The State of Mobile Marketing

Here we are getting ready to wind down the year 2009. Or, stated in a reverse way, here we are getting ready to gear up toward the biggest push of the year - Holiday 2009.

The interest in the mobile channel continues to grow, and certainly there will be a big push in mobile marketing in the 7 weeks remaining in this year.

So what have interactive marketers been doing these past several months? If you're an interactive marketer, are you curious to see where you fit with your peers?

According to Forrester Research Analyst Shar VanBoskirk's US Interactive Marketing Forecast, 2009 to 2014, total mobile marketing spend is projected to grow in the U.S. from $391 million in 2009 to $1.3 billion by 2014 for a compound annual growth rate of 27%. This is quite illuminating in light of the fact that the Kelsey Group estimates that the traditional segment (i.e. newspapers, direct mail, television, radio, print Yellow Pages, out of home (non-digital), cable television and magazines) will decrease from $141.3 billion in 2008 to $112.4 billion in 2013 for a compound annual growth (or more accurately "shrinkage") rate of -4.5%, and total ad spend will likewise decrease at a CAGR of -1.4%.

In spite of a 27% CAGR, spend on mobile marketing in the US is still a very small piece of the pie.



Forrester Analyst Neil Strother says in his research report, Best Practices: Mobile Marketing, that 65% of survey respondents either currently use or plan to use the mobile channel in their marketing mix, but that about half will do so with a budget of $1 million or less.



Of the marketers using the mobile channel, only about half increased their 2009 budgets over the previous year.



So it appears that marketers are adopting the mobile channel - but doing so cautiously.

SMS, or text messaging, dominates the mobile tactics being used today.



But, be on the look out for increased spending in search as location-based marketing will get bigger and bigger mindshare thanks to the growth of GPS-enabled mobile devices.



So there you have it. Total marketing spend is shrinking in this tightened economy. Interactive marketing - including the mobile channel - is growing, but only because marketers are shifting their media buy from traditional channels into the interactive.

But though long in the tooth traditional channels may be, they are still the tried and the true. Marketers are tempering their budget shifts with caution.

How do you compare to those that Forrester Research surveyed? Leave me a comment.

Mobile Gives Life to Yet Another Channel: Email

In last week's blog posting, I mentioned how mobile devices are giving new life to a dying industry: printed publications. Wouldn't you know it, but thanks to an article by Wall Street Journal reporter Jessica Vascellaro - or more specifically the firestorm that is caused, it appears to me in a round about way that mobile devices are extending yet another venerable means of communication: email.

In her piece, "Why Email No Longer Rules...And what that means for the way we communicate", Vascellaro makes the argument that "a new generation of services is starting to take hold—services like Twitter and Facebook and countless others vying for a piece of the new world. And just as email did more than a decade ago, this shift promises to profoundly rewrite the way we communicate—in ways we can only begin to imagine". While I agree with that statement to a certain degree, I do disagree on other points. Social media have not displaced email as a communication platform; rather, I submit, it is that social media have replaced email for only a specific classification of communications. Twitter and Facebook (in the U.S., that is) have replaced the email containing the pithy witicism which was then forwarded to a friend which was forwarded to a friend which was forwarded to a friend which was forwarded to a friend which was forwarded to a friend which was finally forwarded to you which you then forwarded to a friend which was forwarded to a friend...

Now, thanks to tweets and retweets, I can get my fill of banality without having to scroll through three quarters of the email content just to get down to the original topic. Also, thanks to mobile apps like Echofon, I can be connected at all times through my iPhone.

Also, thanks to Flickr and other photo sharing sites, you are spared the merciless torture of sitting in your friends' living rooms watching slide after slide of what they did on their summer vacation, stalking the Speckled Greeb in the underbrush of Albuquerque. You can now choose to view or not view them
at the time and place on your terms.

Since SMS, micro-blogging and social sites have become the media choice for quick bits, email is still the channel of choice for all the things that you'd like to say in more than 160 characters.

Thanks to mobile devices, email is enjoying another growth spurt. Email service provider Exact Target recently published its email utilization report for 2009. According to Exact Target's findings as people grow older, they tend to use email more and more for their communications. This is not to say that they don't eschew the other channels. In fact, according to the CTIA, the average age of a "Texter" is 38 years old.

Also mentioned in Exact Target's report are the findings of Professor Mike Handley, director of the Institute for Mobile Media Research at Ball State University. He explains that "as of September 2009, 38% of students at Ball State University said that use a smartphone. And one of the biggest winners is email. Two-thirds of smartphone owners say they use email on their phone. Only 9% of feature phone ownsers use email. The increased use of mobile email is significant because computer email use by college students has declined over the past five years. The ability for students to have email on their smartphones fits their mobile lifestyles perfectly."

