Marketing out of the Box


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Internet World, April 2003

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  • Marketing out of the Box

    1. 1. Internet World Essentials April 17, 2003 - Dave Harkins VP, Director of Strategic Services The Jackson Group Marketing Out of the Box
    2. 2. Look ma, no wires! <ul><li>The wireless world </li></ul><ul><ul><li>Wireless is the fastest growing communications channel in the U.S. </li></ul></ul><ul><ul><li>In Europe, mobile marketing has achieved response rates as high as 20 percent with ad recall rates up to 65 percent. </li></ul></ul><ul><ul><li>Industry analysts predict that mobile marketing will become a $5 billion industry by 2004. </li></ul></ul><ul><ul><li>Nearly a third of U.S. wireless subscribers plan to upgrade their handsets within a year and 67 percent of them want short text messaging on their new phone. </li></ul></ul><ul><ul><ul><li>Users’ actual behavior is even more interesting: Replacement sales accounted for more than 70 percent of new handset sales in 2002. </li></ul></ul></ul>
    3. 3. A new medium is brewing <ul><li>Taking hold in Europe </li></ul><ul><ul><li>Short message service (SMS) makes up: </li></ul></ul><ul><ul><ul><li>15 percent of all cellular revenue and, </li></ul></ul></ul><ul><ul><ul><li>40 percent of the overall industry profit margins, </li></ul></ul></ul><ul><ul><ul><li>One-third of wireless carrier revenue is expected to come from advertising fees and commissions in 2005. </li></ul></ul></ul><ul><ul><ul><li>With wireless adoption approaching saturation and slowing from its frenzied growth of the last few years, wireless operators will increasingly stress SMS services as a way to wring more money out of existing customers. </li></ul></ul></ul>
    4. 4. Where ever they go, there “we” are <ul><li>Exploiting SMS abroad: </li></ul><ul><ul><li>Cellus is planning to launch a mobile phone service in Norway to help drivers dodge police speed cameras. </li></ul></ul><ul><ul><li>The Eirpharm SMS reminder service reminds patients to take their prescription pills and the company has developed a pollen-alert service with UK mobile-phone operator Vodafone. </li></ul></ul><ul><ul><li>Ekaterina Sitnikova, a Brussels-based music promoter for Mal & Co., uses SMS to make sure people don't miss the launch party when one of the artists she represents unveils a new song. </li></ul></ul><ul><ul><li>The Web site sends computer virus warnings to subscribers' mobile phones in the Netherlands, Belgium, and Luxembourg. </li></ul></ul><ul><ul><li>In Zurich, city officials use SMS to remind people when recycling-pickup dates are coming. </li></ul></ul><ul><ul><li>SMS is used to reduce waiting times for three of the top rides at the Alton Towers theme park in the UK. </li></ul></ul>
    5. 5. Where ever they go, there “we” are <ul><li>Exploiting SMS abroad – (continued): </li></ul><ul><ul><li>The site in Rimini, Italy provides a &quot;wind alert&quot; service. Whenever wind speeds climb above 12 knots, a computer sends SMS messages to sailors and windsurfers. </li></ul></ul><ul><ul><li>Sky Digital customers in the UK can send text messages from their digital set top boxes to cell users, and now a new service enables mobile users to reply to the messages. </li></ul></ul><ul><ul><li>In Japan, Jeans Mate (a popular casual wear retailer), conducts sales promotions via mobile phones. </li></ul></ul><ul><ul><li>In London, radio station, KISS 100 uses mobile marketing for contests and promotions, cash prize competitions, and single release notifications. </li></ul></ul>
    6. 6. Where ever they go, there “we” are <ul><li>And at home: </li></ul><ul><ul><li>M-Qube is introducing a platform for advertisers to launch marketing campaigns via SMS. </li></ul></ul><ul><ul><li>People2People Group has a service that sends personal ad matches through SMS. </li></ul></ul><ul><ul><li>Yahoo! sends bulk SMS messages to AT&T subscribers to drive traffic to its wireless Internet sites. </li></ul></ul><ul><ul><li>The CambridgeSide Galleria mall in Boston enables shoppers to use their cell phones to get instant coupons for Galleria stores. </li></ul></ul><ul><ul><li>SMS@ctive Technologies launched its Term Messaging Service that allows subscribers to receive pre-programmed messages and additional content such as stock alerts and meeting reminders. </li></ul></ul><ul><ul><li>eBay and InPhonic will launch an SMS-based bidding system called Wireless Rebidding for $2.99 a month. eBay currently offers SMS message alerts about auctions as part of its eBay Anywhere campaign. </li></ul></ul>
    7. 7. User innovation <ul><li>Users are coming up with their own ideas, too: </li></ul><ul><ul><li>In Switzerland, bird-watchers can update each other on sightings by punching in the species and location using an SMS system that also displays a list of the &quot;best beaks&quot; sighted on a Yahoo Web site. </li></ul></ul><ul><ul><li>A Dubai court has legally endorsed a divorce notice issued by a Dubai man to his wife via SMS. The husband sent a message to his wife saying, &quot;Why are you late? You are divorced.&quot; Luckily, the man later changed his mind. </li></ul></ul>
    8. 8. What’s to come? <ul><li>The arrival of Multimedia Messaging Services (MMS) </li></ul><ul><ul><li>RealNetworks has partnered with Major League Baseball Advanced Media to provide live audio streaming feeds of professional baseball games to cell phones. </li></ul></ul><ul><ul><li>PocketThis lets users send information from the Web to a wireless phone with a series of one-touch options built in to the application. </li></ul></ul><ul><ul><li>Sony Ericsson announced a deal with Hallmark and THQ Wireless to develop MMS games and card greetings. </li></ul></ul><ul><ul><li>Microsoft will roll out its popular MSN Hotmail service for mobile phone users in Singapore, Hong Kong, and Taiwan. </li></ul></ul><ul><ul><li>The music performing rights organization BMI signed a licensing agreement with Cellus USA covering the public performance rights on behalf of approximately 300,000 songwriters, composers, and music publishers for 4.5 million musical works. </li></ul></ul>
    9. 9. What’s it mean for marketing? <ul><li>Mobile channel use for: </li></ul><ul><ul><li>Alerts </li></ul></ul><ul><ul><li>Coupons </li></ul></ul><ul><ul><li>Games </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><ul><li>Sweepstakes </li></ul></ul><ul><ul><li>Market Research </li></ul></ul><ul><ul><ul><li>Polling </li></ul></ul></ul><ul><ul><ul><li>Consumer preference studies </li></ul></ul></ul>
    10. 10. How to succeed <ul><li>Permission and relationship building is key </li></ul><ul><ul><li>Relevant, personal, and high-value (read” USEFUL) messages are required. </li></ul></ul><ul><ul><li>True “opt-in” not simply “opt-out” policies are mandatory. </li></ul></ul><ul><ul><li>Responsible privacy policies must be enacted. </li></ul></ul><ul><li>Keep in mind the limitations of the medium </li></ul><ul><ul><li>Bandwith is an issue. </li></ul></ul><ul><ul><li>Graphics presentation is inconsistent. </li></ul></ul><ul><li>Remember it’s still “direct response” </li></ul><ul><ul><li>The offer and its relevancy are key to overcoming resistance to using this intimate method of communication. </li></ul></ul>
    11. 11. Thank You! Dave Harkins VP, Director of Strategic Services The Jackson Group [email_address] Direct: 630.820.2087 This presentation is available at: