Why mobile advertising hasn’t really boomed yet?
Well, the time goes by and the promising prodigy which mobile advertising is, is still not living up to its potential. Researches continue to release reports forecasting annual growth and saying that next year it will finally hit the jackpot. The problem is, we had the same reports five years ago. The fact that 60% of world’s population have mobile phones and still many companies are hesitating to get into this advertising field may raise the question of whether they are living under a rock or not. They are not, in fact.
Blogosphere now discusses that the only way to improve mobile advertising is to concentrate on the soft ways of delivering ads, bearing in mind consumer privacy. Of course, the very nature of mobile phone as something private should not be forgotten or privacy violations may put this industry to end before it even sets off in a proper way. Of course you need to think of scenario where a potential customer gets engaged, becomes interactively involved and receive relevant information. Of course all these things are essential for making successful mobile ad campaign.
These conditions for mobile advertising to finally thrive have been repeated for quite some time, and by now we would’ve seen some improvement which manifests itself in numbers of companies who successfully used mobile for advertising. Sure, they are and were companies who benefited from it. Strangely it is always mega companies like Coca-Cola or Adidas. Here is the list of top mobile marketing campaigns from 2006. As you can see, again, it were big names like Nike, American Express and NBC. Also, as written in that post they used these key success factors:
- Relevant to the consumer
- Welcome invitation to participate
- Entertaining
- Drives a specific action
- Integrated where appropriate
- Connects what was previously disconnected
- Simplicity
That was four years ago, but still in 2010 these factors are presented as something that companies “don’t get” in order for mobile marketing to blossom. Maybe there is something else?
Look at Google Ads. In the first quarter of 2010 Google earned 30% of its revenue with this service. Every person, every company, no matter how small it is, using it, can start advertising in the matter of minutes. It is highly accessible.
To start advertising on mobile phones you have to go to mobile operators. A startup of a mobile campaign requires much effort and expenses. You can’t spend five bucks and test it for a while to see how it works, like you do it at Google Ads. For small and middle sized business it is much easier to go for paper, radio or TV advertising. So, maybe in order for mobile advertising to breakthrough it has to be available to a wider audience? Maybe that’s the reason it makes uncertain steps every year?
Web 2.0. Where we are at, in terms of marketing.
The Web 2.0 phenomena came about around ten years ago and now it represents the Internet as we all know it: Youtube, blogs, social-networking sites, wikipedia, peer-to-peer networks and so on. People completely embraced the idea of being participants in this collaborative effort, which might be the biggest one since building the Tower of Babel.
It produced a great layout for doing marketing and business. Social networks like Facebook and Twitter have several millions users. On top of that, we have services like Flickr and Youtube, where all content is user generated and shared with real enthusiasm.
The era of Web 2.0 marked the global prevalence of the Internet. To the point where virtually everybody is involved. From a 10-year-old to a 99-year-old. To some, its refreshing to know that their grandmother has her own Myspace account and is proficient with google and surfing the net. Marketers, on the other hand, find it more and more difficult to address message to their potential clients.
Indeed, with such a mixed audience it often happens that a teenager gets a Mercedes-Benz ad, while an executive is recommended to buy a designer handbag. No surprise that social networks continue to see low returns on ads. Moreover, they are now experiencing privacy issues for sharing members’ information with third-party companies. The very same companies that are eager to sell Mercedes’ and handbags.
So, the next question will be – were do we go from here? The right answer is – make personalization more personal and intelligent.
Everybody in the world owns a mobile phone. It is something that nobody leaves home without. Yet, the strange fact is – only about 6% of companies use mobile marketing.
Mobile advertising pushes personalization a little bit further and allows you to deliver much more targeted advertisements. However, it shouldn’t be considered just another method of delivering spam. The exciting thing about it is that it serves as a convergence point for traditional media and provides a channel for measuring the effectiveness of the whole marketing campaign.
How mobile marketing can help you to earn more money?
Scenario:
1. Traditional media advertisements (TV, radio, billboards, magazines) include a customer service number so that if the reader is interested in the offer, he/she can dial the number to receive information about the product or get a discount.
2.The interested customer can now subscribe to your new offer or news. This is an important point as he or she is doing so voluntarily, and it opens a marketing channel with customers, thus avoiding any legal issues.
3.Users are now engaged, and you start to collect data about them to deliver targeted ads. Not only their preferences can be recorded, but also their geographical position.
4.On top of that, it gives you the opportunity to measure the efficiency of your advertisement in traditional media, as now you can see how people react to it.
More and more companies are looking to jump on the mobile marketing bandwagon. Studies show that 56% of companies plan to increase budgets for mobile marketing in 2010. Hopefully 2011 will be the year when mobile marketing will really blossom.
