Tag Archives: telegraph media group

My IAB Engage for Mobile thought piece

This is a thought piece that I wrote for the recent IAB Engage for Mobile event.

Wake up and smell the coffee.

To demonstrate how I believe mobile advertising can really benefit marketers, I have used the Starbucks brand as an example. This open pitch is to any coffee company to be honest, but partly for clarity’s sake and mostly because their name reminds me of the central character in one of my favourite childhood TV programmes, I am going to choose Starbucks.

So why use mobile advertising for Starbucks?

Firstly, because the enormous morning commute that descends upon London every week day is the holy grail as far as Starbucks are concerned; and mobile will allow Starbucks to reach these people in a cost effective, targeted manner at the exact time that they are about to make a coffee purchase. No other medium is able to reach a huge number of engaged coffee drinkers as close to the purchasing decision as mobile can. Outdoor may have more people walk past it, but I would argue that consumers are paying far more attention to their mobile screen while they are accessing the mobile internet than they are on outdoor advertising while walking their daily route. That said, I have a great case study for a deal that combined mobile and outdoor, but that’s another story.

On Telegraph Mobile we see a massive spike in traffic between the hours of 6am and 9am, and then as that mobile spike falls away after 9am, it is replaced with a new spike on the fixed internet site, Telegraph.co.uk. So it would seem that people are surfing the mobile internet on their way to the office, and then switching to the fixed internet. For Starbucks, the fixed internet would be like shutting the door after the horse has bolted, so mobile really comes into its own.

For me, my coffee loyalty is only dictated by what I did or experienced recently. For a brand such as Starbucks, if you jolt me from my automated purchase decision each morning there is every chance that you could become my new habit, and my coffee habit is currently costing me about £15 a week!

Offer based advertising to the right people (commuters) at the right time (in the morning rush-hour) in the right place (London, because of scale of audience and the concentration of Starbucks outlets) with the right message (Break your daily routine, and visit Starbucks today and we’ll give you x, y or z)

So if you take the possibilities that this highly targeted, and relevant message can offer you as a marketer today, and then multiply it by the huge audience that I believe the mobile internet will have in a few years time, it’s not hard to understand the potential.

In fact, at some point within my lifetime, I fully expect mobile to be the biggest medium in terms of audience. This journey has already started, and I believe it will be driven by faster networks, a higher penetration of smart phones and more and more content being optimised for mobile consumption.

It already plays a central role in consumer’s lives, and I am pretty sure it is the only advertising medium that a consumer takes to bed with them, before asking it to wake them in the morning! It is totally personal to the user, and is often personalised with private photographs, videos, ring tones, games, audio, social media apps, email, calendar etc

Once the market gets to a place where network speeds are super-fast, and handsets are all smart phones, then we will see huge numbers of people watching films and TV on their mobile. This already happens on the high end handsets, but eventually I can see a carriage full of commuters all watching long-form video content on the way to work.

The TV market is currently adapting to a world full fragmented audiences and time-shifted viewing, and I believe that mobile will change the traditional viewing habit further still. When super-fast networks combine with fantastic handsets, and the content is every bit as good as can be accessed via the fixed-internet, then you can be sure that the explosion of mobile internet access will not be far behind.


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Mark Challinor to join TMG

From Mediaweek.co.uk:

Telegraph Media Group appoints first director of mobile

Telegraph Media Group (TMG) has appointed former Associated executive Mark Challinor as its first director of mobile.

Mark Challinor: joins TMG as director of mobile
Mark Challinor: joins TMG as director of mobile

From July, Challinor will work across the company and be responsible for delivering a revenue stream for the Telegraph’s mobile offering.

He will focus on reader and advertiser interactions, database opportunities, content distribution and new revenue-generating opportunities.

The mass adoption of smart phones such as the iPhone and BlackBerry is fuelling new opportunities surrounding mobile phones.