The Radicati Group reports in its latest study, "Wireless Email Market, 2009-2013," that "in 2009, the wireless email market will total 139 million users. Over the next four years, we expect this figure to increase at an average annual rate of 68%, totaling over 1 billion mailboxes by year-end 2013."

So there you have it. The mobile platform is on one hand a platform killer (think PDAs, low-cost digital cameras and GPS devices). On the other hand, it is a platform extender: (printed media and email).

Mobile Breathes New Life into a Dying Industry

Printed media is dying. There I said it.

In case you've missed the news, publishing giant Conde Nast recently announced that Gourmet magazine, which has celebrated cooking and travel in its lavish pages since 1941, will cease publication with the November issue. Also chopped by the falling axe are the parenting magazine Cookie and the wedding publications Elegant Bride and Modern Bride.


We, the people, do still know how to read. It's just that our preferences for the medium over which we consume our printed content has changed. Reading words printed on a piece of paper just isn't as popular as it once was.



We prefer to read our content on computer screens - whether they are desktop computers, smartphones or eReaders.

There is one chance for print publishers to save the future of their industry. That one chance is called "mobile".

I highly recommmend that you download and read the executive summary of a recent study, "Going Mobile: How Publishers Are Preparing for the Burgeoning Digital Market." I am encouraged to see that print publishing execs have recognized that the mobile platform presents a new opportunity for their industry.

Here are some of the survey highlights:

• More than 80% of newspaper and magazine respondents believe people will rely more heavily on mobile devices as a primary information source in the next three years
  
  
• Nearly 70% of respondents agree that mobile is receiving more attention at their publication this year than last. More than a third believe their publication already has a well-developed plan for attacking and conquering the mobile market
  
  
• 44% of respondents who track mobile's impact on their Web site traffic said the devices increased visits by up to 10% today. Half believe mobile traffic to their Web sites will increase by five to 25% in the next two years
  
  
• Among senior executive respondents, 56 percent said their publication has plans to develop a smartphone application in the next 24 months, in addition to the 17 percent of respondents who already have an app in production.
  
  
• Regardless of mobile’s anticipated rise, survey respondents do not plan to abandon their print publications in favor of a digital-only product in the near term.
  
  
• While 55 percent believe that digital delivery of their publication is important to their strategic future, three-fourths believe that their publication will be available in a print form five years from now.
  
  
• More than half of the survey respondents believe the future business model of mobile content will be supported by both advertising and subscriptions.
  
  
• Nearly a third believe that mobile will have a significant impact on their publication's revenue in just three years.
  
  
• More than half of respondents believe that smartphones (e.g., the iPhone and BlackBerry) will become a vital way to distribute their publication within three years, while nearly 42 percent said the same about e-reader devices.
  

Here's one reason why I believe that the mobile platform just might be the salvation for print publisher: Android.

Android is the operating system behind a number of popular smartphones. As a mobile device operating system, it's really starting to gain momentum. The recently announced partnership between Verizon and Google matches an open source mobile operating system with the United States' "most reliable and largest wireless voice and data network," (as Verizon claims).

But wait! There's more!! Android is also starting to appear in the hottest new class of computers: netbooks. Ultra-portable computers powered by a mobile operating system introduces a new class of eReaders beyond the overpriced and underpowered dedicated eReaders in the market today.

With smartphone and netbooks, "mobile" takes on a new, much more expanded meaning. All this news is good news for print publishers.

Getting Mobile Marketing Strategy On the Right Path

Mobile marketing is one of the hottest topics right now. Following the trade journals and newsletters, it seems that if you're not doing anything mobile right now, then your business is doomed to collapse within the next six months.

While there is a lot of excitement about mobile, just remember how journalists get paid and how all those conference speakers get paid.

The natural human response to the generated hype is "We need an iPhone application" or "We need to do SMS right now."

Marketing is a strategic activity. All successful strategies are built upon successful processes. In this article, I submit Forrester Research's POST Methodology that Josh Bernoff, Charlene Li, Cynthia N. Pflaum, and Scott Wright originally introduced in October 2007 as one process you can apply as you develop your successful mobile marketing strategy.

Forrester's POST Methodology builds upon the following tenets:
(1) People: Get to know your people - not the average person, not your competitor's people; your people.