Principal role of the USSD service.
USSD (Unstructured Supplementary Service Data) is a technology used for transmitting of information over GSM networks. As a session based service it can support a sequence of information exchange. It works in two modes: push mode and pull mode.
USSD Phase 1 (pull operation), described in GSM 02.90, handles mobile initiated requests. In this phase no real time session is held, as it is only able to pass information from a mobile phone to the USSD service with a confirmation.
USSD Phase 2 (push and pull operation), described in GSM 03.90, handles network-initiated requests and establishes interactive dialogue between USSD application and mobile phone. If a user don’t perform any actions the connection is released by a time out. This phase also allows to push information from network to a users’ handset.
Often overlooked, USSD technology helps users quickly and easily access information and services, and provides endless business opportunities for mobile service providers.
How does it work? User’s perspective.
1. User enters a short USSD service number on the mobile phone (e.g *100#) and press “call”.
2. USSD service receives the request and responds by sending a menu to the user.
3. The user enters a character that corresponds with his/her selection.
Usability
• Fast response. Unlike other short-message protocols which use store-and-forward technique, it offers session-based communication. Information is sent directly from a mobile phone to an USSD platform during a real-time session, avoiding SMSC in the processing path. As a result, a user don’t experience any latency while sending requests to a service.
• Worldwide access. All USSD request are rooted back to the home network. Dialing an USSD number while in roaming in another network will lead to a service which is in home network. This helps users to access their favourite services from other countries.
• Simple to use. USSD service is simple to access through practically any GSM mobile phone. A user initiate session by dialing a short code on a default mobile screen which starts with * followed by digits and terminated with # (e.g. *111#). Some of these codes request a single piece of information while others deliver a series of text menus with further navigation.
Functionality
USSD is ideal for a menu-driven applications, therefore it has great potential for mobile banking to perform such operations as balance check, account transactions, payments etc. It is important to note that USSD is not a menu on a mobile phone, but just a bearer for text selections and menus. These menus and texts are not stored on a handset or a SIM card. That’s significantly improves level of security on the users’ side as opposed to SMS messages when data is saved on a device.
Here is the other cases of using USSD:
■ Balance enquiry as alternative to IVR
■ Callback Services
■ Money transaction
■ Informational services ( weather, news, stock market etc.)
■ Voting
■ Reservations
■ Service management (activation / deactivation)
■ Notifications
■ Mobile advertising
USSD + SMS + WAP
USSD can serve as a convergence point for SMS and WAP services. As simple and straightforward service, USSD requires almost no user experience – anyone who can type on mobile devices can use it. With the help of it, service providers can encourage users to visit WAP sites. For example, USSD can respond to a user’s request with an SMS, which can contain a WAP link. This link may lead to a WAP site that is somehow connected with the USSD service which is being used.
Key Benefits
For mobile users:
• Simple to learn, direct access from any default mobile screen.
• Fast response time.
• Supported by 99% of mobile devices on the market.
• Worldwide access to services.
For service providers and operators:
• Can be quickly implemented to existing infrastructure.
• USSD can easily engage users.
• Fast mobilization of business for service providers.
• Cheaper than sending SMS.
How to extend call centers self-service capability to mobile users.
Most major companies are using call centers for support of their customers. Trying to be more competitive and more cost-effective they outsource call centers to other countries, as well as implement self-service technologies such as Interactive Voice Response (IVR) and web sites where no humans are involved.
In turn, customers demand a higher level of service, which is available 24/7, without the need to wait an excessive amount of time for their call to be answered and to learn about how to deal with IVR systems.
Mobile technologies offer a new alternative which can become a part of an existing solutions. As in the case of a web site or an IVR system, there is no need for human resources, so companies can use it to cut down costs. It is also automated, and since 60% of the world’s population have mobile phones, it can be quickly used by customers at any time and in any place. And it is simple. It’s called Eyeline Call2Service.
How does it work? A company provides a service number for their customers. When they need support they dial this number, which is free, and get a USSD menu, where they can choose from several options. These menu items may include frequently asked questions or information about other support options. This can be a web address or a call center number, which they can use if there is no info they are looking for. The service’s number can also be saved in the user’s phonebook, so he or she later have access to support on-the-fly.
It is important to note, that due to many faces of business, a USSD menu can be used in many creative ways. Moreover, Call2Service can become a part of any self-service system.
There is also a part for marketing in this system. USSD menu may contain new products and special offers, with an option to sign up for a company’s newsletter. A subscriber will then automatically receive SMS if there is update. This way, support and engaging a customer go hand in hand.
