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Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
Mobile Viral Marketing – Basics and Status
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Mobile Viral Marketing – Basics and Status

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  • 1. BSI Mobile Viral Marketing – Basics and Status Marketing 2.0 Conference, Amsterdam 2007
  • 2. Join the conversation MARKETING 2.0 CONFERENCE www.marketing2conference.com
  • 3. 3. International Word-of-Mouth Marketing Conference Amsterdam, 10-11 May, 2007 Mobile Viral Marketing – Basics and Status Dietmar G. Wiedemann Mobile Commerce Working Group Chair of Business Informatics and Systems Engineering University of Augsburg Universitaetsstrasse 16, 86159 Augsburg, Germany Tel. +49 (821) 598-4431, Fax -4432 www.wi-mobile.org
  • 4. Research Application cutting-edge in mobile, analysis and consulting in international co-operation research-driven projects Teaching high-class education for graduates and executives in the mobile ecosystem Mobile Commerce Working Group Chair of Business Informatics and Systems Engineering University of Augsburg Universitaetsstrasse 16, 86159 Augsburg, Germany Tel. +49 (821) 598-4431, Fax -4432 www.wi-mobile.org
  • 5. Research area: mobile (viral) marketing Campaign management > Development of a tool-based process model Success factor analysis Market studies > Consumer acceptance of mobile viral marketing Projects > Development of Napoleon (Bluetooth System) > Standardization for Bluetooth Marketing
  • 6. Agenda What makes the mobile channel interesting for marketing? What is mobile viral marketing? What are the characteristics of mobile viral marketing? > Literature review: morphological box What are typical campaigns and strategies? > Case study research: standard types What are challenges in mobile viral marketing How successful is mobile viral marketing?
  • 7. What makes the mobile channel interesting for marketeting? Marketers can reach people anywhere and anytime > 79 % of Germans are available at least 9 hour per day (n=1,034) [In04] Mobile devices are an essential element in people’s life > 20% would rather lose their wedding ring than their mobile (n=5,500) [No06] … and indispensable for human relations > 86% of Swedes have flirted using SMS (n=685) [Te06] High degree of attention Mobile communication technology allows > Ubiquity > Context-sensitive advertising including personalization, interactivity, and location based advertising > Identification of consumers > (Command and control function)
  • 8. Usage of Mobile Marketing Campaigns Information Entertainment Contest Coupon Increasing Mobile newsletter Logo, wallpaper or Raffle in which all Free SMS or MMS brand theme consumers win contingent on the awareness brand website Changing brand Portal informing Mobile game Placing image through Coupon for a image about product the prize of the raffle promotional gift that attributes places the image Increasing Information about Ring tone provided via Raffle provided via an Cash, quantity or sales season products an on-pack campaign on-pack campaign seasonal discounts via SMS Establishing Question-answer Download-center Provision of a raffle for Mobile discount ticket brand loyalty application existing consumers book Building Personalized Provision of a logo or a Participation in a raffle Provision of a coupon customer information ring tone on condition on condition of on condition of database of registration registration registration Motivating Send-to-a-friend- Mobile greeting card Participation in the Discount in return of mobile viral option, URL, raffle requires partici- recommendation marketing WAP-Push pation of other people > Campaign Type Selection Toolbox [PW06]
  • 9. Examples of mobile viral marketing Mobile viral marketing as distribution concept Location- Mobile Communication based communities services friend finders (opinion platforms) Mobile viral marketing as communication concept Send-to-a- MMS Greeting Voice Cards friend options Cards
  • 10. What is mobile viral marketing? Mobile viral marketing > is a concept for distribution or communication > relies on customers to transmit content via mobile communication techniques and mobile devices to other potential customers in their social sphere and to animate these contacts to also transmit the content Mobile viral content comprises mobile products, services, or ads > Also WAP Push and URL
  • 11. Method Case study approach [Ei89] > Definition of research questions » RQ 1: What are the characteristics of mobile viral marketing? » RQ 2: What are typical campaigns and strategies? > Selecting cases: Web content analysis (34 case studies) > Crafting instrument » Morphological box derived from literature (RQ 1) > Analyzing case studies » With-in case analysis » Cross-case pattern search > Searching for relationship between emerging standard types (RQ 2) > Enfolding literature > Research closure
