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The

Gragg Mobile Playbook


The mobile marketing universe is moving faster than ever. Its this emerging spirit thats inspired
the 2014 Gragg Advertising Mobile Playbook. Consider it a game plan to help you maximize your
marketing potential in new ways. Use it to make an impact on your audience in the space they
live in every day. From all of us at Gragg, heres to making the most of mobile this year.

2014

Table of Contents
Click on any section title to view a desired page.

The Gragg Mobile Playbook ........................................................................................................... 3
Multi-Screen Branding ................................................................................................................... 4
Social Media Diversification on Mobile Devices .......................................................................... 14
Click To Call .................................................................................................................................. 20
Two-Way Conversations .............................................................................................................. 26
Mobile TV and Radio .................................................................................................................... 29
Mobile Apps ................................................................................................................................. 33
Emerging Mobile Trends .............................................................................................................. 39
Mobile beyond 2014 .................................................................................................................... 42
Appendix I .................................................................................................................................... 43
Appendix II ................................................................................................................................... 46

2014 Mobile Playbook

The Gragg Mobile Playbook



How to move forward with mobile

For nearly 10 years, the world of digital marketing has seen the mobile channel rise in prominence year
after year. Changes are happening at an exponential rate. Amidst them all, many marketers, CMOs and
agencies have continued to wonder how to stay competitive and successful with such a dynamic
platform. Its this ecosystem of change that has prompted Gragg Advertising to develop a mobile
playbook. A place to get your bearings on how far weve come and how to move forward with a solid
mobile strategy this year.

2014 will be a watershed year for mobile as web usage via mobile devices is expected to surpass that of
desktop computers. Even so, many companies still have yet to fully embrace mobile and often struggle
with how to be successful in the mobile space. Gragg Advertising has been actively engaged in the
mobile channel for more than 10 years now, and we know what tactics are most effective for customer
acquisition, retention, inquiry generation, sales, branding, and consumer engagement.

Even though the mobile channel can be a daunting arena for many, we hope this playbook can provide
more than a high-level overview of whats happening in mobile. We also want to be so bold as to
forecast pertinent trends and technologies, as well as provide tactical and strategic recommendations
based on our own empirical data.

Like any marketing channel, there is no silver bullet or magic remedy that works for every company in
every situation. This playbook is designed to help marketing teams and corporate executives realize
what they can accomplish in 2014 with mobile.

For some, it will be finally creating a branded mobile application, or testing the ability to engage with
prospects or customers via two-way texting. Others see the importance of embracing responsive web
design in their websites and e-mail marketing material. For everyone, understanding the dynamics of a
multi-screen consumer and winning the moments that matter will be crucial when forming your next
move in the mobile space. From all of us at Gragg, we look forward to helping you wade through the
mobile universe in 2014, and were excited to see which strategies and tactics work best for your
brand.

2014 Mobile Playbook

Multi-Screen Branding
Reaching your audience where it counts

In todays media
landscape, 90% of all
media interactions are
screen-based. Were
seeing an explosion of
multiple device usage
that will continue to
change the face of
branding. Consequently,
its also redefined the
importance that we
place on traditional
media. Media
consumption in the
digital world is split
among PCs, smartphones, tablets and TV, which presents opportunities to brand strategically
once you understand how an audience engages each one uniquely.

The revolution isnt about the


technological advancementsit is about
the power of consumers to choose and
define the world, the media, and their
own interactions and communications.
They expect more from brands

-via Bob Jeffrey,

ADWEEK




2014 Mobile Playbook

Understanding the role of devices in our lives


PCs Keep Us Productive and Informed:

Usage Characteristics:
Primarily for office or home use
Productive task-oriented, such as conducting serious research

Smartphones Keep Us Connected:



Usage Characteristics:
Used on the go
Users need information quickly and efficiently
Users are motivated by communication and entertainment

2014 Mobile Playbook

Tablets Keep Us Entertained:


Usage Characteristics:
Primarily used at home
Used for entertainment and browsing
Users take a relaxed, leisurely approach

TV No Longer Commands Our Full Attention:



Usage Characteristics:
Consumers search for things they see on TV
Consumed simultaneously with other devices
Users primarily looking for entertainment

2014 Mobile Playbook

Understanding the modes of multi-screen users

The multi-screen world has opened up new usage habits that media consumers have adopted over time.
These habits continue to change more and more as technology improves and devices become inter-
related. Because of these changes, weve now observed multi-screen users engaging devices in
sequential and simultaneous modes. These usage patterns show how to best present your brand based
on the purposes and methods behind a multi-screen users activities.

2014 Mobile Playbook

Understanding sequential usage


Sequential multi-screen usage occurs when a task is completed over time across more than one device.
Sequential multi-screening is mostly completed within one day. 90% of multi-screen users sequentially
accomplish a task over time. How they start their search, and how they jump between devices, can
reveal a lot about their end goal. Heres a breakdown by device of the intent behind where users begin
their sequential multi-screen activities:

Smartphones

Smartphones are the most common starting place for online activities. Popular tasks include
conducting searches, browsing the internet and shopping online.


PCs

PCs are most often a starting point for more complex activities. For many users, PCs are used for
managing finances or watching a video. Many times, these tasks are continued on a smartphone or a
tablet.


Tablets

Shopping and trip planning often begin on a tablet. From there, most users will continue this task on
a smart phone and, finally, on a PC. Search and browsing are also among the popular tasks people
use tablets for as well.


2014 Mobile Playbook

Understanding simultaneous usage


On average, consumers use three different screen combinations daily, with smartphones acting as the
most frequent companion during simultaneous usage. This simultaneous usage has redefined TV. 77%
of television viewing is being done with another device at the same time in a typical day. The rise of
simultaneous usage has furthered our understanding of how activities relate among between devices. In
the end, your brand will benefit by taking advantage of critical moments in a users life.


