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Entries categorized "Marketing - Mobile"

July 20, 2008

Text And The City

I often toss and turn at night wide-awake contemplating when I will next get my hands on more quantitative research in the area of mobile marketing. Occasionally I bustle about in my own mental mobile marketing meanderings like Sarah Jessica Parker considering her romantic dilemmas on HBO’s Sex and The City.

http://www.mobilemarketingwatch.com/text-and-the-city/

And if you think I’m kidding, just ask my wife.

Needless to say, you can always expect a fair share of feedback from me when a company delves into the juicy results of their research in this realm - whether it’s massaged for their benefit or not. Either way, there’s always something to be learned.

According to Direct Marketing Association (DMA), the results of its first-ever “quantitative research effort in mobile marketing” are in. And as it turns out, the survey illustrated that text messaging is “by far the most often cited mobile marketing method-accounting for 70 percent of consumer mobile marketing responses-compared to a 41 percent response rate to surveys and a 30 percent response rate for email offers.”

The online survey conducted earlier this spring retrieved data from 800 mobile phone owners. 157 surveys were completed by respondents aged 15-20, and the remaining 643 surveys were completed by respondents aged 21 and older.

June 26, 2008

Top 5 things to know about SMS advertising


If you want a marketing platform that offers reach, ease of entry, targeting and interactivity, then text marketing has it all.

When most of us think about SMS, we envision the (sometimes creatively) abbreviated messages, like “R u on yr way home?” But in addition to being a convenient and addictive personal communication tool, SMS is proving to be a great platform to help marketers reach and engage hard-to-find audiences. 

Due to the personal nature of communicating with consumers on their mobile phones, marketers need to get smart about the medium and how to tap its potential to not only push information to consumers, but to spark a conversation with them. So, here are the things you need to remember about SMS Advertising.

1. There is big reach in text messaging, and audiences are already opted-in.
Don't worry about having to deal with fragmentation. If you want to reach tens of millions of consumers through their phones, you can do it today. Moreover, the demographics of this consumer base are not purely teens or twentysomethings; lots of other demographics opt-in for SMS content as well.

Taking a step back, SMS is also the most commonly used mobile technology (besides voice), and because virtually all mobile phones can send and receive text messages, SMS advertising messages reach the widest possible audience.

According to the Nielsen Company, 77 percent of U.S. mobile subscribers used SMS by the end of 2007. In comparison, the same report said that 36 percent of mobile subscribers accessed the mobile web in the same period. More evidence of SMS' pervasiveness: SMS-based information search was used by nearly 15 million consumers to get sports scores, news or weather during the final quarter of 2007, according to the Nielsen Company.

The things that make SMS a great tool for personal communication -- ubiquity, relevance and immediacy -- also make it a great channel for marketers.

Publishers like Yahoo, MySpace, Evite, USA TODAY, the NBA, and most television networks are all sending out content that users are asking for. The diversity of the content available leads to an equally diverse audience.

May 23, 2008

American Idol” — Cook-ed by TXT Messages

gigom.com

Even if, like me, you don’t much care about David Cook, you have to hand it to the hit FOX reality series: It’s putting SMS systems to maximum use, turning them into a giant cash machine. AT&T says the most recent season of “American Idol” show generated 78 million text messages — up from 67 million last season. And an informal poll conducted by the company on its web site reveals that 51 percent of the 416 respondents tended to text more frequently during the “American Idol” season than other times of the year. Another twenty-two percent said they first learned to text message by voting for their favorite “Idol” contestant. Now only if Ma Bell could tell us how much money they are really raking from this tie-up with the talent-based reality show.

May 12, 2008

Jumpstarting the Mobile Internet

Is social networking the key?

Mobile social networking stands a good chance of jumpstarting mobile Internet adoption because mobile social networking is based more on communication than content. Time and again, communication services have led the way for content and advertising to follow. In the case of the Internet, it was e-mail and discussion boards—not Web pages—that triggered the explosion from early adoption to mainstream consumer use. SMS services drove mobile data use and they still account for the majority of mobile data revenues by carriers.

