Chapter 1 PDF
Chapter 1 PDF
Mobile Marketing
A Beginners Guide to
Mobile Marketing
Molly Garris and Karen Mishra
Karen, thank you for sharing this amazing opportunity with me.
Your experience as an author and patience as a partner were so very
appreciated.
Family and friends, thank you for your endless energy and
support. Working alongside your successes, struggles, start ups, job
hops, weddings, births, and dissertations helped inspire and push me
throughout this project. Much love.
Molly Garris
Thanks to my friend and co-author, Molly, for teaching me so much,
and for making our work together so much fun!
Thanks to my family, too, for your patience as I spent all of my free
time on this project!
Karen Mishra
Abstract
This book is for marketers (from newbies to CMO level) who want to learn
why and how to use mobile marketing to engage and convert c onsumers.
Whether you work with a brand, retail storefront or are studying to do
just that, we wrote A Beginners Guide to Mobile Marketing to help you
learn about the exploding opportunities that mobile marketing offers and
why it is so important to embrace it in your integrated marketing strategy.
As you are well aware, cell phones are no longer just for calling people.
Based on the latest trends in consumer behavior on mobiles, we introduce
ways that marketers can use Smartphone popularity to reach people with
tactics like mobile apps, mobile web, social media, search, text messaging
(SMS/MMS/RMM), mobile advertising, location-based services, retail
programs and more. NFC, QR codes and texting are a few pull tactics
introduced, alongside push tactics like beacons, ads and in-app push notifications. Tablets require a different strategy but this book touches on that
to offer background on mobile vs. tablet marketing.
Citing the latest and greatest third-party research, learn from an
expert about mobile marketing, starting with the basics and ending with a
roadmap to develop and measure strategic mobile marketing campaigns.
Along the way, participate in exercises to ensure that you understand the
material and how to apply it to the real world. Whether you are an educator, student, professional, or mobile maven, we hope that you enjoy the
content and case studies we bring to life in this book.
Keywords
analytics, apps, banners, beacons, brand, case studies, display, iBeacon,
integrated strategy, location-based services, MMS, mobile ads, mobile
advertising, mobile at retail, mobile marketing, mobile search, mobile
site, mobile web, mobile website, multi-media messaging, NFC, nonprofit, omni-channel experience, push notifications, QR code, retailer,
RMM, ROI, search, SMS, social, SOLOMO, sports marketing, success
measurement, tablets, text messaging
Contents
Prefacexi
Acknowledgmentsxiii
Introduction xv
Chapter 1 Past, Present, and Future Opportunities
for Mobile Marketing1
Chapter 2 Calling and Messaging11
Chapter 3 Search and Web27
Chapter 4 Mobile Applications (Apps)43
Chapter 5 Social Media Networks57
Chapter 6 Mobile Advertising63
Chapter 7 Accessing Content89
Chapter 8 Mobile Marketing Strategy and Resources105
Key Terms111
Advance Quotes for A Beginners Guide to Mobile Marketing127
Notes129
References135
Key References143
Index145
Preface
This book is for marketing experts (and newbies) who want to learn why
and how to create mobile marketing campaigns. With our passion for
education, we wrote this to help you learn about the exploding field
of mobile marketing and why it is so important to embrace it in your
integrated marketing strategy. Whether you are an educator, student,
professional or mobile maven, we hope that you enjoy the strategies and
case studies we bring to life in this book.
Acknowledgments
Special thanks to Dr. Dale Wilson, Chair of the Marketing Department
at the Broad School of Business at Michigan State University for introducing us when Molly came to MSU to present a case on mobile marketing. That was the beginning of a beautiful friendship and collaboration
between an MSU Spartan and a U-M Wolverine!
Thanks, also to our expert editor, Dr. Victoria Crittenden, who is
Professor of Marketing and Chair of the Marketing Division at Babson
College. We are grateful for her interest in this topic and her support.
Also, a special thanks to our expert reviewers who made this book
even better!
