An introduction to mobile marketing. And on the power of real-time notifications. And about the global mobile market. And about helping small businesses communicate with personnel. And about unique use cases for SMS. And about the mobile ecosystem. And about the next 4 billion. And something about parking. And probably some mention of email. And about split testing.
Download the file to find references, sources, notes, and additional information.
1. Solving problems with SMS
An introduction to mobile marketing. And on the power
of real-time notifications. And about the global mobile
market. And about helping small businesses
communicate with personnel. And about unique use
cases for SMS. And about the mobile ecosystem. And
about the next 4 billion. And something about parking.
And probably some mention of email. And about split
testing.
2. QUESTIONS
How many of you are
marketers?
Technologists? Both?
Don’t give us your undivided attention. Please
Twitter away. Comment on anything you find
interesting @vlbeta
4. What is SMS?
> Short Message Service
> Delivers 160 characters in Western
languages
> Sent in the ‘extra space’ on tower pings
> 4.1 trillion messages sent worldwide in ’09
5. WHAT’S A PHONE FOR?
SMS is the only true, mobile push notification system
Well, besides voice
But that’s what mobile phones are:
communication devices
Secondary functions:
identity
real-time notifications
6. SMS statistics for US marketers
> Because it’s opt-in,
conversion rates 8-
20%+
> Reach: 98% mobile
phones compatible, US
mobile penetration to
hit 100% in 2013
> On average, Americans
send & receive 357
texts/month, 1 trillion
total sent in 2008
> Messages have >80%
open rate, offer delivery
confirmation
> SMS is viral. Allows for easy & casual forwarding.
…group offers, event notices, specials
7. Global market size comparison
SMS:
$130b in ’08,
$224b in ’13
Videogames: $41.9b in ‘07, $46.5b in ‘09
Hollywood box office: $26.7b in ‘07
Online advertising: $21b in ‘07
10. Global innovation
> Presidential voting results by SMS
> Grain prices
> Micropayments
> Mobile banking
> Healthcare
> Anonymous crime tip line
11. THE NEXT 4 BILLION
Via Communities Dominate Brands
12. 6.7b people
480m papers printed daily
800m registered autos
1.1b personal computers (all kinds)
1.2b landline phones
1.4b internet users
1.5b TV sets
1.75b credit card holders
2.1b bank accounts
3.9b FM radios
4.3b mobile subscribers (3.1b unique)
Expect 120% mobile penetration in a decade
13. “I have one for work,
one for family, one
for pleasure, and
one for the car”
- A Middle Eastern salesman
14. US messaging ecosystem
Carriers (Tiers 1-3)
CTIA, Neustar
Mobile Marketing Association
Aggregators
Service providers
Ad networks
Content providers
20. Problem - Salon Lofts
Dispersed personnel, little/no access to email
40% CSR time spent making phone calls
Support requests
Meeting / conference call reminders
RSVPs, roll call, etc.
22. Problem - pay for parking
Croatia
Mostly paid parking areas
No change / cash
Re-up parking time
23. Solution
Text plate # to zone short code
SMS reminder when running out
Reply to re-up
10% increase in total revenue
10% decrease in printed tickets
2001 - CRAZY
Dubai, London, most recently Los Angeles
24. Problem - counterfeit drugs
$75b worldwide market
30% pharma sold in developing countries fake
Anti-malarial medication one of most susceptible
Malaria costs Africa $12b in lost GDP / year
200,000 lives / year could be saved if anti-malarial
medication was genuine
2003 – Interpol found 80% drugs were fake in
Lagos, Africa
26. More uses of SMS
Mobile Payments Stock Quotes Game: Find A Prize
Donations Sports Game Scores SMS Consulting
Checking Weather Hotel Check In/Out Logging Data (Weight, Running Time, Etc.)
Word Lookup Fuel Prices Alerts SMS Auctions
Movie Times Street Sweeping Alerts Happy Hour Specials
Chatting VIP Offers Ovulation Cycle Alerts
Voting Secret Meetings Astrology Lookup
Advertising Flash Mobs Traffic Delays
School Closings Prescription Identification Overdue Video Reminders
Digital Business Cards Lead Collection Company Announcements
Driving Directions Illness Diagnosis Ticket Purchase
Polling Mileage Recording Parking Payments
A/B Testing Wine Bottle Notes Bill Payment Reminders
Mobile Banking Radio Song Ids Country Facts
Schedule Requests Wikipedia Search Exchange Rates
World Time Request Real Estate Lookup Personal Diary/Log
Word Translation Appointment Reminders Birthday Reminders
Web Server Monitoring Virtual Queue Management
27. Problem - presentation distro
Gathering email addresses
Lag time 1-2 days to process
Level of interest decreases
28. Solution
Text MOX EMAIL@DOMAIN.COM
Auto response email and SMS
Link to presentation and contact info in your inbox
MESSAGE AND DATA RATES MAY APPLY
to 465637
33. SMS is great for…
Time-sensitive communication
Utilize existing technology in developing countries
Dispersed workforces
Less technically savvy audience
Audience who rarely checks computer/email
Workforce on the go
Constrained budgets
Derailing the conf call (and would do it again)
growth of ‘dumbphones’ outstripping adoption of smartphones. I’ll talk about specifics later.
Show of hands.
Stay on your computers.
On ~1,000 carriers worldwide.
GSM standard set in mid 80s, but didn’t pick up steam until mid-late 90s.
