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PayPal Media exec: NFC is not enough in mobile payments

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October 3, 2012

NEW YORK – A PayPal Media executive at the Mobile Marketing Association’s SM2 conference said that for the mobile wallet to take off, it needs to be approached from a consumer-first position.

During the “Beyond the Lat-Long: Using Location-Targeting and Analysis To Understand Your Consumers” session, the executive spoke about how location and context will help fuel mobile commerce and the mobile wallet. The executive also unveiled some new PayPal Media products for marketers.

“When you think about the mobile wallet, what’s going to transfer your desire to pay with instruments in your pocket to moving to payments with a mobile phone?” said Walt Doyle, general manager at PayPal Media Network, Boston.

“There’s a lot to that – I think that we have all recognized that it’s not the tap-and-pay or NFC – that’s not enough,” he said.

“It’s about thinking through the wallet through a whole new experience with the consumer first so that I can do things that are important to me.”

Mobile metrics
Context – whether it is through related products, time or location – will be the next battleground for mobile payments, per Mr. Doyle.

Therefore, giving users relevant and rare offers at the right time and place is crucial in moving mobile advertising ahead.

With more than half of Americans owning smartphones, consumers are undoubtedly engaged with the device throughout the day. However, monetization continues to be an issue despite the high levels of engagement.

Mr. Doyle used research earlier this year from Mary Meeker to show how mobile is claiming a large chunk of attention from consumers, but the ad dollars are not following the medium.

Metrics can help fill in this gap between time spent and mobile budgets, per Mr. Doyle.

Impressions, click-through rates and cost-per-action still continue to be the main numbers that marketers use to guage their campaigns. Although these metrics might be helpful with other marketing platforms, it does not necessarily apply to mobile, which requires a different mentality.

Different habits
Because consumers are attached to their mobile devices throughout the day, time frames and locations mean that users have different intentions throughout the day.

For instance, a consumer is in a completely different mentality while they are shopping compared to when they are at work.

Location has become a must-have part of any mobile campaign, per Mr. Doyle.

“You can’t have too much audience because if you’re getting after the audience that is right for you, you need to be able to reach as many people as possible,” Mr. Doyle said.

Similarly, figuring out a target consumer based on demographics, household income and other profile data also unlocks opportunities for marketers.

Using third-party macro data can also be helpful for brands looking to hone in on a group of users. For example, Halls Cough Drops uses flu indexes to target its mobile advertising initiatives more closely.

New products
Mr. Doyle unveiled two new PayPal Media products at the event – geo-metrics and geo-audience.

One of the biggest goals behind location-based advertising is to drive consumers to a store using discounts and offers.

Basic geo-fencing around a business is not enough, per Mr. Doyle.

With the new tools, companies running PayPal Media campaigns will have access to deeper analytics that dive into specific geo-fenced areas.

Additionally, marketers can now segment data that helps to create a fuller profile of a user.

“The next step to all this stuff is about the mobile wallet – how do they buy from me in this omnichannel commerce world, when do they walk into my store, when do they buy from me online – that’s the real game here,” Mr. Doyle said.

“Mobile advertising – despite the $20 billion window gap – is just a drop in the water by comparison to the opportunity with mobile commerce,” he said.

Final Take
Lauren Johnson is associate reporter on Mobile Commerce Daily, New York

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