Mobile marketing

Mobile Marketing

Annmarie Hanlon

History of the Mobile Phone

• 1946 First mobile call • 1973 Martin Cooper invents

mobile phone• 1979 Commercial

automated network (1G) created in Japan

• 1992 First SMS• 1996 Clamshell phone

invented• 2007 iPhone launched• 2008 App store launched

Source: Darell (n.d.) and Belic (2011)

USERS IN MILLIONS

REGION 2012 2013 2014 2015

Asia Pacific 2,350 2,550 2,720 2,890

Europe 640 650 660 670

Middle East & Africa

460 500 530 560

Latin America 400 420 430 450

North America

260 270 270 280

Worldwide 4,110 4,380 4,610 4,850

Figure 1 – Mobile Phone Users by Region

Source: Advertising Age (2011)

The 7 Unique Capabilities of Mobile

1. The mobile phone is the first personal mass media

2. The mobile is permanently carried media

3. The mobile is the only always-on mass media

4. Mobile is the only mass media with a built-in payment mechanism

5. Mobile is only media available at the point of creative inspiration

6. Mobile is only media with accurate audience measurement

7. Mobile captures the social context of media consumption

Source: Ahonen (2008)

What is Mobile Marketing?

Tool Example

SMS 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) messages

Bluetooth and WiFi marketing

Using ‘Free’ WiFi hotspots to share content (e.g. Café Nero, Costa Coffee with links to ‘The Cloud’, Sky Mobile)

Mobile applications (apps) Useful applications, often for location based or business use

Mobile search marketing Google, local directories, TripAdvisor

Mobile display advertising Adverts on games and free apps

Mobile video advertising L’Oreal ads in magazines with links to ‘how to’ videos – often linked to QR codes

QR Codes and Barcodes Taking the offline online – adding codes to Posters, Magazine adverts

Mobile website Websites optimised for mobiles – e.g. Premier Inn

Figure 2 – Mobile Marketing Definitions with examples

Mobile applications (apps) with adverts

SMS Bluetooth and WiFi marketing

Mobile applications (apps)

Examples of Mobile Marketing

Mobile search marketing

Mobile website

Mobile display advertising

Examples of Mobile Marketing

Mobile User Profiles

Mobile phone ownership is evenly split between men (51.3%) and women (48.7%)

Source: Hightable (2011)

Mobile is Different

FUNCTION FORM

A technology platformThe physical Mobile device and the communications network to which it is

connected to reach the Internet – all ‘markets’ in their own right

The product or service that a

consumer uses ‘locally’Mobile runs local applications, utilities & a rich-media player

The product or service that a

consumer uses ‘remotely’

Internet access, ‘Marketplaces’ e.g. iTunes, streamed media, geo-services, cloud

storage, office functionality, social media

A route to marketInbound: e-commerce, information & media retrieval device

Outbound: a delivery channel, service & support tool

A two-way communications

channel

For Consumers: Phone, SMS, video chat, e-mail, social media

For Companies: Advertising, market research, PR, CRM, NPD

A general utility devicee-wallet, personal id, e-key, remote control device, 2-way geo-tracker, camera,

video, compass, personal assistant, TV, media player, e-book reader…….Figure 4 – Mobile Function and Form

Source: Hanlon and Rees (2012)

Mobile Infrastructure

Mobile infrastructure is dependent on the device, the network provider and often the internet

Figure 5 – Mobile InfrastructureSource: Hanlon and Rees (2012)

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 SpendSource: Meeker (2010)

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)

Growth of Mobile – User behaviour by Gender

Source: Hightable (2011)

Mobile Phone Campaigns: Advantages and Disadvantages

Advantages Disadvantages

• Phone is personal and nearby• Increase sales by catching people when

watching TV, out with friends and away from the PC

• Catch shoppers on the move and in a hurry

• Engage direct with customers• Measurable results to campaigns• Measure sales via mobile • Mobile sites can be cheap to construct• Basic QR codes are free to create• Flexible

• Marketing can be seen as an intrusion if poorly executed

• Depends on device• May need to adapt campaign for

device (smartphone vs feature phone)

• Apple and Android dominate the market

• If creating a game it is difficult to gain attention unless popular and gains viral attention

Figure 7 – Mobile Phone Advantages and Disadvantages

10 Steps in Mobile Marketing

1. 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)

Source: Rose (2011)

Mobile Website or Native App?

QR Codes – Marketing Uses

• Incentive• Discount coupon• Product sample• Make purchase

• Download video, other multimedia

• Loyalty points• Access more information

Adapted from Okazak et al (2012) and MGH QR Code Use and Interest Survey (2011), cited in Tolliver-Walker (2011)

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).

QR Codes: Advantages and Disadvantages

Advantages Disadvantages

• Connects readers from the printed page to advertisers’ websites.

• Enables magazines to track eyeballs on ads and prove the value of advertising.

• QR code users are predominantly between 35-54 years old, (48%), well educated and have annual household incomes of $50,000 or more (MGH, 2011 cited in Tolliver-Walker, 2011).

• No license required to create or use.• Easy to create using free software.• Smartphones with cameras become bar code

readers with free software.

• Don’t know how long they stayed.• Or what they looked at.• Or if they liked it.• Or if they shared it.• Or if people it was shared with also visited

the site.

This will all change soon!

Figure 8 – QR Codes Advantages and DisadvantagesAdapted from Tolliver-Walker (2011)

What’s Next?

• Increased mobile ownership• Expectation to access information via mobile• ‘Tabvertising’ (ads on tablets)• Adverts in exchange for minutes• QR codes everywhere!