Mobile

The iPad has arrived. Now what?!

Today, as I was riding in on the subway, reading the New York Times on my new iTouch, I stumbled upon an article about Apple's launch today (Wednesday Jan. 27) of its tablet product, or iPad.

http://www.youtube.com/watch?v=4_zI21XEo0Q

Being an Apple fan from way back I couldn't help but feel a sense of real excitement. It got me reflecting on how much the Apple brand has meant to me over the years. And I'm not alone. The excitement that's building up in the media and among the Apple Faithful is almost palpable and very real.

I bought my first Mac (Mac Classic II) back in 1993ish. I was working at an agency and wanted a way to be able to work on those weekends when I was going back home to Kingston to visit the folks. The idea of a portable computer was exciting. Imagine, being free to take your computer anywhere. It was only 14 or 15 lbs. Oh, you PC people chained to your desks. How quaint.

Then when the first Apple notebooks came out, I was fortunate to be working on the Apple account and helped develop a launch campaign for them. (Best. Account. Ever.) The objective, as outlined in the brief, was to get the public over the mental hump of being able to work anywhere. Imagine sitting in a park or in a coffee shop clicking away on your laptop computer. Why, you could even work from home!

Then of course, the iPod changed everything. The recording industry, advertising, interaction (or lack thereof) between people in public places...everything. The iPhone then revolutionized how we think of what a phone is and what it can do. People could earn money and express their creative by developing Apps. We were now all working for Apple.

Walk into any mall where an Apple store exists and you'd think they were giving stuff away for free in there.

And now the anticipation for the iPad is reaching a fever pitch. People can taste it. The article in the NYT suggests that it's going to do for newspaper publishing what the iPod did for music. They're counting on it because we all know where the newspaper industry is headed. But will our collective love for all things Apple mean that we'll be willing to pay for things like the Star or the NYTs online through the Slate, when so much of the same information can be found on free sites elsewhere.

That's just one fascinating question we as marketers should be watching and reading about -- probably on our iPads.

Bryan Tenenhouse

Setting the Record Straight: Wireless in Canada

This opinion piece by Ken Engelhart, Senior Vice-President, Regulatory, Rogers was first published in the National Post on Thursday Nov 12 - we think it's worth sharing here.

Canadians in recent years have been reading about studies that claim our communications sector is slipping below world standards. The latest study to reach that conclusion was performed by no less an institution than Harvard University's Berkman Center. It is time for a rebuttal. I believe that Canada has great communications networks and internationally competitive prices.

It is often argued erroneously that Canada has a poor take-up of wireless services. The statistic commonly referred to in support of this notion is the penetration rate for wireless services. This measurement takes the total number of wireless phone subscriptions in a country and divides it by the total population. According to this measurement, Canada trails most countries in the OECD.

About 66% of Canadians have a cell phone and we are badly behind countries like Greece where 200% of the population have a cell phone. The foolishness of this measurement should be apparent already. 200% of a population does not exist. What these figures indicate is that there are two phone subscriptions for every man, woman and baby in Greece. In Canada, and in most advanced countries, most adults and teenagers have a cell phone. In Greece however and in many European countries, many people have one cell phone and several subscriptions.

Because Europe is on the GSM system, people have multiple SIM cards that they put in and out of their phones, depending on where they are and what time of day it is, to get the best price or service. These multiple SIM cards are generally a sign that there is something wrong with the cell phone market in that country. They certainly are not a good measurement of the take-up of phone service in an economy.

The best measurement is minutes of use per capita. A report by Merrill Lynch on Sept. 28 showed Canada to be the eighth best in the world using this metric. It is sometimes noted that the U.S. has a much higher level of usage than Canada and this is true. However, the point I am trying to make is that we are well ahead of Britain, France, Germany, Spain and most other countries in terms of the usage of wireless phone service.

More confusion exists with respect to wireless pricing. Many of the studies that the press describes involve "basket" analysis. For example, a study might look at the price of a "basket" of services such as 300 minutes of voice calling and 200 text messages. The latest study of this kind was a recent OECD study. The OECD study showed that the U.S. has the highest prices in the world. Clearly this finding is absurd. The U.S. wireless market is the envy of the world and has the lowest prices. Something is clearly flawed in this OECD analysis.

