INDUSTRY REPORT

PRESENTS:

Upward Mobility: Developing an Effective Mobile Shopper Marketing Strategy

Thirty million times a day P&G brands face their First Moment of Truth, when consumers stand in front of a store shelf and decide whether to buy a P&G brand, or a competing product. A.G. Lafley, Procter & Gamble, then-CEO, 2002

The First Moment of Truth has become a continuous information loop.

The now-legendary phrase the rallying cry for in-store communication as an integral aspect of brand marketing is undergoing a dramatic transformation now that consumers are standing at the shelf with smartphones in hand. For one, theres now a good chance that the final purchase decision of which Lafley spoke was already made at the store entrance, in the parking lot, or in the car on the drive to the store influenced by marketing touchpoints that didnt even exist in 2002. Perhaps more significantly, the purchase decision wont necessarily conclude at the shelf or at least that particular shelf: after scanning the packagings UPC, the shopper may discover that a retailer down the street offers the same product at a cheaper price; once she gets there, she might download a coupon for a competing product by scanning a shelf-sign QR code. Thanks to increasingly sophisticated mobile devices, the consumer has become an ever-moving target that is never more than one click, ring, text or tweet away from entering shopper mode. But, for better or worse, the shopper that she becomes is savvier and much better informed than her predecessors, due to the growing number of on-the-go tools at her disposal.

A supplement to Shopper Marketing magazine

INDUSTRY REPORT

always on, says Molly Garris, manager of digital strategy at Arc Worldwide, the Chicago-based marketing services arm of Leo Burnett. It lets marketers truly engage consumers by making the message far more relevant and personal. Mobile marketing has, of course, been around for years, and has been prevalent in other parts of the world such as Japan and Israel for more than a decade. Initial forays in the U.S. were hampered somewhat by strong consumer backlash to unsolicited phone calls, but the emergence of text messaging in 2001 made marketing communication far more palatable. In the last few years, texting has become a standard promotional tool for many marketers, particularly when targeting younger consumers. It was the emergence over the last seven-odd years of the smartphone and its computer-like functionality Internet access, email, file downloading that sparked marketers to really begin examining the possibilities, however. There are things you can do with feature phones such as text messaging, but with smartphones, we can really take it to the next level, says James Schuh, global digital marketing manager for Kimberly-Clark. And it was Apple Inc.s launch of the iPhone in 2007 that began turning the smartphone into a must-have technology and a cultural phenomenon. The only questions remaining for % who do the following activities at least once a month from their mobile phone marketers are, when will smartphone penetration 100 reach critical mass, and how many U.S. consumers will use their devices as an essential shopping tool? 80 By all accounts, the answers to those questions are very soon 60 and a lot. Roughly one out of four mobile subscribers already owned a smartphone by 40 October 2010, according to comScore Inc. More significantly, that means nearly 20% of the U.S. 20 population had one. And The Nielsen Co. predicts that 51% of the population will be 0 s s s e s ic S S es g lls ine et e ite ail ice ap us erc sit ew ca m SM tern SM m ng bs gin rv / m b n / a m m carrying one around by e e e e a e r e g r g g n s s d n e w h o w om so es gin ho eI de gin n. ya ed er eiv arc rc th ted as ion th ge tm o ssa ep se loa ssa Pla t a the end of 2011. rec a o b r n v r e e / c n i t a g e e ta s se m w m g we ire nd on kin en es re xt rec Ins do nu sin ck Se ati pd an cc rg o e u tu o c e/ Te The ability to browse u t b e A c t h k o i o s l a C P ile ok inf M ten ten or it u Lo ob on Lis up PS Vis c the web on mobile M k G o are Lo Sh devices something that Non-Mobile Shoppers Potential Mobile Shoppers 36% of the 234 million U.S.

Welcome to the Mobile World

Procter & Gamble already understands these changes, which is why the packaged goods company (and industry bellwether) devoted a great deal of resources in 2010 to launching smartphone apps for Tide, Always and other brands, providing downloadable coupons for top retailers such as Kroger and Safeway, bolstering its charity initiatives through third-party apps like CauseWorld, and even selling Pampers through Facebook. Other packaged goods manufacturers such as Kraft Foods, Kellogg Co., Kimberly-Clark and Unilever also have been mining the mobile space for several years although all of the above would likely admit that they havent yet fully cracked the code on best practices. Numerous other product marketers are following suit because of the tremendous potential that the mobile channel presents. Mobile is the first marketing technology that can be used through the entire purchase cycle, says Anthony Iacovone, founder and chief innovation officer of Augme Technologies, a New York-based company specializing in mobile marketing technologies and services. You start with a mobile call to action in a TV ad, and you finish with a text-message reminder about the incentive in the store. A mobile phone is always with you, and its almost

Overall Mobile Activity

99 99 97 97 98 95 95

100

100

100

97

97

97

96

91

93

94

93

92

89

87

87

85

81

81

82

82

79

77

77

76

77

76

72

70

68

66

62

59

53

51

48

33

16

16

16

14

13

12

12

10

Light Mobile Shoppers

Heavy Mobile Shoppers

2010 Leo Burnett and Arc Worldwide

mobile subscribers already do, according to comScore initiated their use as a shopping tool. The ongoing launch and adoption of smartphone applications that specifically or indirectly facilitate shopping by locating stores, delivering coupons, organizing lists and offering trip incentives, to name a few has taken the concept to new heights. And with AT&T, T-Mobile USA and Verizon Wireless jointly building a network aimed at turning smartphones into mobile wallets within 18 months, the future of mobile as a critical P&G on CauseWorld shopper marketing tool seems uncontestable. I cant find one campaign where having a mobile component doesnt make sense, says Iacovone. Anytime you are making a call to action, it needs to be mobilized.

