Wednesday, January 16, 2013

Mobile Marketing

Mobile Marketing: From a Guy Who Knows Nothing About It

Mobile Marketing is simply marketing via a mobile device. Due to the rapid growth and innovation of mobile devices, this specific aspect of marketing is becoming increasingly important.  Below I will outline the different methods used in mobile marketing, and how mobile marketing can impact marketing strategy.

Mobile Marketing Methods

SMS, MMS: standard costs of text messages are incurred.  Many businesses use a ‘short code’ i.e. 234-02, (making it easier for consumers to respond, though the short code does have a monthly fee attached to it.) This accounts for a large portion of mobile advertising dollars spent. Because consumers have to opt in in order to receive these messages, this method can often allow firms to advertise more relevant content.

Push notifications: Initial costs tend to be high due to app development costs, but cost of push notifications thereafter is essentially free. Because push notifications interrupt activity on mobile devices, this method must be used with caution so as not to irritate consumers.

Web: very similar to regular web advertising, only focused completely on web pages designed for mobile devices. Marketers may pay per impression or per click. Advertisements are usually in the form of top or bottom banners. 

In app: Due to enormous growth in the mobile gaming industry, many game apps have advertising within the game. Companies may choose to advertise in a game through banners, push notifications, or they may simply sponsor the entire game itself.

Mobile Marketing’s Impact

Mobile devices vastly increase a firm’s ability to reach out to consumers. The mobile device industry has exploded, with 83% of American Adults owning cell phones alone[1]. In addition, many of these mobile marketing methods are ‘opt-in only’, which increases response rates[2]. GPS on mobile devices also allows marketers to deliver more local-based (and hopefully more relevant) content. 

However, due to the rapid change of mobile technology, it is difficult to determine how relevant the different methods might be even in one year from now. This represents a higher risk for firms considering investing its marketing dollars in mobile. The industry is simply very new, and very dynamic, thus making it difficult to establish proven channels. Finally, mobile analytics is considered one of the biggest needs for improvement in mobile marketing, signifying the current challenge of measuring results in mobile marketing[3].


1 comment:

  1. My company is currently working on an opt-in text promgram, to send discount offers to targeted customers at various times. It has been met with mixed reviews, and still requires alot of communication from personal, as well as advertising. So far, it has also been difficult to gauge results of those who have opted in. But, in time I feel shows a lot of promises. Good summation of the main issue and points.