The OECD uses very small baskets even for their "high" users. The average Canadian uses almost twice as many minutes per month as the OECD's "high" user. Since North American wireless packages are much larger than even the "high" OECD basket, the OECD study erroneously shows that Canadian and American prices are high.

The standard and correct way to compare prices among countries is to take total voice revenue and divide it by total voice minutes. On this statistic (called "average revenue per minute"), Canada has some of the lowest prices in the world. Canadians pay on average 8 cents per minute for phone service. The cost is 12 cents in the U.K., 14 cents in France, 15 cents in Italy, 16 cents in Germany and 24 cents in Japan. (It's just five cents in the U.S.) Canada has very low prices internationally. This is particularly impressive given that we have much more network capacity per customer than most countries including go the U.S.

Canada is in 10th place in the world and first in the G8 in the number of wireline broadband subscriptions per capita. That is pretty good for a country as geographically vast as Canada. However, individual people do not buy wireline broadband services; households do. So the best way to measure broadband is by looking at the number of subscriptions per household. Since Canada has larger households than most European countries, we do much better when looking at this metric. When subscriptions per household are used, Canada's ranking jumps to fifth, sixth or eighth best in the world, depending on the data source. This should be a source of pride for a country that does not have the population density that many of our trading partners have.

Canada's communications companies spend $8-billion to $10-billion each year to compete with each other, in the process making Canadian networks among the worlds' best. Rogers was among the first six carriers in the world to introduce a wireless broadband network operating at 21 Mbps. Our two main competitors, not wishing to be left behind, have followed suit. Canada now has three high-speed wireless networks while the U.S. has none. I think that is something to be proud of.

What is Success for my Mobile Messaging Campaign?

In many ways, mobile can be evaluated similarly to any other marketing initiative. Generally, every marketing campaign is evaluated in terms of efficiency (getting value for invested money) and effectiveness (achieving the objective set for the campaign). In this sense, mobile is no different. We must determine how well the program did when factoring in cost and measuring against objectives – the two evaluated inclusively and exclusively.

However, the evaluation of a mobile campaign is no easy task. It must involve a variety of quantitative and qualitative measurements that assess the program’s efficiency and effectiveness. Mobile is moving away from the early adopter stage to the innovation stage and this shift brings added pressure to demonstrate tangible ROI. These measurements include, but are not limited to:

Quantitative Analysis

• Cost per – Any of the below measures, but forth most, cost per a unique user, per an interaction or in terms of harder ROI cost per acquisition.
• Delivery Measures – Number of messages sent, number delivered, number failed delivery, attrition rates.
• User Messages – Number of unique users, number of interactions, number of repeat users, frequency of interaction, time of users’ interaction, from where users interact, number of replies, number of stop messages, number of inquiries.
• Click Through Rates – When URL links are included.
• Purchase Tracking – Number of people to redeem a coupon or make a purchase.

The metrics used should be determined by the campaign objective and its primary mechanics. For example, if it were a text to win campaign, the number of unique users and total entrants would be the primary value. For a program where it asks users to answer a series of questions through SMS, the same metrics would apply, but equally important would be how much interaction each user had with the brand – i.e. the average user answered three questions.

One of the key benefits of mobile marketing is the ability to track the campaign results immediately and across a wide range of available data. These numbers are a science. They are exact and can be easily reported.

Qualitative

Conversely, a qualitative review is not a science. It is based on an evaluation of the following:

• User Interaction – The amount of time the user interacts.
• User Engagement – The depth of user interaction – how engaged is the user?
• Brand Connection – Link between the brand, campaign execution, and end goal.
• Marketing Mix Integration – How effectively is mobile integrated into the mix?
• Surveys and Awareness tracking – Test and control groups are used to test brand saliency as a result of incorporating mobile.

Factors Influencing Success

After the above analysis, it’s important to review the below factors. These factors will greatly influence the result of the program, not necessarily for better or worse, but expectations must be set based on them. For example, in terms of value proposition, you’re more likely to get more entrants if there’s a car prize versus a t-shirt prize, or if the brand is Bud Light Lime or Steelback.

• Value proposition – win a car or a t-shirt, receive great alerts, entertainment value, etc.
• The brand – premium brands vs. value brands.
• What is required of the user – text a keyword versus answering multiple questions.
• Where is the media with the call-to-action – in an area of downtime or in an active, hustling environment.
• Quality of the execution – street teams, messaging, creative, etc.
• Emphasis of the Mobile call-to-action.

