A dramatic increase in mobile internet usage among consumers means that mobile marketing is now vital for any marketing mix. At the same time, advertisers increasingly have to deal with restrictions on privacy and data protection. We talk to Jan Heumüller, Managing Director DACH at Ogury, the market leader for choice driven advertising, about opportunities, challenges and the current trends in mobile marketing.
Why is mobile marketing important?
According to the Postbank Digital Study 2020, the trend towards mobile internet use continues unabated. The study revealed that 79 percent of all German people access the internet using their smartphone (second place is the laptop with 71 percent). Among the under 40s, as many as 91 percent of all smartphones are used to access the internet. The study also shows that under 40 year-olds spend 27 hours a week online with their smartphone – which accounts for almost 50 percent of the total time they spend online. Therefore the smartphone or tablet is the device of choice for a large part of the population and the perfect medium for brands and publishers to interact with the user.
What are the main challenges and opportunities when it comes to mobile marketing?
Mobile is the most personal and at the same time the most intimate medium and therefore for the user can mean concerns about important issues such as privacy and data protection. For a long time, users have been led to believe that the internet is free, but in reality they pay for content with their data without knowing it. Users now know the value of their data. Particularly since the GDPR (General Data Protection Regulation) came into force and the success of Netflix productions such as "The Great Hack" or "The Social Dilemma". As a result they expect to have choice and control over the way in which digital advertising is played out to them.
What are your mobile marketing strategies and which ones work best?
With more than 15 years of management experience in AdTech companies, I have seen many trends come and go at the European level. Some of these trends were pure "buzzwords", which disappeared quickly. I think that the digital advertising market has been opaque, in parts even fraudulent, for too long and I firmly believe that this approach is a thing of the past. The digital industry needs a thorough overhaul.
Advertisers, publishers and users need digital advertising that is clear, understood, trusted and valued by all. This new digital advertising must be based on freedom of choice for the user. I also think that the "performance race" has almost led to the collapse of the advertising industry. Marketers have been looking for measurable results at the bottom of the funnel and have forgotten the real purpose of advertising: discovering and experiencing brands! For me, advertising is about helping people discover brands and products, not about driving people to buy or download things they already have or don't need.
Are there differences between B2B and B2C?
There isn’t really any difference between B2B and B2C, because in the end it's all about the user. Whether it is a B2B brand or a B2C campaign addressing the user – they should have made an informed, enlightened choice as to whether and in what form their data may be used and which advertising experience they choose.
Can you tell us some of your best cases?
Let's take the example of a campaign we recently executed for Volkswagen. The car manufacturer wanted to use a mobile campaign to promote its flagship car, the new Golf, and not only to reach the ideal target group, but also deliver a video campaign with maximum user engagement. Based on the behavioural data of 400 million users worldwide (18 million in Germany), the campaign targetted the following three groups: young adults, urban families and settled couples. In order to achieve high advertising effectiveness with the highest ad recall values, these target groups were played the Video Chooser format, which allows users to watch only the video they want to see. Advertising recall was measured using a video advertising KPI and with a viewability of 97.2 percent, the campaign performed very well.
How do you see mobile marketing developing in the future?
Gartner predicts that by 2022 the personal information of half of the global population will be protected by privacy laws. As a result, in the coming months and years the level and frequency of penalties for data breaches will increase. We therefore believe that it is time to make privacy and data security a marketing priority.
We are at a point where the old AdTech ecosystem, which was built on non-transparency and in some cases even fraud, is on its last legs. The entire digital advertising industry is realising the damage done to the industry by the use of data for which there is no explicit user consent and government institutions have begun to regulate the markets. Brands and advertisers must either adapt to this or they won’t be able to survive in the future.
I also think that the global crisis has helped the whole industry to take a step back and refocus on what really matters. If there is anything positive to be found in this situation, it is the chance to pause daily routines and stop the hectic race for short-term performance and profits.