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Mobile Marketing: Pros and Cons_Michael Hanley

Part of the Mobile Communications Resource Center, this is one of several presentations created by Michael Hanley for Ball State University's College of Communication, Information and Media. All rights are reserved.

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Mobile Marketing: Pros and Cons_Michael Hanley

  1. 1. Pros and Cons of Mobile Media The Pros and Cons of Mobile Marketing The Unique Benefits of Mobile Class 2
  2. 2. Pros and Cons of Mobile Media Mobile Marketing Definition Mobile marketing is a set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network.
  3. 3. Pros and Cons of Mobile Media Seven Unique Benefits of Mobile 1. Mobile is Personal • A survey (“Wireless Works” by BBO and Proximity) found that 63% of respondents would not share their phone with anyone (and 90% of those surveyed in Japan would not share their phone). While laptops do present a personal connection to the Internet, they are not as personal a device as the mobile phone. • The implication for marketers: Respect for privacy and permission is exceptionally important in all aspects of marketing, and particularly so when it comes to mobile phones.
  4. 4. Pros and Cons of Mobile Media Seven Unique Benefits of Mobile 2. The mobile phone is always carried. • What do you take with you when you leave your house? Wallet, keys and mobile phone. • What do you keep always near you when you are in your house? Mobile phone. • According to research by Morgan Stanley, 91% of mobile phone owners keep their phone within arms length, 24 hours a day. People have their phones with them at all times of the day, even in the bathroom. • The implication for marketers: Messages sent to recipients can be read and acted on immediately. Unlike email, which requires that the recipient be in front of their computer and connected to the Internet, messages sent to mobile phones will most likely be accessed within seconds of being received.
  5. 5. Pros and Cons of Mobile Media Seven Unique Benefits of Mobile 3. The mobile phone is always on. • In order to fulfill its primary function – as a telephone – the mobile phone is always on. Messages and services can be sent and acted on at all times of the day. • The implication for marketers: Similar to the previous feature of the phone, the fact that the phone is always on changes the services and messages that can be developed for the phone. 1 • It also means that marketers need to be even more sensitive with their marketing communications. Not many people would appreciate a text at 4 am telling them of a special pizza offer.
  6. 6. Pros and Cons of Mobile Media Seven Unique Benefits of Mobile 4. The mobile phone has a built-in payment system. • This is perhaps the key feature of the mobile phone, and one reason why content for mobile phones in many areas generates as much revenue as content for the Internet. Every mobile phone has a built in payment mechanism – the SIM card. • Billing is easily handled through the user’s mobile network. Paying for content and downloads has been built into the way that consumers use their phones. There is less expectation that products will be free. • There are also a number of services that turn mobile into a virtual wallet or bankcard, bringing banking and payment services globally. • The implication for marketers: Consumers are willing to pay for services and content on their mobile. Advertising is not the only way to generate revenue for content.
  7. 7. Pros and Cons of Mobile Media Seven Unique Benefits of Mobile 5. The mobile phone is available at the point of creative inspiration. • The mobile phone is always available as a creative tool. Phones today feature a number of tools that let users act on creative impulse, from taking photos and videos, to becoming a writing pad for ideas. • The implication for marketers: The feature can be used to encourage interactivity within campaigns created for mobile. • It presents the mobile as a useful tool in viral campaigns based on consumer generated content.
  8. 8. Pros and Cons of Mobile Media Seven Unique Benefits of Mobile 6. The mobile phone presents accurate audience measurement. • While the Internet is vastly superior to other media in tracking and measuring advertising and marketing campaigns, it is eclipsed by the mobile phone. • Every transaction made on a mobile phone can be uniquely tracked to that mobile phone number, whether the transaction is a voice call, an SMS message or accessing the Internet. • The implication for marketers: Aggregated data provides extensive profiling and segmenting opportunities for targeting the right audience. Campaigns can also be accurately measured and tracked for ROI.
  9. 9. Pros and Cons of Mobile Media Seven Unique Benefits of Mobile 7. The mobile phone captures the social context of media consumption • Because of the nature of the mobile phone to accurately track transactions to any particular phone number (user), it can track transactions between mobile numbers (users). • This means that sophisticated data mining can identify patterns that indicate information and preferences of mobile phone users. • Not only can alpha users be identified, but they may be identified within their social context. • The implication for marketers: This information will represent rich data that can be used to both create and market products, content and services online.
  10. 10. Pros and Cons of Mobile Media Advantages of Mobile Marketing 1. Instantaneous • Or, at least in principle. As the audience is likely to be carrying their mobile devices with them in a standby state, they are more likely to receive and absorb the message on the spot. Always around, always on. According to comScore, Inc., a leader in analysis and commentary of the digital world, advertisements for restaurants and food boast the highest response rates of all SMS advertising. On average, 16% of those receiving a mobile ad for a restaurant are likely to respond, while 13% of those receiving an offer for food – such as a grocery coupon – will show interest.
