Beware of Co-Reg in Mobile Marketing

MediaPost yesterday reported that a new organization, Mobile Advocacy Coalition, was formed. It intends to ask the Federal Communications Commission to specify that technology companies that act as "mere conduits" aren't liable for wireless ads that violate the Telephone Consumer Protection Act, according to the group's attorney, Scott Delacourt, a lawyer at Wiley Rein.

The main reason why this lobbying group was formed was response to the Ninth Circuit Court of Appeal's recent decision in a lawsuit against Simon & Schuster and mobile marketing company ipsh!.

In a nutshell, Simon & Schuster are the defendants in a $90M class action lawsuit stemming from a 2006 incident. Laci Satterfield filed the suit after her young son is said to have received a text message in the middle of the night warning him that the "next call you take may be your last." The text was a promotion for Mr. King’s book, "The Cell." Though the text message was sent in the middle of the night, I'm not aware of whether the child woke up in the middle of the night to read said text message.

First of all, you should get to know a bit more about the Ninth Circuit Court of Appeals. Headquartered in San Francisco, this is the same group of enlightend individuals that ruled in 2002 that it was not legal to recite the Pledge of Allegiance because it contains the words "under God".

At the heart of the matter is the federal Telephone Consumer Protection Act (TCPA) that makes it unlawful to generate automated calls to mobile phones without the "prior express consent of the called party." The Ninth District Court of Appeals holds that text messages sent to mobile phones is the same thing as voice calls. The TCPA applies to automatic telephone dialing systems (ATDS), equipment that has "the capacity to store or produce telephone numbers to be called, using a random or sequential number generator and to dial such numbers."

But here's where the hair splitting begins. The appellate court wasn't concerned with whether the system used to the send the text messages was an actual ATDS. They felt that the proper question to ask is whether system had the capacity to be used as an ATDS. With no evidence presented during the original trial to the contrary, the court overruled the original judgment and ordered the case back to trial.

The sequence of events that lead to that fateful text message being sent on that fateful night is commonly known as "co-registration". Ms. Satterfield did not directly opt-in to receive text messages from Simon & Schuster. She became a registered user of Nextones in order to receive a free ringtone. During the registration process, she checked a box which read, in part: "I would like to receive promotions from Nextones affiliates and brands" - boilerplate verbiage used in co-registration. The appellate court rules that Simon & Schuster is neither an affiliate of Nextones nor is it a brand of Nextone. Therefore, the text messages they sent in this campaign were unsolicited - a violation of the TCPA.

Co-Reg is a widespread tactic used for lead generation especially in email marketing. It is one means of generating new leads and customers. But it's also one source of messages that recipients classify as spam. Irritating as it is, email spam is nevertheless tolerated a lot more than SMS spam - partly because mobile phones are considered much more personally than the so-called personal computer, and also partly because people originally paid for each text message while email is free.

Mobile marketers should continue to follow this case because it has direct bearing on our industry. While co-registration may be an acceptable lead generation tactic used in email marketing, the case of Satterfield v. Simon & Schuster, Inc. indicates that mobile marketers should proceed with extreme caution if not avoid it altogether.

Social Networking On the Go

It appears that social networking is now the #1 mobile web destination according to a recent research report. The data collected and published by Openwave indicate that Facebook and MySpace are the two top mobile search terms on both Google and Yahoo. The latest study from Nielsen shows that member communities and email are a close 4th and 5th place of global Internet activity (66.8% and 65.1% respectively). However, the same report shows that member community and email showed the two highest growth in 2008 (5.4% and 2.7% respectively). These two studies indicate a high convergence between the mobile and the social networking worlds.

I totally get this convergence because mobile and social are two worlds where people are choosing to spend a lot of their time now. For many people in the world, their mobile devices are the only ways that they are accessing the Internet. No wonder also that Facebook is extending their Connect API to the iPhone.

Will social networking replace email, as one headline asks? Look. Just because there are more sheep than journalists doesn't mean that sheep will be replacing journalists any time soon. Social networking and email are two different communication channels meant for different types of communication. Social Networking is all about airing your laundry in public. Email is a point-to-point communication technology therefore you would naturally chose one over the other depending upon what you want to say - and to whom you want to say it. That having been said, they are highly complementary as well. It is quite common now to receive an email whose content is so good that you'd want to share it with your friends by posting it to your social page - just like you'd share an article from a news web site.

