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CMA Mobile App Marketing Quick-Start Guide

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					               Mobile App Marketing Quick-Start Guide

   A CMA „digital toolkit‟ resource

   Why Mobile Applications?
   Mobile application marketing is one of the primary reasons why
   mobile has become a much-discussed medium and an integral                      OVERVIEW
   part of mainstream marketing plans.
                                                                           This guide provides a quick
   The evolution of the mobile channel is being driven in large            grounding on the various
   part by the billions of apps downloaded by consumers via the            aspects of mobile
   Apple App Store, as well other platform specific stores, such           application marketing: the
   as the Android‟s „Market‟ and „Blackberry App World‟.                   types of applications, the
                                                                           steps to take to develop an
   The future of mobile application marketing will be significant:         application, ways to
   mobile application stores or “App Stores” will see an estimated         measure an app‟s
   22 billion downloads in 2013 alone, with upwards of 90% of
                                                                           effectiveness, along with
   downloads being free to end users.1 Many of these free
   downloads will be mobile marketing apps.                                trends and insights about
                                                                           the future of mobile app
   Mobile applications can be rich in media content, highly                marketing.
   interactive and provide location-based services that make them
   a unique and powerful marketing tool – resulting in a dramatic
   user experience. Applications are robust; they can be
   integrated into existing content management systems (CMS),
   CRMs and product systems, enabling them to be a strategic
   tool for marketing and sales.

   Retailers and brands were the early adopters of mobile applications for marketing. myStarbucks,
   Yorkdale Shopping Centre, and Best Buy are just a few of the hundreds of retailer brands whose
   apps are downloaded and viewed daily.

   Users are leveraging mobile applications for information, entertainment and social connecting.
   And with the latest generation of smart phones on the market, mobile apps can facilitate the
   delivery of these multi-media experiences.

   What is a Mobile App?
   It is important to understand this term, since it can relate to different technologies within mobile.

   A native application is one that is installed and runs on the device. It is developed using the
   device‟s (Apple, Blackberry, Android) software development kit (SDK).



   1
    Gartner, “Dataquest Insight: Application Stores; The Revenue Opportunity Beyond the Hype”,
   Authors Stephanie Baghdassarian & Carolina Milanesi, December 16, 2009



Produced by CMA’s Mobile Marketing Task Force
                                                                    Mobile App Marketing Quick-Start Guide

  Native applications only run on a single specific platform, so developers have to develop a
  different application for each mobile device platform. Once built, the app can be sold within its
  respective marketplace or application stores.

  As such, there might be an iPhone mobile app, a separately developed Blackberry version and
  likewise, a unique Android version; each of which delivers a similar end user experience, but is
  built upon a unique SDK to reach this goal.

  Non-native apps are generically described as mobile websites, WAP or “mobile apps”. These
  apps redirect the users to a specific website via a browser. Web-based apps are also referred to
  as WAP, which is short for the Wireless Application Protocol, a secure specification that allows
  users to access information instantly via handheld wireless devices such as mobile phones,
  pagers, two-way radios, smartphones and communicators.

  It should be clear that a mobile app, mobile website or WAP is not native. It requires a live
  connection to the Internet at all times.

  The following sections focus on native mobile apps.

  Strengths of native mobile marketing applications include:
      The best user experience can be created because of the custom engagement tools and
       flexibility in design.
      Can be used even when a live cell or Internet connection is NOT present.
      Can use all of the device‟s features such as its camera, GPS, compass, microphone, file
       system etc. (Additional features are being added with each subsequent model release and
       latest iteration of the OS.)
      Can be sold through a marketplace such as the Apple App Store, which results in a cost
       effective distribution system for the mobile marketing app.
      Superior performance and speed, compared to a mobile web app or mobile website.
      Not restricted to running in a browser - instead, it can handle CPU intensive tasks such as
       an augmented reality app to show you a data overlay on top of live video or 3D games.

  Types of mobile apps
  There are three primary players that dominate the mobile app industry:
     iPhone (iOS4.2)
     Android (2.2)
     Blackberry (OS6)

  Others include Windows Mobile 7 and HP‟s Palm OS.

  App Stores and Sales – a Chronology
  Apple
     Apple initiated the mobile app industry in July of 2008 when it launched the now famous
        „App Store‟. By January of 2010, Apple indicated that 3 Billion apps had been downloaded
        within an 18-month period of time.
     Apple has 77 separate online stores servicing different countries due to copyright,
        currency and other defining factors.
     In June 2010 Apple announced an additional 10,000 apps specific to the iPad platform.
     In January 2011, approximately 300,000 were reported as available.


