This is the ninth post in our mobile blog series. Throughout the month of April we'll be featuring posts from some of Boston's most expert thought leaders, answering these questions: "What's happening in mobile right now? What's coming soon?” This post is by Diana Epstein and Matthew Mulderink. Diana is an Account Executive at Jumptap. She has worked with both direct response and brand advertisers including Groupon, Amazon, eBay, and Booking.com to name a few. Diana was recently named Mobile Women to Watch 2012 by Mobile Marketer. She is also a Co-Chair of the Communications & Outreach Committee for Women in Wireless. In her free time, she serves on the Advisory Board of the non-profit New Eyes for the Needy. Follow her on Twitter @daubale and @womeninwireless.
Matthew Mulderink is the Category Director for Retail & QSR at Jumptap. Before joining Jumptap, Matthew held Strategic Account Director positions at Dotomi and Yahoo!, developing digital strategies for major retailers including Best Buy, Target and Sears. Prior to Yahoo!, Matthew led all digital marketing for FTD. Matthew holds an MBA from DePaul University and lives in Chicago.
First, some widely reported facts: about 23% of media consumption is now mobile, while only 1% of advertising budgets are allocated to mobile. Mobile advertising, by almost all measures, outperforms PC-based advertising. And at least for now, mobile CPMs have not yet been driven up and remain at parity with the web.
Why is this math so lopsided?
Mobile’s primary limitation had been scale and targeting, therefore getting back-burnered by resource-strapped retail marketing teams. However, advanced third-party targeting (by Jumptap for instance) and vast US reach have now made the proverbial "juice worth the squeeze."
There are three highly defensible ways Retailers can right-size ad spends toward mobile:
- Weekly Ads – Proactive distribution of Rich Media Mobile Weekly Ad, enabled today in mobile by targeting and ‘critical mass’ reach (Find out more about Jumptap’s scalable solution). Weekly Ad functionality is often the most used portion of the Retailers’ app, along with Store Locator, making a clear case for funding by the Stores team; which should unleash aggressive testing of Mobile Advertising for Weekly Ads.
- Mobile App Adoption Campaigns – An app download initiative shouldn’t be regarded solely as a means to gain rankings in app stores. Driving app downloads can build brand awareness, drive usage of Retailer points programs, store locators and weeklies, and ultimately increase foot traffic.
- Mobile Retargeting: App or WAP – Retargeting on the mobile web is a bit different. Due to cookie limitations on iOS, the only handsets available for mobile WAP retargeting are Androids. Retargeting flags can be placed at different sites and worked into a pool of qualified traffic to retarget down the line. An app download campaign can include retargeting at multiple levels. This has been highly effective in engaging users and increasing app usage. All of this is trackable/measurable and can back out to a CPA (cost per acquisition).
Another inhibiter along the path to right-sizing advertising spend vs. mobile media consumption may be that, while roundly underfunded relative to usage, mobile has a high profile internally. Fear of a high profile blunder may be reigning in more spaghetti being thrown at the wall. However, some would argue, that if you get half (or even a third!) of it right, you’ll gain important and proprietary best practices for the no-doubt eventual properly aligned marketing allocations.
Retailers’ mobile strategy should be to test and learn how to implement proven best practices (like weekly communication of deals and seasonal content) via mobile advertising, which now offers scale and targeting without the financial risk (high CPM, exclusive deals) of early web advertising.