The title above references a great article on mobile marketing published in
Brandweek on April 2. The piece speaks to the common misconceptions surrounding the field. It identifies key growth and opportunity areas while shedding some light on the direction of the industry. It provides great insights into the mobile marketing sector, identifying the reasons why brands should dip more than a few toes in the space.
Things are beginning to change. Mobile marketing is "headed in the right direction," said John Vail, director of the interactive marketing group at Pepsi-Cola North America, Purchase, N.Y. "It's just taking a lot longer than people thought." Mobile analytics firms such as U.K.-based Bango are helping companies measure mobile Web site traffic, what devices recipients used and the countries they're in. In February, 58 million mobile subscribers reported that they'd already been exposed to mobile advertising, per San Francisco-based Nielsen Mobile (a unit of Nielsen Co., which also owns Brandweek). While that's only 23% of today's total mobile subscribers, that number will spike as marketers' mobile experiments continue to grow. And Hadl, who serves as managing partner of Beverly Hills-based BrandInHand, overseer of Procter & Gamble's mobile efforts, added that a threshold is approaching: "Once there's direct proof of ROI," he said, "the spend will shift faster than the industry can handle."That might happen as soon as two years from now. Forrester Research forecasts that mobile-marketing spending in the U.S. will surge from the $270 million it stands at now to $405 million in 2009. Then it all goes exponential, doubling every year through 2012, at which point the Cambridge, Mass.-based research firm predicts mobile marketing will be worth $2.8 billion.The article goes on to proclaim that the "mobile explosion" is inevitable. When over 250 million people in our country carry around cell phones on a daily basis, of which many of those devices offer
mobie internet access, location-based features, and social networking opportunities, I think it's hard to deny the overwhelming
potentital inherent in mobile marketing.
After providing an overview of the mobile marketing industry and projected growth figures, the article goes on to list a number of statements about mobile marketing that fall under the categories of "
Fantasty" and "Reality." I have listed my two
favorties below:
FANTASYPeople will never use their phones to buy stuff. Think again. Remember when everyone was worried about using credit cards online?Even some tech-savvy shoppers wrung their hands over
cyberthieves stealing their identities and draining their savings accounts. (Psst—it rarely happens.) Even as those same worries have swirled around mobile banking and on-the-go transactions, the truth is that a quarter of cell users with mobile Web access have already trusted their handheld devices to do their shopping, according Harris Interactive, Rochester, N.Y. Sixteen percent already use mobile banking services and one-in-five respondents hope their phone becomes a mobile wallet.Smarter brands are beginning to respond. In January, Pizza Hut began allowing U.S. consumers to order from any of its 6,200 stores using the mobile Web or text messaging. The chain said it expects half its sales to come online or via mobile devices within the next five years. Papa John's began offering the ability to text in orders last November."If privacy and security issues can be caged, mobile banking and mobile wallet services could launch the next leg up for mobile operators," predicted Joseph
Porus,
vp of Harris
Interactive's technology practice.
Rajeev Raman, CEO of
mywaves, a mobile video destination whose clients include
MBW, concurs. In the near future, he said, "purchasing movie tickets, fast food and music via mobile phones will be considered normal, everyday behavior."
REALITY Convenience works. Skip the
cleverisms; brands that give consumers information that makes their lives easier are the ones
that'll benefit. "That's why we bought the phone in the first place,"
Hadl said.Starbucks, for example, makes it easy to find the nearest latte with a mobile-based store
locator. When is that blue turtleneck you ordered going to show up? UPS will let you track the whereabouts of your package on your mobile device."Too many people pigeonhole mobile marketing as just being
ringtones or wallpapers," said Air2Web's Jones, whose company created both applications. Brands that sponsor services that tell users things like where the is nearest baby-changing station or where is the store where I can buy what I need, will thrive, added
Hadl of
BrandinHand. "Soon," he said, "mobile devices won't simply be a push medium."
* To read the full article from
Brandweek, click
here