date and there is lots of opportunity to be harvested.
Reason 4: How Much are 500 Billion Pictures Worth?
When Facebook purchased Instragram, the online photo sharing and social networking service, for $1 Billion dollars some scratched their heads wondering why. Now Tobias Peggs, CEO of Aviary, the photo editing application, explains why pictures can be worth a Billion or more.
According to Tobias there were 380 billion photos taken in 2011 using Smartphones with that number expected to top 500 billion in 2013. By 2015 Tobias expects 50% of all photos in the US will be taken with mobile phones. Currently 91% of Smartphone users take more than 1 photo each month. But what about monetization? Tobias has that covered also. He is selling Instagram like filters to advertisers to promote their brands to consumers. Couple that with the high engagement and social amplification of consumers sharing their photos with their friends and you have a number too large for your calculator.
image: Rebecca Van Dyck, Head of Consumer Marketing Facebook