Digital Ink by Hannah Holt

DIGITAL INK March 2011

Digital Ink bringing you the emerging role of Mobile Marketing in Business

BUSINESSES AND THEIR DIGITAL MARKETING STRATEGIES.... The Evolution of Digital Marketing What Does Digital Marketing Really Mean, Special With Phil Dean In The Mix - The Main Components of the Modern Day Marketing Mix [1]

March

Contents Page

The Digital Marketing Strategies But Do We Really Understand Our Customers Are We Talking Advantage Of Reliable Insight Tools Tech Terms Key Terms Used For Mobile Marketing How Much Budget For Digital Your Goals Components Of The Marketing Comms Mix Major Mobile Marketing Technology Providers How Are Mobile Phones Changing Social Media Burger King Case Study Mobile Communication The Insider Interview Insight Into Mobile Internet True Meaning and Offers The Hut Group Case Study App Attack What Does The Future Hold

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THE DIGITAL MARKETING STRATEGIES

How can businesses use Digital within its Marketing Strategy? Johnson and Scholesdefine a strategy as "the direction Can you perform better than those already in the market? and scope of an organisation over the long-term: which What resources and skills are required to compete in achieves advantage for the organisation the market? through its configuration of resources within a challenging environment, to meet the Can I offer better products and/or services? needs of markets and to fulfil stakeholder Is their long expectations". More simply you need to ask term direction? Can I increase sales and profitability through marketing? yourself the following questions: How can I tell my marketing is effective?

Is there a long term direction?

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DIGITAL TECHNOLOGY AND TECHNIQUES CAN ALLOW A BUSINESS TO EASILY, EFFECTIVELY AND EFFICIENTLY FULFIL ANY MARKETING STRATEGY. FIRST OF ALL YOU NEED TO KNOW WHAT WEBSITES YOUR CUSTOMERS USE TO KNOW WHERE TO MARKET YOUR PRODUCTS. As you can see Google has the most visits per week.....

Followed by: Facebook, Windows Live Mail and Ebay. This suggests

most efficient

that these sites would be the to use. Mobile phones use a smaller version of the internet, this is called a

microbrowser. This is an optimised version of the World Wide Web. It is used as it displays the web content

effective

more on portable devices with small screens. By having the internet available on mobiles, consumers will be more susceptible to online marketing, as it is at their fingertips

24/7. [4]

FOLLOWING YOUR RESEARCH, YOU WILL NEED TO MARKET MAP YOUR SECTOR OF INTEREST. AS SHOWN IN THE DIAGRAM BELOW BY CHAFFY, D (2010).

extremely

It is important to get into the mind-set of your target audience. By ‘getting into the customers boots’ you

understand

favourite

will how they live, things to do, how they think and whether or not they are digitally

best ways

savvy. This will allow you to know the to market your products at them and whether going digital is truly the

best and most effective method.

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CONTINUED...

BUT DO WE REALLY UNDERSTAND OUR CUSTOMERS?

your customer segments. These search engines can still be used on mobiles, and offers direct access to all sites on the internet. Therefore, meaning your consumers will always be subject to marketing as long as they search for your products or services.

Once you have a better insight into your customer you are able to make decisions as to what site you will use. It will be up to you to decide whether niche media sites, social networking or small affiliates such as blogs are the way forward for your business. As you can see from the diagram (to the right) the search intermediaries are vital to reach your customer segments. These search engines can still be used on mobiles, and offers direct access to all sites on the internet. Therefore, meaning your consumers will always be subject to marketing as long as they search for your products or services.

We are able to differentiate our customers through their online search behaviours. Research by Chaffey, D (2010) proves there are three types of online personas: The Explorer This refers to the people that like to browse the internet; they like to explore whatâ&#x20AC;&#x2122;s out there and whatâ&#x20AC;&#x2122;s going to inspire me.

The Hunter The hunter is the researcher. They like to define requirements and purposely go onto the web to search for an answer to a question.

The Tracker This refers to completing an activity, or tracking certain sites or suppliers. They like to have a lead up to buying a product. These are the people who call up and require about products and services before actually deciding to purchase it.

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ARE WE TAKING ADVANTAGE OF RELIABLE INSIGHT TOOLS... Insights can be based on: 1.