  11. 11. Pros and Cons of Mobile Media Advantages of Mobile Marketing 2. Efficient • Creating content such as images or video for streamlined mobile devices is relatively inexpensive when compared to desktop or laptop systems which can handle content of the highest quality. The limitations of mobile devices such as screen sizes, data transfer rates and costs mean that content needs to be simple when created for mobile. Mobile efficiency is also great for promotions, issuing coupons and other permission-based marketing and incentive services. Promotional codes and coupons can be relayed to the audience via mobile devices, allowing users to ‘carry’ around the virtual information and use at a convenient time.
  12. 12. Pros and Cons of Mobile Media Advantages of Mobile Marketing 3. Convenient • With a good idea in action, mobile campaigns can prove more convenient than traditional media, as the content is kept down to a minimum and the platforms are adaptable on a mass scale. 4. Sharing • Like the desktop based Internet, mobile connectivity can make sharing information a breeze. Not only does Mobile Marketing have massive viral potential, but planning a campaign to go offline and then return online by using such multimedia devices such as 2D barcodes, Global Positioning System (GPS) or camera capabilities, can attract others to get involved.
  13. 13. Pros and Cons of Mobile Media Advantages of Mobile Marketing 5. Broad •Potential for brand new audience who may not have much online experience, while specific target groups can be singled out. •According to a report released by The Kelsey Group, the number of mobile Web users in the US is expected to grow by over 50 million by 2013, clocking in at a whopping 100+ million users. During this period, the number of mobile handsets in America is expected to grow by just under 25 million.
  14. 14. Pros and Cons of Mobile Media Advantages of Mobile Marketing 6. Consumer Relationship Management • As mobile technology is essentially the first mass-communication vehicle which relays messages directly to the individual wherever they are, there is an increase in relationship building potential. • Mobile phones are private and relatively secure, allowing for a more personalized approach to media. Marketers can receive feedback instantly, leading to a valuable two-way conversation with their audience members. With reduced costs of broadcasting messages, regular updates on procedures such as insurance claim processing via SMS maintains customer contact and can reduce call center volume.
  15. 15. Pros and Cons of Mobile Media Advantages of Mobile Marketing 7. Real-Time Tracking • As with the traditional Web, tracking and reporting is easy, effective and instantaneous – if the network providers play ball, that is. Quicker response times lead to increased tracking potential and market understanding.
  16. 16. Pros and Cons of Mobile Media Advantages of Mobile Marketing 8. Customizable • Mobile Marketing is often able to reach a wider audience due to the accessibility of mobile devices when compared to the number of those who have access to traditional, desktop-based Internet – especially in developing countries such as South Africa. There is often potential for device detection, geo-locating, location-based messaging (such as location specific and sales related broadcasting Bluetooth messages in shopping center) and other handy tools for targeting.
  17. 17. Pros and Cons of Mobile Media Advantages of Mobile Marketing 9. Multimedia •Like PC based Internet, photos and videos are available, but it’s never been easier for users to create and share this content, provided that they have the latest phones. The ability to view this content is important to modern Mobile Marketing, but campaigns can also be centered on user generated multimedia content. Audience participation allows your campaign to grow exponentially, in content and influence.
  18. 18. Pros and Cons of Mobile Media Advantages of Mobile Marketing 10. Novel • Mobile Marketing industry is not yet saturated with excessive promotions. Users and advertisers both still see value in Mobile Marketing.
  19. 19. Pros and Cons of Mobile Media Advantages of Mobile Marketing 11. Adaptable Integration • Mobile convenience makes it easy to cross platforms and promote other media sources by incorporating mobile elements into current campaigns. For example, Common Short Codes (CSCs) can be used in a TV or radio ad to get the public to enter a competition or request information. All they need do is text a specified keyword to the five digit number advertised. RSS (Really Simple Syndication) can be fed via SMS to your contact list, informing of news, specials or other valuable marketing information. Microblogging platforms such as Twitter are another increasingly popular communication tool for marketers and consumers and have major benefits when incorporated into a mobile campaign.
  20. 20. Pros and Cons of Mobile Media Advantages of Mobile Marketing 12. Payment • Mobile devices have the potential to replace the physical wallet as it is a relatively secure payment device. This means the consumer doesn’t have to carry around cash – but can pay via advanced mobile Web systems or even with basic USSD services (Unstructured Supplementary Service Data) or CSC services.
  21. 21. Pros and Cons of Mobile Media Advantages of Mobile Marketing 13. Direct, Personalized Marketing • By the time you’ve finished reading this sentence, a mobile user could have received a direct marketing message. As his or her device can be used as a virtual wallet, there is potential (especially in countries such as Japan where mobile payment systems are common) for a sale to be completed at the peak of interest.      
  22. 22. Pros and Cons of Mobile Media Disadvantages of Mobile Marketing 1. Few Standards • Mobile phones are even less standard than PCs. Not only do phone models present a myriad of screen sizes, there are also several operating systems and browsers that are used by mobile phones. 2. Privacy and Permission • Privacy is always in question on any network or device. Savvy marketers must be aware of the connection that users feel with their mobile phone, and offer clear instructions for opting out of marketing communications.
  23. 23. Pros and Cons of Mobile Media Disadvantages of Mobile Marketing 3. Challenging Navigation • The mobile phone is small, and has a small screen and keypad. While some phones have a full QWERTY keypad, many have the standard numeric keypad. The problem is partially solved with touch screen phones (iPhone, etc.), but navigation remains an issue. 4. Education • The use of more advanced features of phones can require an extensive education process. While mobile phones have a host of features, these devices are for the most part under-used.