In the UK alone, mobile advertising spend is expected to experience near 40% compound growth this year and increase from $111m in 2009 to $524m in 2014, according to the latest PwC forecast.

Challinor will report to Steve McLaughlin, executive director of Consumer Revenues at TMG.

McLaughlin said: “He brings more than 20 years’ newspaper experience to the role, including two years as European president of the Independent Newspaper Marketing Association, between 2004 and 2006.”

McLaughlin called the experienced press marketer “a great asset” and stressed: “TMG’s mobile offering goes from strength to strength. Our World Cup app, for example, has had over 300,000 downloads.”

Prior to starting his own consultancy business in 2006, Challinor was group promotional marketing manager at Associated.

During the 1990s, he also held a number of commercial roles at Trinity Mirror. He has also worked as a consultant with The Times of India, Sydney Morning Herald and the American Marketing Association.


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All page impressions are not born equal

A Forrester report that was released in June 2009, and updated in July 2009, revealed that US consumers spend 34% of their total media time online, yet only 12% of marketing budgets are being spent on digital advertising. When you consider that the same consumers are spending 35% of their media time watching TV, and 31% of marketing budgets being spend on TV advertising then you can see the disparity between time-spent and pounds-spent only too clearly.

Also we know that much of the money spent on digital advertising is made up of search and direct response advertising, so the opportunity to grow branding campaigns online is significant. It is my hope that the launch of UKOM this year will help brand managers properly understand the true value of the internet as a tool for building brands, and that the spend in our medium on brand campaigns will increase to be more in line with consumer behavior.

To build a brand online, I think you have to ensure that your message is in front of the right audience, within the right environment, with the right creative message and with the consumer spending the longest period of time with that message that you can manage. Without that dwell time, your brand message will largely go unnoticed.

One of the problems facing brands however is that online advertising is measured in impressions, and not all impressions are born equal. If you are on your free email account for instance, you could rattle through six or seven page impressions before even stopping for long enough to read more than a few words. For example:

Portal page, click.
Email, click.
Inbox, click.
Delete spam, click.
First email, click.
First pause while you scan the email, then click back to Inbox, click.
Second email, click.

There are billions of page impressions a month created in such a way, and they are virtually useless to a brand, because the dwell time is non-existent.

Video advertising has the opportunity to be the champion of online branding campaigns because generally speaking the formats offer more impact, more engagement and combine the powerful sight, sound and motion combination that previously have been the unique selling points of TV and cinema advertising. Video is the medium that most closely resembles the way people experience real life, so by combining that with a lean forward internet session, in the right environment is a powerful proposition.

The other great thing about video is that it slows the user journey across the internet right down, and creates ‘sticky’ pages that hold the viewer’s attention for longer, and thus enable brands to start building.

The trouble is that publishers are remunerated for space currently based on the number of page impressions that they produce, not the length of time that the user spends with each of those impressions, so guess what, sites produce search and site map strategies that increase the number of page impressions. I would ague that one page impression that lasts 60 seconds, is far more valuable than 6 page impressions that last 10 seconds each, yet publishers are still able to make more money from the former than the latter, and so that will always be a major focus for them.

What I think needs to happen in order for brands to get the most out of the internet, is for a payment system based on dwell time to be introduced. Maybe brands could pay for ten minutes of brand exposure on a certain site, and to a certain audience, rather than for 10m page impressions? It would then be in the publisher’s best interest to produce rich content that keeps the viewer interested on the page for longer, and thus benefits the brands using that site to advertise.

Maybe a cross-payment system could be devised that scientifically cross-measures page impressions with dwell time and unique users?

Currently this would favour publishers like Sky, Channel 4 and itv.com who have long-form content, and publishers such as Telegraph.co.uk, Guardian.co.uk and Timesonline.co.uk who have super-rich content being uploaded every minute of every day, and who all use video in order to enrich their story-telling.

It clearly wouldn’t suit the portals, who under such a system would probably be soley employed to deliver direct response campaigns, where mass reach and cheap cpm’s are key.

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