Are Facebook’s Mobile Ads a Fad or will Successful Monetization Stick?

Whoever coined the phrase “it’s lonely at the top” forgot to mention that that loneliness is often short-lived.

That’s because, at best, aggressive competition means an eventual sharing of the summit (think iOS and Android). At worst, it means a complete dethroning. Remember when AOL was the most popular Web portal?

For now Facebook, still the world’s dominant social media network, can bask in all the mountaintop sunlight it wants.

Not only has active membership continued to grow – it stands 1.2 billion or one-seventh of the world’s population – but desktop and mobile ad revenue is starting to add up. Fully 60% of the publicly-traded company’s third-quarter revenue came from advertising and nearly half of that ad revenue came from mobile devices.

This is especially impressive considering how fast Facebook’s mobile advertising ramp up has been, starting as recently as early 2012. In other words, Facebook has successfully monetized advertising in less than half the time it has taken digital media to achieve even modest advertising revenue results.

But how much longer will Facebook’s mobile advertising miracle continue? The company has already been extremely transparent regarding its own expectations. For starters, Facebook will not continue increasing the percentage of ads in users’ news feeds. With this growth capped, there’s only so many clever ways to incentivize higher click-through rates.

Then there’s the nagging concern that teens are beginning to tune Facebook out, switching to sites like Twitter or embracing a host of direct messaging apps. Some of the pullback is due to Facebook’s own success. What teen really wants to be “friends” with their parents on social media or have them or other authority figures poking around on what was once the equivalent of their digital bedrooms – places considered off limits? According to financial firm Piper Jaffray, only 23% of 8,650 recently surveyed teens preferred Facebook.

While the siphoning of younger support isn’t a big deal for Facebook yet, it underscores just how fleeting social media platform popularity can be and how ad revenues, like a seasonal stream, can dry up as fast as it floods. A decade ago Myspace was the leading social media network. Today, despite a flurry of recent positive news, the site has a very long way to go in its climb back toward greatness – if it ever gets there. Its base of 36 million users is similar in size to the population of the Greater Tokyo Area. One city.

How long Facebook remains on top is anyone’s guess. While I applaud the company’s mobile advertising monetization efforts and hope they continue, could it be a little too late as the next social media fad goes on the attack, chasing that summit?

Beaming Mobile Messages To Your Brain

A couple of months ago some commuter trains in Germany made global headlines: a rail operator’s passengers were treated to a “marketing wonder” of windows beaming advertising messages directly into the brains of said passengers who’d happened to place their weary heads on the glass.

Called bone conduction and already used in military applications and hearing aids, early reviews of this new type of use have been mixed. Not surprisingly, the ad agency BBDO who produced the ad campaign for Sky Deutschland called it a success. Of course they would. But many responses from a Mashable article read more like: “Is this for real? Just stay out of my head. This kind of invention must be BANNED.”

I agree to a point. It is disturbing how technology this pervasive can be abused. Don’t we have enough bombardment of ads already across multiple screens and devices?

But less than two months later, there’s growing (indirect) evidence of a perceptual shift. A new Harris Interactive poll found that consumer interest in mobile advertising offers has increased sharply since 2009. Nearly half, (45%) of mobile phone owners said they were at least somewhat interested in receiving mobile alerts about new products, sales and/or promotions from preferred brands, compared with 26% of respondents who felt similarly in 2009. And of those more recent supporters, 78% said they found location-based advertising particularly useful.

Does this mean brain beaming advertising glass has silenced its detractors? Um, no. But in light of this new data, it’s not that hard to envision a future where location-aware smartphones (or wearable gadgets) will work together with personalized advertising delivered on glass in trains, buses, planes and on walls in airports, incentivizing even more purchases and “brand/brain engagement.” That includes physical purchases as well as in-app buys. In other words, “mobile” advertising doesn’t always require a mobile phone. And as smartphone adoption rates rise, consumers will grow increasingly comfortable with seeing advertisements everywhere they look.

Is there a safeguard against the world becoming one giant digital billboard?  Permission-based advertising – a point the Harris study was quick to address. Consumers must have the ability to opt out of these types of marketer outreach.

Replacing my marketing hat with that of a PR professional’s for a moment, talking glass and mobile advertising appreciation also underscores another need.

PR agencies must make mobile the connective communications tissue of their client engagement and media messaging. Considering mobile devices’ reduced screen sizes, that means thinking smaller; telling client stories in bite-sized nuggets. It also means stepping up the ways in which we promote the importance of mobile messaging and mobile advertisements to clients from the start of our relationships.

“Smart” glass may have yet to hit its stride. But Harris Interactive data confirms that mobile really is everywhere and the pushback from round-the-clock advertising is eroding faster than many communication professionals originally thought. 

Top mobile technologies to watch out for in 2013

I recently spoke with Mobile Marketer's Rimma Kats about 2013's top mobile technology innovations and why existing technology is here to stay.

You can read the full article below, as well as on Mobile Marketer.

Let me know what your predictions for mobile technology in 2013 are in the comments below.