(2) Objectives: Decide upon your goals. Is it to increase brand awareness? Is it to cut your support costs? Is it to move your customers through the lifetime value cycle? Is it to do damage control (think millions of downloads of flaming laptop battery movies)?

(3) Strategy: Determine your approach to meet your objectives.

(4) Technology: Choose the right technology that best enables you to implement your strategy.

I've seen a lot of different strategic processes before, but I like Forrester's POST methodology because quite frankly, it keeps it all simple. It's easy to remember and it's easy to keep straight. When you're talking about marketing strategies that could run into the millions of dollars, the more simple the process, the better the chances of a favorable ROI.


Forrester Research Analysts Julie Ask, Charles Golvin, Michelle De Lussanet, and Laura Wiramihardja recently published their research article on applying the POST methodology to developing a mobile marketing strategy.

Step One of understanding who your customers are is to take a look at the Mobile Technographics Profile they've developed.



The ladder shows progressive mobile interaction and "sophistication" as you go up higher in the rungs.

Inactives, Talkers, and Communicators tend to be mutually exclusive categories. On the other hand, there is overlap between Connectors, Entertainers, and SuperConnecteds.

So now that you have a breakdown of mobile technographic profiles, the key question you need to ask yourself is "where do my customers fit", and more importantly, "where do my customers that I want to target with my marketing strategy fit?"

There are many different ways that you can answer these questions; time and money are your two resources. The first way to learn the mobile technographics profile of your customers is the most obvious but most often overlooked: ask them. If you have an online presence, how easy would it be to put up a simple survey? Give people a simple incentive to fill out the survey. Keep the questions short and simple - no more than 10 questions and make sure the questionnaire can be answered within 2 - 5 minutes.

Another way is to compare the demographics of your customers (based on your marketing objective, remember?) against the mobile adoption "national average" by age breakdown that Forrester Research Analyst Julie Ask presents in her research, Mobile Technographics.



While gender is no longer a differentiator for mobile technology adoption, age is still one - though rapidly disappearing. So just to get things started, do a test campaign matching your targeted audience by age to the type of mobile campaign you should do. Test your assumptions. Do your customers line up with the average? They may or may not.

If you've been reading about the social media space, you'll also know by now that this is a wealth of information that people are divulging about themselves via their tweets, Facebook posts, etc. Social media data aggregators (like Unbound Technologies, and Rapleaf) are building social profile data on individuals based on this public divulging of information. You can certainly take advantage of these services to build mobile technographic profiles of your customers.

And finally, I suppose you can always contract Forrester Research to construct the mobile technographic profile of your customers (no, this is not a paid endorsement, just a suggestion).


The key takeaway is that while mobile marketing is hot right now, you need to find out whether its hot right now for your customers. Follow the POST methodology. Don't start with the technical solution without first understanding your customers, your objectives and your strategy. Remember: if there is a mis-match between your customers, your objective, and your strategy, then no technology in the world can save you - it will only cost you...BIG TIME!

Where is the Growth in Location-Based Mobile Marketing?

Technologists are experimenting with ways of leveraging a mobile device's geo-spatial awareness to provide money-making opportunities for marketers. Some propose solutions which send text messages on behalf of physical storefronts to individuals who happen to be passing by. Others propose solutions which display Internet search results containing physical storefronts that are within a proximity to the individuals. The former solutions are push-oriented and the latter are pull-oriented. The former solutions involve SMS (a.k.a. text messaging); the latter solutions involve location-aware search engines. Two different solutions using two different technologies with the same objective: to make money leveraging where a individual happens to be at any moment in time. In my opinion, there is more growth in pull-oriented location-based marketing services than there are in push-based. The reason is less about the technology and more about good ol' human nature.

Push-oriented location-based text messaging is all about impulse buying. When we are out and about, we are typically going from Point A to Point B and on to Point C after that. We have specific places in mind that we are going to, and typically we have more on our itinerary of Places To Go than we have allotted time. We are rushing along at 30 to 40 miles per hour. Pushing a text message clear out of the blue to a person who is whizzing by at that speed assumes that the marketer's message/offer is compelling enough and that the individual is impulsive enough to (a) tolerate the interruption, and (b) to immediately act upon that interruption - not an easy thing to succeed at given the normal human reaction time and the speed the person is moving at. Meandering slowly down the Champs Elysees is just not a reality for the most of us. We simply don't have time for interruptions and that's exactly what push-oriented location-based messaging is all about.

