Archive for February, 2010

At first glance, this article yesterday on DMNews.com suggests the one area of mobile advertising thus far overlooked – audio – represents an untapped opportunity for marketers to reach their customers in ways other than text messaging, mobile applications, social media or mobile web browsing.

An internet radio network has supposedly created an advertising product allowing marketers to target listeners with audio commercials in line with station content, according to geography, demographics and device.  Radio advertising tends to be a mass market medium, so this appears to offer marketers the chance to target different audio messages to various listener segments.

Keep in mind, however, that the opportunity for marketers is limited to whatever content the network provides.  The use of mobile devices for audio in general is on the decline and audio messages lack the direct response element of a text message that incorporates a live link to a mobile website or application.

Radio stations have the opportunity to offer a platform for one to one marketing on a completely different scale via text messaging, as outlined in this recent Interactive Mediums paper titled, “Transforming Listeners into Dollars.”  Radio stations can use text message interactions as a means of building out profiles of their audience to offer highly segmented ad units which can drive more revenue.

With respect to the mobile channel, radio stations and their advertisers alike need to separate the notions of offering the usual audio commercial on a device from targeting relevant offers and calls to action via text messaging.  No matter how targeted audio ads become, they cannot facilitate the capture of audience demographics and lack the direct response component of text messaging.

Those new to mobile marketing as well as experienced practitioners will be excited to learn about a new offering coming soon from Interactive Mediums.  Called Zero to Engagement, it’s a software and services bundle designed to help quickly execute a mobile marketing campaign that calls customers to action and in so doing, demonstrate return investment as a step toward leveraging mobile more broadly within a business.  Return on investment is at the core of any marketing investment and mobile is no exception.  Using our Strategy Mapping framework, this offering will:

• Identity a project that aligns especially well with mobile marketing techniques such as SMS text message promotions.
• Help define success metrics to gauge the program’s success.
• Show just how easy our Customer Engagement Platform makes it to configure and execute effective mobile interactions.

To learn more before the official launch of Zero to Engagement, contact us at info@interactivemediums.com.

Today on Brandweek.com, an article clearly written for the advertising professional, claims, “Despite Promise, Mobile Ads Come Up Short.”  The gist here is that despite big bets placed by Google and Apple, as well high response rates, mobile advertising is falling short of expectations.

These expectations include richer, more interactive ad formats necessary for when the “novelty” factor contributing to high response rates for simple text links wears off.

“…mobile will only convince marketers to make serious commitments if it moves beyond the focus on scale with standardized, run-of-the-mill units.  The risk is mobile will follow the same path as the PC Internet and become dominated by direct marketers rather than advertisers used to creating demand via TV ads.”

That statement stands out among all in the article as pointing to a reality advertising professionals should adjust to sooner than later to ensure a seat at the mobile marketing table.  And that is mobile already is an extension of the PC internet, especially on smartphones, and is perhaps the ultimate direct response platform ever conceived given immediate, “on the go” integration with location based services and the mobile web.

Even if, and when, ad units become more standardized, traditional views of interactive advertising will struggle in the face of strategies geared toward calling consumers to action in-line with their behavior.  Today and for the foreseeable future, that has less to do slickly produced, screen hogging visuals and more with relevant messaging integrated wisely with other mobile channels.

All retailers to varying degrees are dabbling in mobile couponing as a means of engaging their customers, driving foot traffic and ultimately selling more product.  The technologies employed vary from a numeric code delivered via SMS text message through actual digitized bar codes that render on a mobile device for scanning at the point of sale.

Each of these options today represents a compromise over traditional printed coupons that most point of sale systems recognize.  Coupon codes requiring manual entry lengthen checkout time and can be error prone while mobile device displays cannot always render codes compatible with POS scanners.

Despite these limitations, retailers are pressing forward to take advantage of the value presented by location-based marketing.  Yet to really unleash the value of mobile couponing, it must be ubiquitous and require a minimal change to retailer operational processes in order to be cost effective.  That’s the thought which came to mind when I read a February 19, 2010 item at DMNews.com, titled “Provision Interactive Technologies teams with Ping Mobile for in-store mobile campaigns.”

