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Apps, Advertising and the Alternate screen

Mobile apps based marketing and brands are tasting a new flavor these days.

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Pratima Harigunani
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INDIA: Sea gulls were floating and so was the anticipation of seeing a shoreline soon. The winds carried a strange waft, the color blue above and below was already turning a millionth shade, the waves were mischievously vague as ever and some confused clouds joined the blurred-and-fuzzy mood of the day.

Just when he thought he had made sense of the shape of one of these clouds, he spotted ‘it’, bobbing inquisitively towards the keel and appearing a tad exhausted as if concluding a long and endless journey.

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The bottle with the strip of paper blanketed inside was a strangely-reassuring sight for any ship-dweller, and he hastened to make the most of the mystery by dropping a net and pulling out the weary postman.

Two minutes and a cork’s pop later, he was busy deciphering the message scribbled inside. So, yes, there was an island approaching and the archipelago owner had been generous enough to mention a lot of trivia about the destination. The message was calligraphy at its best and crafted exquisitely enough to ensure that anyone who got the bottle would be tempted enough to visit the island once.

But ‘anyone who got the bottle’! That was the tricky part.

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May be not centuries back when pirates and fearless explorers inhabited oceans. But today, as he was reading the runes from the bottle, his scene on the deck was animated with a different timbre of excitement.

Pigeons of many colors, surprisingly corresponding accurately with the intended recipient’s dress – blue, red, teal, tangerine and even pastel- fluttered around, landing smoothly on the hands of passengers and staying perched till they consumed the message tucked in their beaks.

Every pigeon had brought news about an island approaching and every passenger read a different detail. If a woman talked about flowers as she rolled back the message neatly, her husband hushed about some spice parcel he awaited there. Someone read about the unique soil on the island, someone was enchanted with the sheer variety of fruits to expect and someone else chirruped with joy at the very mention of coconut water.

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Same island, but different angles, ferried by different pigeons.

No doubt the bottle has always been and will perhaps remain more poetic than aviary, but then, to the horror or awe of bottle-senders and even receivers, there are more pigeons out there in the sky and for some reason, they are flying faster, longer and reaching precise shoulders.

Vessels that can fly and in umpteen colors - now that has always been every marketer’s dream. Targeted advertising, measurable advertising, actionable advertising – who wouldn’t want that? Albeit, if it was only possible and affordable.

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The decks that we walk on couldn’t agree or wonder more. The mise-en-scene around is slowly but eerily changing a lot here too.

No matter which way we swing the penetration of smart phones, web and an ever-evolving breed of gadget accessories in our daily lives, we will keep marveling at the pace and manner in which TV, the first and so far, the only screen for millions, is being challenged for attention, affection and loyalty by these new mistresses.

There was a Nielsen survey that showed that 88 percent of tablet users and 86 percent of Smartphone users are looking elsewhere, busy on their devices while watching TV, and for tablet-users, the level of second-screening can be up to 45 per cent on a daily basis.

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They could be doing completely unconnected tasks, like email or networking. Or. Well, yes, this is where things get more interesting – or they (as many as 29 per cent) could be searching or extending information relevant to the TV program they’re currently watching. This could mean more- what if 20 percent are those who look up for more details about a product after a recently viewed commercial?

An Adobe's TV Everywhere report hinted too that pay TV subscribers are picking other devices to authenticate and access programming, with TV Everywhere consumption has grown 246 per cent year-over-year across devices, and 21 per cent of pay TV households accessing TV Everywhere content across devices and browsers with a 31 per cent surge.

It could mean that the pigeons have finally arrived. What remains to be decoded though is what took them so long, or more importantly, are they going to stick around?

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Apps are H-app-ening

App vendors or developers could be finally at the inflection point of the right innovation curve when it comes to making the elusive dream of every marketer possible – the moment of truth. The utopia of capturing the customer’s eye or ear or heart at the splitting second when it matters – A fantasy that brands have been chasing since ever.

In general, there are two things happening simultaneously, as Brian Vellmure, a noted author and advisor points out. “There is an explosion of marketing tech startups filling very narrow niches and needs and a race to create cloud based marketing platforms by the large vendors.”

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Ashish Chordia, CEO, Founder who is steering a fascinating start-up and radical platform named ‘Alphonso’ in this space and wielding a new hammer for some stubborn nails that have been sticking out for too long now, explains that TV spend continues to be huge across the globe $250 billion annual spend. In US 70 billion plus and has grown every year by five per cent year over year for past many years.

This year was the first time there was a slowdown in US TV spend about five per cent. But keep in mind that a five per cent of $70 billion is $3.5 billion which bigger than the entire mobile video ad market globally! In India TV is growing at a massive clip. So TV is the mass / reach medium and will continue to be.