Ian Beacraft, Manager, New and Emerging Technologies,
LeoBurnett
Chris Bridgland, Digital Strategy Director, Leo Burnett
April Carlisle, SVP Global Shopper Marketing at Arc
Worldwide
Elizabeth Elliott, Associate Director at Starcom MediaVest
Group
Nick Fotis, Digital Strategy Director, Arc Worldwide
Dr. Chang Dae Ham, University of Illinois, Associate Professor
of Advertising
Dr. J. Steven Kelly, DePaul University, Associate Professor of
Marketing
Chris Kenallakes, Account Director, Kenshoo
Cezar Kolodziej, President, CEO and co-founder of Iris
Mobile
Joy Liuzzo, Principal, Product Marketing (Connected
Devices) at Amazon
Maggie Mishra, who provided us with a keen undergrad
perspective
xiv Acknowledgments
Introduction
Molly
I started working in mobile before people really understood what that
meant. Their perspective on the industry was related to carriers and handset manufacturers. But third-party services didnt seem to gain traction
until American Idol allowed us to text to vote on our favorite contestants.
I also worked in the entertainment industry with a team that created digital tools for radio stations across the United States and Canada.
Knowing that text messaging was growing rapidly, we created a service,
which allowed you to send text messages to radio DJs and vice versa,
allowing them to send you messages about new songs, promotions, and
events at the radio station. At the time, this was when an entire TXT
language was beginning to take shape. Without a QWERTY keyboard or
auto correction, we lived the language of LOL, L8R, BF, BFF, and more.
Even at that time, I think we knew it was a bit frustrating and craved a
simpler keyboard and language but the new benefits were just too good to
be true. Suddenly, I didnt have to call someone to say that I was running
10 minutes late. I could take my time deciding where to suggest we have
dinner. I could even avoid a long conversation with my parents and just
do a quick check in.
This service that the carriers and handset manufacturers partnered to
bring us was so relevant that people began subscribing by the millions.
Talking and texting was bound by bundles, far from being unlimited,
which is the way its commonly offered to us today. Except for entertainment brands though, most brands hadnt begun leveraging text messaging as a marketing tactic. I dont think it was cost prohibitive or under
adopted, I just dont think brands were in the mindset of using mobile
phones as marketing tools.
Today, often driven by the always on nature of digital devices, consumers expect informed content and services from brands. Whether
its seasonal recipes from Whole Foods or an easier way to track your
workouts from Nike, people trust brands to provide these tools to enrich
xvi Introduction
their lives or at least offer a bit of entertainment. And although content and tools can often seem limitless, mobile devices and their smaller
screens have forced brands to prioritize which interactions are most valuable to consumers. Creating mobile engagements is a lot like writing on a
Post-It note using a Sharpieonly the most important stuff can fit.
This prioritization exercise has been useful to other communication
platforms as well, ensuring we trim the fat and design around the meat,
so to speak. Now brands offer focused, valuable content on mobile first;
certainly the platform has influenced how brands engage people on their
most personal device.
Karen
I have been teaching marketing in business schools for over 20 years, and
have been fascinated by the many ways brands attempt to c ommunicate
with consumers in order to persuade them to buy. When I first read Schultz,
Tannenbaum, and Lauterborns Integrated Marketing
Communications
(1993),1 I realized that this was the future of customer communication.
We could not rely on just one channel to send messages to consumers, but
advertising, public relations (PR), sales, and direct marketing would all
have to work together to integrate our messages. Wewould need to better
understand all of the different ways that consumers get their information
throughout the day so as to help them absorb and retain the messages
they get in order to make the best purchase decisions for them.
Communication decisions seemed so simple before: advertising or
PR? TV or radio? Internet or mail? Now that mobile is here and connected to consumers 24/7, it is even more critical to understand all of the
different ways consumers use this new media to get information, share
brand information and reviews, talk about their favorite products, show
their favorite products, and make purchase decisions. We marketers must
understand how to leverage this new media to make sure we are helping
our customers make the best purchase decision possible with the best
information possible when it is most convenient for them. If we dont,
our competitors will.
