1. Ethen, Ross 1The Innovation of Multi MediaMessaging and Engagement- Focused Content By: Nate Ethen and Ian Ross
2. Ethen, Ross 2Just the Beginning The use of mobile technology as a marketing tool has been a trend for a fewyears now, but there is still a lot more that businesses can use to reach a broader groupof people.Some things that Ian and I believe will start trending in the next year is, theuse of Multi Media Messaging (MMS), the use of games as a form to give out discountto customers and adds that are in apps. As most people already know mobile devicesare widely used in these industries. Some places that they are already used are socialnetworking and mobile websites. These are great tools that companies can use toinform their already loyal customers, but they are lacking the potential of reachingcustomers who are not aware of the company’s operation. This is why we are going tointroduce a trend that has the potential to spread like a wild fire. Some apps that are already being used in the hospitality industry are, Pandora,facebook, twitter and other popular applications, along with SMS messages. Theseforms of marketing are helping shape what is about to be the new era of mobilemarketing. Pandora has incorporated advertisements that listeners must watch everythirty minutes in order to continue to listen to their music. Facebook, I believe is themost widely used tool for marketing to certain groups of people. Most companies havepages that they can use to send out deals or coupons to their followers. Twitter is useda lot like facebook where people can follow their favorite companies to hear aboutspecial offers. SMS messaging is used right now as a form of marketing wherecompanies can text their customers with deals and the specials for the day. Accordingto comScore, 71.1% of people using phones ages 13 and up constantly use mobilemessaging, this is up 1.5% from the past 3 months. This is a very popular form ofmarketing, and it is widely used. Which is why one of the new trends that we believecompanies will begin to use is MMS messaging, where companies can send picturesand videos to their clientele. The following facts are to show the reader that this is still a growing trend, and ifwe can find a way to get to a wider range of customers it would be an instant trend thatwill bring a lot more business to the company. According to comScore on June 2012,107million Americans owned smart phones. This is a 6% increase from January. Bythe end of 2012, smartphone users are expected to be at 115.8 million people, and by2013 it is expected to rise again to 137.5 million. By the time 2016 rolls around over192 million people will own smartphones. That is why the use of the app store andcreating a game that customers could play could become such a hit. Along with thosepeople using smartphones, over 234 million Americans ages 13 and up own a cellphone. You do not need to own a smart phone to receive a MMS message which iswhy this form of marketing could potentially reach a far greater amount of people.Applications that were downloaded was at 51.4% which is up 1.4, accessing mobilenetworking sites and blogs was up .8%. There was a 2.3% increase of music listeningon their smartphones and a .8% increase of game playing. All of these increases inusage show us that this trend is only just beginning and that there is so much more thatstill needs to be uncovered.
3. Ethen, Ross 3 The Reach of this trend could ultimately be endless. With the capabilities ofMMS messaging, your pictures or videos that you are sending to your customer couldbe forwarded to thousands of people. The trick is getting the customer to forward thatmessage. How the Trend Works Some people might be wondering how much of an effect marketing throughmobile technology is. According to Aberdeen Group, mobile technology has broughtpositive results to many companies, increasing their customer satisfaction and howmuch marketing is increasing their revenue. Customer satisfaction with mobilemarketing is at 9.2% and those who do not use mobile marketing is at 8.2%.Marketing’s contribution to a company’s revenue is at 8% for those who use mobilemarketing and 2.5% for those who do not. As you just read, mobile marketing works,and at the rate that it is helping provide more business, it shows no signs of slowingdown. What is next for this growing trend? I believe that there are a few trends that willstart picking up, including, Multi Media Messaging and “Engagement-FocusedContent.”As you read above the amount of messaging that is going on between oneanother is growing tremendously, a way that businesses can use this to their advantageis by sending out multimedia messages to their specified customers. There are manydifferent ways that the hospitality industry can use these multimedia messages to attracttheir guests. For example, a restaurant could take pictures of a featured dish and sendout a mass multimedia message to get people thinking about their operation as a dinnerchoice. There is a lot more than just sending out a message, the restaurant would needto make the dish look perfectly prepared and they need to make sure they send it out atappropriate times. There is no point for them to send out a message early in themorning for a dinner item. The reason being, is that people will forget about it, theperfect time, in my opinion is when people are getting ready to leave work, when theyare thinking about what their plans for dinner might be. Another option that a restaurantcan do with multimedia messages is sending out coupons to their frequent customers.Then when the customer comes into the restaurant to eat they have to show you thecoupon. A way that this trend can reach a far greater audience is by saying in themessage that they can feel free to send it amongst your contacts. This way themessage is continually passed along to more and more contacts bringing more peoplethrew their doors. One case example of how this trend has worked is at Rush Creek Golf Club inMaple Grove, MN. At the Golf course the GM has a list of members and their numberand he will text them with pictures of the course conditions or discounts that they mightbe having for nonmembers. In doing this, Derek Stendahl, the GM of Rush Creek GolfCourse hopes that the members will then forward this news to their friends, bringing innew golfers. When I asked Derek how this worked he said that just over this lastseason they have seen a large increase in new members joining, bringing in a lot ofrevenue for the golf course. He is very excited about this new form of marketing andsays that he expects to continue using it for years to come.