Key insights for simultaneous usage

Emailing, browsing and social networking are among the most-performed activities during
simultaneous usage. This type of multi-tasking can be partly driven by habit but also by the
newfound ability to be efficient in every moment of the day.

Most consumers who simultaneously use devices are juggling different activities at the same time.
78% of simultaneous usage is multi-tasking between different projects. Popular pairings include PCs
with smartphones and TV with PCs.




2014 Mobile Playbook

Success stories in multi-screen branding












































TOMS Shoes

Packaged Goods

TOMS Shoes was looking to spread


awareness for their One Day Without
Shoes event to their targeted
demographic of young adults 18-34.

They developed a multi-screen
campaign through PC, mobile phone
and TV. The activity spanned 4
countries.

Nearly 80% of viewers went online or
walked into a store to buy TOMS shoes.

Aided Awareness b y number of screen
views: 1 screen 55%, 2 screens 77% and
3 screen 96%.

A Fortune 100 brand in the food industry


reinvented a product and was looking for
ways to increase favorable opinions
among their target demographic of
Women 25-49 with young children.

They targeted moms on smartphones
from 6am-9am, when they were most
active on the device.

They displayed online video and banner
ads throughout the day.

The combined mobile & online video
campaign generated a 22% lift in
favorability.

The device-variation campaign generated
a smartphone interaction rate 48% higher
than the industry norm.



Collective. Multi-Screen Advertising The
Right: Audience + Creative + Device + Daypart.
2013

Collective. Microsoft Advertising. Whats


on their screens. Whats on their Minds.
Interpret Research, May 2010

Home Insurance

A home insurance company generated a series of mobile and
online display ads that ran simultaneously to promote brand
awareness.

Awareness increased 50% among those who had seen the


mobile ad, and then increased to 114% when consumers were
exposed to both online and mobile ads.

Collective. Microsoft Advertising. Whats on their screens.
Whats on their Minds. IAB UK Mobile & Internet Brand Advertising. Dec 2009

2014 Mobile Playbook

10

Responsive Design

Many articles in 2013 were written about the merits and worthiness of responsive web design
(RWD), so by now the concept is fairly widespread. For those who havent adopted yet, RWD
takes content and renders it in an optimized viewing format for any device (tablet, smart phone
or desktop). Giving e-mails and websites a RWD treatment is not only optimal from a usability
standpoint, but Google and other search engines have made it clear that having one site with all
content on it will boost search engine rankings over sites that have mobile redirects or use
other treatments to display mobile content.

Advantages of Responsive Design


The most notable advantage to using RWD is that now a mobile visitor can access all the
content that is on a website, as opposed to seeing only the abridged versions of sites that have
traditionally been placed on mobile domains. As devices get more advanced, so do the
browsing habits of users. RWD solves this issue by allowing consumers to be fully engaged with
brands while on their devices instead of just seeing snippets of pages and content.

2014 Mobile Playbook

11

RWD in E-mail

While mobile devices have ushered in a new era of the constantly connected, e-mail still remains at the
forefront of activity for mobile users. Data from December 2013 from e-mail research firm, Return Path,
showed that 51% of all e-mail opened worldwide was done via a mobile device. The open rate for
mobile devices nearly doubled those of desktop (27%) and webmail (22%).

In July 2013, Deloitte, a professional services firm, conducted a poll on the popularity of mobile devices
and the e-mail habits of users. Checking e-mail (both work and personal) was cited by half of the
respondents as the top content activity performed on tablets, and nearly 75% of smart-phone users
ranked it atop their activity chart.

E-mail service providers and delivery systems that allow HTML designs to be imported into their systems
are in great position to maximize the high open rates on mobile devices. Importing HTML into the
system enables responsive design within e-mail marketing material and helps reach mobile users
effectively.

Marketers who take advantage of the mobile channel in their e-mail marketing campaigns are seeing
the ROI hit the bottom line. 2013 Q3 data from e-mail service provider Yesmail showed that there was a
dramatic increase in revenue per click from mobile devices compared to desktop ($7.14 v. $3.26).

Winning the moment that matters



Multi-screen branding points to a phenomenon in how we experience time. Users have a renewed sense
of found time that they have never had before. These micro-moments are ones where people can
now seemingly accomplish more than ever. Consumers are using this renewed sense of time to do
everything from searching, shopping, communicating and finding entertainment.

For marketers, knowing how and when to make the most of these moments is critical to their business
success. Consumers may be distracted more than ever, but we know at least they are paying attention in
unprecedented ways.








2014 Mobile Playbook

12

How to use multi-screen branding in your 2014 mobile strategy:



Understand the ways that people consume media across all types of devices.

Aim to drive consumer engagement on devices by using other devices as catalysts for engagement.

Closely align TV strategy with digital marketing strategies.

Implement a mobile strategy core to your business it may be necessary considering mobile
serves as the backbone of our daily media use.

















2014 Mobile Playbook

13

Social Media Diversification


on Mobile Devices
Redefining social media through mobile


Its no secret that social media heavily defines much of our online
experience. However, the way in which mobile users continue to use
social media will largely define how it is used to:

Virally spread content and messaging


Increase visibility of content in search engines
Increase social buzz
Establish social proof
Build brand awareness
Reach new audiences through user networks


To properly engage a mobile audience through social media, communication should be educational,
enlightening or entertaining. Inherently, mobile devices expand the role of social media channels by
providing easier and immediate access to instant communication and conversation. Moving forward,
utilizing various social media channels with proper engagement tactics via mobile devices is essential for
the future success of your overall mobile strategy.