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                                                                    Mobile App Marketing Quick-Start Guide

  Android
     Google purchased the Android operating system in 2005.
     Its mobile app store is known as Android Market and features approximately 200,000
        mobile apps (December 2010) with over 57% free to download.2

  Blackberry
      RIM, the parent company, based in Waterloo Ontario, sells its mobile apps via Blackberry
        App World.
      10,000 apps were listed at the store (September 2010).
      RIM has cited daily app downloads at 1.5 million.

  Others
      Microsoft has established an app store called simply Windows Phone.
      HP purchased the Palm OS in April of 2010. In October of 2010, HP announced plans for
         Web OS 2.0.
      Both of these two companies are playing catch up and will have to promote heavily in
         order to garner consumer share of mind.


  Platform Considerations
  Apple controls the process more than any other player in this market. Restrictive though these
  controls might be, the net result is an integrated operating system and devices that work
  seamlessly.

  Android is more fractured. It is an „open source‟ platform. As such, developers must tweak their
  apps in order to ensure their apps operate on all variations of the Android OS and device. Where
  Apple designs and sells its own smartphones, a number of companies such as HTC, Motorola,
  Samsung, etc., use the Android platform. Each has its own quirks which impact on the software
  developer.

  The same issue is also true for Blackberry which offers a plethora of models and iterations of the
  OS.

  Marketing Considerations
           Apps can be strategic tool for engagement.
           Can leverage digital assets: video, social media.
           Location-based systems can plot where a prospective customer is and send a specific
            message to that prospect.
           Coupons can be targeted and immediately accessed.
           [Recognizing that games remain a major portion of the market] - through social media,
            retail tools are becoming prevalent – enabling the retail sector to take an early lead in
            mobile app marketing.
           Corporations are leveraging apps to market their products and services.
           Push technology is becoming a key factor.
           Offers an efficiency of marketing and technology integration.
           Essential digital measurement tools are being developed – and are becoming more widely
            available.
  2
      Wikipedia


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                                                                                    Mobile App Marketing Quick-Start Guide

  Mobile App Growth
  It is almost impossible to predict with certainty where this market is heading.
  Google claims the Android platform is attracting 200,000 devices daily. One can only assume this
  trend will continue to grow.

  Mobile commerce is gaining acceptance. A global study by KPMG in 2010 reported that the
  percentage of consumers surveyed that said they used an online retailer‟s site from their mobile
  phone jumped 18 points, from 10 per cent in 2008 to 28 per cent in 2010. (In Canada, 8 per cent
  indicated making a purchase using a mobile phone – double the amount from the 2008 study.)
  This trend is being further enhanced by various banks and companies such as PayPal offering
  free apps to expedite the process.

                                              Used Mobile Phones to Purchase
                                                    Products - Global
                             35%                 31%        31%
                                       28%
                             30%
                             25%
                                                                      19%
                             20%
                             15%                                                11%
                             10%
                                                                                           4%
                              5%
                              0%
                                      16-24      25-34     35-44      45-54     55-64      65+

                             Source: KPMG, “Consumers and Convergence IV”, 2010


  As more consumers become comfortable typing a brand‟s URL into their smartphones, not having
  a brand‟s site optimized for mobile commerce means leaving money on the table.

  Two Canadian Banks in particular have made considerable progress promoting their apps; TD
  and CIBC. Likely others will follow. As payments via the smartphone become secure, easy and
  more familiar, the trend toward mobile will accelerate.

  According to Mobile Commerce, “In the next two-to-three years, mobile will move to the core of all
  brand communications. The transformation will be swift and fast as the next wave of consumers
  start to spend more time with their mobile devices rather than their computers or television sets.”

  eMarketer reports that smartphone penetration will increase from 31% of all handsets in 2010 to
  50% in 2014.

         North America             2009           2010             2011         2012             2013          2014
         Canada                    30%            31%              34%           40%             47%           50%
         U.S.                      32%            33%              37%           44%             51%           55%
         Total                     32%            33%              37%           44%             51%           54%
        Source: eMarketer, “Canadian Mobile Subscriptions to Climb by 2014”, May 2010, citing a Cisco Systems study


  mobiThinking predicts that 85 per cent of mobile handsets are expected to be web connected by
  the end of 2011.




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                                                                    Mobile App Marketing Quick-Start Guide

  The iPad and other tablets
  Currently the Apple iPad is the runaway sales leader. RIM is introducing its „Playbook‟ early in
  2011. A host of other companies announced in late 2010 that they too would launch similar
  products, though some appear to be having second thoughts.

  It appears there will be different configurations with many of these other competitors talking about
  smaller seven inch screens.

  In the meantime, Apple is preparing its 2nd generation iPad, which according to knowledgeable
  pundits, will sport a host of new features making them more palatable for corporations. A dual
  camera setup and enhanced printing are two of the items most commonly mentioned.

  Development of a Mobile App
  An app must integrate with and compliment an existing marketing program. Above all, it must be
  relevant to the user group being targeted.

