End of term reports from Adobe and BDO

It’s December 2013 already. Christmas is in the air and the TV is awash with Christmas TV adverts. So it’s only to be expected that there are some end of term reports from some of the big guns. And I’m afraid I’m reading them with mixed feelings which I’ll share with you.

Let’s start with BDO’s Retail Compass 2013. The survey “examined the opinions of 100 chief marketing officers at leading retailers located throughout the USA. The retailers in the study were among the largest in the country, including 11 retailers in the top 100 based on annual sales revenue. The telephone survey was conducted in September and October of 2013”.

The survey covers all aspects of retail but there is a section about mobile marketing.

In the press release, the focus for retailers is on traditional channels rather than mobile:

• 38 per cent of retailers are including mobile in their marketing strategy this year—down from 50 per cent in 2012—those who are embracing it are ramping up their efforts.
• Last year, mobile comprised an average of 5.9 per cent of retailers’ overall marketing budget; this year, that number has jumped to 15 per cent.
• With eMarketer predicting a 15 per cent rise in mobile shopping volume this year, the mixed survey results suggest that retailers remain divided as to the platform’s growth potential and its ability to convert sales.
• One strategy on which retailers are not divided, however, is print advertising: a plurality of CMOs (41 per cent) are investing most of their holiday budgets in traditional print ads, which have been a consistently popular medium over the last 4 years.
• And CMOs still believe in the power of TV to reach a wide audience: 29 per cent say they will spend the majority of their holiday advertising budget on broadcast.
• Retailers are looking towards social media, but don’t know the right mix (and probably don’t realise how much of it is on mobile and how that impacts on conversions if their offering isn’t mobile-friendly).

So good news for broadcast and print in the US, and for those who are working on mobile campaigns for retailers, it’s good news as the budgets are bigger – just fewer of them by some measure compared with 2012. I have to question what the decision making process is behind this when the growth in mobile and mobile commerce is rising at a very fast pace. Of course, I don’t know how the question was asked and it may be that the retailers are ahead of the curve and have a great mobile site and/or a range of mobile apps and that the assumption is that mobile marketing in this context means mobile advertising which maybe they feel they don’t need as their mobile offering is so strong. I live in hope of that anyway! I fear that retailers may have their heads in the sand and have not yet woken up to what’s happening under their noses and are missing out on opportunities today.

Download the full report here http://www.bdo.com/download/2972

Now let’s look at the UK. Adobe and The Guardian have just published a survey looking at the mobile marketing attitudes of 1427 executives in the UK. The free report makes for quite depressing reading about the UK state of play.

• More than 50% said their organisation had a fragmented approach or no strategy at all when it comes to mobile
• Most respondents are unconfident about their organisation’s ability to measure the success of their mobile channels (which I’m guessing is a hindrance to offering them at all)

YET

• Most respondents felt their businesses would benefit from mobile marketing

AND

• Respondents expect to see a significant shift in the number of customer interactions supported or driven by mobile

So why aren’t they taking the plunge?

Well, rather worryingly, a lot of respondents felt that mobile wasn’t going to overtake the desktop at all or within the next two years. Many don’t have the funds to support mobile initiatives or don’t believe their business would benefit at all.

That last point worried me so I took at look back at the kinds of organisations the respondents came from. As this was run by The Guardian, there were a disproportionate amount of responses from the public sector, the arts, charities/not for profit and education. I’m not entirely surprised that those organisations aren’t as clued up and/or don’t have the funds or willingness to go mobile, at least not yet. I would hope that the results would be more positive if there were more brands, agencies and retailers who had responded.

You can read more here.

I guess the good news for us working in mobile marketing is that there’s still plenty work for us to do. Need to get your senior teams up to speed with what’s going on in mobile marketing and media? Get in touch. I’ve done workshops with a variety of media owners and agencies in the UK and the Nordic region. Maybe I can do one for you?

