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INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES Chapter 14 The Future -- Wireless and Convergence

Internet Marketing: Integrating Online and Offline Strategies 3 © 2008 Thomson, a part of the Thomson Corporation. Wireless and Converged Devices Are Undergoing the Process Of Adoption and Diffusion. More Rapidly in Europe, Asia and Pacific Rim Less Rapidly in the United States But US Accelerating

Internet Marketing: Integrating Online and Offline Strategies 4 © 2008 Thomson, a part of the Thomson Corporation. CONVERGED MULTIMEDIA

Internet Marketing: Integrating Online and Offline Strategies 5 © 2008 Thomson, a part of the Thomson Corporation. CONSUMER ADOPTION PROCESS

Internet Marketing: Integrating Online and Offline Strategies 6 © 2008 Thomson, a part of the Thomson Corporation. DIFFUSION OF INNOVATIONS

Internet Marketing: Integrating Online and Offline Strategies 7 © 2008 Thomson, a part of the Thomson Corporation. PRODUCT FACTORS THAT AFFECT DIFFUSION OF INNOVATIONS Relative Advantage Compatibility Complexity Divisibility Communicability

Internet Marketing: Integrating Online and Offline Strategies 8 © 2008 Thomson, a part of the Thomson Corporation. GLOBAL INNOVATION Pace of Innovation Accelerating Across Product Types and National Boundaries Requires Collaboration Across Scientific and Technical Disciplines Concept of Intellectual Property Needs to Evolve From Hoarded Possession to Shared Asset

Internet Marketing: Integrating Online and Offline Strategies 9 © 2008 Thomson, a part of the Thomson Corporation. THE PACE OF INNOVATION IS INCREASING

Internet Marketing: Integrating Online and Offline Strategies 10 © 2008 Thomson, a part of the Thomson Corporation. O’REILLY–INNOVATION=OPEN SOURCE Open Source Software Open Platforms Open Mobile Devices, Content Services

Internet Marketing: Integrating Online and Offline Strategies 11 © 2008 Thomson, a part of the Thomson Corporation. Pervasive Computing  Ubiquitous Computing Wireless Internet  Wireless Advertising, Mobile Marketing Digital Convergence  Devices, Media INNOVATIVE TECHNOLOGIES

Internet Marketing: Integrating Online and Offline Strategies 12 © 2008 Thomson, a part of the Thomson Corporation. The Wireless Web

Internet Marketing: Integrating Online and Offline Strategies 13 © 2008 Thomson, a part of the Thomson Corporation. What is Meant By Pervasive/Ubiquitous Computing? What Are The Implications Of A Pervasive Computing Environment?

Internet Marketing: Integrating Online and Offline Strategies 14 © 2008 Thomson, a part of the Thomson Corporation. CHARACTERISTICS OF PERVASIVE COMPUTING In All Areas of Daily Life Variety of Wired and Wireless Devices Chips Embedded in Everyday Articles Access to the Network Any Time, From Any Place Devices Communicate With One Another (M2M)

Internet Marketing: Integrating Online and Offline Strategies 15 © 2008 Thomson, a part of the Thomson Corporation. SPEEDPASS RFID-BASED PAYMENT SYSTEM

Internet Marketing: Integrating Online and Offline Strategies 16 © 2008 Thomson, a part of the Thomson Corporation. “ HELLO, IT’S YOUR PARKING METER CALLING”

Internet Marketing: Integrating Online and Offline Strategies 17 © 2008 Thomson, a part of the Thomson Corporation. Microsoft ® Home Location-Based Content (bus route updates) Participation (addressable wallpaper) Discovery (relevant content) me/default.mspx

Internet Marketing: Integrating Online and Offline Strategies 18 © 2008 Thomson, a part of the Thomson Corporation. A NETWORKED POPULATION

Internet Marketing: Integrating Online and Offline Strategies 19 © 2008 Thomson, a part of the Thomson Corporation. 6a’s OF PERVASIVE COMPUTING A uthorized A ccess A nyone A ny Time A nywhere A ny Internet-Enabled Device

Internet Marketing: Integrating Online and Offline Strategies 20 © 2008 Thomson, a part of the Thomson Corporation. WAL-MART HOLIDAY MOBILE Once enrolled, Walmart will send offers, such as this one delivered via text at 8.20 p.m. Eastern time on Nov. 29: "FREE MSG: WALMART HOLIDAY SPECIAL! Samsung Blu- ray player for $248. Was $298. Click for all specials or go to walmart.com/savings." eNewsletter

