Tag Archive for 'mobile marketing'

David Fallarme’s Look At Marketing to Gen Y

I read a great article from The Marketing Student that covered how Generation Y is changing marketing and I’d like to expand a bit on David’s ideas.

First, a quick rundown of David’s concepts (Full Article Here). David graphed the communication habits of Boomers, Gen X-ers, and Generation Y.

Boomers

Boomers - Credit David Fallarme

Gen-Xers

Gen Xers - Credit David Fallarme

Generation Y

Generation Y - Credit David Fallarme

David’s post continues on to discuss how these channels are used, and I’d like to take a look at how this affects direct marketers.

Direct marketing to the Boomer generation was the easiest; after all, postal mail and phone calls were regular forms of communication. Although I laugh at the thought, I can imagine people used to rush to the mailbox to see if they had any letters. Lacing this communication with the casual mailer or telemarketing call was successful because people trusted that medium for its relevancy.

For Gen-X it was similar, but AOL added a bit more to the mix. Direct mailers were overwhelming, and the slowness of snail-mail reduced its relevancy. A letter from a mailer was never as up-to-date as an e-mail or instant message; a direct mailer, was never as relevant as a newsletter or marketing e-mail. Interestingly enough, in David’s graphs he mentions instant message for Generation Y, but not for Gen-X; if you remember AOL had both e-mail and instant message. While IM would eventually win out as more relevant than e-mail, it wasn’t an easy medium to target as it didn’t have an “idle” feature that would allow messages to be delivered while the user was offline. This is probably one of the reasons IM has survived, somewhat unregulated, and has not had the same fall-out as e-mail.

Users are more likely to trust and respond to a medium that is used to keep in touch with what society, and more specifically, friends are doing.

Generation Y is overloaded with channels. From social networks to e-mail and instant message, most of them are noise. Thanks to GMail’s powerful SPAM filter, e-mail has been somewhat saved, but Gen Y does not check personal e-mail as frequently as their elders. Gen Y is also wary of signing up for newsletters or registering for a website with their actual e-mail (read: Gen-Y knows how direct marketers handle e-mail). Because e-mail is less relevant to Gen Y’s friends and family, it is a less effective marketing channel. Wall posts and PM’s are a bit more relative, but it’s nearly impossible to gain access to a Facebook user’s inbox or wall, and legitimate marketers would never try.

If you take one more look at David’s graphs, txt is the new channel that remains unscathed. Compared to IM, txt messaging has the advantages of being on-person and able to receive idle or off-line messages. And, as I’ve mentioned before, it’s less likely to follow e-mail’s fate because of the carrier approval process and universal keywords.

But, I saved David’s best graph for last:
Credit David Fallarme

It is extremely difficult to jump straight to a face-to-face meeting or phone call without somehow warming up the contact. Consumers are wary of sudden phone calls or face-to-face pitches, this is why these mediums are more urgent yet less frequent. David’s urgency graph is actually the funnel from initial contact to a face-to-face meeting, or the final purchase. As you move to the right of his graph, the lead gets hot, and the user is more likely to make the final jump.

Brands are complaining that the 18-25 year olds are locked in social networks that are difficult to penetrate. They are correct, and while Facebook, et al. can be an effective target audience, the current PPC and PPV models Facebook provides are not the right methods to reach that audience. When it comes to communication, and relevancy, 18-25 year olds are locked in text messaging.

- Ainsworth

Mobile Marketing Best Practices: Convert

The following is part 2 of a 3 part introduction to mobile marketing best practices.  You can find part 1 here and part 2 here.

The beautiful thing about mobile marketing is its ability to act as both a capture medium and a conversion medium.  Ideally, successful mobile programs will serve as a revenue generator rather than a marketing expense.  Other applications leverage text messaging as a more direct, less expensive alternative to achieve traditional marketing or communication objectives.   Once your programs have reached critical mass, you can begin considering methods to convert your database into revenue.

Just as we do not recommend buying third party lists, selling your opt-in list is a poor way of monetizing your hard work.  If possible, construct your mobile marketing message to have a response that occurs on the handset.  This has proven to be an extremely successful approach in mobile marketing for content providers offering ringtones and wallpapers as the call-to-action, download, and product were all received on the handset.  Conversions are still very high when the end-user is required to convert outside of the handset by visiting a website or store, however, a conversion that happens on the handset, keeping a user in his/her context, limits the barriers to entry.