Real or perceived weakness to be exploited in competitive product performance or value Attitudinal or perceived barrier in the minds of consumers, regarding your brand Untapped or compelling belief or practice

Insights are most effective when they are/do one of the following: 1. 2. 3. 4.

Unexpected Create a disequilibria Change momentum Exploited via a benefit or point of difference that your brand can deliver

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TECH TERMS...

Tech Terms (2011) states that “Keywords are words or phrases that describe content. They can be used as metadata to describe images, text documents, database records, and Web pages. A user may "tag" pictures or text files with keywords that are relevant to their content. Later on, these files may be searched using keywords, which can make finding files much easier. For example, a photographer may use a program like Extensis Portfolio or Apple iPhoto to tag his nature photos with words such as "nature," "trees," "flowers," "landscape," etc. By tagging the photos, he can later locate all the pictures of flowers by simply searching for the "flowers" keyword”. These are extremely important as it is used as a way to get more views to your website.

iPhoto gives you three incredibly easy ways to organize and manage the thousands (maybe tens of thousands) of photos on your Mac. They’re called Faces, Places, and Events, and what they do for your photo library is practically magic.

Keywords are used on the Web in two different ways: 1) as search terms for search engines, and 2) words that identify the content of the website.

Keep Reading....

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Geo - Targeting Revolution

KEY TOOLS USED FOR MOBILE MARKETING

This is used mainly in advertising, and is an extremely powerful tool. It enables your mobile phone to pinpoint where you are at any given time. This data can then be collected, and will help both marketers and advertisers to create and deliver adverts that are relevant to the physical location you are in. This is more powerful used on handheld mobiles, as it “enables companies to target consumers on the move, via nomadic devices, based on their proximity to a particular store or service provider. At that exact moment the ad will be served” (Murphy, D. 2011).

Mobile Marketing (2011) states that “The mobile internet is now faster, more flexible, simpler and time efficient, it is the next big tool to extend brand value. Figures released at the recent Ad:tech New York show, indicate that mobile advertising revenue will reach $3.5bn worldwide this year, and by 2015, revenue is expected to have increased seven-fold to around $24bn”. It is evident that mobile will the next big thing.

Mobile Social Networking

In this day and age, nearly anything is possible when it comes to mobile phones. Mobile ticketing is a particularly easy method of buying tickets via your mobile phone. You are able to purchase your tickets, and then either collect them from the train/ bus station or show the inspector/ driver a barcode. This barcode contains all the relevant information the company needs, and will be immediately transferred to the company device. Using barcodes is both and effective and useful tool for mobile ticketing. SMS is the greatest mass market interactive media that the world.

Mobile Ticketing

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Murphy, D (2011) believes that business models are coming to the fore. The first of these is around social media applications with location check-in features, such as Facebook, FourSquare and PlacePop. These features enable consumers to receive promotional offers from outlets close to where they are at a specific time. If a consumer receives your offer through a mobile, it is more then likely they will enter your business and use it.

The answer is that it depends on your target audience…. If your target audience are people above the age of 60 then it’s probable that you will not need a huge digital budget as this target audience do not tend to respond well to digital technologies. A Digital is defiantly a marketing tool to invest in. With advances in technology and software, digital is widely used any applies to most age brackets.

computers. On January 22, 2011, the 10th billion app was downloaded from Apple App Store. There are 300,000 applications ready to download. There are some apps that are averaging $10,000 per day from downloads. Now imagine being able to advertise on those apps that have all those eyeballs. That is huge money for any marketer” – Edman, J (2011).

Google brought out the Droid to be the competitor to the iPhone. Reports have actually shown that they have Marketing channels have changed now sold more Droids to people than immensely throughout the last couple iPhones. Droid is growing fast every of decades. It has progressed from day which is of course good for us being completely offline to mainly marketers. online. The next big change is going Since you can be one of the first mobile. Edman, J (2011) describes marketers to really get into mobile that “There are few reasons why I know that mobile is the future. Google advertising, you need to understand announced that they are focusing on how huge this is. This is like being mobile, Apple is now called a mobile told 12 years ago to start using company, Google bought the biggest Google AdWords for your business. mobile advertising platform - AdMob People became millionaires literally overnight. And guess what? Mobile and Apple started their own mobile marketing is five times bigger. advertising platform as well - iAD.” Even though there are currently 5 billion cell phone users, we should focus on 51 million of them. They are the ones that will convert the highest and therefore make us the most money.

