Wednesday, 10 November 2010

Mobile Marketing - What is It?

Any company selling goods and services to consumers or other businesses should become savvy in the practice of Mobile Marketing. It’s one of many marketing channels that have been around for sometime, but until now it’s been in the shadows of the mainstream mass media channels such as TV, Direct Marketing and, more recently, Online Marketing. However, according to Gartner, the number of people using the Mobile Web to find content on the Internet will, in 2010, surpasses those using a web browser on a PC. There are already over 3 billion mobile phone users in the world and in increasingly more countries, penetration exceeds 100% (as some have more than one phone). The fact is, thanks to advancing technology and ever reducing mobile data network prices, the mobile as a channel has matured and any brand ignoring the marketing value of this channel will start to fall behind its more adventurous competitors. (Dushinski)

What is Mobile Marketing all about?
One thing is certain, Mobile Marketing is very different from the other seven mass media marketing channels. According to Kim Dushinski of the Mobile Marketing Association (MMA), mobile marketing is about connecting businesses to each of its customers through their mobile devices at the right time, at the right place and with the right message. More importantly mobile marketing “requires the customer’s explicit permission and/or active interaction”.
This last point is extremely important as the mobile device (and by that I mean phones, PDAs, MP3 players, reading tablets – any mobile device that can be hooked up to the internet) is a very personal tool. Any communication via a mobile device has to be specific to the individual and, more importantly, must be targeted at that individual adding value to them. This is why the MMA, other mobile marketing bodies, the mobile networks and, more increasingly the regulators and law makers, are trying to restrict unsolicited distribution of marketing information to mobiles (spamming as it is most commonly known). A mobile phone could be switched on and ready to receive marketing messages day and night, wherever the owner is and whatever they are doing, which could be working. As such, it is important that marketers don’t annoy their target audience with unwanted, badly timed messages. This is why personalisation of campaigns is so important. It’s important to understand what adds value to your audience and when they need that value.

Mobile Marketing is not Internet Marketing
A common mistake is to think of the Mobile Web as being the same as the Web you may access from a desktop or laptop PC. Mobile is a unique channel and presents a different set of opportunities and challenges if it is to become a successful marketing channel. First of all, it’s possibly the most widespread mass media channel in the world. There are far more mobile phones that there are PCs around the globe, and there are actually more mobile phones than televisions. We’ve already read that mobile is also unique because it’s always-on and follows the individual wherever they go and the other unique feature of mobile is that it has an in-built payment mechanism. It’s the only mass media marketing tool that can complete the purchasing transaction as well as initiate interest.

Another common mistake is to think of mobile marketing as simply running a campaign using SMS messaging. Again, this is a fallacy. There are many tools to help market via the mobile channel, including good old voice. There’s also mobile messaging (such as SMS or MMS), the Mobile Web, Social Networking, Mobile Email, Mobile Applications and Mobile TV. The opportunities for marketers are endless, but the trick is to know which approach will be most effective for your existing and target customers and then integrating mobile into your existing marketing mix, avoiding the perils and pitfalls and reaping maximum rewards.
The issues are numerous and potentially venomous if they bite. For example, the Australian government recently issued fines of $15m to bogus marketers spamming via SMS. The US government is also strict with large fines and prison sentences being handed out. The mobile operators themselves don’t take abuse of their network lightly and will quickly shut down anyone suspected of breaking or bending the stringent rules. Also, and not the least worrying consideration, is that should you get mobile marketing wrong you could turn off your target audience completely, damage the value of your brand and allow your competitors to move in. This is why it’s important to work with a specialist agency or consultant who understands the mobile marketing channel. Most traditional marketing agencies currently don’t specialise in Mobile Marketing, although there will be a trend during 2010 for these agencies to develop a mobile department, even if this is outsourced to a specialist agency. There are a few such as Sponge Group and our very own Innovativo Mobile who can offer good advice on how best to market via mobile.