2014 Mobile Playbook

14

How social media is consumed on mobile


Social networks

Establish various ways to interact with friends, family and professional connections
Examples: Facebook and LinkedIn

Social news sites



Allow users to vote for their favorite news items, articles, links etc., leading to the community
determining which items are more prominently displayed based on the voting
Examples: Digg and Redditt

Bookmarked sites

Allow users to save, organize and manage links to various resources and websites through
tagging, to make them easily searchable and sharable
Examples: Delicious and Stumble Upon

Microblogging sites

Allow users to share updates and send short messages to subscribers
Example: Twitter

Media Sharing

Allow videos, photos, podcasts and documents to be uploaded and shared- Most have
additional features such as profiles and commenting
Examples: YouTube, Flicker, Instagram

Blogs

Allow conversations to build through message posting- Comments are commonly centered on
the blog topic
Examples: Blogger, Wordpress





2014 Mobile Playbook

15

Mobile traffic forces social media sites to adapt



Facebook recently reported that 819 million of its 1.15 billion users (73%) during Q2 2013 came from
mobile devices. These changes point to an industry-wide shift, forcing marketers to ensure that their
mobile platform provides a more-than-optimum experience. Facebooks 2013 stats year-over-year show
the explosive nature of mobile social media.

543 million of 955 million (56%) in Q2 2012
325 million of 739 million (43%) in Q2 2011
155 million of 482 million (32%) in Q2 2010

Facebook Mobile Trac vs # of Users


80%

73%

70%
56%

60%
50%
40%

43%
32%

30%
20%
10%
0%
Q2 2010

Q2 2011

Q2 2012

Q2 2013

Facebook Mobile Traffic vs # of Users


1,400,000,000.00
1,200,000,000.00
1,000,000,000.00
800,000,000.00
600,000,000.00
400,000,000.00
200,000,000.00
0.00
Q2 2010

Q2 2011

Q2 2012

Q2 2013





Mobile
T rac

# o f F acebook
Users




2014 Mobile Playbook

16

Making mobile social media diversification happen



Leveraging the various social media sites through mobile devices enhances user experience and brand
exposure, increases visibility, reaches new audiences and benefits technical SEO for organic site
rankings.

Diversification is key for the maximum effectiveness of social media. The ability to strategically place
content and URLs across social media channels is crucial in leveraging those social networks. This can be
achieved by syndicating content across social channels for optimal positioning.

Mobile SEO growth



Now that traditional SEO and social media work together for organic website rankings, the growing use
of mobile devices has greatly impacted online marketing and SEO tactics. As Google is responds to the
rapidly shifting mobile landscape, in which half of all Americans own smartphones and at least one-third
own tablets, 2014 will be the year of mobile SEO.

Googles recent Hummingbird algorithm update was only a small part of a much larger algorithmic
change implemented by Google, which considers a website's mobile performance in determining its SEO
rankings. Thus, having a mobile-optimized website must be top priority in terms of SEO and design
investments in 2014.


Recent advances in Mobile SEO

The latest algorithm updates are helping prepare search engines for the rise of voice search
associated with mobile.

A major factor of Googles algorithms is increased "social signals."

Social diversification is imperative now that Google's updates are increasingly relying on social
signals as active human creation of good content.

Google+ is playing an increasingly significant role in a solid SEO ranking.

Creating content that is accessible on mobile devices is key for diversification and social media
success.

The Content Marketing Institute recently released a study showing that the most successful B2B
marketers are active on an average of seven social networks.


2014 Mobile Playbook

17

Mobile is redefining social video



As sales of mobile devices continue to grow, the sale of PCs, the traditional source of traffic for YouTube,
continue to decline. In light of this change, YouTube has announced that it plans to allow users to save
and watch videos off-line. This new feature will undoubtedly help increase YouTubes mobile viewers
significantly- Users will be able to download videos over Wi-Fi and watch them wherever they go, rather
than having to worry about data streaming and overages. Social video services offered by Instagram,
Vine and Snapchat are also furthering the social video ecosystem. Watching YouTubes mobile growth
reveals how large social video will become in 2014 and onward.

Youtube Mobile Trac %


45%

40%

40%
35%
30%

25%

25%
20%
15%
10%

6%

5%
0%
2011

2012

2013

Social media influences mobile usage habits



Simply stepping outside in any major metro area or on a college campus, youre bound to find people
looking down at their mobile device. For some its out of necessity, but for the majority its a habit
developed largely because of social media. Mobile social media presents the ever-present opportunity
to remain connected. The following table provides a snapshot of how social media influences how we
interact with our phones.

2014 Mobile Playbook

18

Four out of five smartphone users check


their phones within the first 15 minutes
of waking up. 80% of those say its the
first thing they do in the morning.

79% of smartphone users have their


phone on or near them for all but two
hours of their waking day; 63% keep it
with them for all but one hour. A full
quarter of respondents couldnt recall a
single time of the day when their phone
wasnt in the same room as them.

Friday through Sunday, smartphone
users spend 163 minutes
communicating and using social media
on their phones. Monday through
Thursday, they spend 87 minutes.

The average number of
social/communication apps that
smartphone users have on their phones
is 7.4.

The most common sentiment regarding
smartphones is one of connectedness,
far surpassing overwhelmed, stressed
out, burdened/anxious, or lonely.


How to use social media in your 2014 mobile strategy:

Social media must be taken seriously. Employ the pillars of strong profiles, good content,
reciprocity, and engagement.

Ensure that social sharing is enabled for all content.

Content strategy must include a dissemination phase that includes maximizing its potential for
distribution through social networks.

Be active on the social networks that matter in your industry, customers and search engines.

Social media marketing strategy must stimulate various social signals to achieve your goals.


2014 Mobile Playbook


19

Click To Call

Cultivating conversation on the go


Direct response marketing is no longer limited to just TV commercials or desktop searches. Todays
search engines enable users to call directly from a search query or even inside a mobile application.
When it comes to mobile search, a tool like click to call can be one of the most effective direct response
tools available. Click to call provides an efficient way for starting conversations with consumers during
the moments when theyre most likely to make a purchase decision.