The Speed of Change

Despite this rapid evolution, mobile shopping and, therefore, mobile shopper marketing is still a relatively new concept. When it comes to employing their mobile devices as a shopping tool, 10% of users are generating 80% of the volume right now, says Carrie Newman, research manager at Arc, which conducted extensive consumer research on the subject in September 2010 (see page 8). Most people are dabbling, still learning whats available and how to use it. (For a comprehensive list of mobile shopping activities, see the chart below.) The same holds true on the marketing side of things, where many companies are experimenting with

various tools and technologies but few have developed a comprehensive strategic plan. A spring 2010 survey conducted by Forrester Research/Shop.org, for example, found that only 20% of retailers had implemented a mobile marketing strategy. Product marketers may be a little further along. A November survey conducted by the In-Store Marketing Institute found that 35% of consumer product marketers are already working with smartphone apps, 30% with mobile coupons, 21% with QR codes and 13% with location-based services. And better than 40% of the nonusers plan to implement those tactics in the near future. Whats more, in a spring survey from MediaPosts Center for Media Research and InsightExpress, 40% of companies said they would boost mobile ad budgets by 30% or more in 2010. Mobile is a chew toy and were all teething, says David Apple, chief marketing officer for Augme. The tendency is to do something because its buzzy. But Id say that 50% of program executions right now are poor. The singular fact that consumers are migrating to a mobile lifestyle more than 30% of mobile subscribers use their phones as the sole computer for their household, according to Morgan Stanley makes embracing the channel an imperative for marketers. But mobile marketing is an ideal vehicle for several other reasons as well. For one, it facilitates the targeted, relevant communication that is the essence of shopper marketing. As a corollary to that, it also eliminates waste: rather than distributing 40 million FSIs to anyone who buys a Sunday newspaper, a brand can deliver one million to the smartphones of consumers whove asked to receive

Mobile Shopping Activities

CROSS-CATEGORY
(mobile-related activities that transcend categories)

PORTABILITY MORE ADOPTED

Use a search engine to get information during shopping process Look up store address, store hours or store location Refer back to retailer emails you have saved in your inbox Receive notifications about in-store promotions, events or offers

VIRTUAL SOCIAL SHOPPING

Gather/Share opinions about a product or store from friends/family Receive/Share photos of products from friends/family Receive/Share text messages about products from friends/family Text or tweet price details to see if the deal is worthwhile Receive/Share content about products/stores on user gen. websites (advanced activities)

LESS ADOPTED

(core activities)

FUNDAMENTAL SHOPPING TASKS

Compare products from your mobile phone Look at prices on a retailers website Search elsewhere when a product is out-of-stock Compare store prices with online prices when shopping in a store Read customer ratings or reviews of a product Visit a retailer website (e.g., bestbuy.com, potterybarn.com) Look up online product information while shopping in a store Read customer ratings or reviews about a store Check in-store availability of a product Look for deals for nearby stores Check on the status of an order Visit a manufacturer website (e.g., whirlpool.com, fisherprice.com) Calculate price comparisons for different size products Make a shopping list

SPECIALIZED SHOPPING TASKS

Use gift cards, reward cards, or gift registries Use gift guides (e.g., look for a gift under $100 or a gift for mom) Compare payment plan options (e.g., mortgage calculator) Use retailer comparison, selector or customization tools Utilize virtual shopping tools that help you visualize the product View product demos Add a product to a wish list or favorites Browse store circulars Use a coupon Browse coupons Place an order ahead of time to ensure a quicker pick-up Participate in a sweepstakes, game or promotion offer Use barcodes or scanning to get pricing or product information Use an app or mobile shopping application

CATEGORY-SPECIFIC
2010 Leo Burnett and Arc Worldwide

(shopping-related activities that dont transcend categories)

INDUSTRY REPORT

them. (A second implied corollary: mobile marketing often is significantly cheaper than comparable, traditional advertising methods.) For another, it lets marketers send calls to action in the immediate proximity to where the purchase decision is being made, says Daniel Cooke, director of digital shopper marketing at Kellogg Co. We refer to this as point-of-service, and its the primary reason why we believe so strongly in the prospects for mobile. Retailers and brands have been working at online methods of driving consumers to stores. But whats been lacking is a way to drive them right to the sale, says Iacovone. Mobile is the first technology that can deliver that. Mobile marketing also is unprecedented in its ability to return behavioral data, which can then be correlated with purchase data. And the more we know about consumers, the better well be able to communicate with them, says Iacovone. However, the time for non-strategic experimentation with buzzy tools is passing quickly. Marketers now need to develop a comprehensive strategy that maps out a vision for mobile marketing and its role in the overall marketing plan. Marketers looking to do so should fully consider the following rules: Rule No. 1: Make a full commitment. Many retailers and marketers are launching mobile programs simply to be trendy or keep pace with the competition but without setting a long-term vision: retailers launch perfunctory apps with store locators, a website link, and little in the way of real shopper value; brands add a QR code to print ads that send consumers online to watch a 30-second TV spot, which might drive some site traffic but wont engender long-term engagement (or even a repeat visit). These examples illustrate the fact that Lets do something mobile is not a sound strategic plan, says Iacovone. There are numerous internal needs you should consider before you ever get to the consumer-facing activity. The first step is a commitment from upper-level management that runs across brands, builds mobile into the overall path-to-purchase strategy and fully spells out where it fits, he says. Ideally, this internal alignment includes agreement on a single structural platform that allows for shared data and processes. A fully thought-out plan will also help companies avoid common mistakes, such as using a QR code to direct consumers to a traditional, mobile-unfriendly website (see page 6). The evidence suggests that many companies are in need of such alignment: Only 45% of respondents to a fall 2010 Forrester survey claimed to have a shared mobile vision within their organizations.

Rule No. 2: Dont treat it as a separate function. Effective mobile marketing will be fully aligned with digital marketing as a whole and, beyond that, the overall strategic marketing plan. Right now, mobile is still an afterthought, something that gets tacked on at the end of the planning stage, says Iacovone. We dont think you should have a distinct mobile strategy, Garris says. It should be aligned with your overall marketing strategy. That, of course, is easier said than done, since marketing organizations historically have kept their silos fortified and usually seek comfortable, pre-established homes for new concepts. (A key reason why digital shopper marketing and shopper marketing in general hasnt fully taken flight is that it forces marketers to break down those silos and align advertising, consumer promotion and trade promotion.) Most digital marketers come from the advertising side of the organization, which means sales-driving promotions, retail collaboration and other tactics for which mobile is well-suited are foreign territory for many of its practitioners. Shopping crosses so many different touchpoints, so everyone in the organization has to work together, says Garris. Mobile is just one of the tools although its the only one thats with the consumer all the time. Rule No. 3: Dont expect it to differentiate your brand. Its extremely important to understand that the medium itself is definitely not the message. The newness factor that currently makes scanning a QR code or downloading an app unique for shoppers will fade quickly, and using them wont score points with consumers for very long. In fact, employing mobile tools solely as a stunt may ultimately alienate more consumers than it attracts. You have to make sure that you provide value, says Schuh. Sooner rather than later, all brands and retailers will be involved in mobile marketing. Apps among supermarkets, for instance, could well become as commonplace as frequent-shopper cards, which means they will have little intrinsic value. Already, both Tide and Clorox offer apps that deliver on-the-go stain removal tips, so neither brand has gained a competitive edge through the technology itself. Some companies are looking at mobile as a differentiator, Michael Ross, vice president-marketing, pricing and consumer insights for Meijer, said at a recent industry gathering. Were looking at mobile as a media channel. What we do with our brand is what will differentiate us. Rule No. 4: Focus on the audience, not the tool. The mistake that many companies make is thinking about the tactic first, then trying to make the tactic fit the brand.

