What is mobile marketing?
Whenever I meet someone new and I tell them what I do for a living,
they usually assume one or both of the following:
1. That mobile marketing is sending junk text messages to get
people to subscribe, unwittingly, to a mobile content subscription
service. Ergo, mobile marketing is bad.
2. Mobile marketing = marketing using SMS (text messaging)
Neither assumption is true so this is my lowdown on what mobile
marketing includes. This is a long post so bear with me.
Applications of mobile marketing
Of course text messaging is still an important element of mobile
marketing, but not the only one. The following is adapted from the
course module on mobile marketing I wrote this year for the IDM
(Institute of Direct Marketing).
1. Text and win. This is a very convenient way to manage a competition
or prize draw and popular with consumers. The recent on-pack promotion
by Walkers to win an i-pod offered a prize draw every five minutes and
claims to be the biggest ever text and win promotion to date.
2. Voting and participation TV. Text voting for reality TV programmes
such as Big Brother and The X Factor are incredibly popular and are an
additional revenue stream for the broadcaster and/or the production
company.
Text.it/Mobile Data Association published these figures to demonstrate
how big TV voting in the UK actually is.
* Big Brother 5 - 10m+
* I'm a Celeberity Get Me Out of Here - 10m+
* X-Factor - 5.4m
* Big Brother 3 - 5.3m
* Big Brother 4 - 3.1m
* Fame Academy 2 - 1.6m
* Eurosong 2002 - 700k
3. Quizzes. Quizzes are ever popular as a mechanic used by marketers
to engage their customers. And they can work very well on mobile
phones. This could be a simple text message based quiz or a fancier
java application (this is the technology behind mobile games) which
offers a deeper level of interactivity using graphics, sound and
animation, score keeping and the like. The typical way to start a quiz
is to text in a key word to a shortcode and a question is sent to you
by return.
It's fair to say I have a vested interest in this area as I'm working
on mobile product development for the World Quizzing Championships
2006. Any potential sponsors out there? Please get in touch ;-)
4. Mobile content/mobile media (pictures, ringtones, video). Thanks to
the unexpected popularity of ringtones the mobile content industry is
already huge and has rapidly increased over the last few years. We
know that young people spend 8 times as much on their mobile phones as
they do on music and 12% of their income on their mobile phones
(source Mobile Youth /w2forum)
The recent Mintel report on mobile content showed that the UK mobile
content market is worth $1bn. Ringtones are still top of the list at
33% (although I think the actual figure is probably much higher)
closely followed by games at 26%. And this is an industry that was
only born at the turn of the 21st Century.
Brands are now starting to capitale on the popularity of mobile
content r mobile media and are using it as part of their marketing
effort. A picture or ringtone can be a 2nd-or 3rd- tier prize in a
free prize draw or other competition which doesn't involve physically
sending out many prizes. We've used this approach at BeepMarketing in
the past for Foster's, Vivendi Universal and Digital Jesters. And I
expect to see more of this activity in the coming months and years now
that the phone technology is becoming more ubiquitous.
One of the key success factors for this industry is ease of payment.
Firstly this was done via IVR (Interactive Voice Response where you
dial a premium rate number and are billed per minute or as a one-off
fee) and then premium rate SMS was introduced. It made it so easy to
buy the content. No need for credit or debit card registration which
meant that kids could buy it without asking their Mums and Dads.
5. Mobile games. Mobile gaming is very popular and a growing industry
in its own right. We already have devices on the market such as the
Nokia N-Gage which, although it is a mobile phone, it was actually
designed with gaming in mind. And now we have the Sony PSP which isn't
a mobile phone but does have Wi-fi, therefore allowing full internet
access.
Coca Cola has signed a deal this year to create and produce Coca
Cola-branded games which customers will buy rather than download for
free. Licensing deals like this will become more commonplace over the
coming months and years too as brands try to get their heads round
where revenues may or may not be made on mobile.
6. Mobile Applications. It might be software to help you plan your
day, it might be an instant messenger service, it could be a system
for working out your daily horoscope. If you think of the PDA
(personal digital assistant) that's been around for some years now and
the range of software available for that, then you'll be getting
somewhere close to where we're going with this on mobile phones.
Of course, the development of this market depends on the types of
handsets out there that would need to have Symbian or Windows CE
operating system – sometimes these are called Smartphones. Usually
this is the higher end phones, but prices for technology soon drops
and just as the ipod is available to one and all, or so it seems, so
will 'Smartphones'.
