Or do we? Has the answer been in front of us the whole time? Maybe.

Advertisers will save publishing. That is a statement I will get behind. What will save publishing is giving advertisers compelling reasons to spend money. (Side note: by publishing I am referring to any media company that drives a significant portion of their revenue through advertising)

I don’t work for a content producer, but I have in the past.  I’m on the agency side and work with publishers on mobile advertising campaigns. What I’ve experienced has led me to two conclusions:

1. Mobile Publishing monetization models are still being worked out. (This is not what I want to talk about today but it’s a huge issue in mPublishing. And the crux may be what advertisers need to bring to the table vs. what services and solutions publishers should or can offer.)
2. Campaign analytics and reporting are still too shallow or are rarely packaged in a way that gets agencies – and by extension their clients – as excited as they should be.

Here’s my argument:

Publishers need to deliver targeting capabilities and usage analytics robust enough to allow media buyers to make intelligent campaign planning decisions. Otherwise, monetization attempts will mostly fail as marketers search for solid foundations for calculating customer targeting, engagement and acquisition ROI.

That sounds awfully grim. The good news is that the higher than web click through rates and the ‘innovation’ play will likely be sufficient to deliver enough revenue to keep everyone pretty happy – for now, that is.  So, before that, here is my take on merging analytics and targeting in a way that makes everyone look and feel good.

I’ve broken the analytics scope into four domains: Connectivity, Consumer, Content and Conversion. Each of these domains has multiple dimensions and for the purposes of this piece I’ll keep it pretty high level.

Domain # 1: Connectivity

This is one area where most publishers are doing a good job for the most part.  That may be largely to do with the approach many have taken in offering up OS-specific native applications. I’ve found it’s rare for a publisher not to be able to execute device targeting. Many can even target specific models within a family of devices (e. g. differentiate Blackberry 9700 from 8900). Increasingly, OS and device targeting should be the minimum expectation.

The second connectivity dimension is geo-targeting. Again, most publishers seem to grasp the inherent importance of location and context in mobile and have built-in capabilities to target location to some degree.

What’s critical here is the increasing granularity in OS, device and geo-targeting to enable messaging and offers that are relevant to device capabilities and user habits and preferences.  Check out Google’s location powered AdWord units.

Domain # 2: Consumer

You could make the case convincingly that location is a consumer domain but here the consumer domain also involves demographic and behavioural dimensions.  Publishers need to know who their audience is by age, gender, income, and so on. This is a stock media targeting request and it’s what advertisers expect. Admittedly, the personal nature of the device can make this information more difficult to gather as privacy hawks circle. But it’s not insurmountable.

The Weather Network in Canada asks for, but doesn’t require, age and sex information upon app activation. That’s a good start.  The mobile ad network JumpTap has created an ad preference manager where consumers can select the types of products and services they receive ads for – and that’s even better.

If location is the ‘where’ and demographic data the ‘who’, then the next ask is the ‘when’. Publishers need to be able to deliver sophisticated day parting options to allow advertisers to heavy up-spend at those times when consumption is heaviest or when their message will have the greatest currency.

Domain # 3: Content

This is basic. Publishers need to have visibility into what content is being consumed and to what degree. Beyond that, there has to be insight into how that differs by OS, device, demographics and geography.

Of course, there’s room for conventional reporting like total unique visitors and page views in aggregate. What’s more powerful, however, is knowing page views by content category, time per visit, frequency of user visits and duration of each visit, content viewed per visit, and content sharing. Each of these represents a potential targeting opportunity and the ability to deliver this data and wrap a story around the implications of these insights will make the case more compelling.

