Inside Mobile Marketing

That’s a lot of phones with removable memory slots! Of course the real trick will be educating consumers on actually purchasing these cards and using them, but that’s up to smart merchandisers and to some extent companies like SanDisk to figure that out. I can’t imagine the Carriers are thrilled with the concept of pre-loaded memory cards as it potentially cuts them out of application download revenue share and data usage fees, but nevertheless the concept has potential to spur consumers to utilize their handsets for more than just phone calls.

There have been companies (SEE ROK Media) that have loaded content onto mobile memory cards in the past, but the uptake to my knowledge has been negligible in a retail scenario. A good sign that this concept might work is that the practice of “sideloading” content, especially music, has had very good traction – especially outside of the States. Consumers, primarily youth, have discovered the cost savings associated with downloading and sharing music while bypassing their Carrier’s networks.

Marketers, especially those targeting Generation Y consumers, might start experimenting with mixing mobile content such as music or games with utility applications (e.g. the Kellogg’s Exercise reminder) that showcase the brand being promoted. Rest assured that their will be unique advertising opportunities within the memory card as the developers have significant control over the card’s actions.

Media companies dabbling in Mobile today may view mobile storage cards as yet another distribution outlet for their video content. I can certainly envision NBC packaging a special “OFFICE” SD Card filled with short snippits of the show’s best bits.

DEJA VU:

I swear at times I thought I was actually sitting in the 2007 MMF event as the same overarching themes and comments emanated from the various presenters. Here’s a few popular ones:

1. “We really thought it was going to be the year of Mobile”. No doubt this will continue to be said during the next couple of years as well.
2. Multiple sessions were dedicated to Mobile Banner Ads and Mobile Internet sites and how to drive traffic to them whereas SMS/MMS Advertising/Marketing was ONLY given a 15 minute slot with 4Info’s CEO Zaw Thet. This strikes me as a bit out of whack as Mobile web browsing doesn’t even come close to the reach and consumption numbers that SMS possesses currently. (M:Metrics pegs mobile web consumption in the U.S. around 13.7% and SMS usage around 48.6%)
3. Mobile education still is required at the Agency and Brand level – Admob’s Tony Northcutt did make the important point that education is especially important at the junior planner and strategist levels as many top marketing executives have already bought into the idea that Mobile will be around for the long haul.
4. Mobile metrics still need to be improved – “we still don’t know who our visitors are,” said WWE’s Rene Rodriguez referring to this company’s Mobile internet destination pages.
5. The U.S. Carriers need to share more demographic information with advertisers. Fair point, but the Mobile Social Networking panelists said they are finding consumers are proving to be very willing to share personal information when asked. It’s worth a try.
6. The Mobile Ecosystem is still too complex to navigate. Lots of players, each with a niche and each wanting a piece of the dollar bill spent on a campaign. Don’t worry, consolidation will continue to occur and processes will get straightened out over time.
7. Success with Mobile comes in the form of an integrated campaign. Standalone mobile programs will struggle due to lack of reach, consumer awareness and budget.

QUESTIONS:

1. Where were the M:Metrics and Nielsen Mobile analysts to place the mobile marketing efforts into some overall context as to what mobile users are actually doing – what the trends are, actual reach of technologies such as xHTML browsers?
2. How come the MMA did not have a representative discussing the highlights of their 2007 Mobile usage study? There is some good data in that thing.
3. For a mobile marketing forum – there was VERY LITTLE use of mobile as a direct response mechanism to poll the audience during and after sessions or allow participants to trail demo programs
4. How does T-Mobile and Verizon Wireless get away with NOT having representatives on the main Carrier discussion panels?? These guys claim they want to build better relationships with the MMA and the various industry players and yet they skip the largest North American gathering. I don’t get it.

PLEASANT SURPRISES:

1. Sprint announced via a representative during an LBS roundtable that they would begin selling access to some of their demographic information for location-based services. I am still however in the dark as to what this data may entail (e.g. sex, area of country versus city, income levels, etc..) and how it may be priced. Nevertheless it’s a good sign though from a major Carrier.
2. AT&T’s Jordan Berman stated in his slotted panel discussion that his company would be launching its self-service ad-serving solution for its MediaNet properties. Stay tuned.

