Mobile Marketing Overview
From The Yaffe Center
NOTE: This page is work in progress. Check back later for more updates--Nkr 14:54, 7 November 2010 (EST)
Contents |
Acknowledgements
A large portion of this Wiki was taken from the research paper “Get Connected: Developing Successful Mobile Marketing Strategies” by Robyn Bald, student at the Ross School of Business, written in April 2010.
Introduction
The Mobile Marketing Association reports that there are over 3.3 billion handsets worldwide, more than 3 times the number of personal computers globally. According to Nielsen, in November 2009, 61.5 million Americans accessed the Internet via mobile devices, up 32% from a year earlier. Morgan Stanley’s 2009 Mobile Internet Report claims that within 5 years, more users will connect to the Internet via their mobile devices versus with desktop personal computers. The third screen device is now omnipresent; mobile is the perfect platform, on which to connect one-on-one with consumers. Mobile is more than its own unique marketing channel; it is a unique mass media. Mobile is here to stay, and it is positioned to be the next major distribution platform.
“The virtual Velcro that attaches these devices to their owners, combined with the coming explosion in mainstream consumers accessing data services on their phone, is reason alone to break ground on a mobile strategy.” -Julie A. Ask and Charles S. Golvin, Forrester Research, April 2009
According to eMarketer, in 2009, $416M was spent on mobile advertising versus $24B spent overall in online advertising. Therefore, total mobile spending is just 1.7% of all online, yet projected growth is high, averaging 36.5% in 2010. Companies must anticipate this growth and leverage the channel to their advantage. There are numerous ways to market to customers through their devices: voice, applications, messaging, the mobile web, mobile advertising. In order to develop an appropriate mobile strategy, marketers must first determine their target audience, establish clear brand or product objectives, and understand how specific mobile tactics will assist in accomplishing these goals. Based on both primary and secondary research, this page defines the mobile landscape and presents tactics and strategies for developing a company’s mobile marketing footprint.
What is Mobile Marketing?
“Mobile Marketing is a set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network.” -Mobile Marketing Association, November 2009
The Mobile Marketing Handbook defines mobile marketing as “[connecting] businesses and each of their customers (through mobile devices) at the right time and at the right place with the right message and [requiring] the customer’s explicit permission and/or active interaction.
Mobile marketing spans a variety of activities and tactics, most notably phone applications, SMS and MMS messaging, display advertising and mobile-optimized websites.
Tactics for Mobile Marketing
Voice
Voice is where it all began, from which a mobile phone was born. Every mobile user has access and can interact with a brand or company via voice: person-to-person, person-to-computer or person-to-recording. While other mobile tactics have generated significantly more buzz, voice should not be ruled out as a marketing tool. Marketers can encourage voice interaction by giving consumers a reason to call or listen, specifically on their mobile phones. Voice is still a powerful tool; it is accessible by the masses, requires no learning curve, and can actually serve as a unique tactic. Given the rush to embark on new technologies and trends, using voice may be a refreshing visit to the past and positively reflect on a brand or company.
SMS/MMS Messaging
Like voice, text messaging is a universal application. Even the most basic cell phone can send or receive a message, and the technology is the same across devices and carriers. There are two steps to embarking on a mobile messaging campaign: gaining permission and determining both a short code and keyword. In order to avoid spamming and complaints, marketers must offer a compelling value proposition to the consumer so that she will opt-in to receive mobile communication. Secondly, to activate the campaign, one must promote a short code and keyword, similar to how American Idol fans can text the keyword “VOTE” to the 4 digit short code designated for each contestant. There are numerous types of text messaging campaigns, and companies are becoming more creative with the 160-character maximum everyday. Some options for campaigns are subscription, couponing, alerts, voting and contests.
Mobile Search
No matter the simplicity of a company or brand’s URL, consumers will first turn to search to link to the site. Therefore, it is imperative that a company’s website surfaces during search. Marketers must employ search engine optimization (SEO) to ensure that search engines know of the website’s existence and what search terms are relevant for site placement. However, the tactics that work on the Internet do not necessarily work for mobile search, particularly because fewer results can be shown on a page and because carriers default to certain search engines, which may influence results.
Mobile Website
The Mobile Marketing Handbook defines the mobile web as the Internet accessed via a mobile device; however, this is deceiving because mobile devices do not provide the same Internet experience as personal computers or other Internet-enabled devices. Therefore, there are multiple approaches to building a mobile-optimized website, four of which are outlined below:
One Web
One school of thought is the idea that one web exists and that people want the exact same experience on their mobile devices as they want on their computers. Apple is a proponent of this strategy, as evidenced by their first iPhone commercials, which emphasized surfing the true Internet, not a watered down version. More specifically, the June 2007 commercial touts that the iPhone delivers “not a watered down version of the Internet, or the mobile version of the Internet or the ‘kinda/sorta looks like the Internet’ Internet. It’s just the Internet on your phone.”