7. CRM – customer relationship management (or should that be CMR –
customer managed relationship?). Let's not forget that the mobile
phone is a communications tool. And to that end is a 2-way device.
It's not just about pushing content or a message one-way, customers
can call or text you back. This means it's one of the channels to use
when building relationships with consumers. It's also a very neat way
of handling customer service issues like notifying someone to confirm
their groceries have been delivered, or that they're overdrawn at the
bank.
8. Interactive Voice Response (IVR). IVR is a much maligned
technology. It's an old technology, for sure as it's based on
landlines and is the engine behind those pesky 'press 1 for yes and 2
for no' systems. It's also used for paying for stuff – mobile content,
phone voting. But it also has potential for some great creativity.
Back in 2002, BeepMarketing worked on a campaign for the Butt Ugly
Martians. It was aimed at children (7 to 10 year old boys to be
precise) and was promoted in relevant comics and magazines. We had a
simple text game, but more interestingly, we ran an IVR game. You
dialled a standard rate number and instantly you're transported into
the world of the Butt Ugly Martians as you hear the music and
voice-over. You were then guided into a game of choice – press the
number that relates to your choice to get to the next level. We have 3
levels and if you got 1 of 3 winning combinations, we instantly sent
you a ringtone or logo. If you'd like to listen to this yourself,
please contact me for the telephone number.
And it's not just us who's used this technique.. McDonald's, Walker's
Crisps, Wella and more have incorporated IVR into their mobile
marketing efforts.
9. Multi-media messaging (MMS). This technique is increasing in
potential as it becomes more readily available on handsets. MMS can be
pushed to the phone at higher costs than simple text messages (several
times higher), or there is the cheaper option of 'virtual MMS' or WAP
push which can be just as effective and where you send a link to the
customer to download to view or save the message. Wap push is also the
technique used to deliver mobile content. True MMS is still limited by
cost and technical limitations of handsets.
10. Direct ad-response/Red Button Mobile. Red Button Mobile describes
direct response campaigns using the mobile phone as opposed to using
the red button on interactive television (or potentially outdoor or
print advertising unlike true Red button advertising). The mobile 'red
button' is based on a shortcode available, optionally coupled with
different keywords relevant keywords dependent on the reponse
mechanism. This allows interactivity with statci media as well such as
print and outdoor. Options include:
* Text to screen – With TV, comments texted in can be
automatically populated on-screen, as used by reality TV programmes
(text to screen).
* Text to email – where you text in your email address to a
shortcode and an automatic HTML email is generated and sent to the
respondent
* Text to post – this works in a similar way where you text your
address or postcode and street number
* Text to WAP – here the respondent is directed to an advertiser's
WAP site through a link where they can access content, or opt-in.
* Text to mobile content – Content such as a ringtone or a coupon
is received through texting a shortcode
As an example of the effectiveness of these campaigns, BeepMarketing
ran a direct response campaign for Axa PPP. This involved press
advertising in the Evening Standard (a London daily newspaper) for its
personal health insurance provider. Customers were asked to respond to
the advertisement either by freephone (0800 number) or a text message.
50% of all the replies came via text message, even though they could
have phoned for free and the texts would cost them 10p or so. All
texts were routed direct to a call centre to manage outbound calls.
11. Barcodes. Barcodes can be sent to a mobile phone and then redeemed
in store using the usual Epos systems. For example, Ann Summers used
this technique earlier in the year to drive traffic to their stores.
And many years before that, in my ZagMe days, we used a simple code in
a text message that acted in a similar way to a barcode – you could
track the codes but couldn't scan them in.
Technically, it is relatively straightforward (if anything *can* be
straightforward in mobile that is) to get a barcode to a mobile phone,
however, not all barcode readers will be able to read it due to the
different screen sizes and formats and intensity (or not) of the
screen's backlight.
A new take on barcodes is 'camera codes' whereby a consumer takes a
picture of the barcode from a TV screen, poster, newspaper, magazine
or website etc. This then initiates the response mechanism or can be
used for couponing. There are several companies working on this but it
still works best on Symbian or Smartphones.
12. Location-based services (LBS). This technique has prominently been
used by companies offering services to parents whose children's
whereabouts can be tracked via their phones. With KidsOK.net, parents
pay a fee to access the service. This allows them to 'ping' their
child's phone/s to find out where they are.
'Find me' services are available which are useful for evenings out and
there are mobile search companies coming up with ways of linking
location to search and maps.
Of course the ultimate for marketers would be something like ZagMe
where we sent text messages to shoppers at Lakeside and Bluewater
shopping malls, while they were out shopping, way back in 2000 and
2001. There's a piece on my website about what happened here but
suffice to say, we were ahead of our time and the technology is
currently prohibitively expensive. However, as prices come down and we
find other ways of doing this, this concept will return.
