Professional Documents
Culture Documents
Mobile marketing might soon be the norm, offering marketers both challenges but also increase efficiency and ROI
Methodology
Using the same methodology as Initiatives international study Unlocking the Power of Mobile, we asked the opinion of 800 Romanians using a CATI (computer assisted telephone interview) data collection tool to investigate and to learn about their mobile Internet usage in Romania and explore the implications and opportunities for marketers. The study focused on people aged 16 to 45, living in urban areas who use mobile Internet on their mobile phones. People using their mobile phones only for e-mail access or as modems were not considered eligible for the study, as this does not qualify as mobile Internet content consumption or mobile Internet access. According to the National Readership Survey, the percentage of 16 to 45 year old Romanians, living in urban areas with mobile Internet is cca. 17%. At the same time, various sources estimate the smartphone penetration in Romania at cca. 12%. The difference can be accounted for in the non-smartphone handsets that have incorporated browsers allowing Internet browsing and even installation of applications. The study Unlocking the Power of Mobile has been implemented so far in eight other countries: US, UK, Italy, Sweden, Australia, South Korea, China and India, and now also in Romania.
It is estimated that the number of internet-enabled phones in use worldwide will reach more than 1.8 billion by the end of 2013, which would mean that the mobile phone will replace the computer as the most popular device for web access. Consequently, in many parts of the world mobile communications have become an integral part of peoples lives and reached a stage where they are an indispensable tool for both socialization and managing our daily lives. But where is Romania in this picture? According to various sources, mobile phone penetration in Romania is around 120%, down from about 140% two years ago, which is indicative of a fairly developed market reflecting how important mobile communication has become. However, this is true only when basic mobile usage is considered. Despite the level of mobile penetration, it is estimated that in 2010 fewer than 100 brands were advertised through mobile marketing campaigns, compared to more than 16,000 brands communicated through traditional forms of media. In 2011, Romanians concerns are more with the number of minutes and text messages they receive bundled within their subscription or prepay packages. Data services are seen as add-ons, and not as stand-alone products, whilst phone features such as brand, design and camera resolution are generally more important for Romanians when buying a new mobile phone.
However, Romania does not have any problems with the availability of new technologies, the difference comes from the way the technology is adopted and used, usage patterns tend to follow those of traditional media rather than fully utilizing the full potential that mobile offers. Initiatives study explores the current level of mobile development in Romania, assesses the relationship between mobile Internet usage and Romanian consumers and explores the ways in which we can unlock the full potential of the power of mobile communication.
OTHER
GAMING
5%
2%
SMS
19%
DATA
VOICE CALLS
43%
31%
Which features of your mobile handset do you use most frequently?
Mobile vs coMPUter
ToP INTeRNeT ACTIvITIeS By DevICe
e-mail access
e-mail access
instant messaging
music listening & downloading social networking searching for accommodation and leisure music listening & downloading social networking
travel services
travel services
The usage of mobile Internet has not come at the expense of overall Internet access. for 69% of Romanians mobile Internet did not affect other forms of Internet usage (51%) or actually helped to increase their overall Internet usage (18%). This reflects the macro trend where mobile Internet is growing into a viable communication platform capable of complementing existing media channels. This is also clearly visible in the fact that mobile Internet access is also an activity that takes place in parallel with other forms of activities or media consumption. 60% of Romanian respondents are listening to the radio while accessing mobile Internet (as opposed to 50% in the international study). However, this level of multi-tasking is still not as prevalent as internationally. only 17% of Romanians watch Tv whilst accessing mobile Internet, whereas internationally this was as high as 50%. At the same time, 39% of International users would access mobile Internet whilst also accessing Internet through a computer, reflecting the different tasks that they use the mobile Internet for as opposed to computer in Romania, this figure is not quite as high, but 30% of users access both types of Internet conections at the same time. Activities most likely to be performed via mobile Internet as opposed to a fixed connection - are of a functional nature such as accessing e-mail, online search for information, getting directions from online maps, reading the news as well as activities meant to kill time (socializing and gaming). The main benefit of using a mobile connection unsurprisingly is to remain connected when a fixed connection is unavailable (62% of the respondents consider that mobile Internet provides instant information wherever they are). It is worthwhile mentioning that for three quarters of the respondents, better functionality is the main attribute of fixed Internet connections that make them preferred over mobile connections. with a relatively small number of websites offering mobile-friendly versions, there is a general lack of awareness regarding the benefits that an optimized mobile version of a website has to offer. The benefit with the highest awareness is better functionality (26%), followed by easier navigation (25%) and faster loading speed (20%).
Live streaming, price comparisons, uploading/sharing files, gaming, banking, reviewing products, augmented reality, voIP are activities that are all technically possible using the mobile Internet but with a negligible level of usage (3%).