70% of mobile searchers use click to call to connect with a business directly from the search engine
results page.

70% of mobile
searchers
use click to call.

2014 Mobile Playbook

20

-Google

Purchase immediacy

Mobile click to call is an essential tool in purchase immediacy. Mobile consumers often need a direct
way to respond to a message or opportunity when theyve made a decision. Achieving a consistency in
this real-time feedback only happens when brands have an effective click to call strategy.
















2014 Mobile Playbook

55%

of mobile consumers want


to purchase within an hour.

-Google

83%

of mobile consumers want


to purchase within one day.
-Google

21

Location matters

With such a high concentration of mobile searches being location-based, businesses must be available to
be easily contacted by phone.

69%

of mobile consumers expect businesses to be


within 5 miles of their location
Google

10%

expect a one mile trip or less Google

2014 Mobile Playbook

22

Uses for click to call


Reasons for calling a business as opposed to using the website



59% To quickly get an answer


57% To talk to a real person
54% To ask more questions or request information
unavailable on the website

44% To accomplish something that cannot be done


through the website

42% Its convenient


Google



52% Check for business hours
47% Schedule an appointment/ make a
reservation

2014 Mobile Playbook

43% Inquire about inventory/availability


43% Inquire about or compare pricing
39% Get directions or local information

Google

23

The risk of no call button



Lack of a call button can damage a consumers perception of a business. In the moment, its usually the
tool they need the most to connect with you. The following facts breakdown the percent of people who
say the following statements describe how they feel when unable to call a business directly from the
search results on their smartphone:

47% More likely to explore other brands


47% Frustrated or annoyed
35% Disappointed in the brand or company
33% Less likely to use the brand/company in the
future

33% Less likely to recommend the brand


27% Less trusting of the brand or company

Google

The benefits of having a call button are evident in overall mobile search
ad performance. The addition of a call button increases in-ad click-
through rate by 8%.

+8%
CTR






2014 Mobile Playbook

24

How to use click to call in your 2014 mobile strategy:


Implement click to call buttons within your organic search strategy, paid search campaigns, and on
your companys website.

Consider working with pay per inquiry vendors with nationwide online availability that can run click to
call campaigns for clients.

Integrate call extensions in your mobile search
campaigns so users can access more specific information,
such as the callers area code and the duration of the
call.

Analyze click to call data so you can assign value to
your calls and further understand your mobile path to
conversion.

Use performance results to make strategic decisions
moving forward, so you can be there for your customers
during crucial purchase-decision moments.











2014 Mobile Playbook

25

Two-Way Conversations
How texting gets brands and audiences talking
In 2013, Gragg saw an opportunity to increase our clients brand awareness and reach through texting.
Many of our clients target audiences are millennials, making the push to reach them on mobile even
more important. They live on their devices. And for most of them, their smart phone has become their
primary device as a cost-effective choice over a computer.
Over time, weve realized that texting provides a two-way conversation that can evolve into anything
from making a purchase to enrolling at a school. In the traditional sense, phone calls have been utilized
for a long time in direct marketing to facilitate two-way interaction, but in a limited space. Conversely,
text-messaging allows us to now nurture an inquiry in an avenue where they can feel more in control. It
helps keep information in front of the inquiry and keep them engaged and on-target. With consistent
usage, we believe brands that utilize texting can go beyond acquisition to retention in their brand
loyalty.

A portrait of Texters
Texters can also be referred to as digital natives. They are consumers who grew up with mobile
technology as part of their everyday lives. Its been shown that 65% of digital natives take their device
with them from room to room. TIME magazine profiled digital natives in a recent article and noted,
More than 54% of digital natives say I prefer texting people rather than talking to them.

90% of mobile users use text


messaging.
via textrepublic.ie

2014 Mobile Playbook

26

Usage highlights of Texters

Global SMS traffic reached 9.6 trillion messages in 2012.

There are 2.5 times more active users of SMS than email worldwide.

98% of text messages are read:


o
o
o

v. 29% of tweets
v. 12-20% of emails
v. 12 % of Facebook posts

Texting is trending
While some companies may
already utilize texting,
Graggs Text Blast product is
different due to its
dynamically responsive
system. Over time, Gragg is
seeing exponential increase
in communication and
bonding between the
inquiry and the sales
representative because of
two-way texting. Because of
these trends, in 2014, were
projecting even more
growth as we use texting as
an incredibly efficient way
to reach inquiries.


More than 54% of digital natives say I
prefer texting people rather than talking
to them.

-Jane Lehman/ via timeinc.com

2014 Mobile Playbook

27

How to use texting in your 2014 mobile strategy:


Implement targeted text blasts.
o
o

Presents ability to track inquiries faster


Can be applied to a wide variety of clientele

Utilize Graggs Alpine CRM.


o
o

Graggs client portal to manage inquiry info gathered from texts


Set appointments, reminders and alerts for inquiry follow-up

Manage text campaigns through Inquiry Bridge.


o
o

Inquiry Bridge is Graggs proprietary marketing software that is designed to create more
responsive drip campaigns out of the box
Designed to analyze conversion metrics

Integrate short codes into traditional media.


o
o

Can be applied to billboards, TV ads, posters, radio, print


Have the capability to develop enhanced tracking metrics

2014 Mobile Playbook

28

Mobile TV and Radio


Reinventing traditional media platforms


In a fast-paced world where consumers carry their mobile devices with them every second of their lives,
there is a great opportunity for brands to connect with their consumers on a personal and relevant level.
The intimate role that mobile devices play in consumers lives has now provided a media platform that is
very personal and portable. This role is redefining the abilities of traditional media platforms like TV and
radio. In essence, mobile now merges our personal lives with new digital worlds like never before.
Making the most of this opportunity requires that we understand how to strategically handle TV and
radio in a mobile environment.

