Professional Documents
Culture Documents
BRIEFING
PAPER
Prepared by
CAMBRIDGE
MARKETING
COLLEGES
May 2007
Mobile
Marketing
ALUMNI
BRIEFING
Contents
PAPER
May 2007
page
Introduction 2
Markets Overseas
What Next?
5 Levels of Opportunity
1. As a communications channel
2. As a purchasing channel
4. As a delivery/distribution channel
5. A usage medium
1
Introduction
Welcome to this first Cambridge Marketing
College Briefing Paper.
Charles W. Nixon
2
1. What is Mobile Marketing?
3
mobile phones were their main method of of the latest services, you can watch television,
making calls increased from 21% in 2004 access your home computer files, get unlimited
to 30% in 2005. The mobile phone also has internet access, make free Skype calls and
the widest socio demographic reach of any send instant messages all through your mobile
electronic communications device and reaches phone.
many more people from ethnic, low income
Mobile Commerce (or M-Commerce) is
and older socio demographic groups than
becoming big business. It is no longer just
personal computers. Studies have shown that
the sale of ring tones, wallpapers and games
children are teaching their parents to text and
but encompasses services such as payment
grandparents are texting their grandchildren.
of the London Congestion Charge, access
The phenomenal growth in text messages to information-on-demand systems like news
is widely reported in the press. The MDA services or stock tickers, and banking and stock
releases new figures every month. For example brokerage applications.
according to the MDA the number of text
Language lessons can be sent direct to a mobile
messages sent during October 2006 reached
phone as can National Express coach tickets.
3.8 billion - 100 million more than the previous
Indeed there will be a time soon, when users
record achieved in September 2006, and up
will be able to get their tube and bus fares with a
almost 27% on the total for October 2005.
single text message. The travel industry is also
The mobile phone itself has also become working on technologies that will take care of
a symbol and fashion object, with users travel arrangements, update customers on flight
decorating, customising, and accessorising status, notify them if this information changes
their mobiles to reflect their personality. This and offer to make new arrangements based on
has emerged as its own industry. Research preset user preferences requiring no input from
from the music consultancy MusicAlly shows the user.
ringtone sales grew from £34.8m in 2000 to
Mobile Marketing Expenditure
£177.3m in 2005 but this is expected to be the
peak with sales declining significantly over the At the Mobile Marketing Summit in June 2006
next 5 years. (source: http://www.mformobile.com/mms/)
it was reported that:
However, mobile phones are no longer simply
a telephone – they are becoming iPods, radios, One-third of brands are planning to spend
▼
portals to the internet and are used not just in excess of 10% of their marketing
for communications but entertainment, and budgets on mobile marketing
mobile commerce including purchasing and
In the next 5 years over half (52%) of
▼
4
brands expect to spend between 5% and people now use their mobile phones as a
25% of their total marketing budget on bank. Most South Africans do not have a bank
mobile marketing account but most do have mobile phones and
millions of South Africans send money to their
40% of brands have already deployed text
▼
6
2. What are the Opportunities for Marketers?
• For advertising
• For direct marketing
• For customer acquisition or customer
retention (CRM)
• For customer service support
• For loyalty building
• As a sales promotion tool
• To support product launches
• To raise brand awareness
• For research/data collection
• For internal communications
• For response fulfilment
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LEVEL
1 As a communications channel
The first opportunity is to advertise to prospects to respond via a premium chargeable text
– using SMS, then MMs and then Video. Third – allowing the possibility of a campaign being
generation phones give ability to provide full part or fully self liquidating.
sound and motion and may be less regulated
Use as part of a viral campaign can also be
than broadcast media.
very effective linked to Sales Promotion. Eg
Marketers can use mobiles for: Orange Wednesdays and the new ITV Text
Advertising Coupon campaigns (Marketing magazine 1
▼ ▼ ▼ ▼ ▼
Some of the winners at the 2006 Annual Global MMA Mobile Marketing Awards:
Best Use of Mobile Marketing, Promotion information. All entrants were placed into a
(Australia) drawing to win a car each week of the campaign.
