As the great migration from traditional PC usage to mobile devices builds and builds, any brand that does not have a serious mobile strategy in place is going to be left behind in the dust.
PC sales have dropped 11% in the last quarter and the knock on effect is already shaking the technology giants, who are now competing for consumer attention with hundreds of different smartphones, tablets and let’s not forget, smart TV’s.
In June 2013, 35% of internet access happened via a mobile device. This is causing a ripple of effect across the online industry. However, Google reported earlier this year that for the last three years, it has seen the slowest revenue growth in its core search products. At a first glance this could be seen as a huge disconnect, but when we dig into the detail we can see that the average cost per click (CPC) bids for Google search dropped 6% year on year because a click on a smartphone is 40% less than a desktop click, due in part to the fact that attribution and ROI modelling is much harder on mobile.
Furthermore, mobile devices drove 26% of search traffic in Q2 2013 – which is an 11% increase from the same quarter in 2012. But… Didn’t Google just merge their mobile and desktop ad-proposition to create a blended result to offset such an eventuality? Yes. They did. But whilst the volume of traffic went up, the value of bids went down, so the overall eCPM (equivalent cost per thousand) rate dropped. Nevertheless, Google still shows 16% revenue growth, so hang on to those shares but the ride is going to get bumpy as more users migrate to mobile from their PC’s.
Mobile is essentially in its infancy. We don’t know all the answers yet – no one does. But what we do know is that mobile is causing a step change the industry and those that ignore its potential for monetization face losing much more than pounds. So what can be done to insure your marketing strategy is embracing the mobile revolution?
Firstly, set clear goals as to what you want your users to get out of your mobile strategy, how will you judge success and vitally, how will you track it? Remember mobile tracking is a whole new ball game compared to desktop so choose your tracking vendors with care. Secondly, address the eternal question of apps vs. mobile web; the best guidance I can give you here is to look at your audience or user base and research what their mobile usage is, what devices they prefer to use, how much time a day they spend on them, how they behave online. Without naming names, a well-known cut price supermarket brand jumped on the first iPad bandwagon and rolled out a tablet app that quickly bombed. And the said supermarket quickly discovered that their customers weren’t in fact, iPad users.
Thirdly – always seek advice; doing mobile in house can be a costly and risky exercise. Talk to specialist agencies and developers who can demonstrate their expertise and show prior success. Mobile does NOT mirror online and is a completely different experience to desktop – never assume the same tactics will work. There is less crossover than you think, so don’t be surprised if you have to go back to basics.
And finally, always ask the following question (critically – at the beginning of your campaign): How will mobile enhance your customers overall experience of interacting with your brand? Take your time developing apps and smartphone content – a rushed mobile site can be as harmful to a brand image as not having one in the first place. Don’t ever do mobile for the sake of it; like anything else, if it’s not right for your brand, then don’t do it just because everyone else is.
By Nick Marsh, Vice President of Sales and Publisher Development, EMEA at Mojiva.
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