“Mobile, Tablet growth is massive and across the world every home with a TV has one or two smart phones. In US this number is 2.7 devices per household. Engaging users on mobile while they watch TV makes sense. Doing it on a single app hasn't worked - e.g. IntoNow, GetGlue, Miso, Clickr etc. all these were mobile social apps trying to engage users who were watching TV. None of them worked. VCs spent over $200m in this space in 2009-2012.”

He demystifies further. “GPS on devices informs where the devices is, there needs to be an always available service that tells the various devices what is on TV all the time when these devices are next to TV - be it a mobile phone, a table, a set-top box, a TiVo, a roku, a chromecast, an apple watch etc. - so this is what Alphonso does.”

Jason Morse, Vice President, Mobile Products at Criteo, a performance advertising technology company, concurs that many app developers are at the right point in the innovation curve for taking advantage of that ‘mobile moment’, where the right advertising or service can be delivered to consumers timed perfectly with the needs and desires.

He cites how many apps are designing their apps with advertising in mind to balance the user experience with revenue and business objectives. “The increase in use of ‘native advertising’ is also a positive sign that integration is being done in the right way as well. Finally, the mobile app developer industry is beginning to work together on technologies such as ‘deep linking’ which allow apps (and advertising) to deliver a user directly to the location inside of the app which is most relevant for the user in order to take advantage of that moment of truth to the utmost.”

Mobile devices are very personal provide a unique opportunity to engage with customers, Bala Krishnan, Co-founder and Head of product for Peel chimes in here.

“ People tend to choose a handful of apps that they use regularly and are typically more engaged with those apps than equivalent websites or other media. Unlike desktop web opportunities, people carry their mobile devices with them where ever they go. “

He indicates how Peel's user surveys show about 85 per cent have their smart phones with them when they are watching TV so it is a great opportunity to provide an actionable opportunity synchronously to one provided on TV programming.

With almost 60 per cent of U.S. consumers reporting multi-device use, and more than a third owning one of each mobile device – laptop, Smartphone and tablet – it is critical for retailers to reach their shoppers across screens. In order to capitalize on this opportunity, marketers must be able to seamlessly engage with their customers across devices and platforms, Morse had noted.

"We've entered an era where the multi-channel, multi-device consumer has become empowered to discover, explore, purchase, and engage on their own terms,” as Brendan Watcher, Principal Analyst, Forrester Research had been cited highlighting in a Criteo announcement. “It is now the burden of marketers and advertisers across all industries to align with their customers’ behavior and find ways to deliver value and relevant content at every digitally enabled touch point."

It is easy to grasp this sudden shift in the way things worked so far. Application development, and the whole ecosystem and maturity curve around that, as a whole has been witnessing a new level altogether.

Raghavendra Prasad – CEO, AppDra , tracks the changing contours of applications as a market. He is confident about the monetization aspects picking up speed and observes that unique apps are demanding and even getting their right share of wallet, in a price-sensitive market like India. “Platforms, SCRUM, agile development methodologies, and many other factors have seen the industry evolve. App vendors are definitely on the right track with 'Experiential marketing', as your apps are definitely best marketed by providing an experience to your customer than bombard them with jargon's describing your product which most often are beyond the understanding of your lay customer.

The 'Experiential marketing' strategy works a lot better in the app industry with new apps developed every day, as this is an industry best sold by providing your customer with an experience of your product, letting them relate their needs with features of your app.”

Prasad illustrates with some apps. FactorySnap which is a photo activation platform that enables the consumers to like, follow and engage through various social media platforms such as Facebook, Twitter and Pinterest.

The series ‘Game of Thrones’ is one of the most watched television series in recent times, the popularity of the television sore to heights mainly because the makers engaged the audience and built a community across various social and digital platforms including mobile apps, he explains.

For any player looking at capturing gaps with the force of innovative answers, the need is first to ask yourself: Whether being a first-mover be important or attaining a certain level of value or scale on the other hand, Dr. Deepa Mani, ISB sketches out poignantly when considering the question of innovation growth.

She also weighs the strength of being segment agnostic here and cites Google as a player that has played the platform approach very well to its advantage. This requires the ability to scale rapidly, to build momentum fast and be customer-agnostic, she stresses. “Unless you have an Apple-like approach, Smartphone segmentation may not necessarily work in this market.”

But the issue is less about app developers not providing a more engaging experience or advertising opportunity, but really about advertisers and their agencies failing to take advantage of the new second-screen opportunities through lack of resources or creativity or perhaps a bit of laziness.

“As for a pull vs. push, you always have to be careful about delivering unwanted messages, particularly to something as personal as a mobile device. But mobile devices provide a great opportunity to create timely, customized opt-in experiences that can really provide value to the customer and thus a positive experience for the advertiser. On the one hand, it is relatively easy for users to manage and control messaging preferences, and on the other, advertisers and app developers can take advantage of the device's awareness of its surroundings to provide appropriately targeted advertising.” Krishnan reminds.

Pigeons flying in a storm

So while mobile could be accounting for two out of every five digital ad dollars, as per Forrester’s expert Jennifer Wise, we would also need to shift our gaze deeper and ask why today mobile ads too often underperform compared to ads delivered on PCs, and some marketers remain hesitant to invest. “This move would let marketers target mobile users based on their online behaviors and measure whether people convert from their computers -- both huge steps forward in proving and improving the value of mobile marketing." Wise had interestingly mentioned.

As per a Forrester research, seven per cent of marketers do not have defined mobile objectives, despite mobile now representing more than 20 per cent of overall traffic to websites in both the US and EU, and also 29 per cent marketers are still experimenting with mobile measurement techniques, and more than a quarter currently use mobile to 'appear innovative.

Digital advertising is still an inexact science and not every dollar will be spent wisely, Krishnan admits. “But digital definitely provides a better opportunity to test and improve messaging and creative, and greater track-ability and accountability. Our ‘True Tune-In’ advertising, which is currently only available in the US but will arrive in India shortly, is a great case and point. We allow TV advertisers to know exactly what their return on investment is in terms of how many people have tuned-in to their shows by tapping on a promotion in the Peel Smart Remote app. This is something they can't get even from digital advertising banners, let alone from billboards, print or TV ads.”

Digital, and especially mobile, definitely provide a more actionable and measurable medium versus TV. One of the interesting issues this raises is how few TV marketing dollars are spent on measurable, actionable media. “I am referring to the dollars that the TV networks themselves spend on promoting their shows. This is where the Peel Smart Remote app really differentiates from its competitors. Not only can we literally change the channel for a TV show advertiser, but we can track and report on every channel change they generate from a campaign.” He avers.

Chordia is confident and pragmatic about the space. “As services like Alphonso (there are others who do this as well, we are not the only one e.g. Shazam), take hold - globally we will be better able to tell who is watching what on TV from shows to very granular ads to the millisecond - and who is engaging with which content. This makes for some great possibilities, since panel based measurements have failed us many times over the past decade. We can not only personalize the experience on mobile / digital ads and apps - we can also take the data from the mobile exposure, engagement and clicks and feed it back to TV!”

He urges to think about that for a second. “If you see a BMW ad on TV then also sees a few BMW ads on mobile and if you happen to click and engage with the ad then later maybe you should see more BMW ads? Maybe you are in the market to buy a car so we should show you more car ads? The set-top box at home is getting smarter and even today Tata Sky can send you a different ad and another to your neighbor - they just don't have data to do this well currently. This unlocks your $250 billion economy globally, makes it more precise and measurable and in the process EXPANDS it - I expect the TV related advertising budgets to increase as a result. It is not a zero sum game - it is an expanding pie where both digital and TV wins with growth. I predict globally we will have double the ad supported economy in five years.”

This accentuates the question that looms like a ghost in the air and haunts advertisers again and again.

Branding Dilemmas and Wish-lists

Does this new genre of digital or virtual branding really get a grip on the 'Aperture concept' of wooing customers at the 'exact millisecond'?

Would it ever solve that puzzle for every advertiser when he sighs 'I know half of my advertising dollar is wasted, it's just that I don't know which half'?

Now since we have moved everything to Digital Space, optimum utilization of Aperture Concept becomes very critical, Digital Marketing is really nailing the aperture concept by using the screen size and Ad space to the fullest, now all the companies know where their buck is being spent, With Digital Marketing, SEO, SEM, Analytics and other latest tools/methods, every advertiser can know what returns he is getting for every dollar he is spending, Demographic data makes it easy for brands to understand their audience and identify customers, Prasad reflects.

Morse argues that there are very clear signs that advertiser are better able to measure ALL their advertising spend on mobile and specifically in-app. “For instance, app installs or acquisition campaigns are very closely measured and nearly all budgets are precisely measured across any mobile ad network. Marketers are very precisely able to measure the cost of a customer installing their application but also the lifetime value of total spend the customers have, attributed all the way back to the campaign and originating source of inventory.

In addition mobile marketers are now often able to target users and measure the effectiveness of campaigns across multiple screens and devices. While some non-digital spend remains outside the full circle of measurement it is clear the app specific marketing is certainly able to support.