4. Ethen, Ross 4 Another time that this method was used was at the sandbarcafe. Thesandbarcafe is a night club in New Jersey that recently decided to give MMS marketinga shot. They emailed 10,000 people who were already stored up in their database andtold them that if they reply with a number they can gain free access into the club. Alsotelling them that it is the only way to get in free, many people didn’t hesitate to providethem with that information. Within the first month they received 1,500 numbers andafter 3 months it was at 4,500. The way that they keep people interested is by sendingthem deals about twice a week. Sandbarcafe noticed a large increase in attendance tothe club and they plan on continuing to market this way. Melissa Chyba, who is the vice president services at iLoop Mobile says, “We areexcited about this important mobile marketing channel because iLoop mobile iscommitted to providing innovative and compelling ways to reach consumers andaudiences.” Business professionals are very excited about this new way to sendpictures, audio files, videos and much more to their consumers. This technology forbusinesses is fairly new, in the past MMS messages were restricted to person to personuse, but recently it has gotten much more popular so that almost 40% of U.S mobilephone users can now receive them. Although SMS messaging has been the primaryway that companies have used messaging to get to their customers MMS messagingwill soon be passing it. As for engagement-focused content, airports could make games that people candownload from the app store, which upon completion they can receive a coupon fordiscounted travel expense. An idea for a game that would be appropriate for an airportis a game called “flight control.” In this game you have to direct air traffic to land on therunway. If you successfully land say, 100 planes, then you get 50 dollars off your nextflight. I believe that this is a great way for people to have fun and get a discount. Asread earlier from comScore, both application downloads and games played haveincreased in the last few months and shows no signs of slowing down. Some ways that non hospitality industries can use the MMS messaging is healthcare. The way that health care can use MMS messaging is sending out videos forpatients who are at home or are unable to come into the hospital. They could be videosshowing them how to use medical equipment or else send the patient a picture of whata medical condition that they think they might have is, much like how WebMD works butit would be able to be used while on the run. Another industry that can use the MMS messaging is the retail industry. Thisindustry is a prime example on how this trend can take off. In the retail industry thecompany say American Eagle, could send out pictures of their new shipment that justcame in. Another form of marketing to the desired customer is sending out the bar codeof a product with a discount on it. You could give them 50% off the item, but they needto come into the store to see what they get 50% on. This way the customers are forcedto walk into the doors and maybe see something else that they like.Business Worthy
5. Ethen, Ross 5 Is the trend of mobile advertising “Business worthy?” Smartphones and IPadsare now outselling computers and laptops. Also more time is being spent browsingmobile devices versus computers. Being online going to different websites used to bewhere all the advertisers would attack you with pop-ups rambunctiously. After sometime it started to become reverse advertisement because it became more annoying forpeople to constantly exit out instead of going more in depth with the advertisement.People today are also getting more information through the use of applications opposedto searching online. If applications on mobile devices are now more popular thansearching online, then it has already affected the business landscape. It has made ourworld’s marketplace go mobile and yes it is most certainly business worthy. Tim Wandell, who is the Executive Director of Strategic Accounts at digitalsolutions agency Universal Mind, says “Welcome to the world of appvertising.”Advertising was too many people seen as annoying, basically disrupting what you werefocused on. Whether it was watching television, watching a movie on television, oreven reading a magazine. Now with what Tim Wandell described as “appvertising”advertisements are becoming more engaging and sometimes even entertaining. A