Users love the convenience and instant gratification of mobile technology.  Appeal to that desire, and your conversion rates will directly reflect ease of use and immediate gratification.
If you are driving consumers outside of the handset, such as visiting a full html website, be very clear with the offer to the end users.  While a baited call-to-action may receive more conversions from handset to website, the conversion from website to product will not be any better.  An honest call-to-action will have great conversion rates and leave consumers satisfied with your mobile offering.

Finally, send good offers!  You’re participating in one of the most direct and powerful marketing mediums ever: a billboard in consumers’ pockets!  Send users something that makes them feel like a VIP.  Remember - text messages, even on an unlimited plan, are a cost to the consumer; don’t take advantage of that.  Send reasonable offers to your targeted groups and your consumers will happily reward you with high response rates.

-Ainsworth

Mobile Marketing Best Practices: Capture

The following is part 2 of a 3 part introduction to mobile marketing best practices. You can find part 1 here.

To run a successful text message marketing campaign, it is important to provide information and content that is considered valuable to consumers. Be sure to avoid third-party lists; building a database of consumers interested in your brand is the most successful strategy. In addition to not being carrier or MMA compliant, third party lists will also generate complaints. For consumers to join a mobile marketing program, they must opt-in or confirm their intent to receive your content. Carriers have two types of opt-ins; single and double, determined by the type of program. These opt-ins are limited to the particular program and short code and are not considered blanket approvals for other programs and short codes that you are marketing.

When a mobile subscriber opts into your mobile marketing program they are agreeing to receive information or mobile content from the offer you described. The best mobile marketing programs opt users into programs when demographic information can be inferred directly or indirectly. Having deeper levels of demographics allows your program to be selective when sending out future marketing messages. The more refined your marketing message is, the more receptive your end-users will be to your offer. For example, a sports radio station would benefit from individual lists for the area’s sports teams rather than one combined list of sports enthusiasts. Using this method, more general sports messages can be sent out to applicable lists but the targeted messages can be sent to the receptive users.

Be straightforward about the content and messages that users are going to receive. At a minimum include pricing, terms and billing intervals, and a notice that the cost will be charged to or deducted from their mobile phone. Do not use “free” or “bonus” terminology as end-users are still subjected to standard text messaging rates from their carrier. Including “standard carrier and other charges may apply” in your text message properly notifies the consumer of charges when joining a mobile program. Stay tuned for the wrap up…

- Ainsworth

Continue to part 3…

Mobile Marketing Best Practices: Create

At 3Cinteractive, we design campaigns around the motto that our company is named for: Create, Capture, Convert. First, you Create compelling, targeted “calls to action” to engage consumers via mobile. Next you Capture that consumer’s mobile number and any relevant demographic information into a consumer database. Lastly, the mobile consumer database is Converted into a new marketing channel, one that helps you achieve new and existing marketing goals. Utilizing this system and the best practices associated with each step, you will ensure a successful campaigns that build revenue and consumer loyalty for your brand.

The following is part 1 of a 3 part introduction to mobile marketing best practices.
Continue reading ‘Mobile Marketing Best Practices: Create’

Short Code Messaging vs. E-Mail Gateways

Before the onset of short code messaging, marketers and consumers were able to send free messages to consumers using e-mail-to-sms gateways. This allowed users to send an e-mail to phonenumber@carrier.com that would be converted and delivered as an SMS. As you could imagine, this became a prime target for internet spammers, which led the carriers to develop robust filtering systems to protect their consumers. This was the dawn of the short code and a new process that allowed carriers to prescreen and certify legitimate mobile marketing campaigns.

As a result we now have a ubiquitous infrastructure for cross-carrier SMS messaging. As part of this project, the carriers charge fees for short code messaging, which is different than the free email gateway service, but free isn’t necessarily better; it’s far worse.

E-Mail Gateways:
- Heavily filtered and monitored by the major carriers. Each carrier systematically scans for message content and monitors volume by IP address.
- No delivery confirmation. Each message is “fire and forget” much like blast e-mail.
- No carrier information. You must know the users carrier to send through an e-mail gateway. Numbers turn over at a rate of 8% per month causing failed send attempts.
- Low throughput limit. Throughput is limited both by IP throttling and infrastructure issues.
- One-way only service. There is no interactivity or opt-in process that creates a targeted database.

