mobile marketing101what you need to know to start planning for mobile & case studies of successBOLO 2009October 13, 2009Photo credit: Apple & me

where are we going?Some statsMobile marketing v. mobile advertising: Is their a difference?Answers to common questions when planning mobileCase studies

Some stats

Mobile marketing v. mobile advertising: Is their a difference?

Answers to common questions when planning mobile

Case studies

Ponder this…88% of people in the US have a mobile phone; 80% SMS adoption rate among them1 trillion text messages sent in 200863.2 million people accessed news & information on their mobile device in January 20091billion+ apps downloaded on the iTunes app storeAs many mobile users in 2009 as web users in 2000. Is this the year of mobile?Source: comScore, Blumo.com, mobilemarketer.com, Apple.com

Mobile Marketing & Mobile AdvertisingThe paid announcement of a persuasive message where such communication is delivered to a mobile phone or other mobile device.The act of using mobile to market you product or service.Photo credit: Phandroid.com

So, what’s the difference?What’s the difference?Photo credit: stuartpilbrow

It’s the relationship. Mobile marketing, the brand owns it. Mobile advertising, a third-party owns it.Photo credit: Felix Kirsch

Mobile Marketing & Mobile AdvertisingEncompasses all marketing to mobile subscriber activities, including direct, proactive, permission-based messaging and voice promotions and mobile enhancement of traditional and digital initiatives. Examples: SMS, MMS and VR campaigns, mobile-optimized sites (WAP, iPhone), Bluetooth & Wi-fi campaigns Placing a marketing message or call-to-action with any of the consumer paths on the mobile channel. Examples: Mobile search, mobile banners, bluetooth & wi-fi campaignsSource: Mobilemarketer.com

The common questionsWhen do you start planning a mobile marketing program?How the hell do we plan for mobile?How do you measure the success?How much it is going to cost?$?$?$

When do you start planning a mobile marketing program?

How the hell do we plan for mobile?

How do you measure the success?

How much it is going to cost?$?$?$

When to start planning?Like every other marketing channel, start thinking as early as possible. Development schedules for mobile-enabled sites, branded applications or mobile games can take a few weeks or many months.Dedicated SMS shorts codes take 8 weeks minimum to get ready. Shared SMS codes have shorter lifecycles, but still require time.The method of obtaining short-codes varies from country to country. Researching solutions, providers, agencies takes time. How are you going to promote? POP display, TV ad, email, social streams. Photo credit: Leo Reynolds

Like every other marketing channel, start thinking as early as possible.

Development schedules for mobile-enabled sites, branded applications or mobile games can take a few weeks or many months.

Dedicated SMS shorts codes take 8 weeks minimum to get ready. Shared SMS codes have shorter lifecycles, but still require time.

The method of obtaining short-codes varies from country to country.

Researching solutions, providers, agencies takes time.

How are you going to promote? POP display, TV ad, email, social streams.

How do you plan for mobile?Don’t worry about the tools in the beginning, worry about the consumer. It’s about the individual. Look at the consumers in your client’s target audience. How old are they? Where are they from? Are they web-tech savvy? How do they purchase?What do they want from you?How do they get to you?Look at your client’s web analytics.Are there visitors from mobile-enabled devices?If so, what type of browser are they using?What pages or types of content do they visit?What phones are they using to access the site?Then, integrate the data above with your client’s goals?Increase brand awareness?Increase sales?Increase online traffic?Photo credit: powerbooktrance

Don’t worry about the tools in the beginning, worry about the consumer. It’s about the individual.

Look at the consumers in your client’s target audience.

Look at your client’s web analytics.

Then, integrate the data above with your client’s goals?

Understand your success metrics or KPIs before you start

Metrics for Messaging (SMS)# of subscribers # of interactions/responses# of conversionsHELP / STOP (opt-out) stats

Metrics for Mobile Sitesite traffictraffic referralstime spent on siterepeat visitsbounce rateuser pathsshopping cart abandonment, conversion, sales (if ecommerce enabled)

Metrics for Applications# of downloadsdevice typesessionsactive userstime in applicationuser paths, features usedversion connection typeIf commerce is available…conversion ratepreferred productsaverage shopping cart sizeabandonment

How much is it going to cost?This is like asking how is Twitter going to make money?SMSA simple SMS campaign can cost $5-20K, a year-long effort with a significant subscriber base can be $500k. Dedicated short-code can cost $15-30k, per year. Shared short codes are significantly cheaper . Research prices & compare.Vanity codes cost about $1,000/month, random codes about half that. Per message SMS Prices0 – 99,999 $0.035 100,000 - 249,999 $0.030 250,000 - 499,999 $0.025 500,000 - 999,999 $0.020 1,000,000 - 4,999,999 $0.015 5,000,000 $0.010

A simple SMS campaign can cost $5-20K, a year-long effort with a significant subscriber base can be $500k.

Dedicated short-code can cost $15-30k, per year. Shared short codes are significantly cheaper . Research prices & compare.