CHAPTER 1
Phone Envy
According to the Mobile Marketing Association, 48 percent of Americans
never turn off their phones, and 64 percent sleep with their mobile device
at their bedside.1 Sound familiar? Could this have all started when we saw
Paris Hilton and her custom jeweled SIDEKICK on the red carpet. Or
President Obama exchanging e-mails on his Blackberry?
Over the years, cell phones may have changed form factors, keyboards, colors, antennas, but we always remember our first phone. One
70%
58%
60%
50%
45.7%
40%
30%
20%
Oct Nov Dec Jan Feb Mar AprMay Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
2011
2012
2013
2014
are at and who we are with, among other data points. This presents huge
opportunities for marketers to organize these outputs into usable services.
Apr-14
Point
Change
100.0%
100.0%
N/A
Android
51.7%
52.5%
0.8
Apple
41.6%
41.4%
0.2
BlackBerry
3.1%
2.5%
0.6
Microsoft
3.2%
3.3%
0.1
Symbian
0.2%
0.2%
0.0
With the iOS release, consumers were no longer just caught up with
the latest handset but they also wanted the latest apps. Apples iOS was the
first to offer downloadable apps but by no means is it the market leader
today. Overall, U.S. smartphone penetration is just under 70 percent,
according to comScore. Of that, 52.5 percent use Google Androids operating system, 41.4 percent use Apples iOS, with Blackberry, Microsoft,
and Symbian sharing the small remainder.5
Apples iOS came out front early, and crafted to work exclusively
with Apple hardwareiPhones, iPods, and later, iPads. Additionally, iOS
was launched by only one mobile carrier in the United States, Cingular,
which is now AT&T. This collaboration earned Cingular exclusive rights
to market the phone, earning them lots of new subscribers. The high price
tag was not easy for consumers. Not only was the iPhone expensive but
also this was many peoples first monthly data plan to budget for. Apple
fans, gadget lovers, and higher income households found themselves in
an exclusive circle.
Googles Android operating system, on the other hand, was released
across many handset manufacturers and multiple carriers, opening up
smartphone ownership for a larger population that may not want to
switch carriers or adopt costly Apple devices. It did not happen overnight
but once developers saw a value in publishing apps to both the iTunes and
Android Marketplace, Blackberry and feature phone owners began to get
their Angry Birds on with new touchscreen devices.
Today, iOS users and iPhone sales continue to grow steadily, while
Blackberry users and sales have experienced the most decline after they
failed to innovate beyond being a corporate e-mail device. More financially
accessible Android holds the majority stake and is known to be more of
an open platform, allowing any developer to release an app on Android
Marketplace, without the approval process required from Apple. Many
developers and gamers prefer the control and openness that the Android
platform has offered and continue to show affinity to devices using the OS.
2G or Wi-Fi?
Early Internet connections from mobile phones simply crawled. Carriers
raced to build the infrastructure required to stream video and download
Unlimited Everything
Speaking of unlimited data plans, carriers continue to carry the economic
burden of building out mobile data infrastructure. To fund these ever-
expanding networks, customers have experienced various business models
to balance innovation at the lowest possible costs.
In the United States, most smartphone owners are postpay subscribers, paying a monthly bill based on a predetermined amount of data
bytes. Another pricing option is buying data upfront, or prepaid. This
is attractive to people with low credit scores, such as students, and help
prevent costly overages. To accommodate families, shared data plans have
been introduced, allowing a group of people, or a family, to share one
large data package. And in emerging countries, we even see ad-supported
models, which require a person to view advertisements periodically in
exchange for data usage.
Regardless of what pricing model a mobile data subscriber is on, typically, once they begin using mobile data, it is quite difficult to turn back.
Going online any time is often known as data snackingor grabbing
quick bites of information whenever or wherever time permits. To accommodate this behavior, almost all mobile carriers offer unlimited data plans,
which allow a consumer the ability to use as much mobile data as they
would like. This is often at a high cost, given the phones ability to process
large amounts to data required for video streaming, audio streaming, or
even data streaming to other devices through a tethering feature.