Internet Marketing: Integrating Online and Offline Strategies 21 © 2008 Thomson, a part of the Thomson Corporation. SUPERBOWL MOBILE TIE-INS Each week throughout the NFL’s 17-week regular season, any Sprint customer who uses NFL Mobile Live will be automatically entered for a chance to win two tickets to the NFL’s biggest game. NFL’s SprintNFL Mobile Live

Internet Marketing: Integrating Online and Offline Strategies 22 © 2008 Thomson, a part of the Thomson Corporation. 1G  Analog Devices 2G  Digital; Voice/Data; 14.4 kbps 2.5G  Enhancement of & Internet Access 3G  Speed Eventually Equivalent to Broadband EVOLUTIONARY STAGES OF WIRELESS

Internet Marketing: Integrating Online and Offline Strategies 23 © 2008 Thomson, a part of the Thomson Corporation. REASONS FOR DIFFERENCES Early/Satisfactory Adoption Of Wired Internet Lack Of Land-Line Infrastructure Compact, High Population Coverage Cultural Orientation Toward Electronics Greater Standardization Of Wireless Political Barriers To Wireless Licenses

Internet Marketing: Integrating Online and Offline Strategies 24 © 2008 Thomson, a part of the Thomson Corporation. WIRELESS STANDARDS CDMA (Code Division Multiple Access) TDMA (Time Division Multiple Access) GSM (Global Standard for Mobil Communications)  Europe i-Mode  Japan Wi-Fi (802.xx) US

Internet Marketing: Integrating Online and Offline Strategies 25 © 2008 Thomson, a part of the Thomson Corporation. NIELSEN MOBILE wireless lines in US 57% remember seeing ads

Internet Marketing: Integrating Online and Offline Strategies 26 © 2008 Thomson, a part of the Thomson Corporation. UK MOBILE INTERNET GROWTH 8X GREATER THAN PC-BASED INTERNET GROWTH

Internet Marketing: Integrating Online and Offline Strategies 27 © 2008 Thomson, a part of the Thomson Corporation. 2.9 M RECEIVED OBAMA VP TEXT MESSAGE

Internet Marketing: Integrating Online and Offline Strategies 28 © 2008 Thomson, a part of the Thomson Corporation. NEW PLAYER

Internet Marketing: Integrating Online and Offline Strategies 29 © 2008 Thomson, a part of the Thomson Corporation. DISPLAY ADVERTISING NOT PRIMARY advertising-spending-to-surpass-65-billion-in /

Internet Marketing: Integrating Online and Offline Strategies 30 © 2008 Thomson, a part of the Thomson Corporation. TESCO MOBILE

Internet Marketing: Integrating Online and Offline Strategies 31 © 2008 Thomson, a part of the Thomson Corporation. US MOBILE USERS -- ACTIVITIES

Internet Marketing: Integrating Online and Offline Strategies 32 © 2008 Thomson, a part of the Thomson Corporation. US MOBILE USERS - SITES

Internet Marketing: Integrating Online and Offline Strategies 33 © 2008 Thomson, a part of the Thomson Corporation. US MOBILE USERS - CONTENT

Internet Marketing: Integrating Online and Offline Strategies 34 © 2008 Thomson, a part of the Thomson Corporation. GLOBAL MOBILE USERS - CONTENT

Internet Marketing: Integrating Online and Offline Strategies 35 © 2008 Thomson, a part of the Thomson Corporation. SNAPPLE’s CELL PHONE PROMOTION Figure 14-5

Internet Marketing: Integrating Online and Offline Strategies 36 © 2008 Thomson, a part of the Thomson Corporation. McDONALD’S MOBILE TEST Figure 14-5

Internet Marketing: Integrating Online and Offline Strategies 37 © 2008 Thomson, a part of the Thomson Corporation. VODAPHONE’S MOBILE PRODUCT Figure 14-6

Internet Marketing: Integrating Online and Offline Strategies 38 © 2008 Thomson, a part of the Thomson Corporation. WIRELESS GOING MAINSTREAM Podcasts are Attracting Sponsors More Recently  Blogs are Attracting Advertising

Internet Marketing: Integrating Online and Offline Strategies 39 © 2008 Thomson, a part of the Thomson Corporation. TRANSACTIONS IN AUSTRALIA Figure 14-7

Internet Marketing: Integrating Online and Offline Strategies 40 © 2008 Thomson, a part of the Thomson Corporation. BARRIERS TO MOBILE USE