NEED CLARIFICATION:

1. Verizon Wireless’ Stephanie Bauer had a slide deck that stated that VZW had 8 million mobile internet subscribers. I’m curious to find out exactly what that means…i.e. are there only 8 million VZW subs paying for a mobile internet data plan? If so, that would represent a small percentage of their overall subscriber base AND I would venture to guess a large proportion of the total are business users with smartphones subsidized by their employers.

It’s certainly great to see that these aforementioned firms are embracing Mobile as yet another medium to leverage with their clients. Because this list is still very small, I believe that there is still a tremendous amount of opportunity for budding Mobile Marketing start-ups to align themselves with Agencies in a variety of different ways such as a technical alliance (SEE Velti and Interpublic Group) OR through acquisition (SEE Omincom and ipsh!).

In terms of organically growing a mobile unit – it’s a great idea, but finding talented mobile marketing professional who REALLY understand the complexities of the Mobile ecosystem from handsets, to MMA rules to consumer behavior patterns is easier said than done. You need people with this skillset to sift through the hype from various vendors, establish best practices and train eager employees on the ins and outs of planning and launching a mobile campaign.

I was unable to attend the event, but judging from the various articles from those marketers and press members that did attend it sounded like both sides or rather all sides (marketers, government and consumer watch groups) all brought up valid and thought provoking points.

As a mobile marketing practitioner however, what I was looking for is the FTC’s stance on the possibility of getting more actively involved in the regulation of the industry.  IF the FTC does get involved, you can add them to the list of those drafting ‘rules’ for marketers to abide by (SEE –  MMA, CTIA, MEF and of course the Carriers).   For now, however, the FTC looks content to continue to lean on the MMA and Carriers to set the pace, but will be keeping one eye open on the space as it evolves.  (Rest assured though that if complaints start piling up they will be forced to act.)

FTC Commissioner Jon Leibowitz was quoted as saying, “In an era of broadband and information services, the FTC will be watching and is watching closely. We strongly believe, as many of you know, in self-regulation, but we are also going to police the wireless space.” 

So mobile marketers, take notice.  The industry has the feel that things will only get harder in the short term with regards to ensuring software platforms, program briefs, business processes, etc. are in compliance with ALL of the various players before a SINGLE, common-set of guidelines is established (pipe dream?).  The Carriers especially are NOT sitting back idly waiting for the gov’t to start regulating their business practices – they have tightened their screws around their interpretation of the MMA Best Practices and their own ‘addendum’s’ to the MMA guidelines.

The interesting thing about these findings is not that only about 13% of U.S. wireless subs access their mobile browsers on a regular basis or even that some mobile web categories provide decent lift increases.  For me, the great bit is that Nielsen is striving to combine PC-based internet usage data with the mobile internet data to provide better insight into how the two can complement each other. This is the sort of data that would-be mobile advertisers are clamoring for and data that would-be mobile marketers and publishers alike can use in their arguments to justify their mobile efforts.

Along these same research lines it will be interesting to see the results from studies conducted by io global ltd (which has the support of the  Mobile Marketing Association) entitled the ”Three Screen” study and research from a joint effort between MMetrics and MRI.

The io gobal study will measure consumer usage across TV, PC and Mobile with the goal of deriving an “effective framework for assessing the role of mobile in integrated marketing campaigns. “

“ioglobal’s Three Screen Trial will be conducted in partnership with major media companies and advertisers. Advertising campaigns launched during the trial will integrate several mobile marketing tactics in use today such as banner ads, pre-roll, post-roll and in-stream videos, as well as SMS and pure content sponsorship. This launch will provide the mobile marketing industry with new mechanisms for measuring the role and effectiveness of mobile in integrated campaigns.”

The joint effort between MMetrics and MRI, announced at the end of March this year, attempts to provide greater insight into Mobile’s part in cross-media marketing campaigns.

All of this research means that advertisers (especially Media planners) will start to get the real consumer insight they have long sought from the Mobile Channel.