Walgreens sends text messages when prescriptions are ready

Thats usually not the path to success, says Schuh. You need to start with the consumer and her needs, and determine how that aligns with the brand strategy. It needs to make sense. You have to identify the shopper first. Then you can determine the tools and methods for reaching them, says Iacovone. You probably dont need to incorporate augmented reality if youre trying to reach Baby Boomers. But for teenagers, it might be perfect. You start with the target, not the technology. The primary goal is not to wow shoppers with the tool itself, but with the solution that it delivers. You need to understand shopper needs and pain points, and solve for them, says Garris. An app from Walgreens that lets shoppers remotely order prescription refills and receive text notification when theyre ready for pickup is a great example because nobody wants to wait in the store for a prescription, she says. Rule No. 5: Assess your brands role realistically. Part of understanding target shoppers is identifying the role your brand plays in their lives. You need to engage them in a meaningful way, to give them the information that they need when they need it, says Garris. Simply put, the average shopper will have little need (or interest) for an app for every brand that she buys, let alone might buy. (On the other hand, apps may soon become as necessary a tool for retailers as websites have become, regardless of how many consumers feel the need for them.) You have to be relevant enough that they want to engage with your brand, advised Mike Boylson, JCPenneys chief marketing officer, at an industry conference last summer. For examples of retailers and brands that are solving consumer needs and establishing a deeper, relevant role in their lives, see pages 12 and 14. Rule No. 6: Keep it simple. Consumer research at Hewlett-Packard has found (among other things) that mobile shoppers prefer to select from option links rather than make requests by typing. Thats just one example of the need to make the

mobile experience fast and easy. You never want to create more hurdles for the shopper, says Garris. You only have her for a minute. Unless the value matches the effort required, your message will seem like a disruption, adds Masha Sajdeh, Arcs chief shopper strategist. We should not be forcing consumers to do anything, such as downloading an app or emailing a photo, to enter a promotion, says Augmes Apple. They need to be able to do things naturally with the technology that they already have. Many of the current barriers to mobile shopping involve relatively basic issues with speed, functionality and visual aesthetics (see chart, page 15). Another issue is the fragmentation of available technology: The presence of numerous proprietary applications and subsequent lack of standardization often forces consumers to make technology decisions rather than shopping choices, says Augmes Apple. Any mobile campaign should seek to avoid if not alleviate these obstacles. Rule No. 7: Pull smartly, push gently. Just because mobile shoppers are always available doesnt mean they should be contacted relentlessly. The best strategy often may be to give them access to problem-solving tools, but let them decide when and how to use them. Arc, for one, is more an advocate of a pull strategy. You can create a lot of context and a lot of technical shortcuts for people to use when they want to, says Garris. Relevance is key, and many brands have established enough equity among consumers to legitimately seek a deeper role in their lives. Consumers may very well view Kimberly-Clarks Pull-Ups as the logical provider of a potty training tool for parents, or Nestl-Purina as a credible source for information about pet-friendly hotels and restaurants (see page 14). But will they accept PepsiCos Propel as the ideal aid for helping them map out errands (as the brand is attempting to do)? As for push marketing, You have to be really thoughtful, suggests Garris. The content should be highly customized if you are delivering to a phone. But if you understand shopper needs and pain points, you can provide relevant content and start to influence behavior without offending anyone. Part of the issue here involves a timeless marketing albatross: ad clutter, and the subsequent negative effect it has on consumer response. Since the mobile phone is such a personal device For a woman, its her purse. For a man, its his wallet, says Augmes Apple an unwanted message could be more off-putting than ever before. However, this problem ultimately may be solved by consumers themselves, who now have an unprecedented ability to ignore, delete or block any unwanted communication, and will be consciously selecting the vast
(continued on page 15) 5

TACTICAL REVIEW

HYPE VS. HOPE

Augme evaluates some of the more prevalent mobile communication tools.

traditional web, says Apple. Every organization with a traditional website should have a mobile-ready version.

Smartphone Applications:
Creating an app that can be downloaded onto a smartphone is an effective way to establish an exclusive, ongoing exchange with the target audience. But doing so assumes that people care enough about your brand to carry around your content all the time, says Apple. Consumers with time constraints not to mention storage limitations should soon reach a saturation point on the number of apps theyre even willing to download, let alone use on a regular basis. (And, they have to be willing to download any future upgrades as well.) Whats more, There are very few times when an app is really necessary, says Iacovone. Most functions that you would deliver through an app can be built on a mobile website, and thats more scalable. Even if smartphone penetration does reach 51% of the U.S. market by the end of 2011, that still leaves 49% of consumers who will have no way to interact if an app is the only option.

Text Message/SMS (short message service):

With all the recent industry buzz surrounding smartphones and apps, the old-school text message has taken a bit of a backseat in the minds of marketers. But its still the communication tool delivering the greatest reach (68% of mobile subscribers use it) and a technology with which most consumers have developed a high level of comfort. Its also still the social tool of choice for younger consumer generations. Augme strongly encourages its clients to include a text-message option in all promotions no matter what other cool response mechanism might be deployed otherwise. Every mobile device can send and receive an SMS, so its already scalable, says David Apple, Augmes chief marketing officer. If you exclude people because of their devices, you might alienate them. And 200 million is a lot of people to alienate.

Barcode Scanning (2D, UPC):

With an estimated 65 million smartphones expected to hit the market with embedded readers in 2011, scanning of packaging and P-O-P materials could soon become standard behavior. (Penetration levels in some foreign markets are already quite high.) Although usage rates are still relatively low Forrester reported in September 2010 that fewer than 1% of consumers had ever scanned a code Iacovone suggests that marketers begin using them to stay on track with consumer behavior. Augme sees a bright future ahead for barcode scanning, but advises its clients to avoid proprietary codes and instead use QR codes or UPCs the most widely readable types in the market. Theres a lot of confusion related to multiple code types, primarily instore, says Iacovone.