  • 12. What are the characteristics of mobile viral marketing? Characteristic Instances Participant Marketer Connection point Initial contact Communicator Recipient Motivation of Intrinsic Extrinsic communicator Role of communicator in Active Passive persuasion Added value for recipient Information Entertainment Contest Monetary incentive Content type Mobile application Video Voice Image Text Content generation Company-generated content User-generated content Impact Positive Negative Level of network High Low externalities Cost of communicator or Premium rate Transmission costs None recipient Recommendation type Push Pull Radio Mobile network type Cellular phone WLAN/ Near Field Frequency Bluetooth Infrared network WiMAX Communication Identification High level Wireless Multimedia Enabling Short Messaging Interactive Voice programming Application Messaging technology Service Response language Protocol Service Source: wi-mobile
  • 13. Application of the morphological box Tool for designing and analyzing mobile viral marketing Example: L'Oréal (Mobile Kiss) Characteristic Instances Connection Initial Participant Marketer Communicator Recipient point contact Motivation of 12snap & Intrinsic Extrinsic communicator WellaDesign! The Role of mobile Kiss: Who do communicator in Active Passive persuasion you like to kiss? Added value for SMS with YOUR Information Entertainment Contest Monetary incentive recipient name, type of kiss Mobile (F=Female;M= Content type Video Voice Image Text application Male) mobile number of recipient Content generation Company-generated content User-generated content to 74033 Impact Positive Negative Level of network High Low externalities Cost of Transmission communicator or Premium rate None 12snap & Wella recipient costs Design! The Kiss Recommendation Push Pull Kiss via IVR was from Susi! Kiss type back! Who is kissing Mobile network type Cellular WLAN/ most frequently phone RFID Bluetooth IrDA NFC WiMAX network flies Ibiza von Wella Design! Enabling High level programming WAP MMS SMS IVR technology language
  • 14. What are typical campaigns and strategies? Conducting within-case analysis revealed two groups of case studies > Mobile services with network externalities represent the distribution concept > Mobile marketing campaigns with viral component represent the communication concept Conducting cross-case search revealed typical patterns composed of the instances of two characteristics
  • 15. Mobile viral marketing standard types Source: wi-mobile Role of communicator in persuasion > Active: communicator is personally involved in the process of acquiring new customers > Passive: request to forward or to use the content is integrated into the process by an additional message sent by the marketer or part of the content Level of network externalities > High: value of a unit of the good increases with the expected number of units to be sold or used > Low: value of a unit of the good and expected number of units to be sold or used are independent.
  • 16. Motivated Evangelism Examples: proprietary communication services, location-based friend finders, or mobile communities Network externalities are high as both and others users benefit from a wider diffusion of the service Active participation of communicators in I love Amsterdam acquiring new users It is conceivable that new recipient turns into an evangelist for the good inside his or her circle of friends, and the installed base grows exponentially Company Description The communication service enables creation and sending of so called Zlango messages made up of over 200 icons to express words, concepts, or feelings. Zlango Communicators as well as recipients are required to download the mobile application to use the service.
  • 17. Signaling Use, Group Membership Examples: mobile file compression software or proprietary document formats > Mobile Payment > PDF-writer > Real Player Both and other users benefit from a wider diffusion of the service Recipient are informed about the service by the marketer > WAP-Push to a landing page Company Description The mobile payment procedure enabled among others money transfers between customers. When a user sent money to an unregistered user, he or she was able to Paybox receive the money only after signing up for the mobile payment procedures. Paybox informed the unregistered user about this issue with an SMS.
  • 18. Targeted Recommendation Example: send-to-a-friend-options No change of benefit when communicators forward the mobile viral content Communicator can roughly predict the recipient’s interests and preferences based on private information Spreading specific product information within a target group which could be extremely difficult to reach otherwise Company Description Initial contacts were briefed on the commercial WAP portal by advertisement on a mobile network operator portal. Communicators use a send-to-a-friend-option and Adidas (+10) recommend the commercial WAP portal by entering his or her name as well as the name and the MSISDN of recipient who receives a WAP Push leading to the WAP portal.
  • 19. Awareness Creation, Benefits Signaling Examples: free SMS services, mobile greeting cards, micro 132 movies including URLs characters No benefit from a wider diffusion powered by www.aubergemediale. com Recommendation is part of the mobile viral content Company Description Initial contacts were briefed on the sound greeting cards by Push SMS. Communicators sent an SMS with their name, the selected a sound card indicated by L'Oréal “F” or “M” according their sex and the recipient’s MSISDN to L'Oréal. The company (Mobile Kiss) sent the sound greeting card and afterwards an SMS with information about the communicator and the forwarding mechanism to receivers.
