An introduction and summary of the world of mobile marketing

1. Mobile Marketing
Annmarie Hanlon

2. History of the Mobile Phone
• 1946 First mobile call USERS IN MILLIONS
• 1973 Martin Cooper invents REGION 2012 2013 2014 2015
mobile phone
Asia Pacific 2,350 2,550 2,720 2,890
• 1979 Commercial
automated network (1G) Europe 640 650 660 670
created in Japan Middle East 460 500 530 560
& Africa
• 1992 First SMS Latin America 400 420 430 450
• 1996 Clamshell phone North 260 270 270 280
invented America
• 2007 iPhone launched Worldwide 4,110 4,380 4,610 4,850
• 2008 App store launched
Figure 1 – Mobile Phone Users by
Region
Source: Darell (n.d.) and Belic Source: Advertising Age (2011)
(2011)

3. The 7 Unique Capabilities of
Mobile
1. The mobile phone is the first personal mass media
2. The mobile is permanently carried media
3. The mobile is the only always-on mass media
4. Mobile is the only mass media with a built-in payment mechanism
5. Mobile is only media available at the point of creative inspiration
6. Mobile is only media with accurate audience measurement
7. Mobile captures the social context of media consumption
Source: Ahonen (2008)

4. What is Mobile Marketing?
Tool Example
SMS Communication and Promotional text messages from suppliers (e.g. reminders and
offers from dentists, hairdressers, DIY stores use it to track customers)
MMS Multimedia (picture, video) messages
Bluetooth and WiFi Using ‘Free’ WiFi hotspots to share content (e.g. Café Nero, Costa Coffee with links to
marketing ‘The Cloud’, Sky Mobile)
Mobile applications (apps) Useful applications, often for location based or business use
Mobile search marketing Google, local directories, TripAdvisor
Mobile display advertising Adverts on games and free apps
Mobile video advertising L’Oreal ads in magazines with links to ‘how to’ videos – often linked to QR codes
QR Codes and Barcodes Taking the offline online – adding codes to Posters, Magazine adverts
Mobile website Websites optimised for mobiles – e.g. Premier Inn
Figure 2 – Mobile Marketing Definitions with
examples

5. Examples of Mobile Marketing
SMS Bluetooth and
WiFi marketing
Mobile applications
Mobile applications (apps)
(apps) with adverts

6. Examples of Mobile Marketing
Mobile search Mobile display
marketing advertising
Mobile website

7. Mobile User Profiles
Mobile phone
ownership is evenly
split between men
(51.3%) and women
(48.7%)
Source: Hightable (2011)

8. Mobile is Different
FUNCTION FORM
The physical Mobile device and the communications network to which it is
A technology platform
connected to reach the Internet – all ‘markets’ in their own right
The product or service that a
Mobile runs local applications, utilities & a rich-media player
consumer uses ‘locally’
The product or service that a Internet access, ‘Marketplaces’ e.g. iTunes, streamed media, geo-services, cloud
consumer uses ‘remotely’ storage, office functionality, social media
Inbound: e-commerce, information & media retrieval device
A route to market
Outbound: a delivery channel, service & support tool
A two-way communications For Consumers: Phone, SMS, video chat, e-mail, social media
channel For Companies: Advertising, market research, PR, CRM, NPD
e-wallet, personal id, e-key, remote control device, 2-way geo-tracker, camera,
A general utility device
video, compass, personal assistant, TV, media player, e-book reader…….
Figure 4 – Mobile Function and Form
Source: Hanlon and Rees (2012)

9. Mobile Infrastructure
Mobile
infrastructure is
dependent on the
device, the
network provider
and often the
internet
Figure 5 – Mobile Infrastructure
Source: Hanlon and Rees (2012)

10. Growth of Mobile
• Average mobile advertising budget is
between $75,000 and $100,000 per
campaign (Hightable, 2011)
• Current market for mobile ads is
valued at $1.24 billion (Hightable,
2011)
• Mobile predicted to exceed desktop
internet by 2014 (Meeker, 2010)
• YouTube mobile gets over 600 million
views a day and traffic from mobile
devices tripled in 2011 (YouTube,
n.d.)
Figure 6 – Mobile Advertising Spend
Source: Meeker (2010)

11. Growth of Mobile – Etools for
Browsing and Shopping
31% are mobile
(14% browse on smartphone + 9% on tablet + 4% using an app on a tablet +4% app on
smartphone = 31%)
Source: Hightable (2011)

12. Growth of Mobile – User
behaviour by Gender
Source: Hightable (2011)

13. Mobile Phone Campaigns:
Advantages and Disadvantages
Advantages Disadvantages
• Phone is personal and nearby • Marketing can be seen as an intrusion if
• Increase sales by catching people when poorly executed
watching TV, out with friends and away • Depends on device
from the PC • May need to adapt campaign for
• Catch shoppers on the move and in a device (smartphone vs feature
hurry phone)
• Engage direct with customers • Apple and Android dominate the
• Measurable results to campaigns market
• Measure sales via mobile • If creating a game it is difficult to gain
• Mobile sites can be cheap to construct attention unless popular and gains viral
• Basic QR codes are free to create attention
• Flexible
Figure 7 – Mobile Phone Advantages and Disadvantages

14. 10 Steps in Mobile Marketing
1. Objectives – What do you want to achieve?
2. Strategy – What are the business goals?
3. Channels – What’s appropriate for the target audience?
4. People – Who is involved? E.g. In house, agency?
5. Creative Concept – Who will develop the concept?
6. Programming – Any technical help needed?
7. Timing – Any critical factors?
8. Budget – Plus any extra carrier charges, licenses for ringtones
or images?
9. Promotional Plan – How will the target audience know about
the campaign?
10. Action Plan – Who is doing what, when and where?
Source: Hanlon and Rees (2012)

15. Source: Rose (2011)

16. Mobile Website or Native App?

17. QR Codes – Marketing Uses
• Incentive • Download video, other
• Discount coupon multimedia
• Product sample • Loyalty points
• Make purchase • Access more information
Adapted from Okazak et al (2012) and MGH QR Code Use and Interest Survey
(2011), cited in Tolliver-Walker (2011)

18. QR Codes – Market Growth
• Econsultancy (2012) states that QR codes are
the second most popular mobile technology.
• 50% of smartphone owners have scanned QR
codes and 18% buy after scanning (HighTable,
2012).

19. QR Codes: Advantages and
Disadvantages
Advantages Disadvantages
• Connects readers from the printed page to • Don’t know how long they stayed.
advertisers’ websites. • Or what they looked at.
• Enables magazines to track eyeballs on ads and • Or if they liked it.
prove the value of advertising. • Or if they shared it.
• QR code users are predominantly between 35-54 • Or if people it was shared with also visited
years old, (48%), well educated and have annual
the site.
household incomes of $50,000 or more (MGH,
2011 cited in Tolliver-Walker, 2011).
• No license required to create or use. This will all change soon!
• Easy to create using free software.
• Smartphones with cameras become bar code
readers with free software.
Figure 8 – QR Codes Advantages and Disadvantages
Adapted from Tolliver-Walker (2011)

20. What’s Next?
• Increased mobile ownership
• Expectation to access information via mobile
• ‘Tabvertising’ (ads on tablets)
• Adverts in exchange for minutes
• QR codes everywhere!