Deciphering the Results

Despite having access to a vast array of accurate and immediate metrics, the application of those metrics are inexact and it’s difficult to benchmark against other campaigns. In traditional media we can easily track results – GRPs, impressions, recall, brand awareness, etc. - however, mobile marketing is not at this point, nor will it be in the future, as the salient value is user interaction and what it can accomplish, something that can not be easily tracked. If anything, mobile marketing is a tool to track the effectiveness of traditional marketing techniques as mobile marketing often complements a campaign, not is the campaign.

Here’s what I mean: Take for example a billboard in downtown Toronto. I am a marketer for a car company and I want to advertise on this billboard for two weeks. My objective is to sell more cars. The billboard goes up, I’m told the weight is 90 GRPs with 15k of daily traffic. Without complex and costly statistical analysis, the billboard’s impact is unquantifiable, and even then nearly impossible to extrapolate.

Take the same situation, but add in a mobile component. As a marketer, we know to sell cars we must push consumers to a dealership, and ultimately try the car. Therefore, messaging will push users to text testdrive to 12345 to schedule a test drive. On average, 10 people text in a day, two of which schedule a test drive. Therefore, we know the conversion from billboard to dealership (not including any residual benefit of long-term marketing initiatives on branding). At first glance, by just comparing the numbers, this would seem like a poor performance, however in reality this is quite successful; however, this can only be determined by evaluating qualitatively as well. Beyond metrics, some of these qualitative are:

• Immediate interaction - Consumers do not need to call a number to engage the brand, they can do it right there on their phone.
• Qualified users – Only those consumers that are interested in the brand will text in. It’s like a two-stage program: Nearly all passer-bys will see the billboard, but to take it a step further, those interested that actually respond to the billboard can engage the brand.
• Not a benefit, but it is very important to keep in mind this is a high value, expensive brand, advertised in a location with no downtime, to an untargeted audience.
• Opportunity for continued dialogue – garnering an opt-in from a consumer in any form is a big win, doing so via mobile is a HUGE win. Assuming your brand has a communication plan in place you know have a direct feed with your consumers anytime and anywhere. Start thinking about EXCLUSIVITY, RELEVANCE and TIMELINESS to your messaging strategy.

The general idea is that in mobile marketing, the qualitative analysis must be evaluated in tandem with the quantitative results, while considering the factors; only together can they provide a complete picture of the program’s success.

QR Codes Revisited

Recently I attended a digital conference and one of the speakers (a digital agency business development person) talked at length about the future of mobile being QR codes. I was very Canadian like and didn’t challenge his vision, but he is very wrong about QR codes, and this blog post addresses his lack of information. What he failed to realize is that in order for QR code readers (the native application that is stored locally on your mobile) to reach critical mass is that these readers must be pre-loaded by the handset OEM or the carrier. We’ve learned from shortcodes that applications must be cross carrier. It’s a major feat to convince a single carrier, it’s an even bigger hurdle to convince other carriers and device manufacturers to support this application. QR codes, as many people know them (take a picture, send as an MMS or via the app, receive a URL/Offer/Contest Entry) will NEVER REACH MASS unless there’s a movement by the carriers and OEMs to pre-load the apps. Another challenge to the QR code world is that many QR codes can only be read by certain QR code readers. If you’ve installed a reader on your mobile, don’t expect it to work with all codes.

And what about the utility of these readers?

To me the other shocking bit of this unnamed speaker was his example of the best use of QR code readers, which was opening up a URL to a mobile internet site. Really? That’s it! If we can overcome the barrier of installation, surely there must be something better than visiting a mobile internet site. From a consumer perspective there should be more to the app than this. I would agree that a QR code reader that is part of a larger application has a much better chance of having staying power. For example, an application where an office manager can scan a UPS package that informs him/her of the delivery history, a curious shopper that scans in-store POS to have a sample mailed to their home while downloading a recipe, or better yet, have the app detect their location and deliver pricing information from other retailers (though I’m not sure the retailer would like this feature).

What are some alternatives?