This explains that their is more to mobile marketing that what we all think. There is still huge developments that can be made to make it an even better marketing tool.

“Apple's iPhones and Google's Droids are pretty much little

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HOW MUCH BUDGET FOR DIGITAL?

BUDGET A planning, control and reporting system that estimates future costs and revenues based on projected operating levels. It provides target spending levels and profit estimation, and allows for interim review and corrective action.

YOUR GOALS

Goals are important within an organisation. It gives all members of staff a sense of direction and makes sure everyone is working towards the same target. Most companies tend to follow a similar set of digital goals. Like a corporate objective the main goal will be to generate sales, both on and offline. This may include trying to create a bigger and better database to get to know customers better. The better you know them, the better your marketing will be for them. To be able to do this, a form of data capture will need to be put into action. This may be something as simple as getting customers to register on your website. All companies try and engage with their customers. This will be through your chosen method of marketing, and ensuring the customer is kept interested at all times. Your main goal for engaging customers would be to increase the return rate of the

customer â&#x20AC;&#x201C; purely just to make sure your customer keeps your brand loyalty and you encourage repeat purchasing. If you decided to use social networking, or a well-developed website it is extremely important to answer visitorâ&#x20AC;&#x2122;s questions. Visitors like to engage with the brand, and this is probably the easiest way to do this. This also allows to you find out who is buying your products/ services and well as an opportunity to sell new products to them. Chaffey, D (2010) states that it is imperative to reinforce key brand messages. He has proven that 99% of people will not convert their perception of the brand in a single session. Therefore, by using social networking sites such as Twitter, Facebook, and LinkedIn you can keep your customers updated with the companies key messages.

Finally; you need to find a way to attract your visitors.

Search Engine Optimisation (SEO)it is the process of increasing the

amount of visitors to a website by obtaining a highranking placement in the search results page of a search engine. The

better your SEO is the

higher you will be on your search engine. What are your Goals?

SEO is exceedingly helpful, as most of you already know when you search something in Google you always click on the top result. Imagine if it was your company at the top, your visits would be phenomenon. This will allow

more people to view your products and services.

SEO is also used on mobile phones, and will come up in the same order that it does on the

Web.

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World Wide

GOOGLE ANALYTICS

Google Analytics is the enterprise-class web analytics solution that gives you rich insights into your website traffic and marketing effectiveness. Powerful,

easy-to-use features now let you see and analyse your traffic data in an entirely new way . flexible and

With Google Analytics, you're more prepared to write better-

strengthen

targeted ads, your marketing initiatives and create higher converting websites (Google, 2011). This method of analysis is brilliant as it allows you to see where geographically your visitors are from, and whether they found you using a search engine, and what [12]

key words they used.

COMPONENTS OF THE MARKETING COMMS MIX Marketing communication involves a mix of three elements: tools, media and messages. There are traditionally five principle marketing communications tools: advertising, sales promotion, public relations, direct marketing and personal selling. The internet and digital technologies however, have enabled new interactive forms of communication. Due to this the receiver of the message now has greater responsibility for their part in the communication process.

Advertising is traditionally a non personal form of mass communication that can offer high degree of control for the design and delivery of the messages. However digital has enabled this process to be personal through targeted advertising such as Google ads. Amazonâ&#x20AC;&#x2122;s recommendations for example will pick up on what people purchase and use this information to advertise items that are similar or what other people who have purchased the same item have then gone onto buy. Another business that is using targeted advertising to its advantage is Sky. This year Sky is launching targeted advertising on TV. Sky+HD customers will be able to opt in to this service which, after filling out a short questionnaire, will only let you see adverts that they think would interest members of your household. This way the adverts customers see will be more relevant.

inserts, social media, SMS, and many more mediums. Digital technologies constantly make it faster and easier for direct marketing to be effective at encouraging consumers to make contact.

Direct Marketing Association has evolved as digital has evolved. Direct mail was originally sending out information to a person home or business address with the intent of passing on information about a product or service. Then email emerged, this made the whole process cheaper and easier for business and could also enable consumers to easily opt out of mail lists. But direct mail is just one form of direct marketing. Today customers will receive direct marketing messages through their door, and via email, through television, magazine

Personal Selling involves face to face activities undertaken by individuals, often representing an organisation in order to inform, persuade or remind. Examples of personal selling are; door to door selling of double glazing or catalogue door sales. Individuals from companies are using video messages more as a form of personal selling for the digital era. These videos can appear on company websites, video broadcast websites such as YouTube and can be used as advertising through mobile phone applications.