There's only one place where impulse shopping is effective - the grocery store. Merchandisers have it down to an exact science knowing precisely what product to put at what height on each aisle, and also what items to place at the check out counter. Department stores implement the same exact science too. All this to get us to buy things that we didn't originally come into the store to buy. So logically, the only real growth that I see for push-oriented location-based marketing is within the grocery store, its cousin the department store, and its distant mega-cousin the shopping mall.

Research shows that grocery stores are the places where coupon redemption is highest. Grocery stores are also places where people do slow down and mill about the aisles - enough to have both the time and the tendency to react to interruptions. It is within these confines that push-oriented location-based messaging works best. Consumer Packaged Goods brands can send mobile coupons to their opt-in subscribers. CPGs know which outlets carry their brands. It's easy to match up a subscriber's geo-spatial positioning with those of their outlets. Is there a match at any moment in time? Trigger the send!

Shopping malls are other places that are experimenting with push-oriented location-based text messaging. Now, the malls are REALLY places where people do mill around. So naturally preliminary results of their experiments are proving to be encouraging.

As I said before, I believe that the real growth is in pull-oriented location-based mobile marketing. We want to be in control of our shopping experience - that's what the social computing revolution is all about. We want to be in control of our information - what we want and when we want it. We prefer to walk into a store and select our perfumes and colognes ourselves rather than to run the gauntlet of reps shoving scented sample cards in our faces. When we are out and about, it's because we have a specific purpose in mind. We are either heading toward a specific destination, or we are looking for a specific product or service. We're going to whip out our mobile devices and do an Internet search for sushi, gas stations, banks, theaters, etc.

The barrier to entry for pull-oriented location-based marketing is much lower for marketers than it is for push-oriented marketing. The reason is that search engine marketing is a heck of a lot easier to set up than is SMS messsaging. There are already a number of services that provide location-based search not the least of which includes Google, Microsoft, Yahoo, Jumptap, and others.

Regardless of approaches, geo-spatial positioning of people facilitated through their mobile devices presents intriguing new opportunities for technologists, sociologists, and marketers.

Twitter: RSS For The Rest of Us

I don't normally comment about items taking place in social media, but an interesting article forwarded to me by a colleague has really intrigued me. (Not to say that I don't find social media interesting. I know that social media is one of the hottest topics in popular culture today. However, I just choose to focus on the hottest topics taking place in the mobile world.)

But I digress...

The well-publicized race to a million Twitter followers between CNN and Ashton Kutcher as well as reports of Twitter's meteoric growth rate seem to give the impression that "everyone's doin' it!"

But as Sysomos' In-Depth Look Inside the Twitter World shows us, there is a yawning chasm wider than the Grand Canyon between perception and reality. Sysomos analyzed data from over 11.5 million Twitter accounts and discovered some interesting highlights:

- 93.6% of users have less than 100 followers, while 92.4% follow less than 100 people

- 0.94% of Twitter users follow more than 1,000 people and only 0.68% have more than 1,000 followers

- 85.3% of all Twitter users post less than one update/day

- 1.13% Twitter users update more than average of 10 times a day

- 5% of users account for 75% of all activity

- 50.4% of Twitter users haven't updated their status in the last seven days

So what are all these 11.5 million people doing on Twitter? Apparently not much. Most people probably signed up just because they were curious but haven't thought much about it since. There are others too, perhaps that are active on Twitter, but in a passive way.

Twitter in many respects is like RSS for the rest of us. RSS has been around for a long time, but it's adoption has been minimal - mainly because the need to use RSS feed readers discourages the average person. On the other hand, Twitter automatically provides rivers of feeds. True, RSS provides a richer experience than does the 140 characters of Twitter. But let's face it. Most of us use RSS just to scan headlines and click links through to a web page. Isn't that what Twitter is too?

What about these 5% of hyperactive users? Sysomos did a follow-up analysis of these folks.

- Of the most active Twitter users updating more than 150 times/day, nearly all of them are bots operated by sources such as hotels, regional and national news services, regional weather services, the top news within Digg, games, anim services, tags within del.icio.us and financial aggregators.

- Who tweets the most, and why ?!

- Who is @moooris and can anyone who reads Japanese tell me what the heck is so compelling in this individual's life that he feels compelled to tweet an average of 108.64 tweets a day, or one tweet every 10 minutes of his waking life (assuming he gets by on 7 hours of sleep).

- ReTweets among the most active users accounted for 5.06% of their activity - about 20% higher than overall users which is 4.02%.

This latter point is very interesting, however. It confirms two of my suspicions:
(1) Hyperactive tweeters remain as impervious to anything anybody else is saying as the rest of us, and
(2) There really isn't a whole lot of stuff people are saying that's worth repeating.

