Mobile Marketing

Week 10
Learning Outcomes
• To understand the mobile opportunity

• To review the response mechanic

Introduction
• A component of mobile commerce. M-Commerce: use
of wireless handheld devices to buy and sell goods and
services.
• Interaction with customers wireless
telecommunications
through and
connected to mobile service mobile devices
providers,
Wifi networks, Bluetooth.
• Cell phones provide direct contact to
customers (one-to-one marketing)
Forecast of Global Mobile Traffic
Advantages of mobile marketing
 Estimate of Mobile Ad Spending per Country
(2018) in %

Source: Investment Bank, Digi-Capital (2015)

Mobile Search Behaviour

26% start their

searches on
apps
48% start their
searches on
search engines
33% start their
searches directly
on
popular websites

Source: Smart Insights, 2017

 Implementation – Cost Factors
PLANNING AND CONCEPT
- Conceptual consulting services
- Creative development
ADDRESSING TARGET AUDIENCE
- Advertising and sponsoring costs
- Provision of own data and contents
-Sharing profile data with external
suppliers
TECHNICAL IMPLEMENTATION
- Messaging processing
-Creating an infrastructure for feedback
channels
- Administration of mobile applications
- Technical advertising resources
- Integrating existing systems
EVALUATION AND ANALYSIS
- Implementing technical analysis tools
- Preparing and evaluating response data
- Analyzing effectiveness of advertising
Example of Implementation of
Mobile Commerce Platform
Implementation – Goals
Brand Awareness.
The brand (brand image)
must be continuously
shared with target groups to
maintain recognition

Mobile Website Traffic. App-Downloads.

Downloads allow
Specific strategies should users to obtain apps
be implemented to increase quickly and easily.
information retrieval via
the app.

Product Sales.
Lead Generation. Use Other products can
new search functions to be sold along with
create wider distribution the app.
and reach new target
groups.

Phone Calls. Customer Relationship

Since many consumers Management (CRM).
prefer to make contact by Contact with existing
phone, a telephone number customers must be
should be provided. maintained.
Strategy – Elements of a Successful
Mobile Strategy
1. Personal Service via Mobile Devices
• Offer mobile services
• Personal contact with customers

2. Mobile Optimization of Websites

• Better search engine ranking
• User-friendly presentation

3. Analyze and Optimize Mobile Developments

• Check mobile activity with KPIs (app download rate, return
rate, visit times, etc.)
• Targeted market observation
Strategy – Elements of a Successful
Mobile Strategy
4. Mobile as a Change Project
• Mobile affects all areas and departments of a
company
• Mobile projects as part of digital transformation

5. Networking with Target Group

• Continuous networking with customers
• Customized
What kind of advertising interests
mobile internet users?
1. Free gifts
2. Meaningful and relevant content
3. Location-specific products and services
4. Receiving necessary information with little effort
5. Visually-appealing banners
6. Personalized advertising
Response mechanic
• The best marketing goes where the customers are.
• Recent study: almost three-quarter of internet users will
go online solely through their smartphones by 2025.
• Mobile marketing is an art and science all its own.
• To succeed in the mobile space, need to use marketing
strategies that are specifically formulated for the medium.
• 4 best strategies to increase response.
 1) App-based
marketing
• Mobile users spend 80% of their time using apps.
• Can also use Facebook’s Promoted Post ads,
which appear within Facebook’s mobile app as
part of users’ news feeds.
• Allows you to make contact with proven, loyal
customers.
• Eg. Skin care Sephora. Expand consumer
engagement by offering rewards programs and
customized shopping experiences.
 App-based marketing - Pros
• Apps can foster an intimate and constantly
evolving relationship with your customers.
• Data technology can enable a hyper efficient
shopping experience.
 App-based marketing - Cons
• Your audience is largely limited to existing
customers, so this method is not optimal to bring in
new users.
 2) In-game mobile marketing
• Gaming is such a huge segment of the mobile market. It is
estimated that gaming accounts for 43% of all smartphone
use. 56% play more than 10 times a week.
• 2 main types of mobile ads: banner ads and video ads.
• Banner ads – gamers will see your ad during a loading
screen or displayed during the game.
• Video ads – proven to be a huge successful form of in-
game marketing. Incentivized video entices consumers to
watch an ad in return for rewards like in-game points or
gear.
 In-game mobile marketing - Pros
• In-game marketing gets your ads in front of some of the
most engaged, enthusiastic mobile users.
 In-game mobile marketing -
Cons
• Gamers’ receptivity to both banner ads and video ads
have declined.
• The average attention span has gone from 15 seconds to a
mere eight second.
 In-game mobile marketing -
Cons
• Gamers’ receptivity to both banner ads and video ads
have declined.
• The average attention span has gone from 15 seconds to a
mere eight second.
 3) Location-based marketing
• Uses consumers’ past or present locations to give them
tailored ads.
• 2 most popular forms: geo-fencing & geo-targeting
• Geo-fencing: use by companies like Facebook and
Snapchat, to push ads to consumers based on where they
are at that moment.
• Eg: if you are in a certain city, you might see an ad for a
concert happening a few blocks away of for nearby
restaurants.
 3) Location-based marketing
• Geo-fencing: Based on a consumer’s past location.
• Eg: A restaurant is running a promotion. They can use geo-
targeted mobile marketing to push ads to everyone who has
visited the restaurant over the past three months.
• Google My Business. Easy way for your business to engage in
location-based marketing. Allows you to upload a profile of
your business, so that when nearby users google businesses like
yours, your business will come up.
• Experts say that 50% of consumers who search for nearby
merchants end up visiting that same day.
 Location-based marketing - Pro
• Location-based marketing helps you target high-
value consumers.
• Geo-targeting especially is a great tool to close the deal.
 Location-based marketing -
Cons
• Some consumers have expressed privacy concerns about
location-based marketing.
• Studies have shown that consumers can be alienated by
creepy ads that stalk them if it is done too aggressively.
 3) QR codes
• Consumers today want their information fast and QR (quick
response) codes are one of the best ways to give them what they
want.
• Scannable images can auto-dial your business’s number, start an
app download, email them a receipt or menu or show your
business’s exact location.
• Marketers have found that consumers in the gaming space are
more responsive to a surprise or mysterious QR code.
• While retail consumers prefer a more straightforward disclosure
on what the QR codes actually do.
 QR codes - Pros
• Fast and easy to implement.
• Can pack a huge amount of information into one point of
contact.
 QR codes - Cons
• The use of QR codes has steeply declined in the U.S. and
Europe, though they are still popular in Japan and Asia. Western
consumers have developed a suspicion of QR codes.
 4) Mobile search ads
• Mobile search ads are just the mobile equivalent of the Google
ads.
• They are ads that appear at the top of a user’s search results,
formatted so that they appear to be part of the results.
• One study found that the top three positions in search results
have click-through rates of 23%, 14% and 10% respectively.
 Mobile search ads - Pros
• Mobile search provides immediate, measurable results at a
great value.
 Mobile search ads - Cons
• Online users have grown steadily more suspicious of ads.
• If your website is not optimized for mobile viewing, all that
traffic will go to waste.