How mobile redefines Online TV


Online TV is a Gragg product that allows us to serve our clients ads to potential inquiries before they
watch a video clip on the internet. At the moment, Gragg has
seen mobile success using Hulu. The service uses an advanced
algorithm to target visitors. The most prominent of these
targets centers on demographics (age, race, gender, etc.).
Hulu can also target potential inquiries based on interests,
which is determined by search history, internet history, and
other information collected in the users cookies.
Product-specific targeting is one area that has greatly improved for mobile. We can now target someone
who has interest in certain programs, services or products. For example, if someone has been looking up
information on health/wellness fields, we can serve them an advertisement for medical assisting from a
school in their area. Another way we target is by finding common interests that are generally linked to
our target audience. If we find someone in our target audience is interested in retirement funds or
financial stability through search field requests, we can then target consumers in our demographic with
ads from relevant financial institution clients. Mobile search data can provide a great place to serve
more targeted ads.

Hulu Statistics (2013)


Number of paying Hulu subscribers
Average length of time a person spends on Hulu
Number of devices in use that Hulu is available on
Percentage of people who use Hulu and only watch television shows
Percent of growth for Hulu from 2010 to 2011

4 million
1hour 13min
120 million
73%
60%

Statisticbrain/via www.statisticbrain.com/hulu-statistics/

2014 Mobile Playbook

29

When we analyze mobile TV, we pay particular attention to the click-through-rate of the ads served. This
allows us to take a deeper look into what consumers are doing with our ads. If they are not interacting
with the ad, we know we have a breakdown in creative. If they are clicking through but not filling
anything out on the landing page, we may need to update the landing page or require fewer information
fields. Mobile statistics have become robust in examining these criteria. With a platform like Hulu, the
usage research below proves that mobile statistics will continue to grow even larger for improved ad
targeting analysis.

Mobile is a fast-growing
category and will account for
approximately 15% of
consumed videos
-via variety.com/ hulu.com

2014 Mobile Playbook

30

Mobile redefines online radio


Since the invention of the iPod, mobile music has forever changed the way we listen. Its given us a
newfound power as a music consumer. With the growth of smartphones and streaming services, online
radio has seen a big opportunity to capitalize on a platform where music is already being consumed
either in downloaded or streamed formats.
Pandora is an online radio service that delivers
personalized music stations to mobile phones,
tablets, e-readers, or computers based on an artist, song, or genre chosen by the user. This online radio
platform has been quickly adopted by mobile users since the advent of the smartphone and the
popularity of its app. The Pandora app incites calls to action by inviting the users to interact with the
songs via thumbs up, thumbs down or skip this song buttons. This way the service can build a
playlist custom to your likes.
Pandora is free and accessible on most mobile devices. A user will listen to about four minutes of ads for
every hour of listening time. The ads are timed to play when the user is active on the app, such as when
they are liking or skipping a song. This increases the chance that the user will both see and hear the ad.
Pandoras video ads are non-skippable and typically run for 15 seconds. This blending of video and radio
presents a richer experience when appealing to users.
Ads can be targeted by demographics, genres, artists and/or songs. Demographics are the primary tool
used to target consumers. For example, each visitor to Pandora fills out demographic information
directly to the service when they download the app or create a profile online. This kind of valuable
information makes Pandora a fast learner when serving ads. Not only can it track your listening habits,
but it knows a lot about you from the time you register.
Much like online TV, mobile radio allows us to look at inquiries as well as the click-through-rates to
analyze our campaigns with this information. Considering the stats below, its apparent that mobile
radio usage will continue to grow considerably in 2014.

Pandora Statistics (2012)


Number of unique visitors to Pandora
Number of registered users to Pandora radio
Number of hours streamed on Pandora in 2011
Total number of unique stations an individual user can create
Total annual cost to have unlimited Pandora radio use

16,763,000
80 million
3.9 billion
100
$36

Statisticbrain/via www.statisticbrain.com/pandora-radio-statistics/

2014 Mobile Playbook

31

In 2010, 88% of Pandora's


listening hours came from
desktop use; by 2012, 70% was
on mobile devices.
- via businessinsider.com

How to use TV/Radio in your 2014 mobile strategy:


Integrate mobile TV and radio into your campaign to enhance your traditional media.
Understand how often your audience is consuming mobile media.
Utilize Graggs ALPINE CRM to see where inquiries are responding to mobile TV/Radio.
Plan to steadily increase your budget for mobile TV/Radio for the long term.

2014 Mobile Playbook

32

Mobile Apps
Driving brand loyalty while serving your audience


Why apps can engage audiences
Anytime Gragg looks at trending media technology, we have to ask, To what end will it serve our
audience where they already live and learn? Since the advent of the original iPhone, weve seen a
massive sector of our clients adopt smartphones and the applications that define them. Considering this,
our education clients understand that the most loyal students are the ones who are engaged, especially
the ones with smartphones. According to ascd.org, engaged students make a psychological investment
in learning. They try hard to learn what a school offers. This fact alone reveals why students represent
a highly engaged audience. Even though this engagement is mostly out of necessity, keeping them
retained is another story directly related to brand loyalty. For schools, retention is often a measure of an
academic institutions success, or brand loyalty. Motivating student engagement through a social media
application could be an efficient tactic to continuously engage students and potential students. In fact,
statistics show engagement through social media applications not only improves retention, but it
significantly increases the chances of on-campus visits (16%), applications (25%) and student enrollment
(35%).

80% of the time spent on


Smartphones is with apps, 20% web
browsing.

via ellucian.com

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Knowing when to deploy an app



A hypothetical case study and prototype

Apps arent for everyone, but recognizing the opportunity to deploy them to enhance your brand is
important. To further illustrate the stipulations under which you should be looking to launch an app,
lets look at higher education. For Gragg, its a vertical we know well, and one in which an app can be a
viable option if a brand meets the following criteria.

