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IPG CEO: Mobile marketing becoming an integral part of all agencies

NEW YORK ? Agencies finally realize the importance of mobile marketing and are making it an integral part of the campaigns they create for clients to meet the needs of the market.

Rick Boyko, director of VCU Brandcenter, New York, interviewed Michael Roth, chairman/CEO of Interpublic Group, New York, during the Mobile Ad Summit. Here is the interview in its entirety:

RB: What is your favorite gadget or application?

MR: The real truth is that I have every device known to man.

I think it is important for me to understand the marketplace and what to focus on. I don?t have a favorite, but I do have a lot.

I am still waiting for that perfect mobile device and application.

RB: How are agencies adapting to the rise of mobile from the IT side?

MR: Let?s start with a little history.

When all of this started in 2006-2007, mobile marketing was sort of like a fad. It was important to understand.

Ansible was our own mobile marketing expertise. Intuitively we knew mobile would be an important piece of the marketing puzzle. But, we did not know how our clients would respond.

Mobile marketing is becoming an integral part of all our agencies. If you are not including mobile in your campaign, you are not meeting the needs of the market.

All of our networks have their own mobile capabilities and they can tap into Ansible if they don?t have their own mobile group.

RB: Why is it important for IPG to be in the mobile space?

MR: Because clients may go elsewhere if you don?t.

What is great about this new environment is someone has to lead our clients through this fragmented marketplace.

It is important to invest in the talent. I have seen numbers saying that mobile marketing spend will be will be at around $8 billion dollars in the next few years. So having the right people is key.

RB: Are clients demanding mobile or are you proposing it?

MR: We bring it to them and in some cases they request it. It all starts at cocktail parties ? talking about all this technology and such and then the next day the CEO is asking why his company is not doing this.

If a hotel client needs a mobile app, we have to be able to deliver that and it is going to be a great resource for that client.

RB: Which clients were first movers?

MR: Nike+ used to have a special device you put in your sneakers.

It kept track of your distance as you ran.

We are using GPS and using the phone to link into Nike+.

The ?Priceless? campaign from McCann uses GPS and if consumers see something they consider to be priceless they can take a picture with their phone and share it with friends.

RB: Is being on the stage at BB King a priceless moment? [Audience laughs]

Can mobile make money for clients?

MR: It absolutely can. Anyway you can establish a relationship between brand and consumer will lead to making money.

RB: Why is the U.S. lagging in mobile marketing?

MR: It is confusing with all these different platforms and networks.

In the emerging markets, there are no landlines and mobile communication is an integral part of their lives. It has become a necessity. We have other means of communication.

RB: Do you see the mobile phone becoming the first screen?

MR: I do see that happening and fast. Mobile is like everything else on the Internet, it happens instantly.

Once you have that perfect device, you won't need anything else. It will be an important part of lives, like wearing a watch or carrying a wallet.

I saw some research that said that one-third of the people in Atlanta would rather forgo sex for a year than give up their mobile phone.

RB: Final thoughts?

MR: In our business we need to be agnostic when we tell clients where the reach is and where to spend their dollars.

A multichannel approach is key to our clients in terms of developing a relationship with consumers.

What?s also key is distinguishing what is the best value for your dollars and what is the best way to get that message across. You need an integrated plan using all the different aspects of distribution.  

RB: What is your advice for luxury marketers?

MR: Luxury marketers need to do more advertising. We actually can indicate that if you spend X dollars we can move the needle.

So if we can show a luxury watchmaker that advertising will drive more sales, they?ll do it.

Use the tools you have and maximize the ROI on dollar spend.

Final take
Mr. Roth answered one questions during the Q & A portion of his session: