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The Mobile Marketing Handbook

A Step-by-Step Guide to Creating Dynamic Mobile Marketing Campaigns

Information Today, Inc.

The Basics and the Big Picture

No matter how mobile advertising messages are delivered, our research shows that consumers demand that if a company is going to invade their personal space with advertising, it better be for something of interest to them. Personalization is hyper-critical.

— Judith Ricker, division president, Harris Interactive

What Is Mobile Marketing?

Businesses and their brands can reap big rewards from mobile marketing under the right circumstances. When mobile marketing is done right, you can reach your customers via mobile with a message they actually want to hear but might not even know it yet. And the real kicker is that your customers will reach out to you for the message.

But perhaps I'm getting ahead of myself. First, I should rule out what mobile marketing is not. Contrary to what many consumers dread (and what shady opportunists fantasize about), mobile marketing is not a barrage of unwanted text messages sent via cell phone to someone who may not want, need, or have any connection with the business sending the messages. That's just spam.

The Mobile Marketing Association defines mobile marketing as: "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."

My definition of mobile marketing is slightly different: "Mobile marketing is how businesses communicate with consumers on their mobile devices, with their explicit permission, at the right time, at the right place while providing relevant value."

Based on either definition, smart mobile marketing isn't randomly marketing to people who may or may not be interested in receiving a message. Instead, smart mobile marketing is all about reaching your customers or being reached by them in a way that adds value to their day. You've undoubtedly noticed that a core component of my definition involves permission. Mobile marketing will never work well as an invasive marketing method, and it shouldn't be undertaken as such under any circumstances. It's likely to backfire every time. When mobile is used as a marketing tool, the end user must provide explicit permission for the communication to happen or it will fail. Any mobile outreach that is sent without permission not only impacts the business that is doing it, but it also casts a negative light on the entire industry. (Clearly, this does not eliminate mobile web advertising because anyone who goes online, even with a mobile device, naturally assumes that advertising will be interwoven with content somewhere.)

With mobile, a business can interact with customers at any time but only if those customers agree to receive a message. Customers can pick up their cell phones to request a text message when they're out or even at home watching TV or reading a magazine. Customers can also search on their mobile devices to find your business's mobile website. They can also call your business spontaneously wherever they are. Customers can use their phones to track where they are and use that data to request information and coupons from nearby businesses. Under the right circumstances, mobile marketing is likely to be so deeply interwoven into people's daily lives that they won't be able to imagine life without it.

While consumers have always been able to respond directly to advertising, the process has never been so fluid or so immediate as it is with mobile. The majority of those who use mobile devices have the device with them at all times, even while they're driving, walking down the street, shopping, or even sleeping. Most people will even return home to pick up their device if they leave it there. While some people only have a mobile device "for emergencies" or one that they "never turn on," most people have their phones with them and ready to use at all times. Because of mobile, your customers can and will choose to interact with you at any given moment. The key to a successful mobile marketing campaign is making your customers want to interact with you. That's what this book is all about. If you can create a mobile marketing campaign that makes people want to interact with your business, then you will be well on the road to success.

Many marketers mistakenly regard the mobile marketing environment as a smaller version of the internet or television, but that isn't the case. Mobile is more than its own unique marketing channel; it is a unique mass medium. As with print, audio recording, radio, cinema, TV, and the internet that came before it, mobile has its own characteristics that make it part of mass media. Even as the newest service for consumers, it is the most widespread worldwide, it is the most personal (giving it the ability to closely target individuals and not general demographics), and it is always on with a built-in payment mechanism. But mobile is unlike the internet because people interact with the mobile web differently, using a much smaller interface than on a full-size computer. It also isn't similar to television because its content (and your marketing) is consumed by one individual at a time. Individuals search for and find specific information; they don't browse on mobile. And the big difference is that people are usually on the go when they are using mobile and in a "mobile mindset," which means that they are either in a hurry (need information quickly) or are bored (using the device for entertainment). Either way, they are using mobile purposefully and are not in the same frame of mind as they are when using their desktop browsers. Mobile users are often in a distraction- filled environment, so marketers must be aware of the consumers' mobile mindset when creating campaigns. The better aligned your campaign is with what your customers want and where they are, the more successful your initiatives will be.