Mobile Websites:
Optimizing your website for mobile viewing (or building a full-scale mobile version) is a must for any consumer-facing organization, Anthony Iacovone, Augmes founder and chief innovation officer, advises. On-the-go consumers have little patience for traditional websites, which were designed for access from computers with more memory, faster connections, greater visual capacity and much larger screens. One unsatisfactory encounter on a clunky website may be enough to drive consumers right to the competition. By 2014, more people will access the Internet via mobile devices than by desktop computers, according to a forecast by Morgan Stanley. The mobile web is as important as if not more important than the

Adding to this confusion is the common categorization of snap and send technologies which require consumers to take a picture, use email or MMS [multimedia message service] to send it to the address provided, and wait for a response as barcodes. But that technology has a high failure rate (for image captures) and slow response times, which substantially limits capabilities and increases consumer frustration, Apple says.

Location-Based Networks:
Third-party operators such as Shopkick, Foursquare and Gowalla can deliver established audiences that, at least for now, seem to be relatively engaged in the process of checking in at retail to earn rewards. Whether or not these services survive long-term will depend largely on the value that they deliver and that will only come through widespread participation from retailers and product marketers (or, perhaps, by how deeply larger entities like Facebook, Google and Twitter move into the space). You dont need a thirdparty app to run a locationbased program or any app at all, says Apple. The same capabilities namely, GPS and device IP [Internet protocol] can be leveraged through a mobile website or consumer-response technologies like SMS, or 2D and 1D codes. And that way, you can brand the experience yourself.

deployed barcode imagers at the point of sale.) The other category, mobile coupons, should be categorized as brand-specific and can be redeemable across stores, according to Augme. Redemption options generally are limited due to the lack of POS technology; some retailers have adopted methods of making the offers downloadable to loyalty cards, with redemption occurring when the shopper presents the card (instead of a phone) at checkout. While that works well for retailer-specific campaigns (at least at the 15-odd chains that have the capability), there currently is no easy way for brands to conduct a national program, aside from working through multiple technology vendors. Augme is among a few companies that are working to aggregate the marketplace.

In-store Technology:
In large part, the smartphone can become a personal kiosk for each shopper, says Iacovone, which eliminates some of the need for in-store deployment of other devices. Meijers Michael Ross says that the chain plans to leave the hardware in the hands of the shopper. Still, nearly 80% of marketers believe that in-store technologies will work in tandem with personal devices to deliver relevant, targeted communication. Kiosks or digital signs that deliver shopper-specific messages when activated by a phone could very well become a common offering at retail and would save marketers from launching unnecessary apps. I may not really care enough about your brand Monday through Friday, says Apple. But I do care enough about it on Saturday, when Im in that retail environment, to respond to your offer. When choosing tactics, the single most important point to remember is that your audience will determine the technologies you use, says Iacovone. Your consumer will determine their mode of communication with your brand.
7

Mobile Coupons:
Paperless coupons delivered to feature and smartphones have served as the mobile toe-dip for many marketers for multiple reasons: theyre a tangible, recognizable companion to a traditional marketing tactic, they deliver easily measurable results, and they have been quickly embraced by consumers. (They also hit the cultural zeitgeist during the recession, which didnt hurt.) They may not be sexy, but the fact of the matter is, all 248 million mobile devices can interact with them right now, notes Apple. While the numerous systems and service providers available, and the resultant lack of scale or standards, make the marketplace a bit confusing at the moment, penetration rates and intention levels as well as early redemption rates suggest that marketers should be diving in fully. Augme divides the marketplace into two categories: A mobile offer is a discount on a product or a sale presented by a specific retailer. The consumer either receives a numeric code on her phone via SMS, or a barcode that can be scanned at checkout. (The latter method is only possible at retailers like Target that have

BEHAVIORAL RESEARCH

MOBILE SHOPPERS ARE BORN, NOT MADE.

There are some consumers who are inherently wired to do this, says Masha Sajdeh, chief shopper strategist for Arc Worldwide, the Chicago-based marketing services arm of Leo Burnett. Sajdeh is referring to the 10% of U.S. consumers who, based on the agencys proprietary survey, have been classified as heavy mobile shoppers. In September 2010, Arc surveyed 1,000 mobile phone owners aged 18 to 64 about their mobile usage, then enhanced that sample with another 800 surveys of smartphone owners who had engaged in at least one mobile shopping activity. The agency then conducted an intensive qualitative study of 36 consumers who

were tracked for more than one week as they performed various shopping tasks on their phones. (The inventive study concluded with six subjects conducting all of their Black Friday shopping on their smartphones.) In the mobile shopping universe that Arc uncovered through the study, 49.1% of consumers can be classified as mobile shoppers, having engaged in one or more relevant activities monthly (see chart below for the list of qualifying activities). Of those, 10% are heavy and 39.1% are light users, based on the penetration and frequency of their activities. Of the remaining 50.9% of the population, 40.6% have yet to engage in any mobile shopping tasks, and roughly 10.3% dont own mobile phones. Depending on your outlook, that means half of U.S. consumers already are involved in mobile shopping, or that half arent shopping, says Leo Burnett and Arc

Mobile Shopping Activity Penetration

100
93 94 91 85 86 84 78 79 73 73 74 71 67 64 62 61 58 59 54 47 70 86 83 81 83 82 78 73 68 70 65 59 57 63 63 61 93