Your audience needs better tools
As a case in point, lets use students to hypothesize an example considering current statistics and
lifestyle. 57% of college students have a smart mobile device, and of that percentage, 75% of students
have their phones near them the entire day. These facts reveal how mobile applications are relatively
ideal to reach members of Generation Y. They represent more than 60 million members of the United
States who were born between 1977 and 2000. This group of cohorts spans young adults from their
thirties down to tweens. The young adults in this generation are assumed to be in college or entering
the workforce, and place great emphasis on multitasking. The ease of access to an app focused on
making life-balance easier for these young adults could help achieve brand loyalty and retention.
Engagement is steadily declining
Brands that are struggling with statistics showing an overall decrease in engagement over time should
consider an app to help reverse the process. Its not a cure-all, but an app can help show your audience
that you still care about their needs in a big way. In the case of schools, the current completion trend
data gathered below makes a great case for how retention and graduation rates have steadily decreased
over time, especially for public, 2-4-year degree sectors.







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Higher Education Completion Trends:


(Data covers three decades: 1983-2013)

Freshman to Sophomore Year


ACT: 2013 Retention and Completion Summary Tables/via www.act.org

Two-Year Colleges

(Graduated in three years or less)


ACT: 2013 Retention and Completion Summary Tables/via www.act.org

Four-Year Public Colleges

(Graduated in five years or less)


ACT: 2013 Retention and Completion Summary Tables/via www.act.org

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Lifestyle needs can be met


An app can become part of your audiences lifestyle; you just have to understand where it fits during the
course of their day or week. For our hypothetical student target audience, tweens have never lived
without the internet or easy access to cell phone, which makes them technologically savvy. According
to a statistic by blog.ellucian.com, 62% of millennials owning mobile devices are more likely to check
social media updates rather than the news in the morning. Consequently, an application that could
help deepen a brands relationship with its students through social interaction might be appealing.
Support for the role of social integration in student retention comes from across-education research as
well as from psychological, sociological, and economic perspectives. While methods and perspectives
vary, they all agree on one thing: social engagement is an essential component of retention, especially
during the first year. Considering this research, some sort of social component to a school app could
prove to be an effective feature that fits into the preferences your audience shares every day.
Industry-specific success is happening with apps
It is important to study your competition to see if their marketing tactics are working. In the case of
schools, weve pulled together only a fraction of the success that other schools are having with their
apps. These kinds of testimonials can help when considering whether an app is worth the investment for
your brand.

Enabled students to build an educational planner that not only helped them achieve their
goals, but also provided important data to the university to assist in curriculum and capacity
planning efforts. The University of Alabama /via www.ellucian.com

the best way to find classmates, get answers to questions, and stay connected on your
college campus. Schools App/via Facebook.com

reach aggressive strategic enrollment goals by streamlining information flow between
admissions staff, counselors, and prospective students. The web-based tools enable admissions
counselors to access and sort applicant information, making it easier to communicate with
prospects and track those communications. Transylvania University/via www.ellucian.com




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How to develop an app considering the above factors


Once you have considered the aforementioned criteria, devise a list of mandatory content your app
needs to contain. This process can help you if working with an agency regarding how to best reach your
audience. In our case of schools, heres the punch list we could devise for an app focused on helping
students succeed in the enrollment and retention process:


Prospective Students/Visitors Features

Upcoming Events
Application to Enrollment Status
Academic Advisor
Financial Aid Status
Necessary Courses for Degree

Current Students/Faculty and Staff Features

Class Registration
Student Support/Communication
Multimedia Announcements
o News
o Events Updates
o Class Cancelations
o Career Fairs
o Late Fees
Access Assignments (via Blackboard or College Portal)
Bookstore Information
Grades
Potential Job Opportunities
Campus Information
o Directory
o Map


Graduates

Alumni Events
Donations
Success Stories







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37



93% of students feel their smartphones
make their lives easier.
-via ellucian.com




How to use apps in your mobile strategy for 2014:

Consider whether an app is a critical tool for your audience.


Integrate an app into your branding budget and standards.
Make your mobile application available to all device platforms.
Enable users to remain engaged through ease of use.
Provide a free download to reach all sectors of your audience.
Enable usage data to be measured through a service such as Graggs ALPINE.

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Emerging Mobile Trends


Photos, maps and games are Mobile-First Content
(Data from United States, August 2013)
Consumers go to different devices for different types of content. When it comes to photos, 92% of users
are mobile-first. Not surprisingly, 86% of consumers use maps on their mobile devices and 69% use their
mobile phones to check the weather. We also seem to live our social lives in 140 characters or less. 65%
of users log into social networks on the go, and 25% of social users are mobile-only.

Via Statista.com




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39

Four trends we'll be talking about in 2014



Mobile as a priority

Although attitudes are already changing, by next year Gragg expects to see mobile as a key part of every
brand's advertising strategy. With the introduction of 4G on EE last year, faster mobile speeds are now
available to consumers. When other networks have the ability to roll out their own 4G offering, the
opportunities on mobile will become boundless.
We are also likely to see a new range of mobile products on the market alongside smartphones and
tablets. Google Glass is due for release at the end of this year, while smart watches are rumored to be
the next must-have device. The improvements in connection speeds and increasing number of devices
will have strong implications on web publishers and brands. This will open up a whole host of new
advertising formats for advertisers. Mobile video is already taking off, but improved connection speeds
and increased data limits can be expected to rapidly accelerate the growth of this type of advertising.
Publishers will also adapt to the mobile trend. It will be vital to ensure that websites are optimized to
take full advantage of the monetization opportunities brought by mobile.