Top mobile technologies to watch out for in 2013

Augmented reality brings content to life

It is evident that mobile has captured the attention of many top brands, and technologies such as QR codes and augmented reality have helped pave the way. Now, marketers are looking for the next big trend that will drive customer interactions and, ultimately, sales.

Mobile is becoming the go-to medium for many companies and marketers are integrating it into their day-to-day initiatives. In 2013, marketers must make a bigger investment into the space and look at new technologies to help develop deeper relationships with consumers.

“Mobile provides marketers a wealth of creative opportunities to get their messages in front of mobile subscribers – for example, geo-fenced advertising, scanable codes, Shazam, and interstitial ads on music and video apps,” said Tim Richie, vice president of North American sales and account management at Open Market.

“Ultimately, each of these technologies aims to do the same thing: drive consumers to action by putting a powerful message in front them when they are open to receiving it,” he said. “This trend and the technologies that support it will gain momentum in 2013, helping marketers deliver more value.

“Businesses are facing many technology challenges today – sharing data across systems and teams, managing multiple vendor solutions, and increasing user demands. This year, companies will look to consolidate systems, and leverage cloud-based solutions for cost savings and improved SLAs. Technology that is modular, flexible and enables a number of use cases will be most attractive to enterprises.”

Key message
To be most effective, marketers need to deliver a message that resonates with the consumer at a relevant time via the appropriate messaging channel.

The extent to which a marketer can execute on this objective dictates their success, per Mr. Ritchie.

Marketers should aggressively seek out flexible messaging systems that facilitate their communications to consumers across multiple channels.

“Over several years, marketers have struggled to identify how mobile fits into the marketing mix,” Mr. Ritchie said. “Initially, it was an interesting experiment, then Apple ushered in the age of mobile applications which became a key mobile strategy.

“Increasingly mobile has become a business-as-usual communication channel alongside more traditional communication and advertising methods,” he said. “The real growth in mobile adoption for businesses in 2013 won’t be sexy.

“Businesses will find ways to leverage mobile to replace or augment existing systems and processes to become more efficient and reduce costs."

Mobile payments
Last year, many were speculating that 2012 was going to be the year of mobile payments and near-field communication.

That proved to not be the case.

However, mobile payments and NFC are seeing a great outlook this year.

Mobile payments will no doubt play a big role this year.

Consumers are becoming more comfortable making purchases using their smartphones and companies such as Starbucks, McDonald’s and Dunkin’ Donuts are making it easy for consumers to order their favorite meals and beverages and pay for it using their mobile phone.

Furthermore, Apple has helped in making mobile commerce a success through its recent Passbook implementation, which helps build on loyalty.

"We should see more mass availability of mobile payments,” said Jeff Hasen, chief marketing officer of Hipcricket, New York.

“While its ridiculous to think that the mobile wallet will make cash extinct by Tuesday, businesses will successfully compete if they make the in-store buying experience painless through Square and the like,” he said. “The wallet hype will continue but is years from becoming a mass activity.

"Overall, mobile will get more of the marketing spend with those who succeed being more pragmatic than groundbreaking with brand new mobile products. SXSW will get lots of headlines, but it’s not the place to go to build a foundational mobile program."

Integrated experiences
According to Wilson Kerr, vice president of business sales at Unbound Commerce, Boston, 2013 will be all about mobile-triggered consumer interactions.

“Now that having an integrated mobile commerce site is established as essential, my prediction is that the next big trend will be around tracked mobile-triggered consumer interaction, at the point-of-sale,” Mr. Kerr said.

“Brands and retailers can drive incremental, secondary, add-on sales and tracked consumer engagement by tapping real-world mobile ‘triggerpoint marketing’ opportunities,” he said.

“QR codes mean adding mobile triggerpoints at point-of-sale is easy and economical. NFC will start to become ubiquitous in smartphones in 2013 and, as such, is something smart marketers are learning about now.”

While most brand and retailer marketing departments lag behind, consumers are thirsty for more ways to interact and engage via mobile.

“The potential of mobile is no longer the story,” Mr. Kerr said. “The story is now the day-to-day reality, regarding the fact that mobile is poised to drive the lion share of tracked consumer interaction and related purchases.

“PayPal saw a 250 percent increase in mobile payments in 2012 and expects to process $20 billion in 2013,” he said. “Additionally, 15 percent of all ecommerce in 2013 will be conducted via mobile and tablet commerce is growing faster than mobile did.

“A mobile site is no longer something that can be covered by a screen scraped derivative of an ecommerce site. Mobile and tablet commerce sites should be powered by an API ecommerce integration, so they can be distinct channels with distinct mobile marketing opportunities.”

Existing technology
This year we’re going to see companies take the technology that exists and make more use of it, per Vanessa Horwell, chief visibility officer of ThinkInk PR.

“I don’t think we’re going to see an explosion of NFC, but we’re going to see more utilization,” Ms. Horwell said. “Also the key things we’re going to see will revolve around data and analytics.

“We know that consumers are engaged, but how are businesses and marketers going to use that data?” she said. “They have to do something actionable with the data.

“That’s going to be the challenge for any types of marketers. Taking action with all that information. That’s a key thing this year.”