% who do the following activities at least once a month from their mobile phone

80

60

52

40

40

32 31 25 24 23

20

22 21 21 21 20 20 19 19 19

17

16 16

15 15 14 14 13 13 13

11 11 11 10 10

0
) ) ) ) on ess ers om site ved tore tore duct om mily g list ores rder tore one tock ucts sites mily duct one tion info one mily one ffer k-up hile ools tries mos rites om ator duct o ic t is s -s o s l a ati oc off h h fa h h -s d . .c eb sa t t w o a n e o l.c o o fa loc g pr ns/ tbuy s w ave in a s, in a pr poo ds/f ppi by s f an ut a ile p t-of pro gen ds/ a pr ile p pplic duc ile p ds/ ile p tion er p orth tion reg ct d r fav for m alcu e pr r r c n b t r l n o o b a o u io n o e e o n e r t b b s f f rs ppi mot . be taile ou h hil pric s o hir frie a sh nea tus o s ab mo is ou t siz use frie ty o mo ng a r pr mo frie mo rom uick l is w miz r gif rod list o gif age ze th u w w i a t i i o q y w r r r r o o p o o a o (e.g re ils on ine ie .g. om ke s a sta iew ou uct ren on om bil ou pp g ou rom ou r p a h rtg ual i l de ust s, w is or a a v r n r s l a s, h r sh pr ati on r re te (e ts f M dea the r rev m y rod diffe tore cts f vail m y sho rici m y ore f m y me o sure the or c card Vie a w 100 . mo vis res ou ore site on em to r $ (e.g you dd ng y in-st web rices iler form with gs o ebsi duc or k on s o s fro he p for ts/s odu ore a s fro bile et p n fro t/st s fro , ga o en e if tor ard t f a e c i o s elp o o g o uc lar es e t se lec ew in s r n in w pr r t p ta re ok ec ing ct n t ns uc pr st du nd n ile at re ct ice rat er t to du ou Lo Ch r rat odu he riso rod s of k in- upo or m ng t oup rod ircu stak tim ls to , se ds, r ro ft u tio t h r i o p c w a p i n r p s ine ab reta ook k to rodu e pr mer ctur bou f p c p c e a p a gi n op tha L ac e p tor to ufa ts a m are p ere mp out hoto Che se c ap ann se a ut a ore wee ad o deta ariso ft ca d k u eng ions it a s a l r l o d o b h co b s us an ex A k fo t p too p st p ow an sc U abo se st a s ahe rice mp e gi Lo rch cat Vis c t fer lin al cu m sew ice t a re Br Use s or en ing s w in er t p co Us Re p on ysic ead t a m are loo ea tifi e ad Co h el e pr nten /Sha u ph R isi /Sh ion Bro pate ord tex iler a s e no .g. paym opp c at co ve Re od r n e k c i e ( i a r V e a i l r v e p h c an t o ret s e e a e i v e u Light Mobile Shoppers s oo par i Us cei r o t r e c S c b l L r l a e a ce id pa e re m Pa lace wee Use Re Ca /Sh R Re Us gu om virtu ha P T Co C ze ift ive r/S Heavy Mobile Shoppers g e e c e ili th Re Us Ut Ga

2010 Leo Burnett and Arc Worldwide

research manager Carrie Newman. Either way, it suggests that there is plenty of room for steadily increasing adoption levels as the penetration rate of smartphones rises and consumers become more familiar with the various tools at their disposal. Arcs group of heavy mobile shoppers is dramatically younger than the general population, with 67% aged 35 or less, according to Newman. They also skew slightly higher toward male and single, which arent the demographics youd typically find at the high-end of a shopping survey. But that fact suggests growth potential, she says. Smartphones are more conducive to shopping than standard feature phones, so we anticipate the number of mobile shoppers to increase along with smartphone penetration. But the study finds that mobile capabilities so far are not dramatically changing general behavior, as consumers largely are using their phones to perform the shopping tasks they used to carry out on a computer (or elsewhere) rather than altering their habits to any great degree. Heavy shoppers, for instance, have two defining characteristics. First, they qualify as heavy mobile users in general, utilizing their phones extensively for a wide variety of activities such as making calls, texting, conducting searches and playing games (see chart on page 2). Second, they also are habitual heavy shoppers, consumers who are more likely to shop generally by visiting a mall or using their home computers. For these heavy shoppers, nothing is off the table. They love experimenting with new tools, as their usage levels for a vast array of mobile services illustrates, says Sajdeh. Light shoppers, on the other hand, have a much more functional relationship with their phones, both for shopping and in general, and therefore generally engage at much lower levels, she says. Based on those two criteria, Arc identified 5.8% of the light shoppers as the likeliest candidates to move up to heavy, based on the fact that they rate as heavy shoppers away from the phone and as heavy mobile users when it comes to non-shopping activities. (That assessment, however, does not dismiss the potential for other lights to become heavy shoppers as well, Newman notes.) So far, then, the smartphone has not turned any casual shoppers into mobile shopaholics. However, there are two behavioral changes that do seem to be influenced by the devices, according to the study. The first is a phenomenon that Sajdeh referred to as the shopping blip, in which smartphone users browse online during what used to be down time in such captive situations as the doctors waiting room or the train (in what might be considered the 21st century version of window shopping). The second is that the smartphones omnipresence is allowing shoppers to extend the steps along the path

The Mobile Shopper Universe

% of Total US Adult Population Ages 18-64

Hvy Mobile 10.0%

Mobile Phone Owners 89.7%

Light Mobile Shoppers 39.1%

Mobile Shoppers 49.1%

Mobile Non-Shoppers 40.6%

No Mobile Phone 10.3%

2010 Leo Burnett and Arc Worldwide

to purchase beyond their traditional confines so that, for instance, price comparisons previously conducted on a home computer before the trip began are now being handled right in the store. This trend implies a prolonged ability to influence the purchase decision. The phone is very important in this respect, says Newman. The trend also implies that shoppers are becoming less diligent about their pre-trip research. If a good deal of the information will be readily available at the shelf, then strenuous research online beforehand is much less necessary. They can be more casual about their homework since they always have their phone, Sajdeh says.

Mobile Shopping Defined

In addition to obtaining insights into shopping behavior, the study also gave Arc an opportunity to scope out a clearly defined universe of all the activities that comprise mobile shopping, and then develop some theories on how marketers should respond to them. Arcs parameters go well beyond making a purchase to include product and price searches, comparison shopping, product research and gathering any information at all about a product or store, the report explains. In all, Arc identified 37 mobile shopping activities. These activities were then statistically classified into four types based on their level of adoption by consumers, their uniqueness to the mobile (or digital) environment, and their role in shopping. They are:
9

BEHAVIORAL RESEARCH

Portability: Four activities unique to the digital world that involve searching for information about stores or products, or receiving information from retailers and other sources on promotions, events and other offers (see chart below). These Info on the Go activities are the ones most frequently utilized by both heavy and light mobile shoppers. Among heavy shoppers, their penetration levels are extremely high.

Portability Uses, by Penetration Levels

Light Heavy

less often, both through the phone and during their traditional shopping process. The first two activity types transcend product categories because they come from the digital world, having translated quite nicely from computer to phone, according to Sajdeh. As such, marketers might be better off adopting a pervasive tool from a third-party source rather than creating a unique solution in these areas, she says. As an example, Sajdeh pointed to Best Buys Twelpforce technical service hotline, which uses Twitter as its communication platform rather than a proprietary system. The retailer would never be able to get the reach on its own that it does through Twitter, she says. Fundamental Shopping Tasks: Fourteen tasks that put a mobile twist on collecting the information needed to inform the purchase decision (see chart below).

