Mobile marketing


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An introduction and summary of the world of mobile marketing

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Mobile marketing

  1. 1. Mobile Marketing Annmarie Hanlon
  2. 2. History of the Mobile Phone• 1946 First mobile call USERS IN MILLIONS• 1973 Martin Cooper invents REGION 2012 2013 2014 2015 mobile phone Asia Pacific 2,350 2,550 2,720 2,890• 1979 Commercial automated network (1G) Europe 640 650 660 670 created in Japan Middle East 460 500 530 560 & Africa• 1992 First SMS Latin America 400 420 430 450• 1996 Clamshell phone North 260 270 270 280 invented America• 2007 iPhone launched Worldwide 4,110 4,380 4,610 4,850• 2008 App store launched Figure 1 – Mobile Phone Users by RegionSource: Darell (n.d.) and Belic Source: Advertising Age (2011) (2011)
  3. 3. The 7 Unique Capabilities of Mobile1. The mobile phone is the first personal mass media2. The mobile is permanently carried media3. The mobile is the only always-on mass media4. Mobile is the only mass media with a built-in payment mechanism5. Mobile is only media available at the point of creative inspiration6. Mobile is only media with accurate audience measurement7. Mobile captures the social context of media consumption Source: Ahonen (2008)
  4. 4. What is Mobile Marketing?Tool ExampleSMS Communication and Promotional text messages from suppliers (e.g. reminders and offers from dentists, hairdressers, DIY stores use it to track customers)MMS Multimedia (picture, video) messagesBluetooth and WiFi Using ‘Free’ WiFi hotspots to share content (e.g. Café Nero, Costa Coffee with links tomarketing ‘The Cloud’, Sky Mobile)Mobile applications (apps) Useful applications, often for location based or business useMobile search marketing Google, local directories, TripAdvisorMobile display advertising Adverts on games and free appsMobile video advertising L’Oreal ads in magazines with links to ‘how to’ videos – often linked to QR codesQR Codes and Barcodes Taking the offline online – adding codes to Posters, Magazine advertsMobile website Websites optimised for mobiles – e.g. Premier Inn Figure 2 – Mobile Marketing Definitions with examples
  5. 5. Examples of Mobile Marketing SMS Bluetooth and WiFi marketing Mobile applicationsMobile applications (apps)(apps) with adverts
  6. 6. Examples of Mobile MarketingMobile search Mobile display marketing advertising Mobile website
  7. 7. Mobile User ProfilesMobile phoneownership is evenlysplit between men(51.3%) and women(48.7%)Source: Hightable (2011)
  8. 8. Mobile is DifferentFUNCTION FORM The physical Mobile device and the communications network to which it isA technology platform connected to reach the Internet – all ‘markets’ in their own rightThe product or service that a Mobile runs local applications, utilities & a rich-media playerconsumer uses ‘locally’The product or service that a Internet access, ‘Marketplaces’ e.g. iTunes, streamed media, geo-services, cloudconsumer uses ‘remotely’ storage, office functionality, social media Inbound: e-commerce, information & media retrieval deviceA route to market Outbound: a delivery channel, service & support toolA two-way communications For Consumers: Phone, SMS, video chat, e-mail, social mediachannel For Companies: Advertising, market research, PR, CRM, NPD e-wallet, personal id, e-key, remote control device, 2-way geo-tracker, camera,A general utility device video, compass, personal assistant, TV, media player, e-book reader……. Figure 4 – Mobile Function and Form Source: Hanlon and Rees (2012)
  9. 9. Mobile Infrastructure Mobile infrastructure is dependent on the device, the network provider and often the internetFigure 5 – Mobile InfrastructureSource: Hanlon and Rees (2012)
  10. 10. Growth of Mobile• Average mobile advertising budget is between $75,000 and $100,000 per campaign (Hightable, 2011)• Current market for mobile ads is valued at $1.24 billion (Hightable, 2011)• Mobile predicted to exceed desktop internet by 2014 (Meeker, 2010)• YouTube mobile gets over 600 million views a day and traffic from mobile devices tripled in 2011 (YouTube, n.d.) Figure 6 – Mobile Advertising Spend Source: Meeker (2010)
  11. 11. Growth of Mobile – Etools for Browsing and Shopping 31% are mobile(14% browse on smartphone + 9% on tablet + 4% using an app on a tablet +4% app on smartphone = 31%) Source: Hightable (2011)
  12. 12. Growth of Mobile – User behaviour by GenderSource: Hightable (2011)
  13. 13. Mobile Phone Campaigns: Advantages and DisadvantagesAdvantages Disadvantages• Phone is personal and nearby • Marketing can be seen as an intrusion if• Increase sales by catching people when poorly executed watching TV, out with friends and away • Depends on device from the PC • May need to adapt campaign for• Catch shoppers on the move and in a device (smartphone vs feature hurry phone)• Engage direct with customers • Apple and Android dominate the• Measurable results to campaigns market• Measure sales via mobile • If creating a game it is difficult to gain• Mobile sites can be cheap to construct attention unless popular and gains viral• Basic QR codes are free to create attention• Flexible Figure 7 – Mobile Phone Advantages and Disadvantages
  14. 14. 10 Steps in Mobile Marketing1. Objectives – What do you want to achieve?2. Strategy – What are the business goals?3. Channels – What’s appropriate for the target audience?4. People – Who is involved? E.g. In house, agency?5. Creative Concept – Who will develop the concept?6. Programming – Any technical help needed?7. Timing – Any critical factors?8. Budget – Plus any extra carrier charges, licenses for ringtones or images?9. Promotional Plan – How will the target audience know about the campaign?10. Action Plan – Who is doing what, when and where?Source: Hanlon and Rees (2012)
  15. 15. Source: Rose (2011)
  16. 16. Mobile Website or Native App?
  17. 17. QR Codes – Marketing Uses • Incentive • Download video, other • Discount coupon multimedia • Product sample • Loyalty points • Make purchase • Access more informationAdapted from Okazak et al (2012) and MGH QR Code Use and Interest Survey(2011), cited in Tolliver-Walker (2011)
  18. 18. QR Codes – Market Growth• Econsultancy (2012) states that QR codes are the second most popular mobile technology.• 50% of smartphone owners have scanned QR codes and 18% buy after scanning (HighTable, 2012).
  19. 19. QR Codes: Advantages and DisadvantagesAdvantages Disadvantages• Connects readers from the printed page to • Don’t know how long they stayed. advertisers’ websites. • Or what they looked at.• Enables magazines to track eyeballs on ads and • Or if they liked it. prove the value of advertising. • Or if they shared it.• QR code users are predominantly between 35-54 • Or if people it was shared with also visited years old, (48%), well educated and have annual the site. household incomes of $50,000 or more (MGH, 2011 cited in Tolliver-Walker, 2011).• No license required to create or use. This will all change soon!• Easy to create using free software.• Smartphones with cameras become bar code readers with free software. Figure 8 – QR Codes Advantages and Disadvantages Adapted from Tolliver-Walker (2011)
  20. 20. What’s Next?• Increased mobile ownership• Expectation to access information via mobile• ‘Tabvertising’ (ads on tablets)• Adverts in exchange for minutes• QR codes everywhere!