Location’s and Mobile’s Year in Review: 7 Marketing Moments that Shaped 2017
"Looking back at 2017, each example counts as evidence that we live in an increasingly mobile-to-offline world," writes Verve CMO Julie Bernard.
Mobile marketing is moving forward, always forward, tracking alongside the expansion of technology as the consumers’ first — and increasingly only — choice when it comes to how they experience and interact with every industry, from retail to automotive and beyond.
In the home, on the move, in stores, this year was marked by the domination of mobile marketing and by the continued rise of emerging interfaces such as augmented reality. Looking back at 2017, the list below highlights key points within this evolution — each example counts as evidence that we live in an increasingly mobile-to-offline world.
- A year for identifying new location-contextual opportunities. From at-home research to across-the-day moments, mobile and location data are about relevance and personalized moments. This is not just a retail opportunity. Automotive dealers, for example, spend more than $600 per car in advertising, the National Automobile Dealers Association reported in 2017. Roughly $400 of that amount is being spent on advertising channels — including TV, radio, and newspapers — that feature virtually no targeting (as we understand digital targeting, in 2017), and that leave out location data’s window onto context, relevancy, and anticipatory inspiration. As the year closes, aging notions of on-lot conquesting are poised to be replaced by other meaningful mobile moments; proximity-only strategies now represent limited models of ad spend in the M2O world.
- Apple’s ARKit earned powerful adopters. Augmented-reality got a boost this year when IKEA, a longtime adopter of consumer-friendly 3D-image technology, took a remarkable lead with its AR-focused Place, quickly embracing Apple’s ARKit in the process. The app allows consumers to combine shopping with the realities of their location — viewing furniture at true scale in their homes. Meanwhile, monitoring social media, the company noticed that consumers were complaining about the lack of a search feature for Place, and so they added one, deploying a new version in five days. Innovation plus responsiveness gave IKEA a 2017 mobile-marketing win.
- AR developers didn’t unveil a post-Pokémon follow-up, but AR did make retail inroads. Rather than a next-generation follow-up on 2016’s Pokémon GO success, what we saw was a push for incremental AR solutions — testing and deployment that largely depended on answering consumers’ wants and needs. See the IKEA instance, above, for example, and there was also this hail-Mary effort by Toys R Us to bring consumers back to stores. Meanwhile, the augmented-reality story in 2017 further expanded to different kinds of hardware altogether. As Venture Beat reported, the automobile driver’s cabin is newly poised to become automotive’s canvas for an entirely different kind of mobile AR space.
- Apple drew a (blue) line between mobile users and unchecked location-data practices. The iOS 11 blue bar for location lit up the conversation around consumer location-data access. The net outcome was a consumer boon, with Cupertino’s later revision — user opt-in will mitigate the blue bar requirement for selected apps — making the experience even more palatable for consumers that know the apps they love. In all cases, the core of Apple’s move means flagging battery-drain offenders and potentially unscrupulous data collectors.
- Mobile-ad spend increased (and the duopoly won’t claim all of it). Adweek reported this year that as much as 70 percent of digital-ad spend ended up on mobile’s side. That’s amazing news, even if it comes with the caveat that 60 percent of that spend ended up in the coffers of Google and Facebook. For the rest of us, for mobile-marketing’s innovators and leaders, there is still so much to claim — if the stats are accurate, some 40 percent of mobile-ad spend remains for the taking. Tomorrow’s leading organizations will grasp their share of it next year and in the years to come. Bottom line, the M2O landscape has room for us all.
- Amazon made moves to claim market share. Marketing Week sees Amazon growing its global digital ad revenue into a $2.84 billion business by 2019. Mobile is part of its play: “They have a search engine, a programmatic stack, premium content and one of the top five apps,” Kristin Lemkau, chief marketing officer at JPMorgan Chase, told Business Insider. In 2017, Amazon made inroads to retail experiences and customer touch points as well: partnerships like the one it forged with Kohl’s — the brick-and-mortar started taking Amazon returns in 2017 — stand to drive meaningful conversions (customers make new purchases about half the time during a return), and they stand as strong arguments for partner-brands to put more digital-ad spend in Amazon’s pockets as these relationships develop.
- And, we learned, fully realized mobile creative is not abbreviated TV. An important mobile story emerged as Dove took a TV spot, cut it down to about three seconds, and ended up with a social-media emergency. The spot, in its shortened format, left out critical elements of context — in effect, one of the images in the mobile version appeared to be racist. Moral of the story? You need to create for mobile; you can’t simply trim a TV spot and assume you’ve retained your message. Mobile consumers are super-aware of context and they are always alert to moments they can share — and sharing means outrage as well.
As a final note about 2017, we may well look back on this year as a tipping point — a moment when the mobile data-privacy equation went internal. In two cases, with Three Square Market implanting RFID chips in 50 employees’ hands — part of an IoT program at the company — and with the FDA’s approval of an ingestible sensor pill that can track medication from a patient’s insides, the doorway to a new era of data-collection and policy complexities crept open.
The above examples show that mobile marketing strengthened, evolved, and approached the threshold of exciting new steps in 2017. As we ramp-up for 2018, the work we’ve accomplished will fuel the industry’s success in the months to come. Happy new year, mobile marketing — you’ve never looked better.
*As Chief Marketing Officer, Julie Bernard leads Verve’s brand strategy, marketing, analytics and creative services. Julie was previously SVP of Omnichannel Customer Strategy, data science, loyalty, and marketing technology at Macy’s, where she was recognized as a customer-centric leader implementing data-driven approaches for strategic growth, including award-winning personalized communications at scale, first-of-a-kind loyalty programs, and modern media attribution techniques. Bernard previously held executive leadership positions at Saks Fifth Avenue and XRoads Solutions Group, a boutique retail consultancy.