Internet Marketing: Integrating Online and Offline Strategies 41 © 2008 Thomson, a part of the Thomson Corporation. STRATEGIC DRIVERS OF WIRELESS Context  Localization, Personalization Time Sensitivity High Value Voice Activation One-Click Payment Security Privacy Expanded Permission Marketing NOT ADVERTISING

Internet Marketing: Integrating Online and Offline Strategies 42 © 2008 Thomson, a part of the Thomson Corporation. ADVICE FOR MARKETERS Reality Mobile Games $6B by 2011 Convenience Rules iPhone Disruptive Innovation Mobile Ecosystem Evolving Quickly STANDARDS ESSENTIAL Fantasy People Will Never Purchase SMS Doesn’t Work Easy to Run Programs (2 mo. for carrier to approve) Is Currently No Killer App

Internet Marketing: Integrating Online and Offline Strategies 43 © 2008 Thomson, a part of the Thomson Corporation. ACCENTURE STUDY

Internet Marketing: Integrating Online and Offline Strategies 44 © 2008 Thomson, a part of the Thomson Corporation. SELECTED ACCENTURE RECOMMENDATIONS 2.Own the Customer Experience - Control over Content - Simplicity, Convenience, Ease of Use 3.Serve the Social Needs of Customers 14A758260EE8/0/OutlookPDF_ThrivingintheIPjungle_01_Rethinkingthewirelessbusinessmodel.pdf

Internet Marketing: Integrating Online and Offline Strategies 45 © 2008 Thomson, a part of the Thomson Corporation. MOBILE SOCIAL NETWORK USE UP December 22, 2008

Internet Marketing: Integrating Online and Offline Strategies 46 © 2008 Thomson, a part of the Thomson Corporation. INDUSTRY SELF REGULATION Choice Control Customization Consideration Constraints Confidentiality Code of Conduct

Internet Marketing: Integrating Online and Offline Strategies 47 © 2008 Thomson, a part of the Thomson Corporation. MOBILE THE NEXT CONVERGENGE?

Internet Marketing: Integrating Online and Offline Strategies 48 © 2008 Thomson, a part of the Thomson Corporation. Digital Convergence – Devices and Media

Internet Marketing: Integrating Online and Offline Strategies 49 © 2008 Thomson, a part of the Thomson Corporation. What Do We Mean By Digital Convergence?

Internet Marketing: Integrating Online and Offline Strategies 50 © 2008 Thomson, a part of the Thomson Corporation. A DEFINITION “the Power of Digital Media To Combine Voice, Video, Data, Text and Money In New Applications, Devices and Networks” Syracuse University Convergence Center

Internet Marketing: Integrating Online and Offline Strategies 51 © 2008 Thomson, a part of the Thomson Corporation. CONVERGED DEVICES Individual Cell Phones  GPS, E911, Camera, Bluetooth PDA + Tablet PCs Game Players Touch Screen Household Wireless Added To Appliances TVs Many Other Devices Connected to Internet

Internet Marketing: Integrating Online and Offline Strategies 52 © 2008 Thomson, a part of the Thomson Corporation. CONVERGED PRODUCT ANNOUNCEMENT

Internet Marketing: Integrating Online and Offline Strategies 53 © 2008 Thomson, a part of the Thomson Corporation. CONVERGED MEDIA Television Programming, Movies on PCs Video Available on All Wireless Devices  Streaming Provides Access Satellite Radio Offers Choice, Access Broadcast and Print Media Go Electronic The List Will Continue To Grow

Internet Marketing: Integrating Online and Offline Strategies 54 © 2008 Thomson, a part of the Thomson Corporation. DEVICES, MEDIA OPEN PLATFORMS more/default.aspx?WT.mc_id=sdmvan

Internet Marketing: Integrating Online and Offline Strategies 55 © 2008 Thomson, a part of the Thomson Corporation. DEVICES, MEDIA OPEN PLATFORMS Media in the Browser

Internet Marketing: Integrating Online and Offline Strategies 56 © 2008 Thomson, a part of the Thomson Corporation. The Common Theme is The Network, Not the Device.

Internet Marketing: Integrating Online and Offline Strategies 57 © 2008 Thomson, a part of the Thomson Corporation. SUMMARY Adoption Of Technological Innovations  Process, Diffusion, Product Factors Pervasive Computing, Wireless Internet And Digital Convergence Are Innovative Pervasive Computing  6 a’s  Different Standards, Infrastructure, And Cultural Issues  Differential Growth Rates Important Applications, B2C, B2B  Cell Phones, iPods, Other Devices Digital Convergence Is Beginning To Occur  Devices, Media Strategic Drivers Of/Barriers To Wireless  Marketers Proceed With Care