Need data for presentations? eMarketer subscribers can download charts instantly — over 50,000 choices.
Learn About an eMarketer Subscription

It is not surprising, therefore, that mobile carriers and mobile content providers have warmed to mobile social networking as a new opportunity to ramp mobile Internet use. In truth, they have little choice. Their attempts to convince the mass market to sign up for mobile Internet have proved moderately successful, at best.

According to February 2008 research by Informa, the global market for all current forms of paid mobile entertainment should reach $31.7 billion by 2012. Back in 2006, the same forecast optimistically predicted $42 billion by 2011.

 

Mobile Entertainment Revenues Worldwide, by Type, 2007-2012 (millions)

Juniper Research published a far more bullish outlook for mobile entertainment in January 2008, projecting $64.8 billion worldwide by 2012. Earlier research by Juniper also tried to quantify the revenues associated with mobile user-generated content such as chat room services or mobile dating, predicting $5.7 billion for 2012.

Even with the most upbeat projections, paid mobile content is a tiny market in comparison to revenues from communication-based mobile services. In the US alone, mobile data service revenues (predominantly message-based) reached $23 billion in 2007, according to industry trade group CTIA—The Wireless Association. Mobile messaging for SMS/MMS/IM/e-mail worldwide is expected to be between $100 billion and $200 billion by 2011. When voice traffic is included, the global mobile industry is on track for almost $1 trillion in total revenues by 2012.

May 10, 2008

Spam Moves to Cellphones and Gets More Invasive

http://www.nytimes.com/

http://www.nytimes.com/adx/bin/adx_click.html?type=goto&page=www.nytimes.com/printer-friendly&pos=Position1&sn2=336c557e/4f3dd5d2&sn1=cc94fccb/7e93d318&camp=foxsearch2008_emailtools_810903d-nyt5&ad=youngheart_88x31_8.gif&goto=http://www.foxsearchlight.com/youngatheart


May 10, 2008

If you thought spam on your computer was a bother, brace yourself: spammers want to find you on your cellphone.

Cellphones have become consumers’ most personal technological devices. Some industry executives, along with consumer groups and security experts, are concerned that unwanted text messages on phones will be an even greater headache than unwanted computer messages.

Cellphone spam is particularly annoying to its recipients because it is more invasive — announcing itself with a beep — and can be costly.

Taber Lightfoot, an assistant director for new media at the Yale School of Management, is among those who have paid for the privilege of receiving cellphone spam.

“I was at work and I got so annoyed,” she said of the first burst of three messages she received. She got another burst two days later.

“That is when I called Verizon and demanded they reimburse me $1.60 for eight text messages,” Ms. Lightfoot said. “It wasn’t a lot of money, but it was my money.”

American consumers are expected to receive an estimated 1.5 billion unsolicited text messages in 2008, according to Ferris Research, based in San Francisco, which tracks mobile messaging trends. That is nearly double what they received in 2006.

Of course that is a small percentage of the overall number of messages: an industry survey showed that consumers in the United States sent and received about 48 billion text messages in December alone. But for many people who are charged as much as 20 cents for an incoming message or are interrupted in the middle of dinner, even one is too many.

“The reason this really burns people up is because they have to pay for messages they don’t want, and they shouldn’t have to,” said Chris Murray, senior counsel for Consumers Union, a nonprofit group.

Now some consumers, like Ms. Lightfoot, are monitoring their cellphones more aggressively for unwanted messages and, in some cases, demanding refunds. Computer security companies have developed products to help fight mobile spam. And AT&T, Verizon and others are making it easier for customers to block unsolicited messages and keep spammers at bay.

The fees that customers pay to receive messages are a source of profit for the phone companies. It is hard to estimate how much they make. Many consumers pay for a monthly plan that allows them to send and receive large numbers of messages. But for those without a plan, getting as few as 10 unsolicited text messages a month at 20 cents each would cost an extra $24 a year.

Communications companies say they are not interested in spam as a profit center. They want to one day exploit the power of customized advertising on mobile phones, and tawdry spam pitches threaten to make their customers hostile toward all commercial messages. The companies are trying to head off the problem before consumers revolt.

The carriers regularly adjust spam filters to block offending messages. At Sprint, more than 65 percent of all text messages sent over its network are identified and blocked as spam before they reach customers.

The companies use legal weapons as well. Verizon said it had filed eight lawsuits against spammers since 2004.

“Even if Verizon or AT&T are not the ones sending text messages to customers, there is the perception that the operator is to blame,” said Seamus McAteer, a senior analyst at M:Metrics, which tracks mobile phone advertising. “It is not in the companies’ best interest to have customers calling and complaining about their bills all the time.”

Ralph de la Vega, chief executive of AT&T’s wireless unit, said wireless companies recently agreed to quickly share information about the sources of spam to fight it more effectively.

Most phone spam is actually e-mail that comes through gateways linking the Internet and cellphone networks, industry executives said.

Most wireless phones have a dedicated e-mail address. At AT&T, for example, it is a customer’s cellphone number followed by @text.att.net. Using computers, spammers create millions of possible number combinations, then send messages to those addresses.

One day in March, Anthony Melone, Verizon Wireless’s chief technology officer, began getting complaints from customers in the Northeast and Midwest about a wave of unsolicited text messages that were flooding its network. Mr. Melone said Verizon technicians tracked down the source and found the messages were coming from someone using e-mail accounts at Microsoft’s Internet portal, msn.com.

It took a day to quell the assault because the spammers kept changing their e-mail addresses and the Web sites they were promoting. By then, nearly five million messages had made it past the network’s anti-spam filters, resulting in grumbling and demands for refunds from customers like Ms. Lightfoot.

“Even when you find them, spammers know how to keep it below the radar,” Mr. Melone said.

Christopher Siracusa, a 24-year-old medical student in Brooklyn, said he gets about one or two spam messages a week, usually from pornographic sites with come-ons like, “Hey Sweetie, we talked last night.” As a result, he disregards any text message from a number not programmed into his cellphone.

This, though, has caused miscommunication more than once with people he actually wanted to reach. Recently, he said, he got a text message from a female friend who wrote, “I have a new number, call me.” Mr. Siracusa did not, thinking the message was spam, and he later had to explain the problem to her.

But inconvenience is not the only downside; there is also the threat of viruses as phones become more like personal computers. Some companies are already preparing for this.

Last winter, Symantec, a maker of security software, introduced a product for smartphones that connect with the Internet to detect mobile threats, check for viruses and automatically delete spam or corral suspect texts in a folder.

Khoi Nguyen, a product manager for mobile security at Symantec, said the company developed the software mainly for Asia and Europe, where creative spammers try to steal credit card information or banking data through phones. He said he expected to see the same trend here in the next 6 to 12 months.

“There has been a transition from annoying spam to threatening spam,” he said.

Michael Zaruba, an AT&T customer who works in Chicago as an editor and producer, recently received unsolicited texts from “Rose,” asking him to visit a Web site. He said he did not visit the site, but it made him question whether his 12-year-old brother, who just got a new cellphone, would.

“Nowadays phones come equipped with access to the Internet,” Mr. Zaruba said. “It’s another way to mess with your computer. I can see people getting viruses on their phones.”

All major communications companies give consumers the ability to thwart spam by changing the easily guessed e-mail addresses for their phones, or completely blocking messages coming from the Internet. They can do this by logging onto the company’s Web site and changing their preferences.

“I did that six months ago and I have not received any spam,” Mr. Melone of Verizon said. “No one, not even me, wants their cellphone to ring at 2 in the morning.”

May 09, 2008

Mobile Advertising: Still Waiting for a Medium


via CRM Daily on 5/6/08

Seen that great new ad on your mobile phone? No? Neither have we.

Maybe, if you are the texting type, you have responded to a promotion that asked you to send an SMS in order to enter a contest or receive information about a product.

Despite several years of escalating hype about the prospects for mobile advertising, the business remains in its infancy. Analysts say current spending totals around $1 billion annually, or around two-tenths of 1 percent of global outlays on advertising.

And it's debatable whether the activity that accounts for the bulk of that spending, text message campaigns, even qualifies as mobile advertising. That is because these campaigns typically employ advertising in other media, like billboards or newspapers, to encourage consumers to respond, rather than beaming ads directly to their phones.