The campaign was highly successful and is
Legion Interactive, an Australian mobile a great example of how a mobile promotion
marketing agency, and its client, Zodiac, an can be used to generate sales and build brand
Australian marketer of pool cleaners, wanted awareness, even beyond mobile content or
to increase product sales, drive warranty traditional consumer products.
registration, and develop ongoing customer
interaction. The program utilized stickers Best Use of Mobile Marketing, Branding
with unique codes on each product package. (Switzerland, U.S., Japan, New Zealand)
Consumers were required to submit via SMS
The Hyperfactory, a mobile agency, and
to claim cash back or other promotional
Motorola wanted an innovative, interactive
merchandise. Advertising ran in traditional
mobile campaign that would make the most
media and in stores, encouraging consumers to
of Motorola’s sponsorship of the Burton Open
purchase the products.
snowboarding championships. The target
When submitted, the unique codes not only audience was the snowboarding competition’s
facilitated the refunds but also provided product competitors and spectators, males and females
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ages 18 to 30. The campaign used interactive not only Nokia customers.
kiosks on the ski hills that encouraged attendees The traditionally static medium of outdoor boards
to participate in interactive mobile experiences, was now creating dynamic interactions between
including the chance to star in a snowboard jump consumers and their local area. R/GA and Nokia
on the screen, record a message, and create delivered an innovative new product launch by
unique mobile screensavers and ring tones. delivering a high value and relevant service, while
In addition, attendees could receive real-time helping consumers understand their device’s
information about the event by registering for a more advanced functionality.
service that sent live, up-to-the-minute action
UK2006 Mobile Marketing Award
photos and videos of jumps and wipeouts
winners:
from the event, direct to their mobile devices.
Attendees could also receive weather alerts and Best use of mobile in brand building:
updates via SMS. The Motorola and Hyperfactory Robinson’s by Enpocket
campaign demonstrates how a brand can
Best use of mobile in customer acquisition:
build additional awareness and extend brand
Peugeot 207 – Marvellous
engagement from an event sponsorship by
Most innovative use of mobile in marketing:
providing relevant event information and content.
Sony Playstation 24 – 20/20 London
Best Use of Mobile Marketing, Product/
Mobile as a B2B tool:
Services Launch (U.K.) Adidas TaylorMade Golf – Sponge
R/GA and Nokia wanted to raise awareness of Best use of mobile & branded content:
one of Nokia’s new Nseries high-concept line Vodafone Live Music – Enpocket
of multimedia devices and position the device Best use of mobile as part of an integrated
as a multimedia computer, not merely a phone. campaign:
To target Nokia’s audience, R/GA created 15 NSPCC Speechless – Angel
different interactive posters fitted with Bluetooth
Best first-time advertiser on mobile:
technology and placed them throughout the
Canon Sponsorship of 3’s World Cup Video – 4th
London Underground. The posters invited users
Screen Advertising.
to opt in to download images of neighbourhood
maps from “superfuture,” London’s online
urban city guide, directly to their handsets by
pointing their mobile device in the direction of
the poster. Each of the 15 maps, which were
tailored to highlight the local area around the
specific station, would then be downloaded to the
consumer’s mobile device within seconds.
R/GA also made the content available to all
phone models with Bluetooth capability,
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2
LEVEL
As a purchasing channel
news or information services UK. The deal will enable the mobile network’s
As an quick, easy ordering service 3.5 million customers to watch ITV1 and ITV
▼ ▼ ▼ ▼
10
3
LEVEL
To build and manage relationships – CRM
Here the opt-in issue is paramount. Within this and maintain loyalty - Value added – by
parameter you can significantly add value to providing services that your customers
customer relations by targeted updates and will find useful and enjoy which enhances
personal advice/alerts. your CRM and loyalty base
For example: • Interactivity – engage your customers
• Banks and Stockbroker alerts for share – for example with competitions and
prices rises. voting
• TocMag already produce mini newsletters
This area also incorporates the aspect of
for mobiles.
Market Research
Mobiles can be used for:
• Customer Service Support - adding in a • Permission based – marketing through
mobile response mechanism compliments mobile provides a quick and easy way
existing, web, email, telephone and postal of receiving valuable information from
methods customers
• Instant access to information – invite • Data capture – adding a long number
customers to make queries, give or short code to your communications
comments and place orders via text . allows you to capture responses from
Customers may be more willing to text prospective and existing clients
As technology advances and usage of Mobile
requests or queries than to make calls
marketing becomes more acceptable two
• Targeted promotions –can help to build
further areas of Mobile Marketing will arise.
Another winner at the 2006 Annual Global MMA Mobile Marketing Awards:
Best Use of Mobile Marketing, going to the site. Meijer would alert customers, via
Relationship-Building (U.S.) SMS notifications, at least two hours before the
gas price at Meijer pumps increased. Meijer and
SmartReply and its client, Meijer Supercenters,
SmartReply developed a program that encouraged
created a value-added opt-in service initiative
ongoing consumer participation and interaction.
where customers were alerted to upcoming
gasoline price increases and given the opportunity UK Mobile Marketing Award winners:
to purchase gas before the increase took effect. Best use of mobile in customer relationship
Meijer promoted the program through receipt marketing: O2 ‘Yes Please’ – Archibald Ingall
tape printouts, in-store announcements, metro Stretton
radio, and its Web site. Customers registered Best example of mobile in customer service:
for the program by calling a toll-free number or Transport For London Safer Travel at night
– Incentivated
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4
LEVEL
As a delivery/distribution channel
Purchase of tickets for train /tram and tube used as the delivery channel. Music is the
is now feasible and through bluetooth it is obvious current example, but also books and
compatible with off-line media such as the TV and video will be soon available. Thereafter
Oyster card. Westminster Council in London is education and counselling could be next. The
trialing the purchase of payment of parking fees question is what do you need to do to offer your
by mobile phone. service via the mobile network?