Not all solutions require QR codes, many applications can use image recognition technology where the user can simply take a picture of the product. Even better, some technology solutions do not require an application download. I still find it baffling that many brands that have never run an SMS campaign are deciding to use QR code campaigns like Vespa Canada, CBC’s promotion of the show “The Border” and most recently a Microsoft campaign with Canadian Business Magazine. Granted SMS does have limitations, however in this world of precise measurement and accountability, I’d much rather choose a medium with wider adoption than limited QR code reach type campaigns.

For those QR code lovers who will undoubtedly fire back I offer this regarding QR codes:

• If we can get a carrier or large OEM to pre-install readers and build-in more utility than shortcuts to URLs I will get close to jumping on the bandwagon

• QR codes do offer a worthy alternative to expensive shortcodes

• Mobile terminated QR codes are much better use of the technology for mobile tickets and coupons

Mobile Coupons - The Holy Grail for Mobile Marketing?

The mobile marketing industry could be experiencing the perfect storm for 2009. Conditions are ripe for what would finally be considered the year of mobile for North America. There are many conditions, however in my opinion the most relevant are:

1. State of the economy.
Coupon cutting and saving is common practice. 2009 is poised to see the renaissance of coupons where redemptions are expected to rival figures of the early 1990s.

2. Need for innovation.
Marketers recognize this difficult time lends itself to innovation and many marketers would agree that adopting a mobile strategy is a question of when, not if.

3. Sophistication of handsets.
It’s crucial to recognize the mobile industry is more than shortcodes, display advertising and mobile internet sites. The iPhone and recent launch of the Blackberry app storefront are important dates in the early history of mobile marketing. Applications permit advanced functions and features that significantly address what many marketers considered a major drawback of Mobile – utility. Apps use location based information, RSS & XML integration that can scrape live information like price comparison tools but more importantly help brands address content to keep those eyeballs fixated on the small screen.

(Arguably could add other conditions like: need for accountability & ROI metrics, eco-friendliness, & youth marketing.)

Mobile Coupons have a major hurdle to overcome – POS terminals and retailer adoption.

The idea of mobile coupons has been around since mobile marketing started in the early 1990s. The earliest form of mobile coupons (which still remains today) is the “show and save” variety. The concept is simple, a consumer receives an SMS, MMS, or accesses a coupon hosted on a mobile internet site and the till person rewards the user with a rebate with purchase. Coupons can have a static coupon code or in some cases a unique PIN number is delivered. Time stamps on codes can help prevent fraud but typically the retailer will simply serve up an offer that does not erode significant margin on the product. The POS system should have a dedicated static promo code associated with the offer for tracking purposes. In some fortunate circumstances a POS system can access the internet where a unique PIN number can be expired from a shared database. Unique mobile coupons, where a till worker must input a code is typically reserved for longer checkout times. Easier still is rewarding a unique PIN number for an e-commerce transaction. Many e-retailers offer a promo code field prior to checkout. Don’t even think about having a till worker at checkout input a pin number for a low involvement item like a candy bar. Reserve these types of offers where there isn’t a line up at checkout, or if the retailer has a mobile scanning solution in place.

Next generation mobile coupons.

Next generation mobile coupons are scanned directly from the handset. Generally speaking there are two types of codes – 1D and 2D a.k.a. QR codes. (There are multiple types of “matrix” codes such as Microsoft “tags”, which use the colour spectrum to code data as opposed to black and white spaces) Keep in mind these codes are terminated on your handset, like the Air Canada wireless boarding pass. Not only must POS systems be able to scan images from the handset, the systems ideally should process transactions in real-time via an internet connection. I realize this might be asking quite a bit, but it can be done. The technology exists today where a consumer’s physical location can be embedded in a code and tracked back upon conversion. This implies that a purchase can be tracked as granular as individual TSAs (Transit Shelter Ads). How about that for ROI! And no need for a brand’s key account representative to count physical coupons and issue rebate payments to retailers at the end of a promotion. It’s a simple database query of coupon scans from the retailer’s centralized database. This picture becomes more exciting when mobile commerce and mobile transactions are widely adopted. A consumer won’t even need to go through checkout! RFID (Radio Frequency Identification) and enhanced SIM cards tied to a consumer’s credit card will permit a consumer to simply walk out the merchant’s front door.

Walking before running.

