Mobile Marketing: Pros and Cons_Michael Hanley

Pros and Cons of Mobile Media
The Pros and Cons
of Mobile Marketing
The Unique Benefits of Mobile
Class 2

Mobile Marketing Definition
Mobile marketing is a set of practices
that enables organizations to
communicate and engage with their
audience in an interactive and relevant
manner through any mobile device or
network.

Seven Unique Benefits of Mobile
1. Mobile is Personal
• A survey (“Wireless Works” by BBO and Proximity) found that 63%
of
respondents would not share their phone with anyone (and 90% of
those surveyed in Japan would not share their phone). While laptops do
present a personal connection to the Internet, they are not as personal a
device as the mobile phone.
• The implication for marketers: Respect for privacy and permission is
exceptionally important in all aspects of marketing, and particularly so
when it comes to mobile phones.

2. The mobile phone is always carried.
• What do you take with you when you leave your house?
Wallet, keys and mobile phone.
• What do you keep always near you when you are in your house?
Mobile phone.
• According to research by Morgan Stanley, 91% of mobile phone
owners keep their phone within arms length, 24 hours a day. People
have their phones with them at all times of the day, even in the bathroom.
• The implication for marketers: Messages sent to recipients can be read
and acted on immediately. Unlike email, which requires that the recipient be
in front of their computer and connected to the Internet, messages sent to
mobile phones will most likely be accessed within seconds of being
received.

3. The mobile phone is always on.
• In order to fulfill its primary function – as a telephone – the mobile
phone is always on. Messages and services can be sent and acted on at
all times of the day.
• The implication for marketers: Similar to the previous feature of the
phone, the fact that the phone is always on changes the services and
messages that can be developed for the phone. 1
• It also means that marketers need to be even more sensitive with their
marketing communications. Not many people would appreciate a text at
4 am telling them of a special pizza offer.

4. The mobile phone has a built-in
payment system.
• This is perhaps the key feature of the mobile phone, and one
reason why content for mobile phones in many areas generates as
much revenue as content for the Internet. Every mobile phone has
a built in payment mechanism – the SIM card.
• Billing is easily handled through the user’s mobile network.
Paying for content and downloads has been built into the way that
consumers use their phones. There is less expectation that
products will be free.
• There are also a number of services that turn mobile into a virtual
wallet or bankcard, bringing banking and payment services
globally.
• The implication for marketers: Consumers are willing to pay for
services and content on their mobile. Advertising is not the only
way to generate revenue for content.

5. The mobile phone is available at the
point of creative inspiration.
• The mobile phone is always available as a creative tool. Phones
today feature a number of tools that let users act on creative
impulse, from taking photos and videos, to becoming a writing
pad for ideas.
• The implication for marketers: The feature can be used to
encourage interactivity within campaigns created for mobile.
• It presents the mobile as a useful tool in viral campaigns based
on consumer generated content.

6. The mobile phone presents accurate
audience measurement.
• While the Internet is vastly superior to other media in tracking and
measuring advertising and marketing campaigns, it is eclipsed by the
mobile phone.
• Every transaction made on a mobile phone can be uniquely tracked
to that mobile phone number, whether the transaction is a voice call,
an SMS message or accessing the Internet.
• The implication for marketers: Aggregated data provides extensive
profiling and segmenting opportunities for targeting the right
audience. Campaigns can also be accurately measured and tracked
for ROI.

7. The mobile phone captures the social
context of media consumption
• Because of the nature of the mobile phone to accurately track
transactions to any particular phone number (user), it can track
transactions between mobile numbers (users).
• This means that sophisticated data mining can identify patterns that
indicate information and preferences of mobile phone users.
• Not only can alpha users be identified, but they may be identified
within their social context.
• The implication for marketers: This information will represent rich
data that can be used to both create and market products, content and
services online.

Advantages of Mobile Marketing
1. Instantaneous
• Or, at least in principle. As the audience is likely to be carrying their
mobile devices with them in a standby state, they are more likely to
receive and absorb the message on the spot. Always around, always
on.
According to comScore, Inc., a leader in analysis and commentary
of the digital world, advertisements for restaurants and food boast the
highest response rates of all SMS advertising. On average, 16% of
those receiving a mobile ad for a restaurant are likely to respond,
while 13% of those receiving an offer for food – such as a grocery
coupon – will show interest.

2. Efficient
• Creating content such as images or video for streamlined mobile
devices is relatively inexpensive when compared to desktop or laptop
systems which can handle content of the highest quality. The
limitations of mobile devices such as screen sizes, data transfer rates
and costs mean that content needs to be simple when created for
mobile.
Mobile efficiency is also great for promotions, issuing coupons
and other permission-based marketing and incentive services.
Promotional codes and coupons can be relayed to the audience via
mobile devices, allowing users to ‘carry’ around the virtual
information and use at a convenient time.