Direct Marketing Association has evolved as digital has evolved. Direct mail was originally sending out Sales Promotion is a tactical information to a person home or marketing technique designed to add business address with the intent of value to a product or service in order passing on information about a to achieve specific sales and product or service. Then email marketing objectives. Due to the emerged, this made the whole digital impact, these promotions can process cheaper and easier for now reach a far greater audience. business and could also enable Businesses who are on social media consumers to easily opt out of mail site such as Facebook, LinkedIn and lists. But direct mail is just one form of Facebook can promote their offers far direct marketing. Today customers more quickly and effectively to the will receive direct marketing people they want to reach. Boots for messages through their door, and via example are very effective at running email, through television, magazine its Facebook page. Followers will get inserts, social media, SMS, and many up to date information on in store and more mediums. Digital technologies online offer and competitions. As constantly make it faster and easier Boots post regularly, its 61,819 for direct marketing to be effective at followers will know exactly when the encouraging consumers to make sales promotions hit. contact.

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Foursquare Foursquare is a new website which allows you ‘check in’ to stores, bars, restaurants, hotels and other places. When you ‘check in’ to a new place, foursquare will update your friends of where you are. As you start to explore new places you can start to unlock badges. For example if you go to the same place every day you may get to unlock the ‘local’ badge. Foursquare is at the forefront of the change from computer to mobile Internet. Consumers are connected 24/7 with Twitter being the biggest current mobile trend but Foursquare is set to be this next big trend. Using Foursquare marketers are able to create incentives and contests to drive consumers to a product or service. More and more consumers are gaining access to the mobile social web as mobile phones and tablets are becoming more popular and are coming down in price. Brands with physical stores and offices are therefore easily able to create connections with consumers. Already brands are trying to take this location based marketing idea one step further through Foursquare. Online Media Daily has reported: “In what could be a breakthrough in digital, location-based marketing, American Express has developed a simple app that can turn Foursquare's "check-in" feature into a highly secure method for its card members to complete transactions or participate in local store promotions. The app, which simply requires a user to tap a "Load to Card" button when checking in at a retail location, was introduced this week at the SXSW conference in Austin, Texas, and American Express executives are considering taking it nationwide.” With fewer than 8 million users, Foursquare seems like the underdog compared to some of the Internet's most successful social media platforms. However any business

with a retail location should be claiming its business name Foursquare to test marketing features to see if it can improve traffic to the business.

I AD platform Apple will sell and host the ads, giving 60% of ad revenue back to developers. Developers can add ads to their apps ‘in an afternoon’ as they have made the technology simple you use and update. Unlike most mobile ads, which kick users outside of the application they’re currently using, iAd keeps users in the same app. As Apple and Flash are not compatible, Apple has created this technology in HTML 5. Advertising agencies will be able to develop these interactive ads, as well as app developers. Though each ad created will have to go through a review process similar to apps on the App Store. During a Q&A Apple said it would use a ‘light touch’ and that there were obviously some ads they didn’t want to have shown, the same way a TV network doesn’t want some ads shown. In an exhibition in San Francisco Apple bosses showed how interactive, advertising-led content could be viewed within an app. One example shown was a page of the latest entertainment news, a banner ad for Toy Story 3 at the bottom of the page was clicked and the advert pulled up specially created content, that encouraged users to explore character art, movie clips, and games, and then provided a map of nearby cinemas screening the film and a list of showing times. Campaigns packages are said to start from $1m but Nissan, claim the click-through rate for its interactive ad is five times higher than the conventional online campaign. Due to this iAD could escalate just as fast as Apples previous technologies.

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MAJOR MOBILE MARKETING TECHNOLOGY PROVIDERS

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their meal choices with the ‘My Meal’ feature, complete will nutritional and allergen data. All content is sharable via social networks.

Results Results generated from the launch of our iPhone app for Burger King were instantaneous. 66,000+ downloads in the first 24 hours. 4th position in the App store download chart - 2nd in the lifestyle category. There’s no doubt Burger King’s first foray into mobile marketing was met with an appetite. Here are a few examples of where mobile marketing has had a great impact on consumers, and generated some amazing results for the company. The following case studies can be found at http:// www.figarodigital.co.uk.

