65. Mobility Marketing
Consumers want to access brands through alternative channels and mobile phones are quickly becoming the preferred choice for communication. Most people don’t leave home without their mobile phone, which often functions as a television, radio, CD player, camera, and computer. It’s easy to see why mobility marketing is on the minds of marketers everywhere.
Several factors are converging to create the perfect storm driving mobile adoption. Mobile devices are smaller, faster, and have robust functionality. Pricing for service, both phone and data, has dropped significantly. Creative and interesting applications are one of the biggest factors driving mobile adoption. And of course, social networking is the fuel that speeds interest in applications as people are eager to share “the next big thing” with friends and family.
Widgets, Gadgets, and Mobile Applications
As applications and gadgets are designed for the Web, there is now equal consideration given to applications on mobile devices. Since our mobile phone goes wherever we are, it’s natural we crave the same functionality and personalization on our mobile devices as we get from our desktop. Use of applications on mobile phones has exploded as developers designed creative, fun, and helpful applications that streamline and add value to our lives.
Apple launched the Apple iPhone 3G and Application Store in July 2008. By January 2009, 15,000 applications were available, and by January 2010, the number had exploded to well over 100,000, and more than 2 billion applications had been downloaded. It’s clear people are hungry for applications that add functionality, productivity, and entertainment to their lives. The growing use of applications also fuels the need for robust mobile devices. When a new Apple iPhone was released, more than 3 million were sold in the first day alone. Other providers have launched application stores for their own devices, eager for a share of this lucrative market. Google’s release of the much-awaited Android-powered phone will no doubt drive the application market even faster.
Social media networks that were once relegated to the Web are now mobile. Mobile video from sites like YouTube grew by more than 50 percent in 2009 and continues to rise. Facebook created $45 million mobile users in only an eight-month period, and Twitter has created several mobile apps like Tweetdeck that let users update Tweets from anywhere. Approximately 20 percent of updates are made from mobile devices.
Developers are rushing to design applications that will help marketers serve the growing demand for mobile advertising and the consumers that want special promotions delivered to them. Advertising networks like AdMob will localize content for advertisers so they can make location-specific offers. Do you need an application that will let you register your presence in a certain geographical location? There’s an app for that. Do you own a business that needs to target people in certain locations (say, a fast food restaurant chain)? There’s an app for that, too.
As mobile phones go wherever we are, localization weighs in as an important factor for both consumers and businesses. Because mobile phones took first place over households with television and Internet access, marketers are looking for a way to capitalize the sheer reach of this medium.
A Growing Tidal Wave of Opportunity
While mobile advertising is still a small category representing only $561 million in 2010, a minuscule percentage of total advertising expenditures, it is one of the fastest-growing categories with a projected growth rate of 27 percent a year for the next five years.1 As text messaging use continues to rise, especially in Europe and Asia where text messaging is used by over 80 percent of subscribers, mobility marketing is taking off.
It’s still unclear exactly how mobile users will embrace advertising. Sixty-six percent of users say that advertising on this media is annoying.2 Other marketers say they have success with mobile text messaging if the message is short, targeted, relevant to the user, and interactive with a call to action. For example, a shopper at a local mall that receives a message for a discount at her favorite store is likely to appreciate a personal text to receive 20 percent off on purchases that day. Restaurants and nightclubs might offer customers a free drink. A consumer product company might offer a coupon for a free trial when the consumer is asked to enter a special promotion code. Or a music artist or store could offer a free ringtone or music download.
As marketers experiment with different types of advertising, a combination of text messaging and promotion might just be the key. If 47 percent of online users participate in online contest or sweepstakes, and 31 percent use online coupons, then mobile users may embrace it too.
How Companies Use Mobile Phones to Drive Business
Mobile devices are also a great way for companies to provide education and training relevant to the user. I worked with a company that delivered bite-sized training over mobile phones as a way to stay connected to their sales force and deliver product training. A question with three multiple choice answers was served to the salesperson’s mobile phone. The user selects an answer and is told if it’s right or wrong. It then displays the answer and serves up the next question. For salespeople who find it difficult to schedule time for online learning, this was a great mechanism to deliver training on the morning commute or while waiting in a client’s lobby.
John Edwards used mobile marketing heavily during his presidential campaign run. At events and rallies, he would invite people to pull out their cell phone and asked them to enter a short code. His campaign organizers could then add the mobile numbers to their campaign list and text messaging network. Edwards was able to raise thousands of dollars using mobile marketing as a tactic to connect with his endorsers.
As you evaluate new methods of marketing to tap into the power of this media, it would be wise to examine new applications and their use among your target audience. For example:
With Shop Savvy, a phone is now a bar code scanner that can be pointed at any item to receive a price comparison from nearby retailers as well as online retailers. This application combines brick and clicks comparison shopping and urges businesses to find another value proposition besides “low price.”
Mint Financial Services lets you manage your entire financial portfolio by tapping into 7,500 U.S. financial institutions. User accounts synchronize investments, account balances, expenses, and other financial data to deliver service offers from financial institutions that are customized to the user’s assets and investments. When Mint became the top finance application within 24 hours of launch on iTunes, it threatened disintermediation in the financial institution market.
Zillow.com is an application with tons of potential in the real estate market. Home buyers and industry professionals can quickly download information on the value of homes by neighborhood, see current listings, and search comparables to see what homes have recently sold for. Click on a listing to see details on the home size, square footage, taxes, past pricing information, and other data.