5
LEVEL
A usage medium
The (current) final aspect of the spectrum is Today in Japan a new market has arisen for
the Mobile as a usage platform. The current Keitai novels. Novels delivered to your mobile
generation of Smart Phones has now been phone . The market has jumped from nothing
added to by the iPhone. These latest generation to $82m pa in 2006. ( source: Monocle April
Smart Phones offer full functioning laptop 2006) . This beats the old fashioned distribution
software and connectivity plus voice. With system for hard copy, reduces cost and opens
the exponential growth in hard drive capacity up a new market (of mainly female) readers
phones will soon have the storage of a desk with some authors selling 160,000 downloads
top of 3 years ago. Armed with blue tooth per day.
capabilities peripherals are no longer a problem
and thin PC of the past is re-created.
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What are the Advantages/Benefits of • 66% of consumers recall mobile
Mobile Marketing? marketing campaigns
Mobile Marketing should be seen as part of • 36% of recipients admit that they are
the overall Marketing Mix not as a separate likely to purchase products
channel. The key advantages of Mobile Limitations and Constraints
Marketing are that it is: However marketers need to be aware of the
• Instant and Direct drawbacks: a mobile phone txt message is
• Interactive limited to only 160 characters and there are
• Personalised also Regulatory constraints.
• Perceived as highly innovative
Regulations and Ethics
• Offers ‘real time’ campaigns
As with any aspect of Marketing there are
• Can be well targeted - Coke claims that
important areas of legislative compliance,
mobile phones are potentially more
voluntary codes of conduct and ethical issues
powerful than TV in reaching its target
particularly around consumer permission,
audience
privacy, taste and decency. And, as with any
• Can be very cost effective - the average
area of Marketing, if you do not respect the
response rates for mobile campaigns are
customer they will not want to engage with you.
typically several times higher than those
achieved through conventional direct This is an evolving area but the following
market media alone. are the key areas of legislation & regulations
governing mobile communications:
• Can reach people on the move – 15 to
19 and 20 to 23 year olds spend the least • DMA Best Practice Guidelines
time at home • MMA Code for Responsible Mobile
• More likely to reach the customer Marketing
- Mobile messages are more likely to be • The British Code of Advertising, Sales
opened and read then Emails – possibly Promotion and Direct Marketing
because they seem more personal • Data Protection Act 1998
• Can cut through a saturated media • The Electronics Commerce (EC
landscape Directive) Regulations 2002
• The Privacy and Electronic Communications
Operatelecom gives the following statistics:
(EC Directive) Regulations 2003
• Mobiles outnumber PCs 10 : 1
There are several other codes to be aware of :
• More texts are sent than emails
• Passive Location Based Services
• 94% of text messages are read – 75%
• STOP Command
instantly
• Content Code
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3. How Can I Find Out More?
There is a lot of information out there but here or individual member, access case studies on
are a few of the most useful resources we mobile marketing, find out about events, and
would recommend: follow useful hotlinks to related sites.
i) The Mobile Marketing Association ii) The Mobile Data Association (MDA)
(MMA) – www.mmaglobal.co.uk – www.themda.org
The Mobile Marketing Association (MMA) is the The Mobile Data Association is the non-profit
premier global industry trade association for global association for vendors and users of
companies involved in mobile marketing and mobile data and their advisors. Membership
associated technologies. The MMA represents is open to all providers and manufacturers
the interests of agencies, marketers, media of Mobile Data goods and services. Groups
owners, hand held device manufacturers, include - Network Operators and MVNOs,
carriers and operators, software providers and Mobile Content Providers, Mobile Aggregators,
service providers, and any other companies Manufacturers, Consultants, Resellers, Mobile
or individuals focused on the development of Solutions Providers and Software Developers.
marketing via mobile devices. It is the only
They operate 2 websites. On www.themda.org
trade association in the UK 100% dedicated to
you can apply for membership, find out about
the development of valued and effective mobile
events and access information about the Mobile
marketing.