3. Convenient
• With a good idea in action, mobile campaigns can prove more
convenient than traditional media, as the content is kept down to a
minimum and the platforms are adaptable on a mass scale.
4. Sharing
• Like the desktop based Internet, mobile connectivity can make
sharing information a breeze. Not only does Mobile Marketing have
massive viral potential, but planning a campaign to go offline and then
return online by using such multimedia devices such as 2D barcodes,
Global Positioning System (GPS) or camera capabilities, can attract
others to get involved.

5. Broad
•Potential for brand new audience who may not have much online
experience, while specific target groups can be singled out.
•According to a report released by The Kelsey Group, the number of
mobile Web users in the US is expected to grow by over 50 million by
2013, clocking in at a whopping 100+ million users. During this period, the
number of mobile handsets in America is expected to grow by just under
25 million.

6. Consumer Relationship Management
• As mobile technology is essentially the first mass-communication
vehicle which relays messages directly to the individual wherever they
are, there is an increase in relationship building potential.
• Mobile phones are private and relatively secure, allowing for a more
personalized approach to media. Marketers can receive feedback
instantly, leading to a valuable two-way conversation with their
audience members. With reduced costs of broadcasting messages,
regular updates on procedures such as insurance claim processing
via SMS maintains customer contact and can reduce call center
volume.

7. Real-Time Tracking
• As with the traditional Web, tracking and reporting is easy, effective
and instantaneous – if the network providers play ball, that is. Quicker
response times lead to increased tracking potential and market
understanding.

8. Customizable
• Mobile Marketing is often able to reach a wider audience due to the
accessibility of mobile devices when compared to the number of
those who have access to traditional, desktop-based Internet –
especially in developing countries such as South Africa. There is
often potential for device detection, geo-locating, location-based
messaging (such as location specific and sales related broadcasting
Bluetooth messages in shopping center) and other handy tools for
targeting.

9. Multimedia
•Like PC based Internet, photos and videos are available, but it’s never
been easier for users to create and share this content, provided that they
have the latest phones. The ability to view this content is important to
modern Mobile Marketing, but campaigns can also be centered on user
generated multimedia content. Audience participation allows your
campaign to grow exponentially, in content and influence.

10. Novel
• Mobile Marketing industry is not yet saturated with excessive
promotions. Users and advertisers both still see value in Mobile
Marketing.

11. Adaptable Integration
• Mobile convenience makes it easy to cross platforms and
promote other media sources by incorporating mobile elements into
current campaigns. For example, Common Short Codes (CSCs) can
be used in a TV or radio ad to get the public to enter a competition or
request information. All they need do is text a specified keyword to
the five digit number advertised. RSS (Really Simple Syndication) can
be fed via SMS to your contact list, informing of news, specials or
other valuable marketing information.
Microblogging platforms such as Twitter are another increasingly
popular communication tool for marketers and consumers and have
major benefits when incorporated into a mobile campaign.

12. Payment
• Mobile devices have the potential to replace the physical wallet as it is
a relatively secure payment device. This means the consumer doesn’t
have to carry around cash – but can pay via advanced mobile Web
systems or even with basic USSD services (Unstructured
Supplementary Service Data) or CSC services.

13. Direct, Personalized Marketing
• By the time you’ve finished reading this sentence, a mobile user could
have received a direct marketing message. As his or her device can be
used as a virtual wallet, there is potential (especially in countries such
as Japan where mobile payment systems are common) for a sale to be
completed at the peak of interest.

Disadvantages of Mobile Marketing
1. Few Standards
• Mobile phones are even less standard than PCs. Not only do phone
models present a myriad of screen sizes, there are also several
operating systems and browsers that are used by mobile phones.
2. Privacy and Permission
• Privacy is always in question on any network or device.
Savvy marketers must be aware of the connection that users feel with
their mobile phone, and offer clear instructions for opting out of marketing
communications.

Disadvantages of Mobile Marketing
3. Challenging Navigation
• The mobile phone is small, and has a small screen and keypad.
While some phones have a full QWERTY keypad, many have the
standard numeric keypad. The problem is partially solved with touch
screen phones (iPhone, etc.), but navigation remains an issue.
4. Education
• The use of more advanced features of phones can require an
extensive education process. While mobile phones have a host of
features, these devices are for the most part under-used.

Mobile Marketing: Pros and Cons_Michael Hanley

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