Ad Models are changing



Consumers increasingly use different devices for different functions at different times of the day. We are
already witnessing this trend, but as people take to more devices it will become more prevalent.
Desktops and laptops will be reserved for work, while smartphones, smart watches, and Google Glass
will be used for sharing and sourcing information. Tablets will be used for checking emails, reading the
news, and accessing other forms of entertainment. As each is optimized differently, advertisers are likely
to develop specific strategies depending on the device. It is unlikely the 30-second video ad model will
continue across all types of devices. Instead, brands will create different-length ads according to the
medium. Smartphones have shorter dwell times, and are made for quickly sourcing content;
smartphone video adverts will become shorter, probably hovering around 5-10 seconds. We are already
seeing this trend emerge with Vine and Instagram Video. On the other hand, tablets are used for longer
form video content; therefore, ads on tablets will be longer mobile style ads, probably around 15
seconds, while desktop ads will probably remain at the traditional: 30. Brands will face the challenge of
repurposing video ads to make them effective over a range of lengths. Advertising visionary Trevor
Beattie recently predicted the death of the 30-second ad model; while this is still up for debate, mobile
does lend itself to shorter advertising.





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A Buying and Selling Evolution



As mobile advertising becomes more efficient and more lucrative in 2014, the way it is bought and sold
will change. Cost-Per-Engagement (CPE) and Cost-Per-View (CPV) will become the main purchasing
models with Cost-Per-Thousand (CPM) fading into the background as advertisers increasingly realize it is
the quality of the view that counts, not quantity. Advances in mobile payment technology will also have
a big impact on advertising costs. By next year it could be possible to land at Gatwick, check your
smartphone, and be targeted by an ad for the Gatwick Express that you can simply click on to buy your
ticket. Advertising that has the potential to be efficient, effective, and lead to a larger number of
engagements will also be more expensive. As increasing numbers of users take to mobile devices,
brands will adjust their spending budgets, and more money will be allocated to mobile, probably at the
expense of print, display and even TV advertising.

Unrecognizable Ad Formats
We're already seeing developments in mobile advertising, but it will become far more diversified and
widespread during the next 12 months. Moving into 2014, mobile MPUs and banner ads will increasingly
fall out of favor as brands and developers discover more creative advertising solutions. Innovative and
rich media formats, with a completely different look than standard ad formats, are already being
developed and will offer a fresh take on mobile advertising in the coming months. Video ad selectors are
replacing traditional paywalls and video players with sharing and engaging at their core. They are being
utilized to embrace mobile's inherently social characteristics. By this time next year, mobile advertising
will be almost unrecognizable.

Overall, mobile advertising is evolving at a remarkable rate and is, for our money, the most exciting
advertising sector to be involved with. Innovation in advertising, powered by improvements in Wi-Fi,
broadband speeds and mobile networks, will drive changes across the board as every advertiser, media
owner, brand manager and marketer strives to be the first to truly crack mobile advertising. These are
Graggs predictions, but whatever happens is going to be an exciting ride. We look forward to working
together no matter what happens.

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Mobile beyond 2014



As youve seen throughout this book, the mobile landscape can be a daunting place for many brands and
marketing teams. Companies tend to fall into two different buckets in terms of mobile marketing and
acquisition. There are a surprisingly high number of brands that still dont have a full mobile strategy in
place while others tend to be doing mobile, but not having much success in it. We hope that this
playbook will increase the number of companies that are not only doing mobile, but also doing it right
and seeing positive returns from their mobile efforts.

Mobiles penetration into the everyday life of the human race has been astonishing. Consider these facts
discovered by research from Cisco Systems:

Ciscos Visual Networking Index (VNI) is forecasting that within five years mobile data speeds
will be seven-times faster than they are now.

Mobile connections are growing faster than the Earths population, and by 2017 there will be
roughly 1.3 connections for every person on the planet, according to the VNI.

Already in 2014 we are seeing trends that could have far-reaching implications on the mobile landscape
for years to come. AT&T announced plans to not only charge users for bandwidth usage but also to
charge content providers a premium to reach its user base. This could create an interesting dynamic in
how marketers reach mobile users.

The implications of net neutrality are certainly going to hit the mobile market as well, but not before
more courts weigh in on the matter and time passes for all parties involved to fully embrace the issues
final decision.

Aside from the unknown factors that remain in the mobile arena, there is more than enough statistical
information that makes a strong case for every marketer and brand to be actively engaged in the space.

As the sophistication of both devices and consumer usage increases, the technology to support them
continues to evolve. At Gragg, were excited about the possibilities that mobile presents for marketers.
Just know that whatever changes come our way in 2014, well be sure to know how to steer your
mobile strategy in the right direction.

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Appendix I
Sources:

ACT (2013). 2013 Retention/Completion Summary Tables. Retrieved January 17, 2014, from
http://www.act.org/research/policymakers/pdf/13retain_trends.pdf
Allen, M. (2013, July 1). A Few Really Cool SMS Marketing Statistics [Web log post]. Retrieved from
http://blog.logmycalls.com/bid/301768/A-Few-Really-Cool-SMS-Marketing-Statistics
Bob Jeffrey, Worldwide Chairman and CEO, JWT. ADWEEK. Nov 2013
Caras, A., & Microsoft Advertising (2010). What's on their Screens. What's on their Minds: Reaching and
Engaging Multi-Screen Consumers.
Coggins, P. (2014). Four mobile advertising trends to look out for in 2014 | Media Network - Ebuzzing
partner zone | Guardian Professional. Retrieved January 17, 2014, from
http://www.theguardian.com/media-network/ebuzzing-partner-zone/mobile-advertising-
trends-2014
Collective (2014). Multi-Screen Advertising. Retrieved January 22, 2014, from
http://collective.com/audience-network/
Content Marketing Institute, & Marketing Profs (2014). B2B Content Marketing. Retrieved January 17,
2014, from http://1) contentmarketinginstitute.com/wp-
content/uploads/2013/10/B2B_Research_2014_CMI.pdf
Ellucian.Blog for Higher Education (2013, May 28). The thing 57% of students cant go without
[INFOGRAPHIC] [Web log post]. Retrieved from http://blog.ellucian.com/higher-education-
trends/the-thing-57-of-students-cant-go-without-infographic/
Google Insights (2013, September). The Role of Click to Call in the Path to Purchase Think Insights
Google. Retrieved January 17, 2014, from http://www.google.com/think/research-studies/click-
to-call.html
Google Think Insights (2013, November). Mobile Path to Purchase: Five Key Findings Think Insights
Google. Retrieved January 28, 2014, from http://www.google.com/think/research-
studies/mobile-path-to-purchase-5-key-findings.html
Grewal, Dhruv, and Michael Levy. Marketing. 3rd ed. N.p.: McGraw-Hill Companies Incorporated, 2011.
Print. Peter, J. Paul., and Jerry C. Olson. Consumer Behavior and Marketing Strategy. 9th ed.
IAB UK Mobile & Internet Brand Advertising. Dec 2009