Mobile Behavior
As smartphone owners now begin to demand more from handset manufacturers and carriers, they are also beginning to demand more from
brands and retailers. Forrester calls this demand the mobile mind shift and
describes it as expecting any desired information or service to be available,
on any appropriate device, in context, at their moment of need.7
To answer this shift, marketers have been racing to build and deploy
a mobile strategy that will answer consumer needs. However, what many
marketers find is that when it comes to looking at behavior, nothing has
really changed, aside for the immediacy aspect.
When it comes to grocery shopping, for example, people still plan
their trip by looking at the circular, creating a shopping list, and clipping
coupons. They just expect to be able to do these things offline, online, or
on their mobile phones. Grocers such as Kroger have empowered shoppers to do these activities on their smartphones, providing convenience to
those who prefer having a digital version of these tools with them in-store.
Another example might be taking a road trip. Mapping the journey,
preparing music playlists, and seeking out lodging can all happen without a smartphone. However, by planning a road trip with a smartphone,
a person likely completes the same behaviors but has more freedom to
make changes during the trip, especially given the smartphones ability to
use a persons GPS coordinates.
Following in mobiles footsteps, we cannot forget about tablets.
Results from a January 2014 survey conducted by the Pew Research
Centers Internet & American Life Project, half of American adults now
own a tablet or e-reader.8 Even bigger, according to a new report from
ExactTarget reveals that 73 percent of smartphone owners surveyed also
own a tablet. The report also shows that tablet owners rate their number
Accessing e-mail
69%
Text messaging
91%
90%
23%
76%
70%
64%
30%
75%
40%
70%
65%
While watching TV
Getting news alerts
52%
62%
57%
58%
Playing games
Listening to music
36%
46%
43%
Reading
Getting directions
14%
57%
24%
41%
Smartphone (N = 470)
Tablet (N = 341)
about mobility. In fact, 68 percent of consumers smartphone use happens at home. And users most common activity is not shopping or socializing but engaging in what researchers at BBDO and AOL call me time.10
Whether used in or outside of the home, mobile is an indispensible tool
that marketers can no longer ignore.
Many marketers feel that their tablet strategy should mimic their mobile
strategy, based on similar activities that people do on the devices. While
there are many parallels, most tablets stay at home or at the office, making
it difficult to reach people already on the move. For marketers looking to
reach people at any time and place, mobile is the strategy to set first.
10
Questions
Answer
Compare to industry
answers
14114
1.
2.
3.
4.
5.
Access e-mail
Text message
Search the Internet
Social network
Use it while watching
TV
6. Get news alerts
7. Play games
8. Listen to music
9. Read
10. Watch videos or movies
11. Get directions15
1.
2.
3.
4.
5.
6.
Instagram
Pinterest
Twitter
Facebook
Tumblr
LinkedIn16
1.
2.
3.
4.
5.