prime example of mobile advertisement that is engaging and is also quiteentertaining is the TRON: Legacy ad for the IPad. The ad will typically shoot across themiddle of the screen like a banner then sit at the bottom of the screen. Then you havethe option to click on it to get engaged or you have the option to X it out. If you decideto click on it that is when the ad tries to captivate you. They draw you in with loudnoises and vibrant colors. Then it allows you options like exploring the characters,behind-the-scene footage, and so on. Remember there is always the option of a skipbutton incase the user is not interested. This puts the user in ultimate control, which isso much different than any traditional advertising. Trends come and go because something newer, smarter, and cooler goes on.So what will be needed for this trend of mobile advertisement to keep its competitiveedge? One important aspect is to watch how long it takes for an advertisement todownload. It could possibly be the coolest, greatest, most entertaining advertisementever created but if it takes a minute or longer to download the customer is already gone.Most customers won’t wait more than a couple seconds before they’re already over itand want to move on. A huge competitive edge that is now possible because of advanced technology isbeing able to track every movement made by the user while they are engaged. Is theuser constantly using the zoom tool? Well then maybe the advertisement needs tomake its graphics clearer. Is there a particular page the user comes to and ultimatelydecides to exit out right there and then. Then the advertisers have the opportunity toadjust the ad from their observations then re-launch them to the public. Also being able
6. Ethen, Ross 6to identify who your biggest target market is will be a big advantage. According toLaura, Director of Marketing for Velti, Israel is the global leader for daily time spent onsmartphone apps. With that information the business knows where one of their biggesttarget markets exists across the nation. Another effective use of mobile advertising is the innovation of multimediamessaging service (MMS). It allows users to exchange multimedia messages betweenmobile phones and other mobile devices. These multimedia messages could consistsof photos, videos, links to websites, an even possibly music. Multimedia messaging hasbeen around for quite some time, originating in 2004, but there was muchdisappointment from users. It was originally created so users would get charged forevery single message they sent and even receiving a message would cost the usermoney. Often times these messages wouldn’t even be sent which caused hideous stirof angry customers. Now multimedia messaging is much more sophisticated and evenmore recently is being used as a very successful tool for advertising. I work at David’s Chophouse a restaurant located in Woodbury, MN connected tothe golf course Prestwick. I conducted an interview with the general manager TerriHeirmerman. After explaining to her what I am writing my paper on I began to ask hersome interview questions. My first question was if we use any type of mobileadvertising at David’s Chophouse? She answered “Yes, actually we do quite often. Ihave Russel, who is the Executive Chef, take a picture of his feature dishes weekly andsend out a mass text.” My next question for Terri was whether she thought it helpedbusiness or not? She answered “Yes, it most certainly does. We’re not necessarilymore busy, but we have customers buying those features which are higher priced thanmost our entrees. So it really does serve its purpose.” With smartphones and IPads being sold and used more then computers andlaptops, mobile advertising is a strong force in the marketing world. What will mobileadvertising change itself going forward? Ken Doctor, President of Newsonomics, hassome very interesting ideas of how mobile advertising could go forward. He posed“What’s better for an insurance company threatening you with disaster like tornadoes,earthquakes, and floods then freeze the individuals IPad temporarily then see thedamage magically disappear.” Mobile advertising has been around for some time now but has been able toinnovate itself as technology has advanced. Mobile devices are not going awayanytime soon. I believe mobile advertising will keep on innovating and it is definitely atrend to jump on and stay on for some time.
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