Marketers also tend to underutilize mobile. Your complete, full-size website can be rendered reasonably well on most mobile devices by miniaturizing it, but is that really what your customers want? Some marketers see mobile as the ultimate brand-awareness tool. And while you can use mobile marketing for branding, it is not the most comprehensive use for it. That's comparable to buying a Ferrari and only driving it 20 mph to church once a week. Its potential is wasted. This book can help you tap into mobile's full potential as a marketing tool.

How Big Is the Mobile Market?

The mobile marketplace is big and getting bigger. There are more than 5 billion active cell phone subscriptions worldwide, which accounts for 73 percent of the world's population. When you consider that this mobile adoption rate includes the very young and the very old who are not typical cell phone users, this statistic is truly amazing. Even more astonishing is the news that there are more than 60 countries with more than 100 percent penetration rate (more than one device per person), according to TomiAhonen Consulting.

On his blog titled Communities Dominate Brands (communities- dominate.blogs.com), Tomi Ahonen writes, "UAE (United Arab Emirates) became the first country with 200 percent penetration rate already. Italy, Israel, Hong Kong, Russia are at 150% and climbing. Europe is past 125%. The USA will approach but probably not yet pass 100% in 2010. It is now racing with Vietnam, Morocco, Mexico and Dominican Republic for this 'honor.' Canada and Japan are holding the tail end for mobile phone penetration level among industrialized countries. Japan will pass 90% in 2010, Canada will approach that level. Meanwhile Africa will pass 50% mobile phone penetration level this year [2010]."

In comparison, some countries have a much lower internet usage rate. According to InternetWorldStats.com, only 10.9 percent of the African population uses the internet. Europe has a 58.4 percent rate of internet use, and Asia has 21.5 percent, a surprising contrast to its high mobile use. The bottom line is that mobile is used much more than the internet on a global scale.

It is interesting to note that North America is still lagging behind much of Asia and Europe in adopting mobile. This is useful because we can look at these mobile leaders for trends in the mobile space. Interestingly, the exact opposite happened with the internet in the late 1990s because North America was well ahead of the curve in adopting internet technology. Still, the North American internet adoption rate is lower than mobile at just 77.4 percent. Mobile is used more frequently than the internet even where internet usage rates are the highest.

Clearly, mobile users represent a huge market. The next time you are in a public place, look around and see how many people are using cell phones or other mobile devices. Many people around you will be using their mobile devices to make calls, search online, send text messages, check email, adjust their calendars, take pictures, or listen to music. If the people you see are not actively using a phone, they probably have one strapped to their belt, tucked in their purse, or gripped in their hand. Compare this to the number of people who are reading or carrying a newspaper or magazine, or listening to the radio or watching television. Mobile is the only mass media that offers this level of continuous interconnectivity to individuals in their daily lives.

But here's one word of caution: Even if huge numbers of people have mobile devices, it does not mean that they are waiting for marketing campaigns to be delivered to them on this highly personal device. It simply means that there is an opportunity for you to reach your customers more easily and more personally than ever before. Likewise, it means your customers have a way to reach you more easily than ever before too. They have a way to connect to your business and with each other directly or indirectly at all times. You just need to give them the opportunity to engage with your business via mobile, and it may be easier than you think. These devices are in more people's hands (literally) than any other mass media for those who want to find local resources, and your business may be one of those resources.

According to IDC's Worldwide Digital Marketplace Model and Forecast, mobile web users are growing rapidly: There were 450 million mobile web users in 2009, a figure that will exceed 1 billion by 2013. Mobile web users are actively searching for information about something in their immediate vicinity. According to Cindy Krum, author of Mobile Marketing: Finding Your Customers No Matter Where They Are, mobile searchers are "ready to spend money and just need to know where to spend it."

As impressive as the mobile web statistics are, they pale in comparison to SMS (text messaging) use. More than 4.2 billion people use SMS and collectively sent 8 trillion text messages in 2011 around the world. You may think text messaging is only for young people, or you may know people who claim they have no intention of learning how to text. However, a September 2011 study by Pew Research Center finds nearly three- quarters (73 percent) of American cell phone owners are texting, and nearly one-third (31 percent) prefer texting to talking.

