Mobile marketing explained2


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Mobile marketing explained2

  1. 1.© Copywrite 2011 All Rights Reserved
  2. 2. Mobile Marketing ExplainedTable of ContentsIntroduction....................................................................2Types of Mobile Marketing...............................................2SMS Text Message Service...............................................2Pricing for SMS................................................................4Mobile Websites...............................................................4Apps.................................................................................6QR Codes..........................................................................7NFC Chips..........................................................................8Location Based Advertising...............................................9A Complete Mobile Marketing System..............................10Juans Tacos....................................................................13 (1) © Copywrite 2011 All Rights Reserved
  3. 3. IntroductionMobile marketing in general is a huge subject that is far beyond thescope of this paper. Your probably not interested in reading a wholebook on the subject.Consequently, I will just be giving a broad overview of mobilemarketing and then I will tell you how my company can help if youdecide to add mobile marketing to your advertising mix. Types of Mobile MarketingIn discussing mobile marketing there are three main types of mobilesystems to talk about. They are: 1. SMS text messaging (viewable by 99% of cellphones) 2. mobile websites(only viewable with a smartphone) 3. marketing apps (only viewable with a smartphone) SMS Text Message ServiceThe most common of these three for business use is the SMS textmessage service.With the text message service, the customer opts-in to a businesssdatabase by typing a “keyword” to a “shortcode” that is a five or sixdigit phone number making it much easier to use and remember thana regular phone number.The shortcode can be either a “shared shortcode” or one thats“dedicated” just to the business in question.The dedicated shortcode can cost anywhere from $15,000. to$30,000. per year to run and usually takes about two months to setup. (2) © Copywrite 2011 All Rights Reserved
  4. 4. www.textmobi.netConsequently, shared shortcodes are very popular because theyre alot cheaper to set up than dedicated short codes, in fact, sometimestheyre free and they can be set up almost immediately.After texting to the shortcode, the customer typically then receives anautomated response back asking him/her if they are sure they wantto opt-in.This process is called a “double opt-in” and is a necessary safeguardto make sure that the owner of the phone for sure wants to receivethe marketing messages and wont look on them as spam.After they reply “yes”, they usually will receive the companys firstspecial offer.They then will receive marketing messages on a regular basis, but thebusiness owner has to be careful not to send out texts too frequentlybecause even though a lot of people have unlimited texting plans,there are still a people who dont and each text could cost thecustomer more money.Also, too many offers too often, might seem like spam to thecustomer.One of the really nice things about this setup is that the advertiserhas to type out the message just one time, then the service sends acopy to everyone who has “opted-in”.The customers that receive these messages are considered to be very“targeted” customers because they have essentially asked to receivecommercial messages.Messages have to be short, 140 to 160 characters including spaces soabbreviations are often used. Fortunately, there is a book of collectedabbreviations for reference. Its available at . © Copywrite 2011 All Rights Reserved
  5. 5. www.textmobi.netThis message itself is sometimes referred to as a coupon. There areusually instructions in the message to show the message in thebusiness to get the discount or deal.MMS (multimedia message service) is often mentioned when talkingabout SMS because its really just an extension of the core of SMS.MMS allows pictures and video to be sent along via SMS.The only trouble with MMS is, the person receiving the message hasto have a compatible handset. Something thats not always the caseso the MMS messages dont always get delivered. Pricing For SMSPricing for SMS seems to run the gamut from free to the most popularprice point of $99.00 per month which includes 500 subscribers whoget about four messages a month.Most SMS systems (especially the inexpensive ones) are priceddepending on how many text messages the business sends out andhow many subscribers they have.If you want to pay a lower fixed monthly fee, then you pay a higherfee for each message and each subscriber. Mobile WebsitesA mobile website serves the same purpose as a website on the classicweb. It can be informative or it can even take sales, but the format isdefinitely different than the classic web.The customer usually has to have a smartphone to view a mobilewebsite. (4) © Copywrite 2011 All Rights Reserved