Ten Tips for Developing a Mobile Marketing Campaign
  1. Acknowledge that marketing to mobiles will be very different from marketing to the traditional mass media channels and plan your campaigns accordingly.
  2. Know your target audience, what value you can provide to them at different times of the day depending on where they may be and what they might be doing. Don’t assume they all want to receive the same message. Work out how you can add value to their lives, and because mobile is an instant communication anywhere and at anytime, how to add value to their day, their shopping trip, their bus journey etc...
  3. Don’t market with mobile if your audience don’t understand mobile or use the features it provides. Although most now know how to use SMS (57% of business users send or receive SMS every day) many still don’t know how to use the mobile web, then a mobile website isn’t going to be much use. Similarly, many don’t have the right mobile devices to make full use of the mobile web, or the right network data plans. Again, know your audience.
  4. Track the results. There are so many options within the sphere of mobile marketing that you need to know if you’re using the right one. Is your message getting through via SMS or should you be thinking about offering voice as a backup? Are people clicking through to your mobile web site, should you use a mobile search engine or portal?
  5. Only consider doing it yourself if mobile marketing is your primary route to market. There are a myriad of vendors providing each individual element required to implement a mobile campaign – SMS providers, mobile operators, web site designers, hosting companies, legal advisors, application developers etc. Use a company (such as Innovativo Mobile) who can stitch together all the different constituent parts and provide you with a one-stop-shop for mobile marketing.
  6. Don’t assume your current traditional marketing agencies can effectively open up the mobile channel. Ensure they have the right level of specialism in house, or bring in a specialist partner yourself.  Remember, sending a message by text is going to do more harm than good unless it's properly targeted and your audience desire to interact...
  7. Don’t fall foul of the myriad of regulations and laws pertaining to mobile marketing. Get a specialist firm, agency or consultant to advise you.
  8. Keep abreast of technology. Mobile technology from devices to network to applications is moving so quickly. It’s key you stay one step ahead of your competitors in maximising the potential of this new technology as it comes along, whilst avoiding those initiatives that are lame ducks. Get a specialist to advise you.
  9. Build mobile into your existing marketing mix. Mobile will complement what you already do. It can deliver a more personalised element to follow up, for example, any brand awareness campaigns you’re undertaking with focussed special offers such as mobile vouchers.
  10. Get ahead and stay ahead of your competitors. If you’re reading this and it has stimulated some thoughts around what your company could be doing to market via mobile, then it’s likely your competitors are too. Mobile marketing is still relatively new and fresh and few are properly exploiting its benefits. If you act now you’ll be seen as a pioneer and may be able to establish clear water between you and your challengers. If you delay acting, you’ll be playing catch up with the pioneers in your industry.

Acknowledgements:
Dushinski K, The Mobile Marketing Handbook, 2009, CyberAge Books
Mobile Marketing Association Website, www.globalmma.org
Innovativo Mobile, www.innovativo.co.uk
Sponge Marketing Group, www.spongegroup.com

2 comments:

Alex Horton said...

Really interesting article,

It condenses the misconceptions and common mistakes people make when talking about mobile marketing. I like you comment on 'value adding'. This is really important. The mobile phone is a personal device and is currently devoid of marketing that you see in other mediums of communication and advertisement. This is a challenge facing anyone trying to organise a campaign.

- The number of smartphones in use globally is expected to hit 1.7 billion by 2013.

This shows the real gap in the 'marketing' market. Which will be filled, but by who and when?

I liked your point on SMS as well.

-Only 3% of people trust ads sent by SMS text message and more than two thirds claimed mobile ads had no impact on their perception of a brand.

Again this shows a clear lack of trust for SMS advertising. However short promo codes which are well-targeted can often do very well. Calvin Klein are a prime example of this.

The key to mobile marketing is to access your target market as precisely as possible to ensure genuine ROI.

I hope this has helped back up your article!

E consultancy (90,000 + members): for a variety of reports on mobile marketing including: Mobile statistics 2010, Mobile E-commerce Best Practise guide see here: http://ecly.co/cuZW4p

@wajahath_ali said...

hi simon,
it is a very thoughtful article.I've enjoyed reading it.