So there you have it: an insight look at the world of Twitter. I look forward for Sysomos' next report on Twitter.

Mobile Marketing Checklist

Marketing campaigns via text messaging (a.k.a. "mobile marketing") presents new opportunities to engage with your customers. One benefit of certain types of mobile marketing is that it allows the customer to initiate the engagement by texting in a keyword to receive a coupon, more info, directions, or to opt-in to a subscription-based campaign. But know this: there is a lot of up-front work that you need to budget for both in terms of time and money. Here's a simple checklist to help you get all your ducks in a row.

Step One: Decide where in the world you want to focus your mobile marketing campaign
There is a logistical nuance to this point - mainly because it impacts your decision for Step Two.

Step Two: Procure a common short code ... or a long code
If the decision from Step One is the United States, then you'll be getting one type of common short code. If the decision is Canada, then you'll need to get another type of code. If the decision is Europe, and/or Asia-Pacific, then you'll need yet a different code. Each of the codes are managed by different registrars and each have their own pricing structure. You'll be leasing the use of a 5-digit or 6-digit code - kinda like leasing domain names in the web world. But unlike domain names, you'll only be leasing it for 3, 6, or 12 months at a time. The cost will be also be much higher - anywhere between $250 to $1000 per month.

For example, if you are going to run your mobile marketing campaign in the United States, then whether you get it yourself or the agency you've contracted gets it for you, it will still be Neustar that will be allocating the code to you. If your focus is Canada, then you'll need to go through the Canadian Wireless Telecommunications Association (CWTA). If you want to focus on Europe or perhaps Asia-Pacific, then there are other 3rd parties that you'll need to work with.

If you are just starting off with mobile messaging, may I recommend that you start off with a single short code. There is still a lot of work to do, so keeping it simple in the beginning will help you from getting too overwhelmed.

When you request your short code, you'll now be required to provide an overview of your campaign. The registrars will be loading this information into a searchable database that carriers can access. The intent is to speed up the campaign approval process by requiring more information up front.

Some registrars (like Neustar) will let you request your short code before you submit the campaign summary. This lets you know what your short code is so that you can incorporate it into any print, broadcast or other media while in parallel you work out the details of the campaign.

Step Three: Watch your legalese
Make sure that you have worked out your privacy policy and your terms and conditions. You'll need to have this information ready to present to the carriers when they review your campaign brief. Your agency that you are working with will have its own privacy policy and T&C that could cover your marketing program. But you'll still need to make sure that you have one of your own - even if you are a sandwich shop that lets your customers text in their orders.

Step Four: Speaking of campaign briefs...
Yup. Once you've procured your short (or long) code, you'll now need to get it provisioned on the carriers' networks. You'll need to explain to the carriers what your campaign is all about. If you've ever been a teenager before, it will sound all too familiar. "Where are you going? Who are you going out with? Who else will be with you? How can I reach you? Are you going out dressed like that?!"

Here's typically the information that you'll need to provide to the carriers:

1. Your contact info and your technical person's contact info
2. The short code (or long code if in Europe or Asia-Pac) that you'll be using. You'll need to provide proof that you have the right to use the short code in the form of a purchase receipt.
   
3. Will you be charging your message recipients anything to receive the message or to download anything? If so, how much?
   
4. When do you intend to start your campaign and when do you intend to finish it
5. The URL to your terms and conditions
6. The URL to your web-hosted opt-in page (if you are allowing people to opt-in from the web)
   
7. A summary of your program
8. The name of your program
9. Whether you'll be sending transactional (triggered alerts) or subscription (regularly-sent) messages
   
10. Keywords that you'll be using to enable people to opt-in to your program.
11. A step-by-step user experience for your program. The carriers will follow the steps that you detail to test your campaign prior to launch and while it is in process.
    
    WARNING: any discrepancy between what you say should happen and what actually happens could result in the carrier delaying or suspending your campaign on its network.
    
    Define how the customer will interact with your campaign for opt-ins, obtaining help, opt-outs, and examples of messaging from your campaign.

Whew! That's a heck of a lot of information, isn't it? Fortunately, you don't have to go to each carrier yourself. Your agency (or SMS aggregator, if you are directly working with one) will be submitting it to the carriers on your behalf.

Step Five: Refine, Revise
Don't be discouraged if your campaign is rejected. Sometimes carriers reject a campaign due to insufficient information. Make sure that you allocate time to rework your campaign brief after its been submitted.

Step Six: Lock and Load
Once the carriers have approved your campaign, let 'er rip. Have fun and enjoy the benefits of this emerging and engaging channel.