Now that mobile television and other video services are being rolled out widely, advocates of mobile advertising are renewing their pitch -- that cell phones could be a highly effective medium, allowing marketers to reach consumers anytime, anywhere, on a device they love. Analysts, meanwhile, have been busy updating forecasts for the growth of mobile advertising.

EMarketer says overall mobile ad spending will rise to more than $19 billion by 2012. The Mobile Marketing Association, a trade group, says it should account for about 5 percent of ad spending worldwide by 2013. Given that the global ad market totals about $500 billion, that means about $25 billion would be allocated to cell phones.

Other forecasters are skeptical that mobile advertising will grow this quickly. Juniper Research said last month that spending would rise to $7.6 billion in 2013 from $1.3 billion this year.

May 08, 2008

The 411 on mobile snap technology

imediaconnection.com

 
By Leah Messinger
A slew of new companies have come out with camera phone-based technology. You snap a photo of a product or promotion and receive information on the item in return. But how viable is this form of mobile marketing?

May 02, 2008

Are Personalized Mobile Ads Evil?

GigOm.com

As the mobile browsing experience forces people to search on smaller screens, where will Google place all of its revenue-generating text ads? Ben Kunz in BusinessWeek writes that the rise in mobile browsing on small screens equates to less ad space for Google.

I doubt very much it will mean the end of Google’s revenue stream, however. Mobile ads are both scarce and effective and as such, will only prompt Google to attach to them a luxury model. Though such luxury will have to mean more personalization — in other words, as Kunz suggests, more intense profiling and more personalized ads. Given its forays into storing medical data and its ability to search your desktop, I don’t think Google can afford to get too personal with its advertising without risking considerable backlash. But it continues to walk the line between utility and privacy without damaging either its brand or its ability to make money, so maybe Google will find a way.

April 28, 2008

Starbucks remembers they make coffee, step back from being music label

http://www.prefixmag.com/news/starbucks-remembers-they-make-coffee-step-back-fro/18340/

In a press release on their website, Starbucks has announced that they're handing over control of their Hear Me music label to Concord Music Group. Quoth the CEO, Howard Schultz: “As part of our ongoing transformation, we are committed to examining all aspects of our business that are not directly related to our core.” For those keeping score, Starbucks' "transformation" involves the company transforming back into a coffee shop, although this time without the burnt coffee. Following this move, Ken Lombard--the now former head of Starbucks Entertainment--has "has left the company to pursue other business interests." As Brooklyn Vegan points out, this announcement comes admist news that Starbucks stock is starting to stagnate with the rest of the economy, so he probably wasn't given much choice. 

April 27, 2008

Strong demand for mobile phones

http://news.bbc.co.uk/2/hi/business/7366650.stm

A woman speaks on her mobile phone in Beijing
Demand for mobile phones was strong in Africa and Asia

Global demand for mobile phones remains strong, despite economic uncertainty in rich nations and rising food prices in poorer countries.

Consultancy firm Strategy Analytics says 282 million handsets were shipped worldwide in the first three months of 2008, up 14% from a year ago.

The growth was driven by rising demand in markets such as Africa and Asia.

Nokia maintained its dominant position with a 40.9% market share but shipments of LG and Samsung phones grew fastest.

Motorola, Sony Ericsson and Apple lost market share in the quarter.

"Motorola's 10% global market share is at the lowest level since our records began," Strategy Analytics said.

"It is in real danger of being overtaken by LG."

It said Motorola's handsets were "unexciting", while LG's "good looking" and "feature rich" handsets were popular amongst consumers.

Handset market share
Nokia 40.9%
Samsung 16.4%
Motorola 9.7%
LG Electronics 8.6%
Sony Ericsson 7.9%
Others 16.4%
Source: Strategy Analytics

Demand for mobile phones was most brisk in emerging markets, particularly in Africa and Asia.

It said that rocketing food prices in developing countries and the financial crisis affecting richer countries had so far had limited impact on demand for mobile handsets.

Strategy Analytics forecasts demand will continue to rise, but at a slightly slower rate.

It predicts 290 million handsets will be sold in the second quarter of this year, up 12% from the same period a year earlier.