The previous description is based on an optimal scenario of retailer infrastructure, consumer adoption and a brand with a major emphasis on innovation. In the spectrum between “show and save” and mobile commerce there are other options for brands and retailers to explore mobile coupons. In my opinion loyalty programs offer worthwhile consideration. Here’s how I envision loyalty programs leveraging mobile coupons:

Step 1 – associate the unique loyalty card number (like a Shoppers Drug Mart Card) to a mobile number, achieved by having the consumer complete a form with both number fields. Or, urging the consumer to submit a text message (via a shortcode) with their card number.

Step 2 – offer rewards and coupons through your channels with mobile coupon calls-to-action. For example, DOVE can have a 50% coupon advertised in Chatelaine Magazines where consumers claim the coupon by texting “DOVE” to a shortcode number (OR have a user click on a display banner ad from the big screen where the user must input their mobile number)

Step 3 – when a consumer purchases the item at Shoppers Drug Mart and the consumer’s loyalty card is scanned the rebate is applied and the receipt reflects the coupon. Close the messaging loop by triggering an SMS, email, or application update with a “thank you for redeeming your Dove coupon”

Homework.

Our company discovered that mobile coupons could be scanned by trial and error by visiting brick and mortar retailers. If you’re a marketer and believe in the value of mobile coupons, then I encourage you to try one of our demo codes. Next time you’re at checkout at a retailer that scans UPCs try this coupon. Text OFFER to 12345 or go to http://www.vortexmobile.mobi/movie.aspx. The UPC code will not be setup to actually work, however listen for a BEEP, that’s a sign that the scanner actually read from the phone. Good luck!

Writing an Email that gets Read

As BlackBerry smartphones become the device of choice for the business user, consider this - their small utilitarian screen and basic font means your beautifully formatted email is being read by someone in a busy, frenetic environment, and being evaluated or rejected in a milli-second.

That's because more than 60% of senior executives carry one and use it primarily to view and send emails. Consider these pointers to help ensure your message has the best chance of being understood.

1. Use the right font size. “Based on what we’ve seen, using 8-point fonts seems to work,” says mobileStorm CEO Jared Reitzin. “In the end, you want to make the body text a small but viewable size.”

2. Keep subject lines short, using only key words, such as “Action Item” and “Reminder,” and for time-sensitive events such as webinars, “Filling Fast.”

3. Put the *subject* first in the subject line. For example, if your email is for a Search Engine Optimization white paper, “SEO” should be the first thing they read in the subject line.

4. Use codes to communicate the desired response: 411 (for your information), 611 (response in 24 hours please) and 911 (Urgent request).

5. Make the message scanable. Since the majority of senior executives in organizations have a mobile device of some sort, accept that busy people don’t read -- they scan. That's why it's so important to grab the reader's attention with a strong call to action, then bullet points of key content.

Worst case scenario - they can always call you if they roll their eyes after reading your email. For more tips and tricks on effective email writing habits, visit HowToDoThings.com.

The Kindle. Yawn?

I’m still catching up on my year-end reading. You know, all those magazines that come out with their Year In Review issues. They’re stacked on my nightstand like so many left over holiday cards, begging to be read or recycled.

The best of the bunch is the Newsweek with Obama on the cover. It had a brief mention of something that caught my eye -- Jeff Bezos’ brainchild, The Kindle. It’s described on Wikipedia as “… an e-book reader, an embedded system for reading electronic books (e-books), launched in the United States by prominent online bookseller Amazon.com in November 2007.”

Most reviews are glowing. You can carry a whole library around in your briefcase. Amazing. Apparently, it’s even been endorsed by the big “O” (Oprah, not Obama), making it to her Favourtie Things List of ’08.

You can’t get it in Canada yet. But when I asked several of my U.S. friends how the Kindle has captured the imagination of our neighbours to the south, the response was something close to a tree falling in a forest.

So here are the tough questions: With a nod to Malcolm Gladwell, why hasn’t it tipped? Why isn’t it, according to my U.S. friends, dotting subway cars and park benches and restaurants like ubiquitous iPhones, iPods, and dare I say it, real books? Where are the cool commercials with U2 or Feist singing its praises? Why aren’t there spoofs about it on YouTube? Why aren’t the “Millennials” snapping them up? And will Canadians be a better market for the Kindle when it does arrive on our shores?

Perhaps the secret is revealed in Newsweek’s backhanded compliment… “Amazon’s electronic reader is awesome, but the early adopters skew old, while kids opt for point-and-click.”