Look up store address, hours or location Use a search engine during your shopping process Receive notifications about in-store promotions/offers Refer back to retailer emails you have saved

47.3% 93.2% 40.2% 94.2% 32.1% 85.2% 24% 77.8%

Fundamental Uses, by Penetration Levels

Light Heavy

Visit a retailer website (e.g. bestbuy.com)

30.6% 91.1% 25.1% 92.8% 23.1% 86.1% 22.4% 84.1% 21.1% 86.1% 20.7% 79.1% 20% 73.3%

20

40

60

80

100

Source: 2010 Leo Burnett and Arc Worldwide

Look at prices on a retailers website Look up online product information while in a store Compare physical store prices with online prices, in-store Read customer ratings or reviews of a product Visit a manufacturer website (e.g. whirlpool.com,)

Virtual Social Shopping: Five actions involving gathering and sharing information about stores and products with family, friends or the public at large (see chart below). Such Sharing and Advice activities are employed extensively by heavy shoppers, at nearly the same penetration levels by phone as by computer and, in one case texting or tweeting the worthiness of a price offer at a higher level. Light shoppers use them much

Make a shopping list

Virtual Social Uses, by Penetration Levels

Light Heavy 21% 72.9% 15.8% 71.2% 15.1% 70.5% 13.2% 67.6% 10% 60.8%

Look for deals at nearby stores Check on the status of an order Read customer ratings or reviews about a store Compare products from your mobile phone Search elsewhere when the product is out of stock Calculate price comparisons for different size products Check in-store availability of a product

19.5% 82.7% 19.3% 81.2% 18.8% 74% 18.5% 84.5% 16.5% 82.3% 16.2% 67.1% 15% 78%

Receive/Share texts about products from friends/family Receive/Share content about products/stores on user gen. sites Receive/Share photos of products from friends/family Gather/Share opinions about a product/store from friends/family Tweet or text price details to see if the deal is worthwhile

Source: 2010 Leo Burnett and Arc Worldwide

Source: 2010 Leo Burnett and Arc Worldwide

10

These Products, Prices and Reviews activities are conducted extensively by heavy mobile shoppers, often at levels at or near those for general shopping. Light mobile shoppers, on the other hand, partake at relatively low levels, despite the fact that they perform the tasks through other channels. Retailers should strongly consider investing in the development of proprietery solutions for these tasks, Sajdeh advises. By extension, this is also the area in which product manufacturers can provide the most assistance. A single retailer doesnt have the expertise across the entire store, she says, so its a perfect opportunity for product marketers to deliver their own category-specific understanding. Sajdeh notes that Target gained support from multiple product vendors when developing its smartphone app, which directly addresses several of these fundamental tasks. Specialized Shopping Tasks: The final 14 actions encompass a variety of shopping tasks that either require the unique capabilities of a smartphone or are being reinvented by the devices (see chart, right). These Specialized and Specific activities enjoy relatively high levels of usage among heavy shoppers (64% have used an app; 59% have scanned a barcode), but very low levels among the light group. Since they come from the shopping world, these last two types dont transcend product categories, and therefore need to be tailored to address any unique characteristics in the categorys shopping process, Sajdeh says. Because they are on the fringe in terms of consumer engagement, Sajdeh suggests collaborating with an outside partner to develop solutions. (Targets barcode scanner, for instance, was developed by RedLaser, which also has its own app.) In large part, all of the analog shopping behaviors that first migrated online are now moving to mobile, says Sajdeh. But some, such as price comparisons, are now on steroids because of increased ease of use and greater proximity to the purchase decision, she notes. While significant aspects of the path to purchase may largely become a mobile function, there are still aspects of the shopping process that will long require the physical environment. For this reason, Dont fear the mobile phone, embrace it to enhance the store experience, Sajdeh says.

Specialized Uses, by Penetration Levels

Light Heavy

Browse coupons from your mobile phone Use an app or mobile shopping application Use bar codes or scanning to get pricing or product info Use a coupon from your mobile phone Browse store circulars from your mobile phone Participate in a sweepstakes, game or promotion offer Place an order ahead of time to ensure a quicker pick-up

14.2% 72.9% 13.6% 63.6% 13.5% 59% 13.4% 57.5% 11.4% 70.2% 11.1% 61.7% 10.8% 58.1%

Use retailer comparison, selector, 9.6% or customization tools Use gift cards, reward cards, or gift registries View product demos Add a product to a wish list or favorites Use gift guides (e.g. look for a gift under $100 or a gift for mom) Compare payment plan options (e.g. mortgage calculator) Utilize virtual shopping tools that help you visualize the product 9.2%

64.7%

63% 8.8% 59.3% 8.5% 62.9% 7.9% 53.7% 7.8% 61.3% 6.1% 51.5%

Source: 2010 Leo Burnett and Arc Worldwide

11

BEST PRACTICES

RETAILERS
Mobile websites and apps are becoming commonplace among retailers. But the following companies already are moving beyond store locators and facile product searches to offer tools that are truly designed with on-the-go shopper needs in mind.

outfitted with the technology required to send offers to shoppers after they enter a store. Best Buy also runs Twelpforce, a customer service program that launched in summer 2009 via Twitter but will soon expand to Facebook and other digital platforms. The service gives mobile users near-instant access to technology experts.

Best Buy
It should be no surprise that the nations top electronics retailer would be leading the migration to digital shopper marketing. Among its numerous initiatives has been the deployment of QR codes as a standard component of product signage, and a regular feature in circulars as well. The codes generally provide access to product, service and promotional offers on the chains website. The chain also has launched several apps, including one specifically for video game enthusiasts (for which it also runs a special loyalty program, Facebook group and Twitter account), and another that delivers enhanced content about theatrical and home-video movie releases. Elsewhere, Best Buy was a charter sponsor of the Shopkick location-based rewards app that launched in August 2010. (Macys and The Sports Authority also joined for the launch; Target, American Eagle and Crate & Barrel soon followed.) By Oct. 1, 257 locations had been

Meijer
Last summer, the privately held Midwest supercenter chain launched a mobile coupon program called mPerks that lets registered shoppers redeem preselected coupons at checkout by entering their mobile phone numbers. The deals are selected on a microsite linked to Meijers home page, and stored on frequent-shopper cards until they are redeemed or expire. In a handful of stores, Meijer also is testing FindIt, a smartphone app that helps shoppers locate

12

products, departments, service counters, restrooms and even their cars in the parking lot. The app uses GPS technology to guide shoppers to the desired SKU. The retailer is developing functionality that will let users build an aisle-by-aisle shopping list, a feature that shoppers have been requesting. The chain also plans to eventually deliver relevant offers along the way. Meijer also sends periodic text messages to registered customers, including alerts that go out several hours before the chain increases gasoline prices.

them to coupons that are scanned at checkout for redemption. They also can download Mobile GiftCards that likewise are scanned at checkout. (Target was the first national retailer to add mobile-scanning capability to all stores.) The retailers app provides mobile-friendly access to weekly circulars, lets users manage their gift registries, and delivers special offers. It also has a built-in barcode scanner, which saves users from opening a separate app to obtain additional information on products while in the store.