  6. 6. www.textmobi.netA lot of business owners think they dont need a separate website formobile because regular websites do show up on smartphones.There are some problems though. The biggest one having to do withsize.The biggest screen on a smartphone is only about 3x5 inches. A pagefrom a regular website has to be reduced down to a very small size inorder to be viewed in its entirety on a cellphone.Consequently, to read a regular web page on a smartphone, a smallportion of the page needs to be magnified. This takes up the wholescreen on a cellphone which means that the user has to scroll all overthe place in order to read the whole page.Cell users dont want to do this.They dont have the time or the desire.A cellphone user is on the go, out of the house. Theyre not sitting infront of their computer sipping a cup of coffee. Theyre outside thehouse. They want the information that theyre looking for right away.Because of the small screen size, where the consumer is and the factthat most smartphones load websites slower than a desktop would,mobile websites should be formatted to have much smaller andsimpler pages than whats found on the classic web.This necessitates the building of a website just for mobile phones.For instance, pictures should be kept to a minimum in number. Textshould kept to a minimum and should be larger and/or bold so itsmore readable. (5) © Copywrite 2011 All Rights Reserved
  7. 7. www.textmobi.netA lot of people dont believe this. They think that if they have awebsite on the classic web, theyre covered, but it just isnt so!One statistic that bears this out is that 84% of the people asked saidthat if a business has a regular website, they thought it should alsohave a mobile website.Interestingly, a site built for mobile can be viewed just fine on theclassic web. It will have a lot of white space. It might even lookbizarre, but in most cases it will still be readable.If a website runs on Wordpress, there is a plug-in that can be used toautomatically switch the viewer over to a mobile version of a site ifthe visitor is viewing from a phone.Ive read that conventional websites can also be made toautomatically switch to mobile sites, but I wasnt able to find anyinformation on how to do it so perhaps it takes a professionalprogramer. AppsApp is actually short for software application. The software applicationis actually a program that is made to run on a smartphone.Apps are broadly categorized into two main types, native and non-native apps.I have to admit that Im not an expert on the subject of native andnon-native apps, but I did find a little information on the subject.It seems that a native app is one that is made in a particularprograming language that is compatible with one particular brand ofphone. (6) © Copywrite 2011 All Rights Reserved
  8. 8. www.textmobi.netFor instance, the operating system that Apple uses is made to becompatible with the Objective-C programing language.Of course, non-native apps are written in a programing language that may not be compatible with a certain device, but they are thenchanged by a sort of translation program so that their programing is compatible with the device.These translation programs must not be perfect because everything Iread said that native apps work best.Apps used by businesses are called marketing apps because they canadvertise a businesss products or services.A marketing app will have a page that is usually called the “Alert”page. This is where a business will display its marketing messages.Just like the shortcode, an app can be either shared of dedicated.An example of a shared app would be a business app where severaldifferent businesses have gotten together to buy an app, then eachbusiness gets to put one coupon on the app.With a dedicated app, one business owns the app and uses the apppages to feature only its products and/or services. QR CodesAs recently as 2010 a lot of people thought that QR codes were goingto be the wave of the future, but now theyre not so sure.QR stands for Quick Response and the codes are used to transferinformation to smartphones. (7) © Copywrite 2011 All Rights Reserved
  9. 9. www.textmobi.netThis can be information like a point-of-sale coupon, price or justproduct information.To transfer the information a reader has to be installed on thesmartphone. The customer then takes a picture of the QR code andthen the reader tells him what it says.They also can be configured to take payment information, but theyneed an app to do that.The codes look like the example below:Starbucks is already letting customers pay with QR codes. So far,Starbucks has taken three million payments with them.Everyone says that these are great because they allow retailers tocommunicate with their customers, but I foresee that customers willsoon see these messages as just more advertising and may stopreading QR codes altogether unless they are being used as part of apayment plan. NFC ChipsNFC stands for Near Field Communication. This is the technology thatmay replace QR codes. (8) © Copywrite 2011 All Rights Reserved