In addition to the sheer number of consumers who have mobile access and actively use it, advertisers are tapping into the growing investment in mobile marketing. Mobile advertising revenue grew from $3.1 billion to $5.9 billion in 2009, according to Tomi Ahonen. This figure represents an impressive 85 percent growth rate in a troubled year for the global economy when advertising budgets were slashed. At this same time, as nondigital advertising budgets were sliced and even internet advertising was flat for the year, mobile grew by an impressive 85 percent.

Opportunities in Mobile Marketing

If you don't use your mobile device all the time and can't see how businesses can easily engage you via mobile, you may be wondering how viable this marketing strategy actually is. Maybe you have been charged with launching a mobile campaign and justifying the return on investment (ROI) for the marketing budget allocated for mobile. Or perhaps you realize the full potential of mobile marketing, as I did on the night of May 23, 2007, when the thought of the future of mobile marketing literally woke me up in the middle of the night. That's when I decided to start my mobile marketing business. In any case, you should be aware of the growing opportunities in mobile marketing.

Local Businesses

Local businesses, such as restaurants, spas, salons, night clubs, and retail stores, hold the best opportunities for mobile marketing. This powerful tool can be used to attract new customers and increase the number of purchases from your current customers. The time is right to mobilize your business and consider marketing with mobile proactively.

Marketing Professionals

Having the ability to strategize and implement a dynamic mobile marketing campaign based on smart marketing principles is a unique skill set to have. Learning what you need to succeed in mobile marketing is potentially a huge opportunity for your career.

Agencies

If your clients haven't asked you to implement mobile campaigns for them already, they will be asking soon. Your biggest opportunity is being able to integrate mobile with the rest of the marketing efforts you are doing for them. Mobile can be a sizable addition to your revenue stream, especially if you use a vendor's private label and bill your clients at retail prices for mobile campaigns while you pay wholesale rates to the vendor.

Mobile Marketing Entrepreneurs

As reported by Entrepreneur.com, "Results from Challenger, Gray & Christmas's job market index revealed that 8.7 percent of job seekers gained employment by starting their own businesses in second quarter 2009, way up from the record low of 2.7 percent during the last quarter of 2008." If you want to start a mobile marketing business, your timing is perfect. The aforementioned local businesses are your ideal target market. Be sure to read more about this in the Appendix, "How to Start a Mobile Marketing Business."

Why You Need to Take Action Now, Even If You're Not Ready

You may not think you are ready to launch a mobile marketing campaign, but that is not actually relevant. Your customers are already accessing your website via their mobile phone (or trying to, anyway). Your customers are likely to be reading your email messages on their phones; they are using mobile to interact on their social media networks and may stumble upon your company's name or website on their mobile devices. The fact is that whether you are proactively reaching out with mobile marketing or not, your business is already interacting with customers in the mobile environment. If you are not paying attention to this, your business may be failing at mobile marketing already by simply ignoring it.

Being one of the first in your industry or your neighborhood to create a mobile marketing campaign will give you the hometown advantage. You will be able to grab a good share of the audience because you'll be one of the first to break ground on the process. Your customers are counting on you to be there when they reach out via mobile, and they will be likely to reward you by responding to what you offer.

For example, let's say you own a restaurant in a neighborhood, and you start a text message campaign to alert people about Two-for-One nights (on those slower nights when you could use more people coming in the door). On those slow nights, this text message blast becomes a tool to get more customers than your competitors. The same thing holds true for the mobile web. If you have a mobile website and your competitors don't, you are ahead of the game. The best way to guarantee that is to start now. Make sure that your customers aren't frustrated by trying to access your desktop site on their mobile device; this can work to your advantage. The more quickly you begin to build your SMS opt-in contact list, the better the opportunity to build a robust following. And the easier it is for your contacts to read your email on their mobile phones, the better the response rate you will get from your email. So this is the right time to mobilize your business.

Who Is Using Mobile the Most: The Savvy Markets

Mobile use is growing in many dynamic ways. One study by the Pew Internet & American Life Project titled "Mobile Access 2010" revealed some amazing statistics that demonstrate this growth and provide insight into various groups of people in the U.S. who are using mobile.

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Excerpted from The Mobile Marketing Handbook by Kim Dushinski. Copyright © 2012 Kim Dushinski. Excerpted by permission of Information Today, Inc..
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

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