MTS (Mobile TeleSystems), one of the largest mobile operators in Central and Eastern Europe, use USSD request system to support their subscribers through *111# portal. About five million MTS users visit the portal every month instead of calling the IVR center. MTS went even further by adding different services, including paid ones. Those are the possibilities available through Call2Service, which can be provided through a toll-free number, which can be called from any mobile operator.
All in all, Call2Service may drastically improve client satisfaction due to availability and prevalence of mobile communication, while being a cost-effective solution for companies providing customer support.
Some ideas on how to use mobile advertising wisely.
Every year is promised to be the breakthrough of mobile marketing. And every year mobile marketers eventually go on a spam spree. They are convinced that mobile advertising is some kind of the-next-big-one-and-only-thing and they are trying to convince advertisers and publishers in that as well. Advertisers and publishers just shrug their shoulders and go for TV and other media instead.
Perhaps mobile advertising is great (it is really great, actually) but you need to serve it in a right way. Maybe mobile marketers shouldn’t consider it as the best and the only method of advertising? Internet didn’t kill TV and outdoor ads in the end, it just became an essential part of any marketing campaign. So why wouldn’t you consider mobile advertising in the same way?
Mobile phone is an exciting tool for advertisers when it is used to connect all sorts of media. Maybe it should be regarded as a kind of remote control for consumers? They see an offer on the billboard, dial a number if they are interested in the offer, and get a discount coupon. Same goes for TV, radio and magazines ads. The point here is that consumers use mobile phone to choose offers they are interested in. Perhaps mobile marketers should make it clear to consumers that the service number they dial to get an offer or discount is something as common as a telephone number or a web address they see in the ads. This way consumers will consider mobile phone as something they can benefit from. Again, flooding them with tons of spam when they dial the service number might be not the best idea. But sending them an offer they saw in an advertisement might be good enough to make them trust you. It is a win-win situation for both parties because once consumers are interested, they will dial your service number, get what they want, and be loyal to you. You will open a marketing channel without being officious.
Anyway, these are just some thoughts for mobile marketers to think over. One thing for sure – being intrusive with customers may destroy reputation of this new thrilling and promising way of reaching a consumer as is mobile marketing.
Mobile Marketing. Why go interactive with your clients?
The Mobile Marketing Association (MMA) recently updated the definition of Mobile Marketing. According to Mike Wehrs, President and CEO of the MMA, the new definition more accurately reflects the evolved nature and current capabilities of Mobile Marketing. Here it is: Mobile Marketing is 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. Great definition! We discussed engagement in the last post and it is a pleasure to hear that the new definition represents our principles, which we are using in creation of solutions for mobile market.
Now, following this definition, let’s talk about interactivity. Interactivity as we see it in Eyeline. There is a lot of buzz about it but why do you need it? Maybe it’s just a fancy word to milk more money from advertisers? It is easy to sink in all abstruse definitions scattered over the Internet. Reality check is needed.
Let’s put it simply – you are doing business. Business is based on communication. Being interactive, you are communicating with your customers. This is how any business is done. And mobile advertising is no different. Today when there are over 4,000,000,000 (according to UN report) mobile phones worldwide (that’s 60% of the world population), mobile advertising might be the best and effortless way to communicate with you clients.
Now let’s look at it a little more closely. As mentioned in the previous post, the first step is to engage a customer. Now when they are engaged, they are ready to listen to you. This is where interactivity kicks in. It is responsible for the next step – maintaining and developing further relationship with your clients. Now when you have their phone numbers and loyalty, you surely want to get more personal with them. However, to make your consumers respond, you need to deliver to them a valuable marketing message.
What is a valuable message? It is a relevant, targeted offer you make to your customers, based on data you’ve collected about them in their personal profile. Personal data may contain literally anything – where John lives, how old he is, what cereal he has for breakfast, what’s his hobby and favorite watch brand. How you get this info depends on your creativity. But as soon as you have it – it’s time to make a relevant offer to John. As you see, the fundamentals of business are working here in full. You know consumer needs and you make them an offer in the context of their needs. The good news are that you are now cutting back on other advertising media expenditures and you are not wasting your time reaching customers when they are already here.
Eyeline Service Delivery Platform (ESDP) comes in handy when you want to be interactive with your consumers. You may have already got personal info about customers by using CRM, polls, or services, which help to detect behavioral patterns. ESDP provides an API interface that allows you to easily transfer previously collected data. Now, when you have information about customers, you create rules, and by using these rules ESDP will automatically deliver to your consumers a marketing message based on their traffic analysis, demography, geography, preferences and what they’ve consumed before. ESDP demonstrates high performance on a low-cost hardware and it has been tested on over 60,000,000 users. Learn more about it here.
Mobile advertising without furious people and legal issues.