The base of an effective, compliant mobile marketing program, is an opt-ed in database. This can only be accomplished through the two-way interaction offered by Short Code messaging. While short code messaging comes at a fee, it provides an interactive experience that influences the consumer. The success rates of mobile marketing campaigns are attributed to the highly targeted nature of Short Code messaging and not the broad spectrum SPAM messages from e-mail gateways.

Short Code Messaging:
- Certified and approved by aggregators. Each aggregator pre-approves message programs to ensure that all messages are delivered once the program is approved.
- Message delivery confirmation. Each message delivery status can be delivered in real-time as it is queued for delivery.
- Carrier information pre-determined before delivery. Each phone number is “dipped” for mobile carrier delivery to ensure the number is properly labeled for delivery.
- High throughput limit. Throughput is not limited by short code allowing messages to be delivered faster.
- Two-way interactive service. Users can text-in or reply to mobile marketing campaigns creating a more enjoyable end-user experience.

While e-mail gateway services carry the appeal of “zero cost” they do little to enhance or activate a brand’s current marketing initiatives. Instead, e-mail gateway messaging becomes an extension to a traditional e-mail marketing campaign. In contrast, a well structured Short Code campaign functions to both independently engage users or activate existing traditional marketing campaigns.

- Ainsworth

Calise & Sedei and Taco Cabana Celebrate Mobile

3Ci, Taco Cabana and Calise & Sedei, the agency for the retail food chain, recently launched a mobile marketing campaign aimed at building a mobile database and testing the effectiveness of mobile marketing - and the early results show the immediate, positive impact of mobile! To build their mobile database, Taco Cabana took a two pronged approach over six days of promotion. First, a call to action was promoted at SanAntonio Spurs games asking fans to text in their vote for the best “kissingcam” couple and they would receive a mobile coupon for a free taco. Second, in store point of purchase promos called for fans to text in for a chance to win Spurs tickets. Taco Cabana then sent out a text message to the mobile consumers in their database, asking them to opt-in to the Taco Cabana mobile club and get a coupon for a free order of nachos.

An astounding 22% of the consumers were converted into mobile club members who will receive coupons on their mobile phones. In addition, they saw a 10% redemption rate on the coupons delivered during the promotions. Due to the overwhelming success of this test, 3Ci’s team is currently working with Taco Cabana to build additional mobile marketing campaigns that will
further build their mobile database and drive foot traffic to retail stores.

- Ainsworth

Start Building Your Mobile Database

I sat through a great meeting yesterday with a direct marketing firm from Boca Raton. As I demoed our platform, we reviewed a couple of the firm’s ideas. A lot of direct marketing firms are dealing with e-mail or direct mail, which is a slightly different beast than SMS. There are particular ways to maintain conversions with mobile marketing, that wouldn’t apply for e-mail marketing. In addition, mobile marketing is about spending the time to build a database rather than simply catching and blasting opt-in messages.

This firm got the concept that many do not: Mobile marketing isn’t restricted to a stand alone campaign that can be monetized immediately. In fact, a well designed mobile marketing strategy will have always-on campaigns that support other direct marketing efforts. Your brand’s short code is equivalent to it’s URL. When I work with a client, this is one of the first concepts that I establish. Once your short code is live, you need at least one campaign that will run constantly and collect interested consumers who read your marketing material. Mobile activates traditional marketing in a way that websites cannot. Missing this concept causes a lot of brands to avoid mobile marketing because they aren’t quite sure how to monetize it.
Continue reading ‘Start Building Your Mobile Database’

Continued: 4 Mobile Stats that Will Make You Think

In my earlier post: 4 Mobile Ad Stats that will make you Think I discussed 4 key statistics that represent the success of SMS as an advertising medium. To support this article, I thought it would be important to mention two more key findings from the Limbo report:

5. In 3 Months the number of recalled advertisements rose from 78 million to 82 million. 
Limbo reports that the majority of growth occurred among women and those aged 25-34.