The Mobile Application Roadmap

Greetings from Barcelona! I’m in town for the Gartner Symposium and am with the Samsung At Work team this week. This is a different kind of conference from what I’m used to. There are about 5000 CIOs (Chief Information Officers) here. These people are responsible for the implementation and management of the technology infrastructures that drive large corporate businesses. Typically that means servers and internet access and managing corporate email systems. It means maintaining laptops and desktops and privacy and security. It means enterprise IT systems and increasingly, it also means websites and mobile apps and digital products and services. For many of those attending, that’s a big shift in their focus. There’s a big difference between managing a corporate email and IT infrastructure and creating and building new apps and services. It’s a different mindset, it’s a different methodology and it’s a different way of working – much more collaboration is required, consumer insight and understanding and more general business knowledge. There’s a lot of new stuff for these people to get their heads round and it’s something I hadn’t really considered before coming.

One of the sessions I went to yesterday was Richard Marshall’s session on The Mobile Application Roadmap. Richard has come from a mobile start-up background before joining Gartner. He’s built and delivered mobile apps and services. He know what it’s like to do this stuff and he shared his key insights from this experience. For some of my readers, what he shared won’t be new at all. Many of you are living and breathing this stuff, but if you’re new to the world of mobile or the world of apps or are making the shift from an analogue business to a digital business, his slides are probably worth a look – it’s all sound advice in there. His main themes were to release early and often, fail fast, get user feedback, iterate, think in terms of minimum viable product and make sure of your business case.  He also talked about user experience and some design methodologies but that’s probably worthy of another post another day. In the meantime, here are his slides. They are fairly self-explanatory, but bear in mind they’re aimed at an IT audience.

Richard Marshall talks about the Mobile Application Roadmap at Gartner Symposium from Helen Keegan

All your favourite brands belong to just 10 companies

You’ve probably seen this graphic doing the rounds on social media already. But if not, it really is well worth a look. It’s called ‘The Illusion of Choice’. You see lots of brands on the supermarket shelf and you get to choose your preference – maybe you choose on price, quality, smell, taste, perceived value and more. But how much of a choice is it when those brands all belong to the same companies?

You might wonder why I think this is worthy of note. Well, I think it’s worth being mindful of what you buy and where that money is going. I didn’t know that Nestle owned L’Oreal who in turn owns The Body Shop, Stella McCartney and Kiehl’s. It’s made me think again about Kiehl’s as a brand and makes me question their product quality. And can Diesel maintain its (relatively) cool brand image when its parent company is Nestle?

Equally, I think it’s important to understand how these brands and companies do deals with each other in their own company group. One example cited is Yum Brands which owns KFC and Taco Bell. The company was a spin-off of Pepsi. All Yum Brands restaurants sell only Pepsi products because of a lifetime deal with the soda-maker. Not a lot of choice going on there.

I’m not saying don’t buy these brands, maybe just be a little more mindful each time you do.

Order Out of Chaos event–4 Dec 2013

     

For those of you who are interested in technology and are based in the North of England, you may be interested to attend the upcoming Harvey Nash event in Manchester on Wednesday 4th December at 6pm at MOSI. It’s free to attend and will be of particular interest to CMOs, CTO/CIOs and CEOs of businesses of all sizes. The topic for discussion is based around Harvey Nash’s annual CIO Survey (you can download the full PDF here). The survey is a useful way to catch up with what CIOs and CTOs feel are the latest trends and issues – mobile being one of the top ones, followed by the on-going friction between CMOs and CTOs (especially as marketing departments have increasing budgets for digital) and quite a few more...

I’ve been invited to join the panel (thanks Mike!) alongside Martin Jones, CTO lastminute.com; Martin Bryant, Editor-in-Chief, The Next Web; and Doug Ward CEO and Co-Founder Tech Britain and TechHub Manchester. It should be an interesting event if their Leeds one a few weeks ago is anything to go by and there’ll be plenty of opportunity to ask questions and chip in with your 2p. Oh, and there’ll be some networking too. It’s free to attend. Hope to see some of you there.