Mobile advertising is going from strength to strength lately. Or so they say. A recent BIGresearch study shows that consumers are not of the same opinion about it as marketing providers. 67% don’t like text ads, 60% don’t like voicemail ads, and 60% don’t like video ads. They just don’t like being constantly bombarded with shells of information they don’t need. But what’s that? Seems like Vodafone could care less, sending messages all over the place having forgotten to include unsubscribe function in their SMS. That’s why they are missing $110,000 in their pockets for being a little bit pushy. People don’t want their personal things to be used for the needs of others. They become angry. Don’t make them angry or you’ll lose money.
What else are there that marketing providers are missing? “How much money we’ll allocate for mobile marketing this year?” you are asking yourself. Now don’t look at it as one more way to advertise your products or services. Don’t use it as an alternative to TV, Internet, radio, and outdoor advertising. Be broad-minded. Look at your whole marketing campaign and use mobile technologies to unite all parts of it.
If you don’t want to be an ugly Quasimodo look-alike for your customers read on. Eyeline Call2Service is a solution for mobile advertising that provides a low-pressure way of interacting with your customers via mobile phone as well as keeping them engaged. You make them an offer and now they decide whether they want it or not. They are now controlling the situation and they are doing it for free. But you are also controlling it better than ever. Let’s have a look at how it works.
Let’s say you sell cars. You have a TV and outdoor advertising campaign going on. You place a 5% discount offer and a service phone number under it on both TV commercials and outdoor stands. Your interested customers call your number (call is free of charge) which can be automatically saved in their phonebook and get an SMS message with 5% discount which they will show to you when they decide to buy a car. There is no voice communication. They just need to dial a phone number. Oh, there is also the address of your web site in that SMS they got. So now they can explore your product in details. By the way, you can place different phone numbers on TV, stands and radio ads and see where the most of your customers are coming from, thus eliminating unnecessary expenses.
Look further. You may set that the customers will get a USSD menu instead of just SMS. There they will have several options such as the above-mentioned 5% discount coupon and a possibility to subscribe for your news and offers. They will do it voluntarily if they want. And of course there is an unsubscribe function. Now they are feeling warm and fuzzy inside. There is no reason for you not to feel warmth spreading all over your office too. You now have phone numbers and loyalty of your customers. And all these are achieved in a very delicate manner.
Now let’s sum up what you get by using Call2Service:
- Your customers are now engaged. This develops base for further interactive marketing without legal issues.
- Transparent metrics. You see from what media your customers are coming from and how many of them are responding to your ads.
- Integration with media. Mobile advertising is no more feeling lonely. It’s now an integral part of your marketing campaign.
Now you are not so cheeky with your clients and you get a couple of cool marketing tools on top of that. Stay tuned for more.
Mobile Marketing SWOT Analysis and C2S
I found this SWOT analysis at my subscription to Mobile Marketer. Although SWOT is said to be for 2009, it is nonetheless rather general. Editor in Chief of Mobile Marketer Mickey Alam Khan is the author of this.
Why I want to present it here? Because during the presentation, I want to discuss possibilities opened by our new (in beta) initiative called Call2Service. If you want to know what it is, drop a comment to this post, leaving your email.
Strengths
Most personal marketing channel available on the market
C2S is also the easiest — a simple call from one’s mobile!
Completely permission-based, with opt-in required for marketing text messages
Ubiquity of channel – 260 million mobile subscribers nationwide, 3.5 billion worldwide
Measurable for ROI purposes
Many consumers giving up landlines for mobile
Sales of smartphones with Internet capability booming
For C2S, any phone model will do. Therefore, it is truly reaching 3 billion users and NOT (though it can!) through mobile web! Can anything match that? Read more
Mobile Coupons Presentation
mobileStorm from LA has had a very interesting webinar about mobile coupons. You will have to register to watch it.
As a sidetrack albeit very important, read about why SMS is a preferred medium for mobile marketing by Marcus Anderson, president of Broadplay, a Toronto, Ontario-based interactive and mobile marketing agency.
A magnificent – USSD-powered – redemption rate
I have been saying that USSD is a great initiator of services and the king of simplicity. That proves true.
Say, I really enjoyed the latest news from South Africa. JWT, a service provider, launched a USSD campaign for Nestle’s Kit Kat using traditional advertising and a special printed code to be USSDed back to the system for airtime bonusus. The codes were printed inside Kit Kats bars. 3.5% of codes where returned through USSD! Tens of thousands of entries in absolute numbers. Kit Kats were sold a month before the promotion ended. The use of USSD as compared to SMS allowed for instant feedback about Kit Kat points accumulation and it was easier for users. Great example of innovative thinking!