  10. 10. www.textmobi.netA lot of people say this because Apple is working on a chip that itplans to introduce next year and Google is working on integrating itsoperating system with a chip by next fall.NFC chips can be used for a variety of tasks. The most important ofwhich is that it would make your smartphone act like a credit card,but without the necessity of having the appropriate app.There are problems however, QR codes are standardized, while theNFC market is very fragmented with every phone manufacturercoming out with their own chip. Location Based AdvertisingThis is the type of mobile advertising that everyone is talking aboutand indeed it does sound like a great advertising concept.Location based advertising works off the GPS feature that is in everysmartphone.An example of its use would be a shopper who is walking by a coffeeshop in a mall. Its 98 degrees outside so the last thing the shopper isgoing to think of is a nice hot cup of coffee.The shoppers smartphone suddenly rings and its a coupon for 20%off on a cup of iced tea. Perfect timing thinks the shopper.Perfect way for the coffee shop to get some business too!There is a concern with this concept however.Lets say the shopper is walking by a series of businesses in the mallthat all use location based advertising. (9) © Copywrite 2011 All Rights Reserved
  11. 11. www.textmobi.netThe shoppers cellphone would be constantly ringing with coupons andspecial deals.So much so that the offers would be annoying and looked at as spam.An offshoot of the location based advertising trend is the practice of“checking in” with certain social networking sites.A couple of the most popular sites are Foursquare and Gowalla,however, there are also many others.Incentives for “checking in” include discounts or special deals at thestore youre at.The trouble with this business model is that your “check in” is publicsince you are “checking in” to a social network site.Since your “check in” is public, it can be viewed by burglars who knowexactly where you are and they would be happy to empty out yourhouse while you are gone.Quite a few people have fallen victim to this scenario and as aconsequence several lawsuits against the social networks are workingtheir way through the courts.As a matter of fact, I just read that California is considering a law thatwould ban location based marketing because of the privacy issues.Google and Facebook are fighting the proposal vigorously becausethey figure that if California bans location based marketing, thenother states may follow suit.It may or may not be for these reasons, but “checking in” doesntappear to be wildly popular yet because according to the researchcompany Comscore, only 7.1% of cellphone users “check in”. (10) © Copywrite 2011 All Rights Reserved
  12. 12. www.textmobi.netLocation based advertising has tremendous potential, but until itsproblems are worked out it may be best to take a wait and seeattitude. A Complete Mobile Marketing SystemHere at TextMobi, weve put together a complete mobile marketingsystem for our customers.Weve done this because we feel that to be successful as possible, ourcustomers should be integrating as much of mobile as they can intotheir advertising mix and mobile technology is moving so fast that itsbest to have the latest types of mobile.Our systems come complete with: • iPhone and iPod Touch app exclusive to your business ( dedicated)-Youll experience “persistent exposure” because your icon will always be on the homepage of your customers iPhones and iPods. • your own mobile website- The pages of your app can be viewed as a mobile website by any smartphone that is connected to the web which saves you the expense of creating an app for every brand of smartphone. • FREE SMS text messaging-Text messages can be received by virtually any cellphone that your customer may have (both smartphones and so-called “feature phones”) and if you are located in the USA, we can provide this service free for you. This is an incredible deal since many mobile marketing systems from other companies have SMS only and charge up to $99./mo..In addition, each of our systems comes with a complete do-it-yourself“back office” which is used to manage all aspects of your system andis so easy to use that even a novice can use it to build a marketingapp. a mobile website and send out the text messages.In the “back office” you can compose your “alerts” and textmessages as easily as if you were writing out emails. © Copywrite 2011 All Rights Reserved
