How many of us would care to admit that we’re old enough to remember Bill Gates’ plans to put a computer in every home? In the UK alone in 2004, 18 million Brits had access to a PC at home.
Well here’s another interesting statistic – globally, mobile (cell) phones outnumber personal computers by 10 to 1. Unlike PCs, the mobile phone lies at the heart of an individual’s personal space.
Mobile Marketing
Some more statistics…
Since we’ve kicked straight off with the statistics why stop there. Here’s some more food for thought:
More text messages are sent than eMails
Mobiles have 93% penetration in the UK
94% of text messages are read (75% of them instantly)
66% of consumers recall mobile marketing campaigns
36% of recipients admit they are likely to purchase products*
A Powerful Medium Combined with Technological Innovation
Whatever one gleans from these statistics, one thing seems clear: the mobile phone has the potential to be a very powerful medium indeed.
Coupled with this, some recent technological innovations have enabled marketers in the US to conduct campaigns across different carriers. Combine this with the advent of wireless devices becoming an ever-present communications tool, which marketers can only ignore at their peril, and we can see that this is a medium which we must learn to take seriously.
A Market that Takes Control over Communications
Advertisers have not been slow to cotton onto the fact that by providing consumers with a call to action in a mobile campaign (whether this be broadcast, print, television, outdoor), response rates can be accurately tracked for specific campaigns or channels.
Once we realise that a mobile device represents an ‘anywhere’ and ‘anytime’ way of contacting our target audience, we can start to see the possibilities for both brand and content providers. The consumer is always available whether at home, in the car, shopping, pursuing various leisure activities and so on (the list is endless!).
And let’s not forget that these consumers are themselves leveraging control over their mobile communications – they decide when they want to be engaged, read texts, undertake transactions etc. So, by including mobile phones into our media-mix, we are including a flexible medium.
“A MOBILE LIES AT THE HEART OF AN INDIVIDUAL’S WORKSPACE…”
Source: Michael Becker, iLoop Mobile Inc.
The Mobile Marketing Ecosystem is comprised of 4 interconnecting strategic spheres: Product & Services (brands, content owners and marketing agencies); Applications (discrete application providers and mobile ASPs); Connection (aggregators and wireless operators); and Media and Retail (media properties, “bricks ‘n’ mortar” and virtual retail stores). Various enablers provide the foundation for each particular sphere. Players within these spheres work in concert to deliver a rich experience to consumers. The Mobile Channel Value Chain is the path by which the actual mobile communication and interactivity takes place between the Product & Services Sphere and mobile subscribers (consumers), however, consumer demand must first be established. To create this demand, products, services, events, and content programmes are promoted through the Media and Retail Sphere’s various traditional channels.
eMarket2’s Mobile Marketing Glossary
For those wishing to be in the know, our mobile-terms glossary below will be an invaluable guide to the sometimes-daunting world of mobile-speak:
SMS (short message service) this is a text, pure and simple. If you want to build on the acronyms, you can send it: - P2P person to person - P2A person to application, e.g. to vote - A2P application to person, e.g. an acknowledgement
MMS (multi media messaging service) taking pictures and eMailing them to friends/family or even the national press.
WAP (wireless application protocol) Accessing the Internet via a mobile phone uses a WAP session by accessing the wireless web.
PSMS (premium SMS) purchasing a ring tone or specific wallpaper is PSMS since you are entering into a transaction involving an incremental fee rather than the standard text charge.
Mobile video as you’d expect, using your mobile device to watch TV, music videos, films, etc.
Mobile advertising just like TV or Internet advertising, a call to action or brand image within the mobile device represents mobile advertising. This might be via WAP, SMS or MMS.
Bluetooth a short-range transmission technology for multiple device networking – i.e. to other phones or PCs.
Roaming the ability to move between cells of the same network or the ability to use a phone outside one’s provider’s home service area. Providers set up roaming agreements with other providers in different geographic locations. A roaming agreement lets a caller seamlessly make calls in the other providers’ geographic service area without operator intervention.
SIM Card (Subscriber Identity Module Card.) A SIM card is a small memory card not much bigger than a person’s thumbnail. It is used to hold phone numbers and other information and can be switched between mobile devices.
Why the Time is Right to Take Advantage of this Medium
Not only is the mobile marketing medium experiencing exponential growth, it benefits from having learnt from the mistakes made by the Internet. CAP’s Mobile Marketing Guidelines and the Mobile Marketing Association’s Code of Conduct demonstrate the industry’s desire to regulate itself and provide a sound platform for responsible marketing practices. These provide both protection of consumer experience and privacy, but also ensure the integrity of the publisher’s data.
However, the main reason that this medium is likely to attract serious attention from today’s brand marketers is opportunity. In the US alone, SMS campaigns have experienced two-fold growth in the recent past, outstripping like for like every other medium, from home internet to print. And pundits believe that the market will continue to grow from strength to strength; text messaging is, after all, only one aspect of the mobile media mix.
Thinking Outside the Box
The mobile market enables brands, which have been promoted heavily through more traditional media, to create a more direct and intimate relationship with consumers. SKY took advantage of mobile messaging to drive a recruitment campaign and over a two-month period, the text response mechanism generated five times the number of eMail enquiries. Of initial applicants, 91% completed both steps of the mechanic with full requested data.
In the US, OgilvyOne has pioneered several mobile marketing campaigns on behalf of key clients. Gary Towning, senior partner of OgilvyOne, says “we believe that invitational mobile marketing is the next wave for brands to reach target audiences. With mobile messaging, we have been able to add a real-time, interactive element to our campaigns”.
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