Miniaturization
Another option is to create a single website, with one URL that subsequently uses technology to determine how users will view it, e.g., if they are on a mobile device, the site will display in the appropriate size. However, this strategy is foolish because users do not navigate the mobile web in the same way that they navigate the Internet on a computer. Mobile users need snapshots of information, such as a store locator, product availability or restaurant menu, which they are able to find quickly. Therefore, while miniaturization may deliver a consistent experience to consumers, it does not segment based on need-states.
Mobilization
A third option is to build two separate websites, one optimized for computers and one for mobile devices. These sites would have two URLs, and users would decide which site was appropriate based on their usage occasion. This strategy is difficult because it requires the company to educate consumers and also trusts that consumers will remember to distinguish between sites.
Personalization
This solution provides the user with one website URL, but it is different than the “one web” strategy because two different sets of content are presented to the consumer, based on the type of device. While technically more complex, this solution is ideal because the user experience is customized based on the device, delivering the most relevant information to the user with each interaction.
Applications
Applications are a great marketing tool, if you can specifically direct consumers to finding your brand’s app and if that app provides significant value. “Apps have a huge advantage,” said Carl Howe, a mobile market analyst for the Yankee Group. “You had to take a step to get it; you are already half sold.” Therefore, marketers can expect higher engagement and hence higher brand recognition and awareness. With an application, marketers can appeal to brand loyalists or new customers; multiple applications can be developed for different segments. Applications are an exciting and new way to reach consumers, but marketers must not focus solely on this mobile outlet because other mobile tactics may be more appropriate for reaching a brand’s target consumer.
Apple's App Store is a great example of a successful Applications strategy. Apple’s App Store alone separates its applications into 20 different categories, ranging from books to social networking to weather. With more than 185,000 applications, Apple recently said that consumers had downloaded more than four billion applications. And with the emergence of other application stores, more value will be created and accessible beyond the iPhone. Although application marketing receives a lot of attention and is on trend, companies must understand that while applications may help to drive buzz and attract loyal consumers, revenue opportunities are small and will continue to be minimal. For instance, in 2009, applications generated $1.68 per download, with average revenue predicted to decline to $1.50 in 2010 and $1.36 in 2013. Free can be valuable particularly if one is attempting to encourage trial or if the application solicits more transactions (e.g., m-commerce or store locators). However, given the variety of devices and increasing number of application stores, marketers must consider the development costs as well as the value of offering an application versus an alternate mobile strategy.
Video
Marketers can approach mobile video similar to how they approach text messaging. They can create video content to share directly with mobile users or influence user-generated content, which will spread more organically. For example, having partnered with Mogreet Inc., American Greetings now offers a service that transmits a video card chosen from its web site directly to handsets of nearly all major mobile carriers. The National Football League is also exploring video. It started a campaign to show fans a glimpse of players off the field and prompted them to text a keyword to receive a video featuring players from The New York Jets and other teams; by doing so, fans were automatically entered into a sweepstakes for a trip to the 2010 Players Rookie Premiere. Video is an evolving tactic, requiring more effort on both the parts of marketers and consumers. However, if brand appropriate, video can be extremely compelling and engaging.
Twitter is a force to be reckoned with and also to be understood. The number of active Twitter users exceeds 20 million, a number that is predicted to grow substantially. According to a study conducted by Weber Shandwick, 73 of the Fortune 100 have registered a total of 540 accounts; out of this total, 50 percent of the accounts had fewer than 500 followers and another 15 percent were inactive; of these inactive accounts, 11 percent were placeholder accounts, used to protect the corporation’s name and 4 percent had been abandoned after being used for a specific event. Also and more importantly, 53 percent “did not display personality, tone or voice on their account pages,” according to the report, which judged personality based on whether an account was identified with a personality who posted on behalf of the company or if it was a “faceless” brand account. Twitter recently revealed an advertising model, describing its Promoted Tweet platform as “ordinary Tweets that businesses and organizations want to highlight to a wider group of users.” Best Buy, Bravo, Red Bull, Starbucks and Virgin America are among the brands first testing the promotional service.
Mobile Advertising
In addition to having a dedicated website for a brand, companies can advertise on the mobile web, similar to traditional online advertising. There are numerous way to advertise via the mobile web: banner advertising, in-app advertising through product placement or direct advertisement, video, or even twitter sponsored results. Companies can leverage their knowledge of online advertising and translate it to the mobile web. However, they must consider how consumers navigate the web via mobile versus on laptops or desktops to develop advertising creative that is suitable and effective on a mobile device.