  13. 13. www.textmobi.netYou can write product descriptions or service descriptions on your appand mobile website pages, once again, as easily as you could write anemail.Pictures for your app and mobile website are a little harder to handle,especially if you dont have very much computer experience.If this the case for you and you have any employees, find out ifanyone has Photoshop and knows how to use it.If not, find out if anyone likes using the computer because we havetutorials that will show anybody that can use a computer how tomanuipulate any image with software that is free on the web.All of the above is only $1.00 for the first month. Then, if you decide to keep the service, its only $75.00 for each additional month.Thats less then most of our competitors charge for SMS textmessaging alone!Were not advocating increasing your advertising spending by $75.00per month. Were sure that if you go mobile, your ad spending will bemore efficient and you can cut out the advertising that is really kindof quetionable.To see the potential of mobile marketing, lets look at an example ofwhat can be done.Were going to look at the mobile marketing efforts of Juans Tacos. (12) © Copywrite 2011 All Rights Reserved
  14. 14. Juans Tacos Juan has a mobile marketing system from TextMobi so the first thinghe did after he got it was to put signage in his establishment that told customers where to get his iPhone app and how to opt-in to his text messaging list.He put the same instructions on his website and in all his printadvertising.His in-store signage looked like this: In addition to this sign, he also posted the sign thats on the next page. (14) © Copywrite 2011 All Rights Reserved
  15. 15. www.textmobi.netAfter a month, he had quite a few downloads of his app and a lot ofcustomers had opted-in to his text list.Juan noticed that Wednesday was extremely slow so he decided to dosomething about it.On a Wednesday morning at 11:00AM he put out an “Alert” on hisiPhone app and his mobile website.It looked like this: (15) © Copywrite 2011 All Rights Reserved
  16. 16. www.textmobi.netYes it simple, but its important that it is.Juan sent out the same message to his text list.Larry got the text at 11:00AM. He was already thinking about lunchso he looked at the “Alert” page on his iPhone app.The picture of the tacos really made his stomach growl.Larry invited Bill to go with him so they could take advantage ofJuans offer. (16) © Copywrite 2011 All Rights Reserved
  17. 17. www.textmobi.netBill liked the food so he opted-in and downloaded the app to hisiPhone.The next week, Juan changed the offer to a FREE soda for you and afriend.Larry went back, but he had to take John because Bill was taking Bob.After a few weeks, Wednesday was Juans busiest day.If youre reading this paper its probably because youve heard ofmobile marketing and wondered what all the fuss was about.Ill tell you some of the reasons for all the fuss: • Five billion people on the planet own a cellphone... • 85% of Americans own a cellphone... • 70% of cellphone owners use text messaging... • 96% of 18 to 29 year olds own a cellphone... • 90 to 97% of text messages get opened (as opposed to 10% for emails because of all the spam)... • Text messaging and marketing apps bring you targeted customers...(who could be more targeted than someone that has asked to receive your messages) • You can contact your best customers more often... (17) © Copywrite 2011 All Rights Reserved
  18. 18. • Smartphone penetration was 35% of the cellphone market by the end of 2010 and projected to be 50% by the end of 2011... • Mobile marketing brings immediate results...Whatever you decide to do about mobile marketing, heres a line fromAdvertising Age magazine that sums up the current situation:“Its clear that retailers who dont embrace mobile phonetechnology in the coming year will be left behind much asthose retailers who sat on the sidelines during the early daysof digital or social media and are playing catchup”.Dont be left behind, visit our website today to order your completemobile marketing system or get more information about mobilemarketing.Our site includes a complete FAQs section.There is also a demo app and a demo “back office”.The site address is: http://www.textmobi.netIf you would like to see what a mobile website looks like that wecreated, please visit this site on a smartphone: you want to check out this site from your computer, go to: you dont find the information youre looking for, you can call us at(503)702-6712. (18) © Copywrite 2011 All Rights Reserved
  19. 19. www.textmobi.netOr you can email us at: textmobi@gmail.comWell, I hope the above overview answered your questions aboutmobile marketing.From everything Ive read, Im convinced that mobile marketing is thefuture of advertising.Everyone has a mobile phone and soon almost everyone will have asmartphone. Take advantage of that fact.Get your advertising message on those phones!Warm Regards,Craig StanfordiPhone and iPod touch are trademarks of Apple Inc. (19) © Copywrite 2011 All Rights Reserved