The mobile device is growing in worldwide popularity as the launch platform of choice to the Internet. A surprisingly high percentage of Facebook and MySpace members access these sites from their mobile devices. Next to search, email is the #2 Internet activity on mobile devices. It's high time for marketers to step up and facilitate the bridging of the gap between these two mobile activities. For starters, interactive marketers - this includes email marketers and social media marketers - need to develop mobile-friendly email content that can be easily read on a mobile device and then shared (from said mobile device) to a social site. A lot of people use their mobile devices to triage their email inbox for later reading from a desktop computer. I've seen many a man sitting in the Husband's Chair at Macy's culling his inbox while waiting for the Missus to try on her forty-seven different outfits. (I know 'cause I'm there in the Husband's Chair too.) Give him meaningful and mobile-friendly content that he can immediately recognize the value of so that he can then share it with his Facebook friends. A simple and easy way to extend your brand.

If you want to know more about great social networking strategies, go visit my colleague's blog on Blogspot.

Do you have a favorite social site that isn't Facebook? Let me know what it is and what you like about it.

How To Build Your Worldwide Customer Base

The industry trends are indicating that mobile broadband is on pace to become the Number One means of accessing the Internet worldwide. A recent publication from the International Telecommunications Union (as reported by the Associated Press) says that six in ten people worldwide now have cell phone subscriptions, indicating that mobile phones are the communication technology of choice - especially among developing nations. One of the fastest growing areas is in mobile broadband subscriptions.

There are two reports - both published by Forrester Research - that I find interesting as well. A mail survey fielded in February and March 2008 of 61,033 US and Canadian households and individuals ages 18 and older reported that about 7% of these individuals used their mobile devices for Search. Another survey of 5,400 US and Canadian individuals ages 18 to 88 in August 2008 reported that 75% of these individuals used their mobile devices for Search. What would account for this huge difference? A different sampled population? Perhaps. But even so, these two surveys taken at different dates do indicate that Search has risen to be one of the top activities that people do with their mobile devices.

Oh by the way...did you also read that the iPhone is the Number One mobile browsing platform commanding a huge 66% marketshare?

So what does this all mean? It means that a substantial population of customers have their first contact with your brand via a mobile device. So, Mr. and Ms. Marketer: do you have a mobile strategy? Do you have plans in place to welcome these mobile first-contact people to your brand?

Here's some ideas for you:

(1) A really simple mobile-friendly web home page
Don't mess with WAP - just use HTML that is formatted for the small screen. Starting with the iPhone and every mobile device thereafter, mobile web browsers are now standard.

(2) Get yourself listed in Google Maps for mobile devices
You'd be surprised how many people would benefit from knowing about your services just because you're close by to where they are or where they want to be. Also, include the URL to your mobile-friendly home page, not the URL to your main site's home page.

(3) Invite visitors to your mobile site to sign up for email newsletters
Opt-in email marketing is the most effective means of customer relationship management. After they've given you their subscription permission, send them mobile-friendly emails. These are just HTML-formatted emails that are right sized for the smaller screen. Give them timely and relevant offers. Mobile emails are THE perfect vehicle for coupons, for example.

The nice thing about opt-in emails is that you now have plenty of opportunity to engage in a meaningful communication with these people and gradually acquaint them with your products and services.

And speaking of email, I'm disappointed that most of the blog posts I've read on Mobile Marketing are predominantly written by folks with backgrounds in brand marketing and in direct marketing. I've not (yet) read anything written by anyone with a background in email marketing. This dearth of information is a shame since email marketing is still the best real-time direct-response marketing channel.

(4) While you're at it, invite visitors to your mobile site to sign up for text messaging alerts
There's a reason why these people found you via their mobile devices. Engage with them the way that they naturally engage with their world.


There ya go. It's all about maximizing the experience at point of first contact. Very simple, very easy to do and best of all, it won't cost you a lot in terms of time or money.

Email Marketers: I want to hear from you! How are you integrating mobile and email into your marketing mix?