This is a significant statistic as the 25-34 year-old demographic has been notably difficult to reach for marketers. If mobile subscribers are able to recall seeing advertisements, it is also critical that they remember the brand.

6. 41% of those who remembered mobile advertising could recall at least one brand.

In total, this is a 20 percent increase from December 2007. Advertising is only as affective as the consumers ability to recall the brand. Although, women are the growing demographic, men are 10 percent more likely to recall the brand that was advertised. What is more significant is that the 25-34 age-group performed the highest. Marketers have tried to reach this demographic using the social networking world with little success.

One striking note in the report were the types of brands that were recalled the most. Mobile operators and mobile content providers were at the top of the list with a sprinkle of bigger brands (ESPN, AOL, Nike, Coca-Cola, etc.) in the long tail.

This is more a reflection of the volume of marketing traffic that is pushed by mobile content providers. Major brands have yet to embrace mobile as a 24/7 campaign tool, which hinders the exposure to consumers. As brands begin to incorporate mobile into their sponsored content campaigns or their own mobile campaigns, their brand recognition will increase.

- Ainsworth

Mobile Marketing and Ideal Product Placement

In every retail store… in every marketing medium… marketers pay a premium to hold the ideal spot.

On the retail shelves at your local Apple store, third-party companies pay top dollar to be at eye-level. On the big-demo iPods plastered across the Apple store walls, artists paid even more to have their album listed on the static iPod screen. And on the box of that lovely music device that will fill the stockings of the rampant content generation… yep… someone paid to be there too.

The plethora of on-pack marketing agreements don’t sit with just the big companies with retail space or pretty boxes designed in California. In fact, the heart of Business 2.0 revolves around target marketing. Catch the eyes and ears of your market and provide them with offers your database knows they want.

It’s no different than the billboards on the highway, or the sponsored Google Ads. Behind all these product placement strategies are studies that show: being in the line of sight of your target market will increase your sales. Of course, these studies were merely supporting the gut-instinct of an innovator years before.

Companies have scrambled to bid on the box of one of the 110 million iPods sold since its release - a box that barely makes it through the first 24 hours of unwrapping. This is all because that lovely album art complete with the artist’s name and current hit single will be in the direct line of sight when that box first enters the recipient’s hands.

Product placement… despite being about the right place at the right time… for a few seconds at best… is a proven science. Imagine having the control to dictate the right place and the right time.

No more analysis for the right street corner… in the right city… at the right time… with the right distributer.  Enter… right here… right now… on a device that no one can ignore: their cell phone.

Could there be a better place than in your consumers pocket… and a better time than right when you want it?

So while some companies are still pushing the same research dollars into the same variable-filled marketing channels, the new-age companies are experiencing viral growth like never before, because there is no better place than everywhere 250 million subscribers are, right when you need them.

The next medium of product placement has arrived… in your future consumers’ pockets.

- Ainsworth

Looking to Go Mobile? Start with SMS.

The numerous options in mobile marketing have confused marketing offices. From native handset applications to MMS and SMS, each technology has its ups and downs.
Because they occur on the handset and can leverage other applications or hardware features (e.g. GPS), native applications offer the most flexibility for user interaction. But, native applications, are subject to one-time installs, and users rarely remember to update their software.
The next bet for content delivery is MMS, and while that is a great medium, the technology isn’t ubiquitous across the major carriers. SMS, the plain text sibling of MMS, is ubiquitous but many marketers shy away because of the misconception that SMS lacks the full package.
Digging a bit further, marketers will jump back to WAP only to find that it too struggles to provide ubiquitous experience end-users. This is partially a result of the lack of standardized browsers, and that Verizon Wireless blocks WAP content downloads to their handsets.
So, after all this research, somehow, handset applications come away with the biggest appeal. They’re fast, they leverage the handset’s features, and they can handle all the fun content without battling a messaging platform. Which leaves me asking… how good was this research?! Yes, a handset application can do all that and the end-users – who actually download it - would love it, but why eliminate such a large audience with all the red tape?
Don’t get me wrong, mobile applications are cool - I had a few before I jumped to the iPhone – but the mobile phone is about speed and convenience. The traditional method of finding and downloading an application has too many hurdles – the iPhone AppStore will change this.
Continue reading ‘Looking to Go Mobile? Start with SMS.’