Brief Burger King was looking to make their first foray into mobile marketing. As their long-term digital partner, Pancentric Digital was tasked with developing a mobile strategy that would help increase footfall in Burger King Restaurants.

Strategy The iPhone app means Burger King can reach consumers on the go for the first time. Pushing offers to specific geo-locations, serving up relevant and timely content that gave their marketing team the edge over their competitors as it was delivered at a moment of need.

Execution We used geo-location to guide UK followers of the King to their nearest restaurant and served up exclusive mobile vouchers and content. Customers on the move can browse through the entire product rage from the palm of their hand then inform

Uptake and usage provides a clear indication of the popularity of this app with 20 per cent of the people who downloaded the app actively using it every month. This has led to store traffic increases, voucher redemption at an all time high and positive feedback all over the web.

This technique of mobile marketing has been extremely successful for Burger King. We have interviewed Kerry Taylor to see her views on the app. How easy was the app to download? The App was very easy to download, since it’s free it didn’t cost me anything to download. The file size wasn’t too big either so I didn’t need a wi-fi connection to get it. Were you influenced by the ratings? Not really. The App had 22 ratings and 3.5 stars, this is an average rating, but I generally make my mind up on things when I get my hands on them. How easy was the app to use? It was easy to use, the different pages were easy to use and navigate. It was also

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good that you could connect directly through the App to Facebook. Were there any features of the app you didn’t feel were necessary? Even though it is a well displayed app, it just seems a bit pointless. It only shows a few of the BK deals and has a create your own menu, but thats about as far as it goes with interaction from the user. The store finder is good, but when your on the high street your never too far away from a fast food chain. A game or something fun should be created to boost this apps popularity and success. What was your favourite feature of the Burger King app? If there had to be one aspect of it, it would be the create your own order. Its the only part of the App where you can actually do something on it. Did you use the vouchers that were given to you? Yes I did. Even though there was vouchers in store.

MOBILE COMMUNICATION On April 3, 1973, Martin Cooper, a Motorola researcher and e x e c u t i v e , m a d e t h e fi r s t analogue mobile phone call using a heavy prototype model.

(the 1G generation) was launched in Japan by NTT in 1979 this lead on to the 'second generation' (2G) mobile phone systems emerging in the 1990’s

In 1997 technology pioneer Philippe Kahn decided to wire his digital camera to his mobile phone so that he could send pictures of his newborn daughter to friends. Following Kahn’s creative efforts, it took Samsung 3 years (2000) to release the first first phone with integrated camera.

In 2000 the Ericcson was released. The Ericsson T36 was the first mobile phone to have built-in Bluetooth wireless technology, according to Ericsson, the T36 is also the company's first tri-band GSM, which means it can be used in the US, Asia etc. The first pre-commercial 3G network was launched in 2001. 3G mobile phones included innovations to receive much more than phone calls, for instance, SMS text is available and some 3G phones also offer email and Internet access

Internet access started in 1998 and this internet access used was called WAP had its blips to say the least. It was the early 2000’s when the internet really took off on mobiles with some mobile phone models having built-in Web browsers and wireless carriers.

It took the U.K until 2007 to be able to log on to sites such as Facebook and Myspace. Since then social networking on mobiles has grown and grown. Now the average user of social networks on mobiles spends 2.7 hours looking on these sites.

Ever wondered when the whole “app” thing began? In 2002 apps made there first appearance but it was only in 2007 they really took off with Apple and Android Sure Apple made these tiny pieces of purpose built software famous thanks to the iPhone but just so that you know, these apps have been around for a very long time. The market leader was Nokia’s Symbian OS a couple of years ago but Apple’s iOS has taken the spot since the iPhone made its entry. Today about 6 major app platforms exist, making them the most download pieces of software ever.

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A FEW ANSWERS FROM PHIL DEAN - MANAGING DIRECTOR OF CREATIVE SERVICES AT COMMUNISIS. What is your own definition of Mobile marketing and where do you think its going?

channel is more appropriate.

Has any example of mobile marketing caught your eye? Stood out from the rest.

