Achieving Brand Success in the Mobile Space

It's personalised, it's targeted, it's convenient, it's instant, it's cost-effective -- hmm what's that? OH I knew it ~ it's mobile messaging! Yes, you are absolutely right. ;-) What could be more except texting? These characteristics explain why SMS marketing is so popular. What do you think?

Rise of the mobile phone

Mobile phone has come a long way since the first generation analogue cellular phones were introduced in the early 80’s. The evolution of first generation cellular networks to GSM networks and advanced mobile 3G technologies, to WIMAX and LTE has paved way for the development of smaller and sleek hand-held devices that we now use.

In 2003, according to research firm IDC, we saw a significant increase of mobile phone usage, with 533.4 million handsets shipped globally, a 23.3 percent increase compared to 2002. During that time, Nokia (5.45 million shipped), Sony Ericsson (815,047 shipped) and Motorola (778,287 shipped) dominated the mobile phone market worldwide. Subsequently, as the popularity of the mobile phone became more widespread and indispensable to people’s everyday lives, mobile phone penetration rates have continued to rise.

Naturally, new phone models and advancements in mobile networks came with more functionality. It did not take long for mobile phones to go beyond just voice calls.

Emergence of the mobile channel

Popularity of SMS has spread like wild fire and still remains as a primary activity done especially in emerging markets. Today, with the proliferation of smartphones and mobile hand-held devices, almost everything is done on mobile, making it an important consumer channel. In recent years, the mobile channel has caught the attention of marketers and is now being considered as a legitimate component of the marketing mix. Thereafter, marketing campaigns that relied heavily on traditional methods such as TV, radio, print and even online, went mobile. The new era of marketing emerged, and opened a new window for brands to market products to mobile phone users.

According to research firm Gartner, the global mobile advertising market will be worth $20.6 billion in 2015, and Asia Pacific will account for a leading 33.6% share of the total market. Mobile advertisers and global players are looking into expanding their presence in the APAC market, setting up local headquarters and signing up with partners in the region to address increasing market demand for initiatives that utilize the mobile space.

Benefits of mobile marketing

The advantages of mobile marketing seem endless. First, brands will have a wider reach of audiences, anytime, anywhere. Unlike traditional ad campaigns that utilize main stream channels like print, broadcast media or billboards, mobile advertising initiatives are not limited by physical space or geographical location. With mobile advertising campaigns, the message is more personal as the mobile phone screen lends campaigns a more intimate window to the user as compared to a television or computer screen. In addition, through personalisation, it will generate higher engagement by users, making them feel more special and valued as consumers. With the right hook, consumers will be intrigued to respond to mobile advertisement, thus creating higher response rate for the campaign. On the other hand, mobile campaigns when done correctly, can provide the brand marketer valuable insights on their target audiences that can be used in another relevant campaign.

Types of mobile campaigns

There are a few types of mobile marketing initiatives that are available in the market. The most common and considered most effective, at least in the Asian market, would be the traditional form of SMS marketing. It is quick, immediate, wide and cost effective. Basically, it reaches everyone who owns a mobile device, regardless of whether it is a feature or smart phone. Another form of mobile marketing would be the rich media content messaging, namely, MMS which is able to show pictures and videos, therefore creating a clearer image for the product or activity being advertised.

Location-based marketing requires higher technology innovation from the brands or telco operators, as well as the use of smart phones by its target audiences. With proper implementation, location-based marketing can reach great heights as it is far more personalised, based on users’ location and preferences, and it will also generate higher call to action. In 2007, the emergence of the iPhone has driven innovation in mobile marketing. Mobile applications (apps) appeared, creating additional paths for marketers to reach out to their target audiences through mobile advertising.

Right way to campaign

With the mobile industry becoming more and more heavily invested, all eyes are on mobile marketing and looking for ways to maximize this channel’s potential. So, how do the advertisers succeed in conveying their messages to target audiences out of so many players in the market? A critical component to consider when implementing campaigns is the ability to empower consumers to make the choice to opt in or out of receiving advertisements whenever they want to. In this way, consumers will feel that they have the utmost respect from advertisers, and that their privacy and preferences are considered.

Also, by giving out information to the marketers, consumers are able to receive in return personalised advertisements that are beneficial to them in one way or another. For example, Out There Media recently ran a campaign for P&G Pantene, asking target consumers about what are they most worried about their hair, namely “hair fall”, “split ends” and “dryness”. Those who replied got a discount coupon for specific conditioner, based on their answers, with the purchase of Pantene shampoo. Through this, the brand was able to gather valuable insights into what their target audiences was most worried about. They are also able to use this knowledge outside the mobile context, such as placing the specific shampoo at eye levels in the store shelves.

Set the correct objective

Measuring the success of mobile advertisements can be tricky if campaign objectives are not clear and expectations are not managed at the onset. Certain key performance indicators or KPIs have to be set to ensure that they are aligned with the bigger business or marketing objective. While the bigger objective is to increase business revenue or product sales, specific indicators that will help support it should be identified. If the campaign goal is to promote a new product, the advertisement must be designed in a way that consumers are able to notice it and given an opportunity to try it out. Then it will generate word of mouth and top of mind recall when consumers would like to use a product in that particular line. When McDonald’s in the Philippines introduced their new line of McCafe Iced Drinks, McDonald’s ran redemption campaign which had an 18% response rate among consumers who wanted to try the new drinks and close to 90% of those who responded redeemed their free drinks.

Brands need to set clear objectives at the beginning before deciding to take on which types of marketing campaigns. A number of factors must be considered before implementing campaigns, such as the ones mentioned above. The main thing to consider in mobile marketing is the consumers. The consumer is key – their receptiveness towards a mobile advertisement, willingness to act upon receiving it, as well as positive feedback towards it, clearly define success of the mobile marketing campaign.

Source: By PriyankaB on 10th February 2012.

Want to know more and feel it yourself? Contact us at +603-8996 4780 or sales@moceansms.com