The article describes a new offering as follows:

“Marketers can create an out-of-home/mobile campaign in a mall, airport, stadium or other public venue, and consumers can respond to the call to action on the signage by texting in. Coupons, tickets, vouchers and other printed items then become available from Provision’s 3D Media Centers, which consumers can print the coupons at the kiosks and redeem.”

Rather than focus redemption around legacy POS systems, this approach represents a value added intermediary that could be positioned in retail environments in a standalone fashion – the quantity of stations limited only by space and budget.  The solution is described as optimal for “malls, airports and other public locations,” but should have equal or greater value when resident in a single retail environment — especially for large retailers with hundreds or thousands of locations unable to upgrade all POS systems en masse.

This solution also alleviates the need to worry about technology and compatibility issues, and focus instead on creative ways of engaging customers with the most relevant offers.  Interactive Mediums’ Customer Engagement Platform features a variety of pre-packaged engagement actions designed just for this purpose.

The news seems to be increasingly populated with stories about 2D or “quick response” codes used as mobile calls to action.  As this article points out today on MobileMarketer.com, “bar codes offer a shortcut to accessing mobile content, information and mobile commerce.”  Considering the simplistic analogy to a shortcut, it’s rather amazing Neustar is attempting to solve the reach/incompatibility problem of 2D codes and in so doing add a presumably high growth aspect to their business.

The article outlines how Visa used 2D bar code technology as part of a sweepstakes promotion conducted at the recent Mobile World Congress in Spain.  You can read the specifics but as we mentioned recently here and here, 2D bar codes tend to find the greatest success in highly localized and controlled environments where there is some certainty around consumer handsets capable of reading the codes.

What Neustar wishes to do is offer a “clearinghouse” service so marketers can employ 2D codes without restricting their potential audience.  They plan to do this by standardizing previously incompatible codes across devices and operating systems.  It sounds like a lot of work to enable consumers a “short cut” to redeem information on their mobile devices.

2D bar codes appeal to our visual nature and longtime experience with traditional bar codes such as those scanned at the grocery store.  These codes imply ease of use, as well as data — lots of data about who purchased what product and when.

Marketers considering building sweepstakes or other promotions around 2D bar codes like Visa should consider the ease by which consumers today text a keyword to a shortcode to redeem information or be pointed to a mobile website – the exact same use case as with a 2D bar code.  Not only are you assured universal reach but even more data about the consumer can be obtained since a text interaction is bi-directional and can include a question and answer component in real time.

Marketers should focus less on the technology employed to engage their customers, and more on creating a compelling message or incentive which calls their customers to action — and then evaluate options for packaging and delivering the offer.  Right now marketers appear blinded by the “sexiness” of 2D bar codes, and Neustar is betting a new line of business on it.

2D barcodes and their imitators are likely to be among the biggest failures of 2010, at least among marketers who use these technologies expecting to achieve direct response rates like those of SMS text message programs.  That’s both a prediction and more strongly worded follow up to this recent post of ours regarding services claiming to offer 2D barcode benefits but that are consumable by nearly every mobile phone user.

Those benefits include ease of interaction; simply point your camera-equipped device at a code to have information immediately presented and/or be pointed to a website.  In localized programs outside the U.S. 2D bar codes have proven successful.  However, as pointed out in this very good post, standardization among devices and software (or more accurately, a lack of it) is a gating factor to widespread accessibility by consumers in the U.S.

“…2D barcodes…are pretty cool solutions for specific applications, such as mobile airline boarding passes or advanced inventory management, but not exactly the best of what’s out there for mobile consumer marketing in today’s rapidly changing world of mobile media and brand interaction.  The name of the game is to get as many high-quality customer interactions and conversation engagements as possible with your targeted demographic.  Severely limiting the potential response pool by applying restrictions will simply decrease the success of the campaign.”