There is a growing trend for consumers opting to consume media on the move – it fits with their busy

In Leeds where I live, the local tourist and business organization uses Bluetooth really effectively to welcome lifestyles and technology is increasingly enabling this to visitors to the city and I’ve seen some great usage in the happen. There is evidence to suggest that more websites retail space by Adidas around last year’s world cup. are accessed using mobile devices with 18-25 year olds than traditional PCs – this is a major shift and a trend that I expect to see extend across all age groups. Usage of mobile to access content has meant that consumers are more open to marketing messages that fit with this activity. Permission based marketing via mobile

The real growth area and a great opportunity for brands will be Nearfield location based technology where your mobile will deliver push information that will be richer and more rewarding for the consumer.

If you could pick one business, app or website to channel mobile marketing through what would it be and why?

channels is on the increase and I expect this to become firmly embedded in the integrated marketing channel story.

I think the financial services sector could start using mobile in a major way. They have all the data on their customers and they just don’t seem to use it effectively. Cooler financial services brands like First Direct are missing a massive trick by not fully engaging with their customers using mobile marketing that’s not just SMS.

Do you think it’s an effective tool that is used in the marketing mix? Yes. Mobile is fast becoming an essential ingredient in the marketing mix and it can be extremely effective in targeting a specific demographic with which the mobile

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In the beginning (1998) mobile Internet made a modest entrance and had its issues with growing, hits, and misses (way more misses than hits). The name it got sounded like a sound affect in a super hero film – WAP – which is an anagram of Wireless Application Protocol. WAP was not meant to be the name for the mobile internet. When it was first released people The mobile Internet wasn’t supposed to be named WAP, so back then they called it wireless Internet (this is not today's meaning of Wi-Fi). In the early stages of 2000, the world of wireless caught alight with the launch of the world wide web on mobile phones. (obviously looking back the internet was not brilliant on mobile phones). So what we have established so far is that internet on mobiles was a great idea which had a shaky start. In the beginning there was only a selection of mobile phones which had the built-in systems to operate the web browsers and wireless carriers’. Also any tariff which included the internet facility were extremely expensive. The majority of customer struggled to find any WAP sites that would actually work. At this point, the thought of Internet being used on a mobile was described a boondoggle. At this early stage no one like the idea of it. Customers were not keen on it, companies were not keen on it and wireless carriers were not keen on it. It seemed destined for failure. Obviously the mobile web industry had to begin somewhere. (Rome wasn’t built in a day.) if you remember back to start of the internet most people were using dial up on providers such as AOL which had limited download speed and network capabilities, there were no graphics and a small collection of websites. Compared to the internet of today, computers have hitech browsers from Microsoft, Apple, Google, or Firefox. Search engines such as Google which has so many services from Google maps, street view etc. The internet today is practically all you can get. There are now loads of competition between providers and the internet is offered in packages at very low prices. With the internet growing so fast and big over around 8 – 10 years with popularity and information, it is clear that mobile internet has done exactly the same thing in the 8 years prior to now. People can now have almost unlimited information at their finger tips because people can log on to the net on their phone almost whenever and where ever they are.

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INSIGHT INTO MOBILE INTERNET...

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

solution to reach a wide array of audiences. MMS messages are evidently more expensive than SMS (usually double the rate of an SMS) but offer you as a marketeer a more advanced platform to show your message.

MMA Updates Definition of Mobile Marketing, Mobile Marketing Association. Nov 18, 2009.

c. Mobile Applications

These are one of the most expensive forms of push marketing, however its one of the most effective. The user interaction if far more complex than to that of just a standard SMS. Different colours, pictures and games can be combined to make the ultimate tool in mobile In the not too distant future (the end of this marketing. Also these apps normally connect year) mobile phone ownership will reach in to Facebook or other social networking sites, excess of 100%, this means that on average making it very effective. every person has more than one phone in the western world. However Smart-Phone devices 2) Location based marketing ownership is less than 30%, and these are the phones that really do bring mobile marketing Location based services currently receive all alive and let it take place in the most effective the attention. People are very interested in way. combining their offline lives with their mobile connectivity. This offers great potential for any Similar to online marketing, mobile marketing company that wished to play into this consists of many different possibilities. combination. In what follows we will describe a few mobile a. Check-in services marketing campaigns options: A perfect example of check-in services would 1) Subscription based mass push marketing be Four-Square, this check-in service allows the customer to get discounts and deals if By getting the customer to sign up for for they check in. If the customer becomes the customised messaging they will get offers ‘Mayor’ (most check-ins) at Dominos, they get sent to them by the business. This is an a free pizza every wednesday. More and effective form of marketing as it makes the m o r e c o m p a n i e s a r e d o i n g t h i s customer feel valued and make them want to effectively....and it works. Another company return. There are three different categories in that uses this service is Wetherspoons, the push marketing sector. become the ‘Mayor’ and get 20% off all food at the nearest chain. However this is limited a. SMS Marketing as not everyone has smart-phones. While SMS is compatible with all phones worldwide, SMS campaigns are easily perceived to be quite spammy. SMS campaigns have mainly been used by lifestyle companies such as nightclubs and boutiques in the 1990′s. Hair salons such as Rush London or Dominos seem to use SMS marketing effectively, by constantly giving good discount offers to their customers they make good business for themselves with existing and new customers.

