Overview of Mobile Marketing Strategies
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Consumers are rapidly adopting smartphones and mobile apps. Smartphone sales are growing quickly, with Apple selling over 12 million iPads in 2010 and Google selling 36 million smartphones per year. The mobile app market is also growing rapidly and is projected to reach $17.5 billion by 2012. Mobile devices are projected to surpass PCs as the primary means for internet access by 2013. Marketers are pursuing various mobile strategies like mobile websites, apps, messaging services, QR codes, mobile proximity marketing and mobile display ads to engage consumers on smartphones and tablets.
Overview of Mobile Marketing Strategies
- 1. Mobile Marketing Strategies November 10, 2010 AMA Interactive SIG
- 2. “According to iSuppli, Apple will sell 12.9 million iPads before the year ends. iSuppli predicted that iPad unit volume will reach 36.5 million by 2011 and 50.4 million in 2012.” Google is now selling smartphones at the rate of 36 million units per year.. According to a study commissioned by the mobile application store operator GetJar, the mobile application market will reach $17.5 billion by 2012. By then, the number of mobile application downloads will have also grown to nearly 50 billion from just over 7 billion in 2009. iPad Sales Forecast, iPad News Hub, July20, 2010 Deciphering Android's Smartphone Sales Figures, Motley Fool, May 27, 2010 Mobile App Marketplace: $17.5 Billion by 2012, Read Write Web, March 17, 2010 How fast is the smartphone and app marketplace growing?
- 3. Consumers are quickly adopting smartphones and smartphone apps as the primary tool for accessing the web Mobile phones will overtake PCs as the dominant web access device worldwide by 2013 according to a new forecast issued by research firm Gartner. http://www.fiercemobilecontent.com/story/gartner-forecasts-mobile-web-access-will-surpass-pcs-2013/2010-01-13
- 4. B2C Electronic Marketing Ecosystem – Customer Pull Options B2C Customer Pull Options • Customer originated content search • Paths: Seller websites, mobile apps ,social media, search, third party websites Branded Websites • Product info • Content syndication • Video • Social content links • Surveys • Consumer / Expert review • Chat • Games • Coupons Search • Paid links • Link Strategy • Organic search Mobile • Mobile web • Apps • Coupons • Guided search • Ringtones • Games • In-store search • Chat Personalized Content • Custom content • RSS • Guided Search • Ringtones • Games e-Commerce • Guided recommendations • Auction • eStore • Affiliate marketing • Comparative search • Chat • In-Store Search Multi-media • Entertainment • You Tube / video aggregators • Interactive video • Gaming/ Second Life • Product demo Social Media • Facebook / MySpace • Blogs / Wikis • Chat • Forums • Social Gaming • Twitter • Tagging / Bookmarking • Photo / Video Sharing Third Party Websites • blogs • Expert review • Consumer reviews • Content aggregators • Applications / online tools • Reference sites • Publishers 4
- 5. Sponsored Content • Games • Applications • Web sites • Consumer Blogs Video Ads • Video overlays • Pre/mid/post video insert • Social media Display Ads • Behavioral targeting • Retargeting • Contextual targeting • Companion ads • Static ads • Flash enabled ads Gaming • Mobile ad placement • Virtual currency Rich media display ads • Games • Behavioral targeting • Contextual targeting • Snapback • Dynamic message ads • Takeovers • Floating • Road blocks • Polling / voting • Expanding • Embedded video • Retargeting • interstitial Email opt-in • Custom newsletters Promotions • Special offers • Sweepstakes • On-line coupons • Contests Mobile • Banner ads • Display ads • CRM opt-in • Content syndication • Text ads • Contextual ads • Private ads • Mobile coupons • Voting • In-store promotions • Sweepstakes • Ringtones • SMS Loyalty Programs On-line Events B2C Electronic Marketing Ecosystem – Customer Push Options B2C Customer Push Options • Seller originated content push to target customers • Paths: Web sites, email, mobile SMS, social media, mobile apps, search 5
- 6. Apple iPhone/iPad Android Blackberry - Apple sole manufacturer - 200K+ apps, 9000 developers - One app store / common hardware - Tight control over distribution - Native programming language: Objective C / Cocoa - Safari browser - Tablet computer: iPad - iAd Mobile advertising - Network: ATT cellular, wireless - Licensed to 27 manufacturers - 100K+ apps - Multiple app stores - Numerous hardware variants - Registered app - Native programming language: Java / Android API / SDK - Multiple browsers - AdMob Mobile advertising - Network: many - RIM sole manufacturer - 10K+ apps - Multiple app stores - Multiple hardware variants - Registered app - Native programming language: Java / Blackberry API / SDK - RIM browsers - AdMob Mobile advertising - Network: many