13. WAP portal or wap site (aka mobile internet). WAP sites are the
mobile versions of websites such as The BBC or Channel 4. Often after
television programmes you'll be asked to text in to access further
content from your mobile (red button mobile). The link then takes you
to the wap site where you can access videos, pictures, ringtones, and
information about the programme you've just watched. It's also an
opportunity to buy mobile content and to get customers to opt-in for
further information.
14. Java magazine or java portal. This is an application that you
download to your mobile phone and is like an electronic magazine. You
have the basic structure and with the first download, you get sent the
first range of content. Then when you want the latest news, you click
on update, and it updates all your pages over the air with new
content. The benefit of this is that the user experience is better
than WAP (although WAP is improving) and you can view content
underground – really important if you live in London! You don't have
to be 'online' to access your stuff.
15. Mobile search. All the main search providers have mobile (WAP)
specific versions of their search engines. These are now becoming more
sophisticated. Google Mobile Search (www.google.co.uk/mobile) offers
Local Search to find a local business and will then display a map
(Google Maps is integrated) or phone number with the option of
click-to-call on the appropriately-enabled handset. Google Local uses
listings from Yell combined with a bespoke database of wapsites (these
sites are checked that they are mobile phone compatible before
adding).
Overture is working on something similar.
There are limitations with this as usability is an issue. Do you
really want to be returned 500 wap sites when you have a tiny screen
and slow data speeds?
16. Mobile music. Beyond ringtones, we are seeing that many handsets
are now designed to play and store MP3 music files, potentially
rivaling the iPod. As access speeds increase with 3G, tracks could be
offered in promotions. Currently buying music from your mobile phone
is expensive and it's much cheaper to buy on itunes and then use
Bluetooth to send it to your phone.
17. Podcasting. Podcasting involves streamed delivery of a home-made
or professional audio programme, tune, speech or even video (these are
called vlogs – check out the vlogs on Perfect Path). They can be
accessed on any device with the appropriate MP3 capabilities and can
be managed using an RSS feed so that whenever you plug your player
into your pc (and over the air will come), your new podcasts are
automatically uploaded. If you'd like to hear a podcast that I did
earlier this year about mobile marketing then you'll find it here on
Perfect Path.
18. Blogging and RSS. Ok, you're reading a blog so I won't go into
this in detail. Suffice to say, reading blogs on the move is growing
with mobile RSS feeds. You'll find out much more about this mobile
blogging/RSS thing over at Mobhappy.
19 Moblogging. Moblogging, or blogging from your mobile phone is
popular and, although it can be text-based, makes best use of the
device when images or video-clips are submitted by MMS or WAP. We now
have citizen journalists who report breaking news before the main
networks as shown in the London bombings earlier this year when within
30 minutes, a video clip from the underground spread across the
internet like wildfire. This was all aided by sites like moblog (which
can handle video) and flickr (which can't).
Sony Ericsson has used the technique (with BeepMarketing's help) of
posting images to a blog to promote its K300i phone, by encouraging
users to upload their images to http://www.shameacademy.com/. And if
you join W2Forum, you'll find a big debate as to the good, the bad and
the ugly side of moblogging for marketing.
20. Bluetooth/infra-red. These techniques enable data to be sent from
one electronic device to another. And of course marketers have got on
the bandwagon. The Coldplay example is a case in point. I've talked
about it here before and although I love the concept, I just don't see
how they get round the Data Protection Act. It seems that finally the
Mobile Marketing Association finally agrees with me. Let me know what
you think.
Companies like Hypertag also use Bluetooth to allow customers to
receive information to their phones – pictures, coupons, music,
whatever. I saw this in action at the Electric Picnic this summer
where the Vodafone girls were wearing Hypertags and you had to make a
Bluetooth connection with them to see if you'd won a prize. The
benefit is that there's no cost to the consumer and it doesn't matter
if you don't have a mobile signal (like when you're in a field in the
middle of Ireland). However, it's clunky, the girl actually had to
take my phone off me to get it to connect, by which time, I was bored.
As a gimmick it worked, but until we have better Bluetooth systems, it
will be a while before this becomes mass market.
So that's my slightly long-winded top 20 applications for mobile
marketing. I'm sure there are more than that so if you think of some
that I've missed, then please do add your comments. And I'll do a
separate piece on moble media and its place in advertising another
time.
Via technokitten.blogspot.com
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