Data Industry. They are currently developing
Its UK board of directors consists of leading a comprehensive guide to the Mobile Data
companies operating in the sector: 12Snap, Industry which includes definitions of mobile
Mindmatics, mblox, Enpocket, Flytxt and Fauld data and is being developed to provide
Advertising. Network operator members of information on messaging, mobile content, case
the MMA include O2, Vodafone, Virgin Mobile studies, information on the technologies, best
and Orange. MMA members share a common practice and training.
goal: to foster rapid and healthy growth of the
They also run a second website called www.
wireless marketing industry by establishing a
textit - www.text.it/home.cfm - which provides
well-observed voluntary Code, standards and
a useful information source for news and data
best practices that address key industry and
relating to Text Messaging, Picture Messaging
consumer issues.
and Mobile Internet. In particular you can
The MMA has produced a Code of Conduct access monthly figures for Text Messaging
which can be downloaded from: (SMS) and Mobile Internet (WAP) Page
http://www.mmaglobal.co.uk/conduct/index.php Impression figures.
From its website you can become a corporate It also provides information, case studies,
14
and a directory of services for texting, picture DTI – Communications and Information Industries
messaging, and the mobile web and a very Directorate http://www.dti.gov.uk/cii/
useful list of links DTI – Broadcasting
www.dti.gov.uk/industries/broadcasting
Trade Associations DTI – ecommunications
Mobile Data Association www.themda.org www.dti.gov.uk/industries/ecommunications
Bluetooth www.bluetooth.com DTI – Global Watch www.globalwatchservice.com
Digital Television Group www.dtg.org.uk Independent Mobile Classification Body (IMCB)
Direct Marketing Association www.imcb.org.uk
www.the-dma.org Information Commissioner’s Office
European Digital Media Association EDIMA www.informationcommissioner.gov.uk
www.europeandigitalmediaassociation.org International Audiotex Regulators Network (IARN)
European Telecommunications Resilience and www.iarn.org
Recovery Association (ETR2A) Internet Watch Foundation (IWF)
www.etr2a.org www.iwf.org.uk
GS1 UK cross-sector supply chain standards Office of Communications (Ofcom)
www.gs1uk.org www.ofcom.org.uk/radiocomms/
GSM Association www.gsmworld.com Office of Fair Trading www.oft.gov.uk
Office of the Telecommunications Ombudsman
Intellect www.intellectuk.org (Otelo) www.otelo.org.uk
Mobile Computer Users Group Premium Rate Services Regulator (ICSTIS)
www.mcug.org.uk www.icstis.org.uk
Mobile Entertainment Forum Short Code Management Group
www.m-e-f.org www.short-codes.com
Mobitex Association www.mobitex.org Telephone Preference Service (TPS)
Network for Online Commerce
www.tpsonline.org.uk
www.noconline.org
Project Nomad www.projectnomad.org.uk iii) The Direct Marketing Association
Premium Rate Association www.praltd.co.uk (DMA) – www.dma.org.uk
Royal Television Society www.rts.org.uk
The Portable Computer and Communications In August 2005 the Direct Marketing Association
Association www.pcca.org (DMA) produced some best practice guidelines
The Open Group www.opengroup.org for mobile marketing which include both a code
of practice and legal obligations. These can
Regulatory and Government
be found at: http://www.dma.org.uk/DocFrame/
Advertising Standards Authority
DocView.asp?id=1897
www.asa.org.uk
Communications and Internet Services In January 2006 they also established the
Adjudication Scheme Mobile Marketing Council. The initial focus of
www.arbitrators.org/cisas/index.asp
the group is to provide support in understanding
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mobile marketing and its first initiatives are: For further reading:
• Introductory FAQs
Facts and Figures
• Best Practice Guidelines
Mobile Data Association Text It (messaging) site
• Educational events, including Case www.text.it
Histories and supporting information on Mobile Streams www.mobilemms.com
why they were successful and how they
Analysts
were developed
Analysys www.analysys.com
• Benchmarking information to give users Deloitte www.deloitte.com
and potential users an understanding of Gartner www.gartner.com
what to expect IDC www.idc.com
Further information can be found at: Informa Telecoms and media
http://www.mobile.dma.org.uk/content/home.asp?h=0 http://shop.telecoms.com
Juniper Research www.juniperresearch.com
iv) Mobile Marketing Magazine - Ovum www.ovum.com
www.mobilemarketingmagazine.co.uk Quocirca www.quocirca.com
Strategy Analytics www.strategyanalytics.net
The Mobile Marketing Magazine is a free, Yankee Group www.yankeegroup.com
on-line magazine dedicated to mobile
marketing. It was launched in October 2005 Publications and News
MDA Newsletter www.themda.org
to provide a web-site exclusively devoted to
160 Characters www.160characters.org
mobile marketing. On it you can find news
3G Newsroom.com www.3gnewsroom.com
on campaigns, case studies, legal issues, 3G Newsletter www.3g.co.uk
appointments, and new developments. ZDnet UK news
http://news.zdnet.co.uk/communications
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