Vanity codes cost about $1,000/month, random codes about half that.

Per message SMS Prices

0 – 99,999 $0.035

100,000 - 249,999 $0.030

250,000 - 499,999 $0.025

500,000 - 999,999 $0.020

1,000,000 - 4,999,999 $0.015

5,000,000 $0.010

How much is it going to cost?WAP & ApplicationsWAP, wireless-enabled websites, work across all internet-enabled mobile devices. Inexpensive services to help you build Build from the ground up $5-20k, depends on depth of site.Applications, downloadable programs that run on your phone, designed for the specific platform iPhone, Palm Pre, Google Android, Blackberry & all Windows phones. Require knowledge of developer kit. $5k-???, depends on the functionality of the application. Photo credit: me

WAP, wireless-enabled websites, work across all internet-enabled mobile devices.

Inexpensive services to help you build

Build from the ground up $5-20k, depends on depth of site.

Applications, downloadable programs that run on your phone, designed for the specific platform iPhone, Palm Pre, Google Android, Blackberry & all Windows phones.

Require knowledge of developer kit.

$5k-???, depends on the functionality of the application.

Think budget, not cost. How do you make the greatest impact to your client’s customers with the allotted budget?Think about the conversation and how much it will cost to create it, rather than one-off campaigns.Think about your touch points. Where will the mobile effort be promoted? How much will it cost to execute the collateral? The mobile program should be tied to the organization’s overarching marketing strategy. Front load the budget. Cost decreases once you’ve made the initial effort to acquire those first customers. Determine where the budget comes from, digital, media, or mobile specific. Photo credit: piperreport.com

Think about the conversation and how much it will cost to create it, rather than one-off campaigns.

Think about your touch points. Where will the mobile effort be promoted? How much will it cost to execute the collateral?

The mobile program should be tied to the organization’s overarching marketing strategy.

Front load the budget. Cost decreases once you’ve made the initial effort to acquire those first customers.

Determine where the budget comes from, digital, media, or mobile specific.

Don’t just jump onto the mobile wagon.Once you figure out the goals, put yourself in the consumers’ shoes. Mobile marketing efforts shouldn’t be thought of as campaigns. Commit to a long-term, lifecycle-type of conversation. Successful mobile campaigns find a way to create conversations with their customers. With conversations, comes long term relationships with your customers. Photo credit: radioflyer.com

Once you figure out the goals, put yourself in the consumers’ shoes.

Mobile marketing efforts shouldn’t be thought of as campaigns. Commit to a long-term, lifecycle-type of conversation.

Successful mobile campaigns find a way to create conversations with their customers.

With conversations, comes long term relationships with your customers.

Case Study: Sonic SuccessBrand: SonicWhat did they want to do? Test the effectiveness of mobile through an incentive-based survey promotion.How did they execute the campaign?Call-to-action on receipts and individualWaiters/waitressesAllowed Sonic to segment the results by store through individual codes.What were the results?Responses were 20x higher than their typical e-mail or direct mail. Less costly than direct mail, slightly more expensive than email, but “worth the effort given the response rate.” Sonic parlayed this into a large-scale, localized mobile program.Photo credit: me

Call-to-action on receipts and individual

Waiters/waitresses

Allowed Sonic to segment the results by store through individual codes.

Responses were 20x higher than their typical e-mail or direct mail.

Less costly than direct mail, slightly more expensive than email, but “worth the effort given the response rate.”

Sonic parlayed this into a large-scale, localized mobile program.

Case Study: Kraft iFood ApplicationBrand: Kraft FoodsWhat did they want to do? Get branded recipes in the hands of consumers at point-of-purchase. How did they execute?Developed iPhone application called the iFood Assistant. Leverages Kraft recipe database to provide easy access to over 7,000 branded recipes, shopping lists with store locator, mobile recipe box and videos and more. App cost $0.99. What were the results? The iFood app cracked Apple’s coveted Top 100 Paid Apps. Lesson learned—consumers are will to pay for your mobile efforts as long as there is a legitimate payoff for them. Think of the data. Kraft can understand when and how consumers shop, what they are making and which ingredients resonate with them. Photo credit: KraftFoods.com

Case Study: Hooters Pairs Digital with TraditionalBrandHootersWhat did they want to do? Test mobile adoption to their Hooters Mobile Club and provide a new point of interaction with their customersHow did they execute?Cross-media promotion, VOD & MobileTelevision commercials with graphics at the bottom inviting viewers to learn more about the Hooters Mobile Club.Text WINGS to 36832What were the results?32% increase in sales in the markets testedPhoto credit: Hooters.com

Cross-media promotion, VOD & Mobile

Television commercials with graphics at the bottom inviting viewers to learn more about the Hooters Mobile Club.

Text WINGS to 36832

This is only the beginning…mobilemarketer.commobilemarketingwatch.com mobilecrunch.com #mobile on Twitter

MICHAEL BARBER@michaeljbarberhttp://michaeljbarber.com