Domain # 4: Conversion

This final domain is a little harder for publishers to report on as they might lack the downstream visibility.  The CPM monetization model also lets a lot of publishers off the hook due to its diminished focus on performance.  The other challenge is the desire to manage advertiser expectations. Committing to a click through rate or conversion percentage is more risk than most publishers could stomach.  However, I’d urge more publishers to meet advertisers half way and offer CPC or CPA models to demonstrate more tangible returns from advertiser campaigns. This suggestion might be driven by a personal bias for mobile advertising as a very compelling direct response tactic than a pure brand play. We’ll see if the iAd changes that view.

The promise of being able to deliver micro-targeting reporting is the ability to have an analytics dashboard that tells when a 34 year old male using an Android device, clicked on an ad about Offer X, while viewing a specific piece of content and a certain time of day at a specific location and then moved through to conversion.

By and large, this is possible. There are privacy and permission issues that must be respected, especially with the location dimension but such nuance is very real. And to be fair, location is not always relevant. However, layering in some of the content dimensions I outlined would create a more powerful story.

The gap is what advertisers and their agencies seem to ask for and how it’s being packaged by publishers.  If publishers are serious about maximizing revenue from the mobile channel, they need to start offering reports at that level of detail, packaging it in a way that makes is clear, compelling and actionable without having to be asked for it or it being an exercise in pulling teeth.

It may sound like I’m being too tough on publishers here. However, I do believe most publishers are working hard to figure out the space and overcome the challenges. If anything, I have sterner words for agencies and advertisers that don’t ask for or mine for valuable data to optimize their buys or deliver device- and consumer- unfriendly post-click experiences.  I still see mobile ad campaigns that click through to a wired web experience or just offer banal product information without any clear or compelling follow-on call to action. It’s shocking!

My closing call to action: If information is power, then the power of the mobile channel is potentially unprecedented. The unique, personal and contextual dimensions of the device enable a granular picture of ad interaction and response. And it shouldn’t require a multi-million dollar budget (I’m looking at you iAd…). The data exists and we should use it wisely and in a way that benefits all parties – consumers, advertisers, agencies and publishers.

NOTE: As I’m in Canada, this is mostly directed at my fellow Canucks. Publishers and agencies in other parts of the world seem to be more on top of things (correct if that’s wrong…). But if anyone gets something out of this piece, I’m happy.

I’d also really welcome dialogue on the topic from publishers. I’ll admit to not having seen the full scope of every publisher’s mobile advertising and analytics offering. If you’re a publisher and are taking steps or have solutions to bridge these gaps, please share.

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This post covers the other half of the 4 ROIs – Return on Involvement and Return on Innovation.
Return on Involvement

Involvement is the bookend of Return on Insight.  If Insight is about understanding the customer, then Involvement is about the experience viewed along acquisition and engagement lines.

Acquisition involvement looks at going beyond the click in a mobile ad campaign and converting the consumer. That may be an opt-in, a download or a push to a location. In each case, a consumer action generated a tangible brand involvement.

Mobile can also test your customer’s involvement with your other media channels. The common example is a text message call to action that entices with an offer. Unique keywords help you determine which media was most effective in driving involvement. But you should also be including a mobile URL or pushes to an app download if you have those touch points. If your mobile efforts are really mature, image recognition tactics can also capitalize on mobile’s ability to bridge experiences.

Engagement dimensions provide you with the ammunition to continually improve your offering and create conditions for deeper and more frequent customer interactions.

Adding response mechanisms such as coupons or bridges to second-level experiences to SMS deployments helps you learn what offers and incentives drive conversions.  Any web or app program should vigilantly monitor what activity is occurring: which features are being used, for how long and when.

Mobile efforts suffer when siloed, in terms of cross-media integration and  singular campaigns. If you can earn some share of a customer’s mobile, use that opportunity to deliver ever increasing relevance and utility. That drives Involvement.

Return on Innovation

Tying all of the other three ROIs together is Return on Innovation.  Consider mobile as a platform. The device offers at least seven different channels (voice, email, messaging, media, web, apps, and advertising) for connecting to your customers. Each of these channels requires strategic consideration and tactical innovation.