Sams Club
Just before holiday 2010, Walmarts warehouse club division simultaneously launched an app for iPhone, Android and Blackberry devices that delivers product information, member-supplied reviews and access to the chains eValues digital coupon program. The app enhanced the already obligatory store locator function to deliver information about on-site events, product assortments and interior maps for specific stores. The all-digital eValues program, which launched in fall 2009, lets upper-tier club members download coupons tailored to their own purchase histories. The offers can be accessed online or delivered to a mobile device.

Walgreens
The drugstore chains ever-improving iPhone app already provides several key services: Express Refills by Scan lets pharmacy customers scan the barcode on their medication container, then select a store and time to pick up the refill. (Users receive a text message when the prescription is ready.) A similar service lets shoppers send photos from their phones to a specific store for processing in about one hour; the photos can even be shipped home, thereby eliminating the need to visit the store entirely. Users also can check product availability and pricing at particular stores. Outside of the app, Walgreens sends five monthly text messages with coupons and other offers to registered customers, and has upgraded its online circular to provide click-through savings in the shoppers cart.

Target
In August, Target unveiled My TargetWeekly, a service on its website that lets consumers customize the chains weekly ad and receive deal alerts. It also lets consumers view and print coupons, see Top 10 deals, share their findings on Facebook and Twitter, and create mobile shopping lists. The mass merchant has been extremely active in the digital space, launching a variety of services designed to improve the shopping experience. Smartphone users can receive text messages directing

13

BEST PRACTICES

BRANDS
Consumer brands are developing both push and pull strategies, with the latter centered on developing longterm connections to consumers, and the former focused more on immediate calls to action. In both cases, best practices are based on an understanding of consumer needs and the brands potential ability to fulfill them, as well as the recognition of mobile communication as a logical conduit rather than a simple marketing gimmick.

Krafts iFood Assistant

Two years after its launch, Krafts daily recipe finder is still the Michael Jordan of marketing apps, with several hundred thousand paid downloads and a reported 60% engagement level. In Arcs survey, it also was one of the few brand apps that respondents were aware of (see page 8). Kraft has expanded the initial iPhone program with apps for Blackberry, Android and iPad, along with overlays through Facebook and Twitter. The app also now includes coupon offers and a product finder that helps users find the nearest store carrying specific products.

Constellation Brands Wine Host

For holiday 2010, the wine maker placed QR codes (for smartphone users) and SMS keywords (for feature-phoners) on bottle neck hangers, case cards and FSIs. The links gave consumers access to a website featuring a party planning calculator and food/wine pairings. (The codes linked to a mobile website, the text to a more traditional site.) Participants could also sign up for future promotions and share their experience on Facebook or Twitter. Using the newer QR code alongside the more standard SMS option gave the campaign trendy cachet, but also a much broader reach.

LG Electronics Mobile Shopping Assistant

Its a scaled-down version of the manufacturers website that presents product specifications, user reviews and other information on TVs, washers, dryers and refrigerators in mobile-friendly form. The site is promoted on P-O-P materials, which LG executives say benefits retailers because it keeps potential buyers in the store when they otherwise might head home for more research on the computer. Launching the mobile version led to a 20% increase in site traffic for LG, according to reports. The Assistant is also downloadable as an app.

HPs In-Store Activation

Hewlett-Packard passed out fliers to attendees of National Basketball Association games this fall that let them earn immediate bonus points through Shopkick. The handout encouraged recipients to earn more points and exclusive discounts on HP products by visiting Best Buy, part of a broader initiative to utilize the chains partnership with the location-based rewards app. HP has been experimenting with QR codes as well, using them to provide more in-store information to shoppers in the category (96% of whom conduct research online before buying, but 76% of whom still buy in a store).

Pampers My Baby Registry

Procter & Gambles diaper brand lets expectant mothers create a single cross-retailer registry either online, on Facebook or through an app. (The list is compiled by scanning barcodes or finding products online.) The app consolidates the selections into a single gift registry and tracks the purchases made.

Purinas PetCentric Places

The Nestl brands online Petcentric community also gets a logical app extension, a tool that helps owners find hotels, restaurants, parks and other services that accommodate pets. Product information is presented in a subtle manner as a separate tab. The efforts extend the brands commitment to healthy, happy pets (and owners).

Kimberly-Clarks Pull-Ups iGo Potty

Smartphone-toting parents can set up this app to call when its time for the little one to give the toilet a try. Tykes who successfully complete their missions earn stickers that accumulate to unlock toddler-friendly games. When the training is over, parents print out a certificate to hang on the wall. The on the go app is a natural extension of the brands website, which provides a wealth of tips and information for parents at this lifestage.
14

20th Century Foxs Avatar Home Video Launch

Spicing up in-store promotions for the most technologically advanced film in movie history was probably a no-brainer especially at Best Buy. P-O-P materials and the retailers Best Buy Insider magazine carried JagTag codes that connected shoppers to related video, audio, coupons and other content. Participants also could opt in to receive future content, giving Fox an opportunity to pursue them at a later date.

INDUSTRY REPORT

Mobile Shopping Barriers

% of light mobile shoppers who checked the following statements Its just easier for me to go online from a computer than to shop on my mobile device I am usually near a computer so I really dont see the need to shop from my mobile device I think shopping from my mobile phone takes more time than shopping online I dont have very many occasions when I need to shop from my mobile device The websites I access on my mobile device are much less user-friendly than the websites I access on my computer I really dont have the need to shop from my mobile phone Its just easier for me to go to a store than to shop on my mobile device Once Im actually in a store I have no need to shop from my mobile device The screen on my mobile device is too small to see things clearly I dont think shopping from my mobile phone is very convenient The websites I access on my mobile device have much less of the same content, features and functionality It is difficult to search for products and/or services on my mobile device It is difficult to use and/or search for coupons on my mobile device I am worried about the security of mobile payment services The Internet access on my phone is too slow to shop effectively on my mobile device I think shopping from my mobile phone would take just as much time as shopping online I am not certain that the transaction will be completed while shopping on my mobile device I am not certain that my phone number will be kept private while shopping on my mobile device None of the above Light Mobile Shoppers 62% 50% 48% 46% 42% 40% 37% 37% 37% 35% 33% 32% 31% 27% 27% 23% 13% 12% 9%