In stores17
Outdoors
Cars
While traveling
Living room
Index
Access content, 9294
Adhesion banner, 66
Almighty E-mail, 22
Android operating system, 4
App stores, 34. See also Mobile
applications
Aquafina FlavorSplash stickers, 21
Audio recognition, 97
Branded content, 88
Burts Bees Vine post, 57
Calling. See also Messaging
click to call, 28
voice calling, 13
Call to action, 13
Carolina Hurricanes Mobile App,
5254
CDC. See Center for Disease Control
Center for Disease Control (CDC),
11
Chevrolet, 40
Click for directions, 29
Click for website, 29
Click-through rate (CTR), 83
Click to call, 29
CNN, 6667
Code base, 48
Content, 88
Corvette Coupe mobile site, 39
Cost per click (CPC), 38
Cost per mile (CPM), 38, 84
CPC. See Cost per Click
CPM. See Cost per mile
CRM. See Customer relationship
management
Cross-platform web experience,
3236
CTR. See Click-through rate
Customer relationship management
(CRM), 60
Data snacking, 5
DNC registry. See Do Not Call
registry
Do Not Call (DNC) registry, 11
Expandable banners, 69
Express Black Friday campaign, 20
Facebook, 57
Facilitate communication, 57
Flash animation, 32
Google Nielsen statistics, 27
Google search engine, 29
GPS, 27
HTML5 code, 32
Hybrid app, 49
IAB. See Interactive Advertising
Bureau; Internet Advertising
Bureau
iBeacon technology, 101103
IM. See Instant messaging
Image matching, 97
Image recognition, 97
Instant messaging (IM), 19
Interactive Advertising Bureau (IAB),
72
Interactive Voice Response (IVR)
systems, 11
Internet Advertising Bureau (IAB), 65
IVR systems. See Interactive Voice
Response systems
Key Performance Indicators (KPIs),
19
KPIs. See Key Performance Indicators
Landlines, 1113
146 Index
LinkedIn, 57
Location, 2729
mCRM. See Mobile customer
relationship management
Measuring success, 3839
Media buy, 47
Mercedes-Benz, 6162
Messaging
almighty E-mail, 2223
hello messaging, 1316
instant messaging (IM) apps,
1921
measuring success, 2324
visual messaging, 1619
MMA. See Mobile Marketing
Association
MMS. See Multimedia Messaging
Service
Mobile advertising
interstitial banners, 6869
mobile display, 65
native ads, 7376
rich media ads, 6973
social media, 7678
sponsorships, 8082
standard banners, 6667
streamlining mobile ad planning
and buying, 84
superpower, 6365
targeting, 8284
video ads, 7980
Mobile applications
app mania, 4345
measuring success, 5152
owning, 4851
Mobile banners, 66
Mobile customer relationship
management (mCRM), 22
Mobile data infrastructure, 5
Mobile e-mail design, 23
Mobile-friendly or mobile-aware
design, 22
Mobile marketing
approachable pricing models, 1
app stores, 34
faster connections, 1
2G, 45
mobile behavior, 68
opportunity, 89
OS wars, 34
phone envy, 13
smarter devices, 1
smarter software, 1
unlimited data plans, 56
Wi-Fi, 45
Mobile Marketing Association
(MMA), 14, 65
Mobile mind shift, 6
Mobile search, 26
Mobile SEO, 3537
Mobile sponsorships, 80
Mobile website, 31, 32
Multimedia Messaging Service
(MMS), 16
Native phone functionality, 12
Near-field communication (NFC),
9596
NFC. See Near-field communication
N.O.T.E. framework, 104108
Omni-channel effort, 3031
Operating systems (OS) wars, 34
Organic downloads, 47
OS wars. See Operating systems wars
Paid apps, 45
Pass Book of Savings (PBOS), 18
PBOS. See Pass Book of Savings
Petes Ace Hardware Store, 15
Pew Internet Research, 13
Phone calls, 1113
Pocket brands, 109
Premium text messaging, 16
Pull tactics, 8890
Push content, 99100
Push notifications, 48, 101
Push tactics, 98
QR codes, 9092
Quick-response codes, 9092
Real-time bidding (RTB), 84
Real-time templates, 22
Index 147
Remember Me feature, 11
Responsive design, 22, 34
Return on investment (ROI), 64
Rich Media Messaging (RMM), 16
RMM. See Rich Media Messaging
ROI. See Return on investment
RTB. See Real-time bidding
SDK. See Software development kit
Search, 26
Short messaging system (SMS), 13
Smartphone technology, 2, 3
Smartphone vs. tablet, 7
SMS. See Short messaging system
Social media networks
broadening your audience, 60
measuring success, 6061
mobile, 5759
mobile-friendly content, 60
Software development kit (SDK), 3,
49
Standard display ads, 66
TCPA. See Telephone Consumer
Protection Act
Telephone Consumer Protection Act
(TCPA), 11
TLC. See Tender Loving Care
Video teleconferencing, 12
Virtual consultations, 12
Visual storytelling, 60
Walgreens banner ad, 69
WebMD app, 51, 52