The issue here for many is really the availability of resources to customize the experience for second-screen viewers, Krishnan opines. At this point in advertising evolution, second-screen is usually a smaller portion of a larger ad buy, and often becomes an afterthought when it comes to creative execution. So the easiest, quick, least expensive thing to do is to port the creative from another medium. But, he explains that this doesn't really take advantage of the second-screen device's capabilities, and higher potential for direct engagement with the consumer. “Smart advertisers will try to devote the extra energy to create a customized experience that takes advantage of the second-screen device, and provides a better user experience for customers so they are not squandering their marketing investment.”

As to action ability and other aspects, Morse asserts that mobile advertising strategy absolutely makes many campaigns more actionable. With the ability of apps to support payments directly, either through in-app purchase via the application stores or through streamlined credit card integration payment systems like Apple Pay and Google Wallet marketers are able to see and measure transactions instantly, he contends.

“Also, if you look at companies like Uber and other ‘instant delivery services, they are all fine tuning their marketing daily to take full advantage of results.”

One area that comes to mind for improvement is the time required to install an application. For instance, visiting a website for the first time via an advertisement or we blink takes no more than a few seconds, sometimes less.

However to ‘visit’ or install a new application takes several minutes and often multiple levels of authentication. Many consumers do not have the time or perhaps network access to perform that app install action and thus app developers miss out on gaining a new audience.

The big mile that these pigeons need to still cover remains daunting. Digital has to move beyond being just an extension or more than some sloppily-pasted wallpaper. Can it ever become more organic, non-intrusive, seamless and smooth for the viewer? That too, while balancing feet on other slippery wedges of the cliff like avoiding dangerous risks and fiascos like the Ford Figo viral incident.

Prasad slices it this way. “JWT’s concept for Ford Figo was outright offensive, hitting that sensitive nerve of women violence by depicting three women gagged and thrown into the boot, almost at a time when the world was raving about and discussing aggression against women. This teaches us a few very important lessons. Your marketing propaganda need to be sensitive to the local current scenario of the region/audience targeted at. The internet is not a gentleman’s club and is never going to be, to which one must be careful in crafting your campaign to avoid, being criticized for/trolled at as in today’s case(similar to the Ford Figo campaign).”

So if agencies are even slightly serious about having a culture that welcomes and encourages failure, they should proceed with a certain lightness of touch. Many of today's best loved campaigns (Vodafone's Zoozoos, Happydent) have been the result of radical creative leaps, unrestrained by conventional wisdom and to which logic and method were applied only after the creative act was over and done with, he warns.

Krishnan is clear when it comes to discerping risks. “Any time you try to push the envelope, there are always risks. But the benefits in terms of higher engagement, and greater return on investment that a unique, second screen experience will bring makes it worth it.”

In Morse’s reckoning, the key thing for digital is to make the experience as seamless to the device, screen and type of media which the consumer is using. “For instance, the campaigns that will likely not see good performance are ones where the creative was originally developed for one media (say print) and used on the mobile application. Another big mistake advertisers make is not anticipating what action the user will take or providing a bad user experience.

For instance much mobile web campaign (and some in-app campaigns) have the user click to a non-mobile optimized website or even sometimes a website that uses flash which cannot even be viewed on most smart phones. So it is very important to think through the entire user experience and even ideally have the marketing team behind the advertising campaign actually go through the experience on the device!

Customers are like moving Target- They keep changing their priorities, practices and interests, hence the advertiser has to keep the customers thought in mind before creating a strategy, as customer tastes and preferences can affect the demand. Aiming at the wrong Audience- can be costly as digital marketplace is very sensitive to geography, age, sex, and every other factor one can think of.

Prasad recommends that clear Segmentation of the marketing category is very necessary or it becomes very tough to design a suitable marketing strategy, hence poor results, and behavioral marketing allows brands to identify their highest value segments. “Eg: Toyota Scion was manufactured keeping youngsters between 20-25 in mind, Toyota went so aggressively that they even removed that brand name as they felt it sounded old, But the car ended up being a rage with the older lot. The advertisers must be ready to experiment and adopt quickly with the changing market.”

Incidentally, there is lot that flanks both app-makers and app-senders. The biggest challenge facing developers in 2015 is of creating for micro-moments, delivered through platform features like Google Now and iOS app extensions, that will add a third engagement option, as Michael Facemire from Forrester had recently pointed out, “Micro moments require a deep customer understanding - one that reaches deeper than mobile apps and mobile web, the two delivered today - but, more importantly, how they want information delivered.”

Yes, there are still many factors that are still developing wings, and the 'message' itself matters a lot too.

Time, efforts and attention will decide when and how much pigeons mature ahead. And whether any island's temptation, really, as they say- cuts the mustard.

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