b. Bluetooth Marketing

An often forgotten form of location based mobile marketing is bluetooth marketing. When someones mobile phone has an active bluetooth connection it is possible to serve them customised messages. This might be an option to reach a slightly larger audience than with check-in services but, as customers do not expect it and have not opted in, this might be seen as obtrusive. Bluetooth marketing however may be a great way to present some b. MMS Marketing discounts in your retail shop or present a map, discounts or a guide on large event Similar to SMS marketing but slightly more such as festivals. upscale is MMS marketing. An MMS message is a slightly more multi-medial solution which is accessible for almost all mobile phones. MMS might be a good, relatively inexpensive

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TRUE MEANING AND OFFERS...

Mobile marketing is quickly merging into all businesses; Facebook, Foursquare, Twitter, Dominos and Vodafone are just some companies that use mobile Marketing in the market today.

THE HUT GROUP - ZAVVI.COM Zavvi, which folded on the high street last year, relaunched online in November under new owners The Hut Group. The company appointed Sponge to increase consumer interaction with the Zavvi.com brand as well as drive people to the website. Strategy “Using a simple mechanic to engage Zavvi.com’s audience was key to the campaign,” said Alex Meisl, Chairman of Sponge. “By offering an easy to enter promotion, which was quick and cost-effective to set up, Zavvi.com successfully generated a significant number of new customers in a short timescale at a low cost.” Execution The campaign, created and run by mobile marketing agency Sponge, encouraged people to text in and enter a draw to win £1,000. All entrants received a unique code sent to their handsets to obtain a £1 discount on any order placed on the Zavvi.com website. Posters throughout the tube network in London promoted the competition. Results Over a one month period in December 2009, 24,000 discount codes were issued with over 19,000 redeemed; generating over £150,000 of revenue and adding more than 10,000 new customers to Zavvi.com’s database.

There is huge debate to whether or not this was a successful campaign. We have interviewed George Beard (a mobile marketing fanatic) to see his views on the matter. George, do you believe the initial strategy of the Zavvi text campaign was deemed to be effective? Yes I do. I think it was an extremely good idea to use mobile as their main form of contact to consumers. As the case study states it is effective, cheap and easy to perform. They were able to meet a huge amount of demand with ease. Do you think having a website is an important component of having a business? Yes I believe it is, it enables customers to see the range of products available and buy them instantly. It also allows the company to show of their latest releases and services available. Do you think £1 discount is good enough as an incentive? No, as the price of a text is around 35p anyway. So the entrant is only actually getting 65p discount. Overall, what do you think about the results from the campaign? I think it was amazing. It is fantastic for the company to gain an extra 10,000 customers to their database. This will enable them to create more specific offers to market to their existing customer base.

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APP ATTACK • Apple’s application store carries sells the most apps (not a shocker), carr ying over 225,000 apps, with more than 4 billion apps downloaded from Apple alone (the second largest app market – Google’s – doesn’t release comparable figures) • Despite carrying and selling the most apps, Apple’s iPhone is NOT the highest selling smartphone – during the first quarter of 2010, that title went to Sybmian’s smart-phones (44% of the market), followed by Blackberry’s (19%), followed by the iPhone (15%) • The average iPhone user spends $80 on apps • In most app sales, the developer’s cut is 70% of the app price; Blackberry exceeds that by offering developers 80%

Nowadays, mobile communication is integrated into our lives so much that the majority of people (me included) feel uncomfortable/lost when without their mobile phone. A few years back, people would say that their most popular functions on their mobile phones would have been texting and calling. This is compared to today where peoples priorities have starting shifting in a somewhat different direction. A mobile phone today is a multifunctional tool that is made to communicate across a ray of different mediums, to have fun, learn and even earn. With the invention and development of mobile applications this was made possible.