More information and RSVP here.

Meeja–The Times They Are A-Changin’

Apologies for being a bit slow on the blogging front recently. I just got out of the habit. However, I’ve been busy squirreling away lots of articles and links to follow up on with blog posts should the moment come to blog.

As many of you already know, I do consulting work with media owners of all types and sizes, helping their senior teams get their heads around what’s happening in mobile and social and how it is impacting their business and what they might do about it. I recently did a talk to a group of Nordic media owners who were pretty horrified that I rarely went directly to an online or mobile newspaper to read it but followed random links from people I followed on a variety of social networks and as such, wouldn’t necessarily know which publication or which journalist I was reading.

Don’t get my wrong, by all accounts, media consumption of all types is in rude health when it comes to mobile and online. What isn’t so healthy are the business models to pay for that as well as the fact that many outlets are still focused on print as the main product despite declining revenues. And that’s the challenge that media owners face. The existing business models are in (fast) decline and the news ones are not (yet) replacing those revenues often coupled with a reluctance to change or move with the times.

If you’re interested in where mobile meets media, the future of advertising, the future of journalism and the like, the following links will probably be of interest.

Why tablet magazines are a failure by Jon Lund. Jon’s key point is to encourage media owners to build for the web rather than tablet app only. But while he’s telling us that, there are some really interesting case studies quoted and some rather useful numbers if you need to persuade your boss to move with the times.

The Financial Times to move to single global print edition. This is a very interesting move by the FT. They’re changing their workflow and product focus to reshape the paper for the digital age. Although the printed paper is still part of their multi-platform operation, the shift in how they’re managing it all shows a keen eye on the future and they’re changing before their hand is forced. Smart move, I say.

Ken Doctor highlights what’s coming for media owners in 2014. It’s not news to those of us who’ve been working in mobile and media for a while, but I suspect, the pointers are a bit scary for a lot of media owners who haven’t yet started the change process or haven’t invested in preparing themselves for the future.

Josh Marshall doesn’t believe in Flipboard’s model for media owners and he tells us why, even as far as calling Flipboard a scam. I understand where he’s coming from, but what he doesn’t talk about is who and where his audience is and what their needs and wants are, what their reading habits are and how that matches with TPM’s offering. It’s still early days for Flipboard and its ilk, but I don’t think services like them are going away any time soon.

Canada’s Globe And Mail’s CEO tells media owners ‘we have to think more precisely about what it is that will make people pay’. There are some useful pointers in this article explaining some of the things G&M are doing to get readers to pay for content.

How much are you willing to pay for digital news? There’s still no definitive answer to this, but this article (and the links within it) highlight some of the key issues faced by media owners (yes, it’s getting a bit repetitive isn’t it – the need to innovate, the acceptance that the print decline is real and not stopping, that the digital ad sales aren’t replacing print ad sales etc.).

Attention v. Relationship Economy – this article explores they way that media owners could or should be thinking about how to monetise. And I think I agree with the author, Jeff Jarvis, that it’s about the relationships newspapers have with their community of readers, advertisers and more.

Long story short…

• digital media consumption is high
• mobile set to overtake desktop very quickly
• tablet magazines probably won’t save your business
• media companies need to restructure
• we need some new ways to advertise (I still don’t understand why we’re shoe-horning old ways into new media)
• we need to create and try more new business models
• no-one has the definitive answer
• And as Bob Dylan sang many years ago, ‘The Times they are a changin’’.

Facebook makes you sad

Well, sort of. The sample size is quite small and it’s early days for this kind of study, but this article in the Economist is worth a read. The teens and twenty-somethings in the study all reported more negative feelings after they’d spent time on Facebook versus spending time with people in real life. I’m not sure that this is much of a surprise – especially for that age-group for whom it looks like everyone else is much cooler and having a much better time than you are. As you grow older, I think you probably grow out of that so I wonder what a similar study would reveal about older age-groups. Anyway, expect to see more of this sort of thing as the web matures.

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