  • 20. What are challenges in mobile viral marketing? Perceived usefulness by recipients > Informational added value (IAV) Reward for communicators > Money, mobiles services, e.g., ringtones etc. Perceived ease of use > “Design to mobile – 3 clicks” Free mobile viral content > Except transaction cost Initial contacts > Mobile viral mavens First-mover’s advantage > Innovative products Critical mass > “winner takes it all” Scalability > Possibility of setting of limits
  • 21. How successful is mobile viral marketing? Potential of mobile viral marketing for distribution and communication purposes > Case study » L'Oréal (Mobile Kiss): Push-SMS to 200,000 users; result: 750,000 contacts > Surveys » 17% forwarded mobile ads (n=500) [BS02] » 30% said a friend’s recommendation would convince them to download a mobile application (n=2,500) [Ip05] » 45% would intend to share music with friends via Bluetooth (n=1,477) [IN06] Own expert study (n=44) [MW06] > Personal messages sent by friends gain more credibility > (Viral) recipients participate more frequently in a campaign as initial contacts > Lower company expense
  • 22. Outlook From „Web 2.0“ to „Mobile 2.0“ > Need for business model > Indirect revenue sources: provisions or advertising
  • 23. Conclusion Mobile channel offers many opportunities for viral marketing > as distribution concept > as communication concept Most mobile campaigns are copied from (connected with) the stationary Internet > E.g., send-to-a-friend options, greeting cards, etc. Challenges of the mobile channel Case studies, trials, and survey revealed high degree of viral effects “It stays suspencive!”
  • 24. Research and industry meet at… 8th Conference Mobile Commerce Technologies und Applications University of Augsburg, 28–29 Jan 2008 Program: 28 Jan: Tutorial (½ day) on the various areas of the mobile ecosystem 29 Jan: Conference Program; Planned sessions include: M-Marketing, M-Payment, M- Banking, M-Entertainment (Music, Gaming, TV), Mobile-Integrated Business Processes, GALILEO, … www.mcta.de
  • 25. Literature [BS02] P. Barwise and C. Strong, “Permission-based Mobile Advertising”, Journal of Interactive Marketing, 16 (1), 2002, pp. 14–24. [He00] S. Helm, “Viral Marketing – Establishing Customer Relationships by ‘Word-of- mouse’”, Electronic Markets, 10 (3), 2000, pp. 158–161. [He04] T. Hennig-Thurau, K:P. Gwinner, G. Walsh, D.D. Gremler, “Electronic Word-of- Mouth via Consumer-Opinion Platforms: What Motivates Consumers to Articulate Themselves on the Internet?” Journal of Interactive Marketing, 18 (1), 2004, 38-52. [Mod01] M.F. Modzelewski, „Finding a Cure for Viral Marketing“, Direct Marketing News, 2000-09-11. [Mon01] A.L. Montgomery, "Applying Quantitative Marketing Techniques to the Internet“, Interfaces, 31 (2), 2001; pp. 90-108. [In04] Instituts für Mobile Marketing, "Handynutzungsverhalten in Deutschland“, Schriftenreihe des Instituts für Mobile Marketing, 2004. [IN06] Intuitive Media and New Media Age, Kids Go Mobile – Ownership and Use of Mobile Phones By Children aged 6 to 13, http://intuitivemedia.com/ie.html, 2006. [Ip05] I-play, “I-play Outlines Collective Industry Action Required for Mobile Gaming Market to Reach True Potential”, press release, June 6, 2005. [PW06] Pousttchi, K. and Wiedemann, D. G. „Mobile Commerce I“ Arbeitsgruppe Mobile Commerce. Augsburg 2006. [MW06] Marini, S. and Wiedemann, D. G. „Entwicklungen im Bereich Mobile Advertising aus der Sicht von Experten. Ergebnisse der Expertenbefragung MM1“, Pousttchi, K. (Ed.) Studienpapiere der Arbeitsgruppe Mobile Commerce. Bd. 1, Augsburg 2006, S.1-49. [No06] Nokia research into mobile habits (5,500 people aged between 18 and 35 in 11 nations). 2006.http://news.bbc.co.uk/1/hi/technology/5048966.stm [Te06] TeliaSonera, „Twothirds of Swedes secretly read partner‘s SMS message, press release.

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