SMS
implications for marketers The best way to make use of the potential and momentum offered by mobile Internet is by challenging the current usage pattern where mobile Internet is perceived as a mobile alternative to the home computer. Marketers must realize that mobile technology is a tool for permanent communication, socialization and content delivery and seeing it as a portable alternative to a home computer discounts its full potential. whilst it might not be easy, the best approach at this time is to offer possibilities and choices instead of just asking or waiting for the consumer to act. This should happen in order to educate the user in the possibilities and benefits that can arise from adopting mobile technology in a more social rather than strictly functional model. Also, advertisers and online publishers, both content creators. should necessarily look into creating as soon as possible optimized mobisites along with their traditional websites in order to effectively engage those who use mobile Internet with an increasing number of occasions during the day.
35%
online reviews
4%
television advertising
6%
A special case of application type are the gimmicks (those such as quotes or jokes of the day, horoscopes, make your own avatar, etc.,) which, although they have a reduced penetration (12%), enjoy a relatively high level of daily usage (49%). This could also be an indication of an evolving mobile Internet user who uses the mobile handset for entertainment. At the same time, mobile shopping is still undeveloped at the moment, with only a 6% penetration for shopping applications. Information & awareness about mobile applications come primarily from friends and family 55% (which is the primary source in the international study as well), followed by Internet search 35% (39% internationally) and mobile applications aggregator/comparison websites (18%). Applications stores in Romania are not a popular way of finding out about mobile applications, with only 6% of the Romanians using them as opposed to 37% of the respondents in the international study. Mobile applications have an important role in the relationship between users and the brands that endorse them. one third of respondents that have at least one application downloaded on their mobile handset have made their choice through trusting the brand that endorsed it. Moreover, when it comes to social networking and shopping applications over half of the respondents expressed more appreciation towards the brand sponsoring those apps.
implications for marketers Mobile applications have great potential and are an easy entry point into consumers lives. Moreover, the marketer as owner or endorser for an app has a good chance to impact the consumer in a meaningful manner by offering the consumers useful tools and relevant content which can lead to a valuable brand engagement experience. Keeping this approach relevant, useful to consumers, fun & easy is critically important. Also, mobile applications need to be advertised. Moreover, marketers must take into consideration what type of application to create and whether the created application can truly facilitate the delivery of the message and its comprehension.
In terms of mobile advertising embedded within applications as an option for reducing the cost of the application the tolerance for advertising is directly related to the price of the application. for example, 36% of respondents would pay the full price of an application to have it without advertising if the application is priced under 1 while only 8% would do the same if the application would cost more than 25. This is a similar trend found in the international study as well.
implications for marketers A consequence of users perceiving mobile media as being the anytime, everywhere variant of traditional media is that mobile advertising might face the same level of resistance to persuasive messages like advertising on traditional media. However, unlike classical media advertising, mobile advertising has greater opportunities in timing, targeting and contextualization, which increases the possibility to deliver the most relevant message in the right place & in the form that the consumer is open to receive.
1 2 3 4 5 6
Mobile is no longer a tool for the future or one addressing only tech-savvy youngsters. Mobile can help you tap into a rapidly growing universe that has above average spending power and is generally less responsive to traditional media.
Marketers should consider using mobile in their marketing and communication strategies, but first they need to define the role of the mobile component.
Adding mobile to an integrated campaign, alongside traditional media and especially digital media, will improve the synergy of the overall communication investment and will provide immediate interactivity and potential response, so delivering a multiplier effect on the results.
Push SMS/MMS should be used in moderation and smartly. Two-way messaging and content pulling offers a greater opportunity for customization and contextualization while satisfying the interest of the consumer.
Mobile Internet offers great opportunities but the solutions should be integrated across all communication disciplines. education is key in helping consumers discover a simpler, more personal way of fulfilling their needs.
Mobile marketing has the potential to reach those audiences where traditional media struggles to deliver.
about initiative Initiative (www.initiative.com) is a media communications company that transforms media exchanges into marketing results through a commitment to performance. Initiative believes that all marketing should be performance-driven. Data, analytics, insight and innovation are central to all our services, and we hold ourselves fully accountable to client business goals. This commitment to performance is the heart of Initiatives unique process and culture. Owned by the Interpublic Group, Initiative is part of media management group Mediabrands and a partner of Magna, IPGs centralized media negotiation entity. Initiative employs more than 2500 talented professionals, working in 91 offices across 70 markets, worldwide. Initiatives comprehensive range of performance-led communications services include: research and insight, media planning and buying, digital communications solutions, content creation, and evaluation and accountability services.
For more information about the findings in Unlocking the Power of Mobile or to discuss how Initiatives mobile solutions can help your business, please contact: Steve Dallas Managing Director - Initiative T + (4021) 301 01 00 E steve.dallas@ro.initiative.com Raluca Negoita Group Marketing Director - Initiative T + (4021) 301 01 00 E raluca.negoita@ro.initiative.com Initiative Romania 17 Ceasornicului Street Bucharest - 1, Romania