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Inigral (n.d.). Inigral Insights, The Social Side of Student Retention. Retrieved January 17, 2014, from
http://www.10000degrees.org/wp-
content/uploads/2012/11/The_Social_Side_of_Student_Retention.pdf
Kilar, J. (2012, December 17). A Big 2012 [Web log post]. Retrieved from
http://blog.hulu.com/2012/12/17/a-big-2012/
NCHEMS (2014). HigherEdInfo.org: Graduation Rates. Retrieved January 17, 2014, from
http://www.higheredinfo.org/dbrowser/index.php?submeasure=24&year=2009&level=nation&
mode=graph&state=0
Performics, Global Performance Marketing Agency (2013, October 18). The Performance Marketing
Agency | Performics. Retrieved from http://www.performics.com
Performics, Global Performance Marketing Agency (n.d.). 40 percent of Americans Feel More
Comfortable Engaging with People Online than in Person | Performics. Retrieved January 17,
2014, from http://www.performics.com/life-on-demand-study-reveals-new-social-norms-40-
percent-of-americans-feel-more-comfortable-engaging-with-people-online-than-in-person/
Richter, F. (2013, October 24). Chart: Photos, Maps and Games Are Mobile-First Content | Statista.
Retrieved January 17, 2014, from http://www.statista.com/topics/779/mobile-
internet/chart/1567/photos-maps-and-games-are-mobile-first-content/
Schools App/ Facebook (n.d.). Schools App. Retrieved January 17, 2013, from
https://www.facebook.com/SchoolsApp
Statistic Brain (2012, July 31). Pandora Radio Statistics. Retrieved January 17, 2014, from
http://www.statisticbrain.com/pandora-radio-statistics/
Statistic Brain (2013, May 3). Hulu Statistics. Retrieved January 17, 2014, from
http://www.statisticbrain.com/hulu-statistics/
TechCrunch (2013, August 30). Digital Ads Will Be 22% Of All U.S. Ad Spend In 2013, Mobile Ads 3.7%;
Total Global Ad Spend In 2013 $503B | TechCrunch. Retrieved January 17, 2014, from
http://techcrunch.com/2013/09/30/digital-ads-will-be-22-of-all-u-s-ad-spend-in-2013-mobile-
ads-3-7-total-gobal-ad-spend-in-2013-503b-says-zenithoptimedia/
Tepper/ Mashable, A. (2012, July 13). The Power of Text Message Marketing [INFOGRAPHIC]. Retrieved
January 17, 2014, from http://mashable.com/2012/07/13/text-message-marketing-infographic/
Text Republic (2014). Mobile and SMS Marketing Statistics. Retrieved January 17, 2014, from
http://www.textrepublic.ie/statistics-mobile-marketing/
The New Multi-Screen World Research Study. Google in partnership with Ipsos and Sterling Brands.
August 2012

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Time Inc. (2012, April 9). Time Inc. Study Reveals That Digital Natives Switch Between Devices and
Platforms Every Two Minutes, Use Media to Regulate Their Mood.
Variety (2013, April 30). NewFronts: Hulu Plus Tops 4 Million Subscribers. Retrieved January 17, 2014,
from http://variety.com/2013/digital/news/newfronts-hulu-plus-tops-4-million-subscribers-
1200428107/





















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Appendix II
Authors:

The Gragg Advertising 2014 Mobile Playbook is an exhaustive overview of the trends, technologies,
strategies and recommended tactics for the mobile space. In order to create such a document, Gragg
assembled a Mobile Task Force, comprised of top individuals from all areas of the agency.

Ensuring that we had representation from all areas of the agency meant that the playbook would be
written by individuals on the front line of their respective field of expertise. The task force included
individuals from the technology side and our IT department, as well as Client Services, Affiliate and
Aggregation Marketing, Media Services, The Gragg Brand Lab, Operations and the Digital Marketing
Group. It was truly a team effort and without everyones talents, this playbook wouldnt have seen the
light of day.

Similar to the structure of our agency, no one on the task force had all the answers. Yet, by assembling
such a strong team from all areas of marketing at Gragg, we were able to create a formidable alliance of
mobile expertise. It was with the notion that the sum was certainly greater than its parts that the
playbook was able to come to fruition. Research, writing, and design work was performed by everyone
in addition to their regular client work. Considering all this, all those involved on the Mobile Task Force
certainly warrant an individual mention here. The authors of this document were:


Kevin Smith (Digital Marketing Group)
Julie Burdick (Digital Marketing Group)
Chad Maslak (Digital Marketing Group)
Andrew Posch (Digital Marketing Group)
Krista Dunleavy (Affiliate Marketing)
Rob Harrison (Affiliate Marketing)
Britaney Wehrmeister (Affiliate Marketing)
Lauren Hypse (Client Services)
Scott Gayer (Gragg Brand Lab)
Bryan Durham (IT)
Alvin Merz (IT)
Kelsey Schieber (Media Services)
Shaylee Yount (Media Services)
Kala Linck (Operations)

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