- 7. Messaging Services (Text, SMS, MMS) Text messaging is built into all modern smartphones and 95% of older clamshell type cell phones. Text messaging is being used for a very wide variety of marketing initiatives that require a user to send a text message to common short code (CSC) destination in order to trigger an action that will return something of value to the user. Terminology / Acronyms • Common Short Code (CSC) is a five or six digit number to which a user can send a text message. The CSC assignment is common across all telecom carriers. • Short Message Service (SMS) is the mechanism to send a text message of up to 140 characters. Available on all mobile phones. • Multimedia Message Services (MMS) is the mechanism to send images, video and audio to a user using extensions to the SMS messaging protocol. CSC based messaging is the simplest and most widely used vehicle for mobile marketing • SMS and MMS are broadly available on most mobile devices and most consumers, especially consumers under 35, are very familiar with using text message services. • SMS programs are simple to implement and are cost effective. Because the requests are user initiated, response rates are on average about 12% vs. < 2% for other web based advertising. • Text messaging is one of the fastest growing channels for mobile advertising because of the low cost, reach, and high response rates. Common short codes are obtained by registering at the Common Short Code Administration website below. The cost is $500/month for a randomly assigned number or $1000 per month for a specific numeric code. http://www.usshortcodes.com/index.html
- 8. © 2010 ServiceWeb Systems, all rights reserved. Existing web based ad sites are moving quickly to support mobile access • Most mobile apps are developed in native code because of limited memory, processor power and network bandwidth. • Although all smartphones contain browsers and apps can be written to display correctly on workstations, tablets and smartphones, graphically intense web pages render too slowly at this point to be a viable option for interactive smartphone applications. • Development time for simple iPhone applications is about 3-4 weeks. More complex applications can require as much as 12-18 man-months of development effort. • Development costs range from $5000 on up for mobile apps. • Mobile device programming expertise is very difficult to find.
- 9. © 2010 ServiceWeb Systems, all rights reserved. The social networks have ported their apps to mobile devices The social networks have not yet decided how they intend to monetize the mobile apps through advertising
- 10. Electronic loyalty cards are in development by most large retailers
- 11. © 2010 ServiceWeb Systems, all rights reserved. QR bar code scanning is ubiquitous in Europe and Asia, and is gradually gaining traction here in the U.S. as more consumers become aware of QR codes Outdoor advertising Loyalty cards
- 12. © 2010 ServiceWeb Systems, all rights reserved. How does the QR code cycle work?
- 13. QR codes enable granular usage tracking of print and outdoor media Print and outdoor campaigns can be measured by using unique Google Analytics codes to capture statistics for page displays launched by QR readers from user smartphones.
- 14. Electronic couponing is starting to become a presence Retailers are pursuing different strategies to communicate sales information to preferred customers with several strategies being adopted for in-store vs. global push communications
- 15. © 2010 ServiceWeb Systems, all rights reserved. Mobile ads streamed to your mobile phone were announced by Google in June and by Apple in July Apple’s iAd program allows mobile ads to be sent to smartphones if the user opts in and the applications are built to accept ads. Enhancements to iOS will allow ads to be sent to the home menu and retrieved by users (similar to voice mail alerts).
- 16. © 2010 ServiceWeb Systems, all rights reserved. Mobile Proximity Marketing is a newly emerging technology Proximity marketing leverages the communications and geolocation capabilities of smartphones to direct targeted marketing at shoppers within a store setting. Short Range Solutions Based on Bluetooth Communications • Bluetooth is a short range communications protocol available in every smartphone, Effective range is about 3-5 feet. • Bluetooth is primarily used for end caps and kiosk based product displays. • Very low customer awareness that Bluetooth exists on phones. In-store Solutions Based on SMS and Geolocation • Retailers (notably Best Buy) are testing systems based on a combination of SMS (Short Message Services) and geolocation. • SMS services can broadcast a short range text message to phones within the reception area. • Current GPS receivers in smartphones can resolve a location to within 6-10 feet of the actual coordinates. Newer receivers can resolve the location to within 10 inches of the actual location. When the GPS is unable to receive the GPS satellite signal, the location can be fixed to within 50 feet through cell tower triangulation. • Current projects are in the early pilot program phases
- 18. Bob McCarthy Biography 18 Bob McCarthy is the President and CEO of ServiceWeb Systems, Inc. a software development and services company based in Cincinnati, Ohio. ServiceWeb Systems is a mobile device and web development services company based in Cincinnati, Ohio. SWSI uses onshore and offshore resources to deliver custom smartphone and tablet apps quickly and cost effectively. Visit the SWSI website for videos and screen shots of previous projects or scan the QR code below for contact information and links to our website. http:// www.servicewebsw.com/swsi_website/swsi_productdemos.html