  Step One: The Plan
      Establish marketing objectives.
      Identify the audience.
      Match audience stats to the mobile platform.
            o iPhone is the most cohesive and most popular platform today.
            o iPhone also has the most popular and most successful delivery system, i.e. The
               App Store.
            o Blackberry is skewed toward business and the corporate environment, with a less
               engaged app user group – at this time.
            o Android is rapidly growing in popularity but the platform tends to be fragmented
               with different hardware brands requiring unique changes. Overall it is still
               maturing.

  Step Two: Vendor Selection
  Back in 2008, the mobile industry was in its infancy. There were a few majors, specifically game
  companies such as EA Sports, Electronic Arts. And there were many startups, each with minimal
  experience and track records.

  The industry has since gone through a maturation process. A number of Canadian mobile
  software developers have risen above the others. These more experienced shops have a proven
  track record, testimonials from satisfied clients and a number of highly acclaimed apps listed
  within the Apple App Store.

  The list becomes shorter for a vendor of Blackberry apps. The same applies to Android. The
  volume has simply not been there in previous years to support many software developers. The
  bulk of successful shops thus far have focused upon the Apple iOS, however, we expect this to
  change.

  There are only a few Canadian developers today that are comfortable writing apps for the three
  major platforms. As with any vendor offering a service, contact existing users to determine their
  satisfaction with the vendor, even it means speaking with a potential competitor.




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                                                                    Mobile App Marketing Quick-Start Guide

  Step Three: Development & Costs
  Seek advice from others who have a commissioned or developed their own mobile app. Look for
  intangibles: Are you comfortable with the relationship with the vendor? Is there a sense of trust?
  What about upgrades? Are you stuck with the OEM or can your app be renovated by another
  vendor?
      Fair price: Each developer has its own rate card. The more complicated the app, the
        greater the time required and the cost to develop.
             o $10,000 is a reasonable starting price for a less complicated app.
      Timeline: Establish a timeline with interim deadlines or goals.
             o Minimally, allow 3 weeks to develop.

  Step Four: Measurement & Metrics
  Mobile applications are a form of digital media and as with all digital media, creating specific
  measurement tools can be very easy. Every mobile marketing application should have a mobile
  analytics solution included. This could be Google analytics for mobile or a more specialized
  solution that leading developers provide.

  Mobile application metrics will sound similar to anyone who has been exposed to website
  analytics. These include: app visits, unique visits, page views, time the application is open, etc.

  One popular metric is unique downloads. This is the number of times a unique person has
  selected your app for their phone via one of the handheld applications‟ stores. Mobile analytics
  also allow you your user‟s location information so you can determine where they are using the
  app, and how often.

  Generally, understanding what the good performing metrics are is influenced on how the existing
  audience is engaging with the website, the specific content the mobile application is favouring and
  the market penetration of mobile devices.

  Case Study

  Toronto Eaton Centre iPhone App

  Objective
  The initial project was to understand how shoppers and retailers would adopt this new marketing
  channel.

  Approach
  The mobile application was developed to provide users an interactive store directory, easy to use
  mall map for navigation, access to retailers‟ promotions and the ability to check their popular gift
  card balances. Users were also able to update their Twitter or Facebook status with easy to use
  tools in the app.

  The launch of the app was supported by in-mall signage, PR, online messaging on the Toronto
  Eaton Centre Website and newsletter.

  Retailers were provided an information package to understand how to use the app for promotions
  and messaging.




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                                                                 Mobile App Marketing Quick-Start Guide

  Results
  The app launch was a success almost immediately. The most telling result of the app was the
  number of store promotion views. At certain times, mobile views of promotions were greater than
  the same promotions viewed on the Toronto Eaton Centre website. The ramifications of this
  insight are significant when you consider that the app was only available to iPhone/iPod users,
  while a website is available to any PC user.

  Technically the app performed very well and has received strong user reviews and accolades
  from Apple.

  The complimenting metrics of downloads, app visits, and page views showed a strong audience of
  users thirsty for mobile content for shopping. The retailers embraced the channel – publishing
  more promotions on their websites and the mobile app then previously (when only the website
  was used).

  Suggested Reading/Other Resources
  Books
     Mobile Internet for Dummies

  Publications (not Canadian)
  Industry:
      Mobile Marketer
      mobiThinking
      Fierce Mobile
      RCR Wireless

  Other:
      AdAge
      AdWeek
      MediaPost

  Associations/Forums
  (Educational documents, guidelines and events for both members and non-members)

  Canada:
      CWTA
      Digital Media and Wireless Association of BC (DigiBC)
      IAB Canada

  Other:
          IAB
          MMA
          Mobile Mondays
          GSMA



  Special thanks to Steve Sorge, CEO, MobileFringe for leading the development of this guide.




Produced by CMA’s Mobile Marketing Task Force                                                    7

				
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