Anything that keeps a user away from communicating is quickly discarded. Wheat from chaff.
Identity: “Japanese schoolgirl watch” on Wired, decorating phones, dongles (phones themselves are nearly disposable)
Nokia breaks users down by categories, not geo:
Simplicity seekers
Technology leaders
Life jugglers
Elsewhere, phones are status symbol. More phones, greater status.
Jan Chipchase, what do we carry?
(bigger to smaller): Owned -> Considered -> Carried -> Used
3 most important things we carry: keys, money, phone. Survival: shelter, sustenance, support.
He very elegantly suggests that these fill the bottom of Maslow's hierarchy of needs, which you may or may not believe in. But his most elegant conclusion is that the phone TRANSCENDS TIME AND SPACE (distance and async messaging), even as it’s personal, private and convenient.
Convenience and reach
4.6b subscribers globally
In US, all opt-in
Messaging used across every age group, increasingly skewing older (parents learn to communicate with kids); reaching 50% adoption among people in their 40s. In the UK, adoption not lower than 80% for anything but oldest demos.
Culture of the phone -> names still differ (via the Economist). Whereas, “Internet” is internet everywhere, even France, hard as they try otherwise.
Smartphones, ~13% of the 309m handsets shipped in 3Q ‘09. By 2015, all will be “smart” (whatever that means in 2015).
Breached 4b subs worldwide in ’08
Among the world’s 800m illiterate, still use phones but delegate. How does this change our design thinking?
5 year period: 2003-9. 10X more mobile than landlines.
Uganda saw 100 fold growth from ‘95 to ‘08 (0.2 to 23 per 100)
Kenya, 15k handsets a decade ago, now over 15m
South Africa, mobile outnumbers landlines 8X
In rural Uganda, some people are using mobile numbers instead of home addresses painted above doors (Jan Chipchase)
Wireless employment:
Disabled beggars in The Gambia employed by Gamcel selling SIM card and topups. Now offered police protection, where previously abuse went unpunished.
Ground/street-level ideas. “Designing for the future”
True, grassroots innovation informs our thinking.
The information on the ballot and presidential election results in Russia will be available through SMS by a short code response mechanism. The number of votes collected by each candidate will be available by simply sending request to number 5503. Fairly standard stuff. However they can also learn the voting results at a certain polling station of a certain region, again by SMS request. For example, to find out the voting results in the Republic of Karelia 201 polling station, it is necessary to indicate 10 201 in your SMS, where the first two figures reflect the number of the Russian federal subject, while the numbers after the gap correspond to the number of the polling station. - http://www.mediaburst.co.uk/blog/sms-cold-war/
Previously, farmers in India and Nigeria had to drive into town to get grain prices. Costly, infrequent (couldn’t move fast enough w/ changing market demand – SMS implemented in Nigeria, prices drop 6.4%, reflecting market). Leveling the playing field for rural farmers.
Kenya, South Africa, Tanzania, Zambia: P2P payments, without bank accounts and transfer of prepaid purchases. In Kenya, 42% of all money transfers through mobile. 1b worldwide who have phones but no bank acct. In Uganda, “sente” -> send money as airtime (village phone lady or kiosk operator sells airtime on prepaid card, transfers it to recipient kiosk by SMS, recipient user gets cash)
Register your phone w/ an agent, provide ID, deposit cash. Cattle dealers put money on their phones instead of carrying cash, should they be robbed on the road.
Rural hospitals get texted emergency procedure, medication info, to areas otherwise cut off.
Boston PD brought in leads on 4 high profile killings. 1,000 tips.
“Phone ladies”, kiosks
Global mobile penetration per capita is 64%
Took 30 years to get past 4b subscribers – the fastest, widest spreading technology ever.
Phones as status.
In Latin America, some have phones exclusively for their bosses.
In Europe, most employed people have 2 phones. In US, 1 of 6 do.
Here in the US, users subscribe to campaigns for brands they like, or bands they follow to be first, in the know; must appeal to the purpose of a phone.
Navigating it:
Get a dedicated shortcode through Neustar, or a shared one through a service provider
3-9 mo provisioning for dedicated, or immediate – 1 mo on shared
Keep compliant with MMA requirements
http://sproxil.com/learnaboutfakes.php
If Symptoms Persist is a documentary on the issues regarding fake drugs in developing nations
http://www.mpedigree.org/home/symptoms.php
http://mobileactive.org/sms-against-fake-drugs
http://nciia.org/taxonomy/term/469
http://sproxil.com/moreonfakes.php
http://cgiu.clintonglobalinitiative.org/Page.aspx?pid=3638
Email from Alden Zecha, CFO of Sproxil --
Hi Vitaliy,
Thanks for contacting us and for supporting Sproxil’s endeavors. At this time we don’t have any hard statistics which we can publicly release about the impact of our work. Our launch in Nigeria was only last month and we feel that it would be misleading for us to provide early numbers until at least a few more months have passed. We can share anecdotal data that consumers are embracing our solution and that there are been mini “shortages” of the particular drug and dosage that we are working with. We would like to attribute that to the belief that the supply of counterfeits is being reduced and that consumers are switching from questionable alternatives since they can be assured of the authenticity of the products working with us. We can say that even in the short time we have been in the market thousands of consumers have already used our service, hundreds of thousands of real products have been labeled and that there is growing interest from pharmaceutical companies. We think that this is just the beginning of a larger wave.