Extending your digital footprint and engaging customers in new and compelling ways can be hugely powerful for driving brand awareness and favourability, customer relationships, propensity to purchase and revenue.

Innovation can lead to connecting with customers in new ways, but also connecting with new customers. Those who might have never given your brand a thought may be attracted to a program that speaks to how they like to consume information and interact with their environment.

I suppose innovation is in large part qualitative, but that doesn’t mean it can’t be measured.

Customer metrics, like new acquisitions, frequency of interaction, opt-ins & outs, revenue per customer and so on, can be double counted with other ROIs while showing how you are winning with mobile.

Product & media metrics, like messages sent, visits, bounce rates, time per visits, feature use, CPMs, CTRs and beyond, help you understand what your channels mean for brand reach and how you’re making new connections.

My one warning for innovating is beware of excluding customers for the sake of producing a shiny object. Explore ways to attract new customers while furthering your relationship with existing customers simultaneously.

Real innovation, for me, involves creating value across your customer profiles and lifecycle stages.

I’ll close with as tidy a summary as I can manage:

• Insight = who + where
• Involvement = what + how
• Innovation = why
• Investment = how much.

Hopefully, these overviews have given you a starting point for earning tangible returns from your mobile programs.

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I’ve already issued the call to make next year your “Year of Mobile.”  There are plenty of stats there to support the idea that consumers have rabidly embraced mobility and it’s time for marketers to play catch-up. This post aims to provide a lens for you to view your mobile efforts and for determining successes, failures and learning.

My proposed model involves the 4 ROIs of Mobile. Return on Investment is a common cross-discipline yardstick for success. Return on Insight has been generating more awareness as a way to quantify campaign propositions. To these, I’m adding Return on Involvement and Return on Innovation.

Return on Investment

Accuse me of over-simplifying things if you want. But for me, return on investment is a straightforward calculation of “I spent X and earned Y”. The science is in being able to draw a solid line from spend to revenue.  The good news is that mobile is highly trackable when properly executed.

Mobile commerce, the most obvious path, is gaining significant momentum and will eventually become a considerable revenue-driver, but it’s very much in its infancy in Canada (here’s where the US stands).

A better bet is to use direct and CRM marketing tactics to drive clicks to bricks. One of the best examples I have seen involves BMW’s efforts to target recent customers in an effort to drive snow tire sales. The campaign used customized messaging to drive interest, saw a 30% conversion rate and netted $45 million dollars in sales out a $120,000 investment.

Using mobile coupons tailored to customer interests, delivered at key decision points or including promo codes to drive to retail and/or e-commerce are all readily executable and highly measurable.

Mobile is with the customer at points of inspiration and decision.  Capture attention there and conversion to action won’t be far behind.

Return on Insight

The key to Return on Insight is the understanding you can gain about your customers’ habits and preferences.  Insight should drive everything from program planning delivering ongoing optimization benefits. Plan carefully and you’ll be able to draw from data points all along the customer experience.

Information on consumer devices and their capabilities plus data on how consumers use them and where they interact with you equals pure gold for developing programs that provide genuine and repeatable utility to customers.

Mobile applications offer perhaps the richest canvas for this type of data. But you should be well into your Insight research before even considering an app build. Ask yourself “do a significant + valuable + engaged slice of my customers or target customers have and use deeply an iPhone/Blackberry/Android device?”

Both the mobile web and advertising will provide you with the same kind of actionable data that you’ve come to love from their wired cousins. Plus, you can target demo- and psycho-graphically against handset types, geography, and more.

You can gain valuable customer insight even via the lowly text message. Getting customer opt-in and then allowing them to manage preference around what content they’d like and when they’d like to get it is immensely valuable.

A view through the Insight lens will help you develop and modify program features, provide optimized experiences and allocate budget according to where and how you can best reach your target audience. Sound data and insights lead to sound programming.

In the next post, I’ll review Return on Involvement and Return on Innovation.

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