FOR MOBILE DEVICES

Think Apps, Not Ads

Surveys show that 4 out of 5 people dislike mobile advertising

New media require new methods of advertising and those evolve over time

Why the present mobile ads do not work??

Display ads function well in print and ondesktop computers.

But, is the same true for mobile ads??

Mobile is a private venue

Mobile ads pop up in unexpected spaces

THE “FAT FINGER” EFFECT

SOME

• Smartphone apps fall into five categories:• Games and entertainment, which, according to one study, account for

42% of time spent on• smartphones;• Social networks (especially Facebook), which account for another 31%

of smartphone time;• Utilities, including maps, clocks, calendars, cameras, and e-mail;• Discovery, including apps for Yelp, TripAdvisor, and Flixster;• Brands, such as Nike and Red Bull.

Instead of buying tiny banner advertisements, marketers should create apps that add value toconsumers’ lives and enhance long-term engagement with their brands

Why users choose apps??

1) ADD CONVENIENCE

Monitoring of flights

Track bank balances and pay bills through mobile apps

2) Offer Unique Value

NIKE PLUS

an app (originally for iPods, now available formost smartphones) that works with a specialchip in runners’ shoes to monitor speed,distance, and calories burned.

Nike credits the app with having driven growth of 30% in its running division as of 2012

Provides Social Value

Marketers will get better results by communicating with consumers in a format that enhances their lives and offers long-term value

Relation with the Concepts of Marketing Management

A market research plan should be developed in order to understand the consumer needs.

Hybrid Channels and Multichannel Marketing• Today’s successful companies typically employ hybrid

channels and multichannel marketing,multiply-ing the number of “go-to-market” channels in any one market area.• Hybrid channels or multi-channel marketing occurs when a

single firm uses two or more marketing channels to reach customer segments.

Mobiles can be a very important component of multichannel marketing.

GPS-type features can help identify shop-ping or purchase opportunities for consumers for their favorite brands.

DELIVERING VALUE

• Customers are value maximizers. • They form an expectation of value and act on it.• Buyers will buy from the firm that they perceive to offer

the highest customer-delivered value.

Apps are an excellent way of providing value in M-commerce.

Lets have an insight from the Indian Context!!

How many of you were prompted to watch Bombay Velvet after catching a glimpse of the

movie on Star India’s mobile app Hotstar? 

 This was the first time that a Bollywood movie had been promoted on a mobile app and it got viewers talking.

An hour long chat show of the interview of the cast was premièred on the app.

 Next, film studio Fox Star India, a Rupert Murdoch company, rolled out an exclusive preview of the film to Hotstar’s 15-million audience base on May 10. The movie preview comprised four minutes of selected scenes from the film.

INNOVATIVE??

Meanwhile, Sony Entertainment Television, part of television broadcast company Multi Screen Media (MSM), premiered its mythology-based series Sankat Mochan Mahabali Hanumaan last month on its mobile application Sony LIV. The online premiere took place at 12 noon on May 4, eight hours before it debuted on television screens on prime-time the same day.

This has now become a ritual as every episode of the show is first aired on the app, followed by a telecast on TV.

Many travel companies are giving extra discounts on bookings from mobile apps

These examples reflect that people are beginning to understand that brand value can’t be developed by cheap advertisements

DISCLAIMER

Created by Ankur Agrawal, IIT Kanpur, during an internship by Prof. Sameer Mathur, IIM Lucknow.www.IIMInternship.com