Tuesday, April 1, 2008
The Increasing Importance of Mobile Marketing
After a few years of a lot of hype, mobile marketing is finally taking off. According to BizReport Online, mobile marketing spend will reach $19 billion (with a B) in just 4 years from now -- 2012. Just to level set, mobile marketing spend in 2007 reached just under $3 billion.
According to the article, the real growth will come from the US market due to the increasing availability of wireless phones with cheaper service plans. Also, text messaging will continue to generate the bulk of the spend due to those countries who cannot support video and display ads on their phones. Check out the response rate of text messaging ad campaigns in 2007 . . . a whopping 10%!
How can we as direct marketers integrate mobile marketing into our marketing strategies? I mean, 10% is a response rate that is too good to pass up, right?
In our opinion, it all comes back to targeting and intelligent marketing strategy. More folks have jumped on the mobility bandwagon. We know that kids and young adults are very much into messaging and that their mobile phones have become like an additional appendage. However, adults can also be accused of the same behavior. Just drive on any freeway and you can be reminded of how tied we are to our mobile phones.
When you are looking to bring mobile marketing into your direct marketing toolkit, start out with a comprehensive look at your customer base. It may be helpful to append attributes such as profession, income level, lifestyle and number of children (who will be calling their parents a zillion times per day -- and vice versa).
From this profiling exercise, you'll gain a better understanding of who may more responsive to mobile marketing. Once you've completed this profiling, you will be armed to do some intelligent testing on your customer base to determine if your scientifically-based hunches are right on. The simple beauty of testing is that it allows you to test those hunches prior to rolling out the campaign to your entire customer base. In addition, you can then look for prospects that fit your customer profile, too. This will make them much more likely to response to your mobile marketing campaigns, too. By the way, if you'd like to read more about customer profiling, take a look at our other blog that is specifically focused on analytics.
Meanwhile, we'll be keeping our eyes out for mobile marketing success stories to share with you. Keep in mind that it's all about customer preference. The more you learn about your customer base, their likes and dislikes, how they prefer to communicate with you, etc., the more targeted and precise your marketing campaigns will become. And, i think that's how you can get to that 10% response rate.
If you have any success stories to share with us on this topic, please do!