majority of marketing messages that they get. Theres definitely a danger with clutter. But the mobile shopper has far greater control over what she receives, notes Sajdeh. In other media, there is less ability to provide contextual relevance. With mobile, what may seem like noise through other media may be exactly what she wants. Augme believes that the ability to deliver targeted content is a fundamental benefit of mobile marketing overall, especially when the message is received by a shopper within the store. You need to use some kind of reward to get that consumer to take the phone out of her pocket and engage with your brand, says Apple. Especially now, when theres still a great need for creating behavior. Rule No. 8: Collaborate. There is no denying the fact that consumers look to retailers first for any type of shopping solution, says Sajdeh. Therefore, an effective mobile strategy for any brand will include plans for collaborative activity with key retailers. Just as they had to do online, retailers will need to develop strategies for attracting mobile shoppers and driving sales. (Richard Mader, executive director of the Association for Retail Technology Standards, is already calling mobile the fourth retail channel.) And, similarly to whats been occurring on the traditional Internet, theyll be looking to manufacturer partners for assistance. Retailers have limited content right now, and thats

a gap that manufacturers can fill, says Garris. They can add a little value that will create a better experience for the mobile shopper. Manufacturers have a smaller role to play in mobile shopping, but its an important one, says Sajdeh. Shoppers are not going to use manufacturer apps until they are looking for specific information. A manufacturer, therefore, can and should provide that level of information depth through the retailers platform. Collaboration also entails partnering with third-party apps and mobile services, which can deliver reach millions of users, in some cases and also can help turn passive consumers into active shoppers: Users of locationbased rewards apps like Shopkick or Foursquare may not be planning a purchase when they check in at a store, but could be responsive to the right offer once they do. Rule No. 9: Be Very Flexible. In the mobile world, a new device like the Apple iPad can launch and add a whole new marketing vehicle seemingly overnight. Most companies plan 18 months out, but the industry is now changing every three months, says Iacovone. You need to have a system in place that lets you respond to that rate of change and aim effectively. The shopper journey is changing daily, says Tia Newcomer, director of Americas shopper marketing for Hewlett-Packard Co. If we dont make mistakes, if we dont try, test, and learn, we wont be successful.

15

INDUSTRY REPORT

Rule No. 10: Promote your efforts. One step that mobile marketers have largely forgotten thus far is telling people about their efforts, says Garris. We dont see any promotion, which is a huge miss. We need to get a little bit smarter about helping to drive adoption. While response rates are low mainly because of low penetration levels for most mobile technologies, a general lack of knowledge is also a factor. For instance, Nobody is marketing these shopper apps yet, says Sajdeh, noting that the iTunes App Store doesnt even have Shopping among its classifications. Pfizer provided a good example of what to do in January, when it began running TV ads for the Robitussin Relief Finder, a mobile website that helps consumers choose the right product for their needs. The ads depict a shopper at the shelf accessing the site through his smartphone. Such public education is an important aspect of newmedia development, which is why Augme advises clients to employ QR codes despite their relatively low usage levels: Familiarizing shoppers with the codes now will facilitate the adoption process later. A lot of people are still uncomfortable trying new technology, says Newcomer. But they become very engaged once they learn how to use it.

Conclusion: One World?

Other potential impediments to adoption, and possible hindrances to marketing effectiveness later on, are the vast amount of tools and service providers in the marketplace, and the resulting dearth of technological standards that such ubiquity brings.

Mobile couponing, as an example, is really tricky right now, because its a very fragmented space with numerous suppliers, says Garris. Pull-Ups isnt staging any promotional offers through the iGo Potty app (see page 14) largely because there are no tools that can smoothly work across retailers, says Schuh. While the ability to deliver shopper-specific messages is perhaps the most exciting aspect of mobile marketing, brands and retailers still desire access to large audiences. If you ran a campaign through any other medium that reached less than 1% of your customers, youd be fired. Right now, if you do it with mobile, youre a hero, says Apple. You need to consider scale. Everyones building their own mobile application. But how many similar apps do you need on your smartphone, asks Ross at Meijer. Customers arent interested in having four different [code] readers, they only need one. Companies are dabbling in this space, and spending a lot of money on development, Ross says. But if we could collaborate with other companies with the same needs, we could increase speed to market and generate faster consumer adoption. Ross even suggests that retailers could work together on such tools as an in-store navigation app that would cover multiple chains, which would add scale to the system and be an even greater benefit for shoppers. Everybodys thinking about doing their own thing. But are there ways we could share? Augme likewise sees potential in scalable tools, and currently is working with several in-store marketing companies to develop a cross-retailer ad network centered on QR codes at the shelf. Code functionality would let brand marketers customize offers for each participating retailer or, theoretically at least, for each individual loyalty cardholder who scans one. The age of mass customization has begun. The mobile shopper has arrived. The First Moment of Truth will never again be the last step in the path to purchase.

Arc Worldwide, Leo Burnetts marketing services arm, specializes in digital communications, direct/database marketing, promotions and shopper marketing. Formed out of several existing specialist agencies, Arc is best-in-class across all its disciplines, able to create and execute campaigns that move people everywhere they move: online and in-store, over phones and via underground events, one-to-one and within social networks. Using cross-channel activation, Arc moves people to experience, to purchase, to recommend, and to return. Because at the end of the day, every marketing challenge begins and ends with two things: people and their behavior. Arc creates award-winning campaigns for The Coca-Cola Company, McDonalds, MillerCoors, Procter & Gamble and other leading companies. Augme Technologies is the leading mobile marketing solutions provider for some of the worlds largest consumer and pharmaceutical brands. The company firmly believes that finding a truly complete mobile solution is more important than ever for creating customer loyalty, influencing purchase decisions, and understanding consumer behavior. Augmes AD LIFE technology platform uses patented device-detection and the industrys most advanced mobile content adaptation software to give brands access to larger segments of targeted audiences across different mobile platforms and providers using 2D barcodes, text messaging, mobile couponing and more. For more information, text AM to 30333. The In-Store Marketing Institute is a global organization of brand marketers, retailers, agencies and manufacturers focused on improving retail marketing strategy worldwide. The Institute serves the needs of its membership by providing information, research, education and training, networking opportunities, trade publications and a trade show designed to further the understanding, acceptance and effectiveness of in-store marketing. For more information, go to www.instoremarketer.org.