Message Not Sent: Public Eager to Adopt Mobile Buying; Businesses Not So Much

For a three-word sentence, “Message not sent,” does a pretty good job at frustrating text messagers from completing and sending their digital thoughts. And when it comes to m-commerce, ‘M’ for mobile, businesses it seems, haven’t gotten the message either.

A new survey compiled by Empirix reveals a mixed message: 91 percent of American shoppers believed mobile buying for anything from airline tickets, to department store purchases, to all items in between by text message, email or smart phone app, will generally benefit their shopping experience, while nearly two-thirds of respondents expected an improvement in customer service via their mobile outlet.

But like a garbled message trapped in the Internet ether, fewer than half of businesses surveyed in several countries including the United States, the United Kingdom, France and Germany, said they’d be investing money toward establishing m-commerce networks. The US, which often plays second fiddle (or third, or fourth) to tech-savvy Europe, was a relative “winner,” with 41 percent of businesses saying they would. Better still; more than half of US businesses said they at least had a mobile strategy in place. By contrast only 14 percent of UK businesses were game for upgrading from ‘E’ to m-commerce.

Dealing with the digital disconnect

That’s where PR companies come into play. Playing the watchdog role for our clients means it’s our job to inform them when it’s time to enhance their business and marketing models, offering concrete mobile marketing suggestions and strategy. In short, just having a web page is so last decade. As seen on airlines, mobile onboard buying campaigns have really taken off. (Pardon the pun)

If airlines can be persuaded to the see the benefits of turning a jumbo jet’s cabin into a touch and click sky mall, then why not other businesses?

To be sure, an m-commerce-embracing public and a plugged in communications industry are only the first steps toward success. But they’re not bad starts. In Empirix’s press release on the study, Tim Moynihan, VP of Marketing cautioned companies against quantity of mobile initiative versus quality of effort.

“As more businesses deliver m-commerce applications to an increasing number of consumers, the risk of poor service increases dramatically,” he said. “Investing in an end-to-end service assurance program at the start of this journey will separate the winners from the losers.”

An “end to end service assurance program,” huh.

Sounds like the perfect job for us.

iPad iPad in my hand, who is the fairest tablet in the land?

“Mirror mirror on the wall” now reads “iPad iPad in my hand"... First day pre-orders rounded up to 120,000 for the iPad. Nice... Make that 120,001 with my order.

If the iPhone moved the needle on the smartphone market and mobile advertising, publishers and content pushers will be rubbing their hands with absolute glee. My take is that the iPad will spur the pay-for-content movement –- finally –- and help re-write the playbook on why quality content should not be free.

Three BIG cheers to Shiv Singh, of Razorfish and blogger behind Going Social Now for seeing the big picture! As smartphones make their way into every pocket (and palm) on the planet, mobile marketing and advertising is perched to offer brands an immense level of inter-connectivity - more than anyone could have imagined!

Social media is absolutely working to the benefit of [mobile] marketing and "using customers to create customers," to quote Singh. Smartphones, however, will have a reach far beyond that of Twitter or Facebook, so get ready.

Of course, there's still a huge learning curve as brands and businesses hone their strategies and messages for this medium. Time is a precious commodity and to keep people engaged and opting in, offers have to be desirable and more importantly, relevant, or people will simply tune out.

Those who still dismiss mobile as a marketing fad, do so at their peril. Mobile is here to stay. Ask anyone (who's anyone.)

Click here to read Mary Ellen Slayter's interview with Shiv Singh.

Living in a pocket

A new survey by Synovate reveals that 82% of Americans never leave home without their cell phones. Once upon a time, it was the American Express card. But it’s not just us in North America – half of Russian mobile users would rather lose their wallets than their phones, and 32% of people across the world surveyed said that they “couldn’t live without it.” By the end of 2010, 70% of all people will own one. Carriers everywhere rejoice!

Seems not so long ago we were carting around “mobile” devices the size of bricks – I used to own one.

But we’re no longer using our mobile phones solely for conversations and texts. These have become pocket-sized assistants, and are the thread that keeps our business and personal lives sewn together. Banking, dining, shopping, research, etc. I’ve written lengthy articles and submitted to editors from mine. So there’s no denying the importance of mobile in our daily lives, and the growing impact that mobile is having on the way businesses communicate and connect with their audiences.

Marketing research firm The Kelsey Group expects an increase in the mobile advertising market from $160 million in 2008, to $3.1 billion in 2013. That’s a HUGE increase. And in the next few years, millions of us (who haven’t already) will be opting for smartphones over PC’s – for both cost and convenience.

Smartphones have already forged ahead into the social media arena. According to USA today, about 65 million of Facebook's 300 million members are mobile users – that’s more than triple the amount of just eight months ago.

These numbers more than suggest that mobile marketing has moved far beyond the experimental stage – this is fantastic news for marketers in just about every industry. The limitations to mobile’s use and capabilities are really only limited by our inability to imagine the future.

Mobile is giving businesses and brands the ability to live in their customers’ pocket. What’s so bad about that? To me, this is an exciting moment. Despite the very challenging environment we’re in, mobile - like social media – is proving that it’s a powerful communication tool that is here to stay.