A Freshfield Bruckhaus survey of network operators carried out a study focused on the flat-rate mobile pricing. 37% of participants suggested that within three years application downloads will become the main revenue source. 80% of people who carried out this study understand that opening their platforms to independent developers off apps is wise. 45% believe that creating their own app store would be a good move.

In 2010 Mobile research group research2guidance released figures regarding the mobile application segment. The worldwide market was $1.7 billion in 2009. the first six months of 2010, the market reached $2.2 billion. This lead to the number of apps downloaded which jumped to 3.9 billion in the first six months of 2010 from 3.1 billion during all of 2009. One firm, stated that this trend of mobile applications should continue to grow. They go on to suggest that companies such as Nokia and BlackBerry are the main drivers of the growth in this sector.

As we can see from this research everybody in the industry and anyone who has an opinion on mobiles apps says that the market is growing. For companies this is very exiting, companies can now make fun applications to spread brand awareness and products/

target audience

services to not only their but to wide range of people. Not only this with social media applications and fast internet services mean that people can interact with

favourite brands

their friends and even in an instant. So all in all if your brand does not have an app yet then you should start thinking of ideas for your application as I feel your brand image will suffer.

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WHAT DOES THE FUTURE HOLD? For the majority of marketers and other people blogging about mobile marketing, year on year it is a similar story. The year will start off with a quote of “the year for mobile marketing”, this will build up lots of promise and hype. Once a few months go past the excitement dies down and mobile marketing seems to be put on the back burner. Personally I think when it comes to advertising through mobile phones companies lack knowledge and experience on how to engage with their target audience and what messages are best for the consumers to interact with. From the poor knowledge into mobile communications the companies look for other mediums to advertise with and ‘the year for mobile marketing’ stalls and for companies mobile marketing still remains a tricky obstacle to tackle. Is 2011 really going to be the ground breaking year? Obviously I don’t know the answer but I believe that 2011 holds a true chance of being mobile marketing's year. Companies in the past have been wary in terms of using mobile marketing but with a cultural shift in how people are using their mobile phones means that it one of the best places (if not the best place) to interact with target audiences. After carrying out some research I believe that there are five future concepts that could be the next stage of the ever developing market and I believe that mobile marketing may reach a new stage of reality:

The Shortcode - This is similar to brands having their own URLs to have set destinations online. Shortcode will give brands a new way to connect with their consumers through direct messaging, in an easily memorable way. All the consumer has to do is to send one word or a text message to a five digit code (shortcode) and then they will receive a text in return offering them promotions, information etc. The fact that this system is so simple and easy to use means that people will actually use it to save money and gain information about their favourite brands.

DMPs (Direct Mobile Payments) It would be grand if everything was free. However businesses have to make money. With the growing number of consumers using their mobile phones for more than just calling or texting, the demand for convenient micro-payments has increased. An example of this is with Apple. The app store is connected to the phone and iTunes. Consumers AR (Augmented Reality) – Over the last year there has been a lot of hype are able to purchase apps without around. The idea is evolving beyond the hassle of re entering all their details. Its quick and efficient for science fiction and is becoming a people on the go. Direct Mobile reality. Different companies can use this in different ways, whether it is just Payments are likely to increase as more business get involved and showing the product or creating a realise the potential market, and if game etc. Mobile phones can now marketed successfully it could well add a ‘new layer’ of fun and be very profitable. interactions that will offer more fun, knowledge and insight. I believe this LBS (Location Based Services) – With is a brilliant platform that brands can the facilities of your phone knowing exactly where you are in the world. exploit especially in the early stages With the potential of a GPS system on of the future craze. “The future for you at all times offers local marketing mobiles is likely to be a new cleaver opportunities. obviously, these local combination of the browser, the onboard camera and GPS. In fact, it’s based advertisements could and already here with augmented reality.” eventually will backfire, if people are inundated with advertisements every time they walk into a shop, but if used correctly LBS can be very successful. LBS can offer good consumer engagement which will enables a range of innovation in mobile phones and marketing.

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