Articles like this on ChiefMarketer.com present a different picture that marketers would be wise to balance against the facts on the ground.

The universal nature of SMS text messaging has created an impression that mobile marketing can access anyone, anytime and anywhere but until technologies like 2D bar codes and augmented reality are as “standardized” as SMS, text messaging will remain the defacto method of reaching as many of your target demographic as possible.

In the meantime, hybrid services requiring a consumer to snap a photo and send it via MMS are emerging that ultimately lack the instant gratification of real 2D codes and the universal nature of SMS.  Marketers be warned.

With competition for mobile consumer mindshare reaching a fever pitch, marketers will increasingly face an engagement barrier, even around SMS text message programs.  To break through and achieve their objectives, marketers should evaluate offerings such as Interactive Mediums’ multi-channel mobile customer engagement platform.

Having been in meetings with marketers and via anecdotal third party comments, I know many are sitting on the fence with respect to mobile, uncertain whether it’s a novelty, tactic, strategy, channel or alternative to email.  For better or worse, it can be some or all of these.

When you add to this mix that many businesses are reaping mobile marketing benefits, as shown every day on MobileMarketer.com and other sites, marketers in all industries sense urgency to at least try mobile marketing – be it developing a mobile optimized version of their website, an iPhone application or trying to employ SMS text messaging simply due to its reach.

I think this is the landscape documented in research covered today on eMarketer.com, in an article titled, “Mobile Marketers Demand ROI.”  Results of a survey suggest marketers will pursue mobile marketing efforts in 2010 – even allocating budget – but obstacles remain (as shown in the diagram included in this post).

“It appears that 2010 will be a year of experimentation and education on mobile marketing as marketers struggle to come to terms with its practicality and ROI.”

The greatest challenge – not surprisingly – is uncertainty around building the business case for mobile marketing, followed closely by a lack of ROI metrics and mobile not a part of the “strategic roadmap.”  I’d argue all of these issues fall under the heading of simply “I don’t know where to start, given my business, my product or service and customer base.”

For this reason, Interactive Mediums developed an exercise called “Mapping Mobile to Your Marketing Strategy,” that when complete identifies the best candidate projects that align with your existing marketing plans and channels.  This is based on our direct experience and observation of the ways leading companies are going to market with mobile as strategic elements of their business.

Taking time to experiment and educate is simply not an option for marketers given the pace of advancement among leading mobile marketers.  Even trialing various approaches will leave you behind the curve as competition for consumer mobile mindshare escalates.  Taking a thoughtful approach to mapping out a strategy can ensure your business plays a role in the mobile customer relationships that will surely separate the winners from losers.

I once before blogged at taking pleasure in reading contradictory views on important goings on in the mobile industry, and much to my delight (or chagrin) it has happened again.  It’s important to highlight and interpret these cases, as both savvy and novice mobile marketers look to supposed experts to help guide their decisions.

On one hand you have this February 4, 2010 post on MobileMarketingWatch.com citing expert commentary from a recent event, where the consensus view was that mobile advertising was “harder than ever…citing extreme fragmentation and a plethora of new devices sporting varying technical aspects as the main culprits.”  The situation sounds intimidating to say the least, begging for a wait and see approach.

Juxtaposed with this is research cited in a February 5, 2010 article in MobileMarketer.com titled, “Mobile ad campaigns 5 times more effective than online: InsightExpress study.”  Based on the title alone, you can imagine the article describes how much more effective mobile advertising is today than its online counterpart.  And that is the case.

You can read about the differences in effectiveness but it all comes down to “engagement and context” according to the study, both of which we describe as central to mobile marketing’s value proposition, be it a focus on advertising or direct engagement via SMS text messaging, email and mobile web.

I think the disconnect between “experts” and the facts on the ground is due to control; advertising networks are the gateway to this value while many experts working on the boundaries are left struggling for relevance with end customers who have cash to spend.  Marketers would be wise to quickly discern the quality and subjectivity of viewpoints they consider when prioritizing mobile marketing efforts.