That excerpt is interesting for two reasons. Early adopters? The Kindle has been available since 2007. Would the iPhone be considered a success if it took this long to capture the imagination of its intended audience? I'm not talking about just dollars and cents here. There was the day before the iPhone launched in Canada. And there was the day after, when it seemed everyone on the TTC had one or was looking over the shoulder of the person next to them who had one. Can an e-book reader capture the imagination in the same way as an “e-music player”? There's a very specific difference today between capturing the collective imagination and selling units. Arguably, the former is much harder to do and predict than the latter.

And ‘skews old’? I guess Oprah viewers don’t influence the zeitgeist anymore the way some think they do.

The day will come when Canadians will be able to get their hands on a Kindle. The question is, will the “right” target audience (Millennials?) want one?

So from a business perspective, can Amazon continue making and selling them if they remain the technological equivalent of a television series like “NCIS”? It’s there, and by some measure successful, but does anyone care?

7 Reasons To “Mobilize” in '09

In my last post, I discussed several recent news items from the mobile sector that provided reasons for optimism about the continued growth of mobile in 2009. I also highlighted a couple of the benefits mobile can bring to marketers looking to deepen consumer engagement with their brand and deliver ROI while budgets are under increased scrutiny.

This post picks up on that theme and I’ve outlined 7 reasons why mobile should earn an increased share of budget even if other activities are being trimmed back.

1. Scope of Opportunities

Throughout this post I’ll highlight different types of mobile interactions and there are a couple that will keep coming up. The point I want to make is that there are dozens of ways marketers can mobilize their brand. The key, ultimately, is to find the right touch point for your target audience. Importantly, if I could crib a line from the CMA’s recently released mobile marketing white paper , “the opportunity is, quite literally, in hand” (Disclosure: A Vortex colleague & I contributed to the paper).

2. Make the Passive Active

One of the fundamental benefits of mobile is the ability to add interactivity to static media. You can add a SMS or mobile internet call to action and activation to your campaign for a fraction of the campaign’s budget. What you’ve accomplished is to turn an awareness building effort into an opportunity for consumer action. You can let consumers passively view your TV, radio, print or OOH media or you can give them an opportunity to respond and extend the brand interaction.

3. Always On, Always With

This is a common mantra of the mobile industry, but it’s only because it’s so true. Mobiles are such a highly personal device. They are, in many respects, an extension of a consumer’s person and personality. Wireless penetration is above 80% in most urban centres. SMS and mobile internet use are growing aggressively as is mobile use outside the traditional 18-25 demo. The modern consumer is known to be a media multi-tasker. You can be sure whatever they are doing; their mobile phone is not far away. How are you capitalizing on that?

4. The ‘self-selected’ consumer

I’ve previously talked about the ‘self-selected’ consumer, but it’s worth mentioning again. Mobile is 100% permission based marketing. There is no such thing as mobile marketing spam. When consumers engage your brand via the mobile channel they are actively opting in. In one move, you’ve gone beyond awareness and acceptance and stimulated consumer action.

5. Relevance. Customization

Along with being permission based, another of mobile’s strengths is the ability to provided customized, relevant experiences. We’ve found that assigning unique keywords to different media can provide an experience that is relevant to when, where or how a consumer interacts with your media. Downloadable applications or contextually relevant mobile internet sites can help you push content based on consumer preferences or respond to consumer needs ‘on the go’. Interactive voice calls can create personalized peer to peer interactions or act as platform for extending celebrity endorsements.

6. Consumer Conversion

When a consumer engages your brand via the mobile channel, you have a tremendous opportunity to convert that action towards other brand objectives. Each mobile channel has different conversion opportunities and to review them all requires more space then a blog post allows.

The bottom line is, given its highly personal nature, the mobile channel is an immensely powerful tool for creating or leveraging loyalty. Deliver a coupon and drive consumers to retail or online e-commerce. Help consumers discover the latest deals or comparison shop. Provide sign up tools for events or product demos. Take the interest a consumer has shown in your brand and build a bridge to your ultimate objective – more sales.

7. CRM Potential

Along with the prospect of immediate conversion, mobile offers marketers a new channel for CRM opportunities. It amazes me how few companies have a mobile field when asking consumers for information. This is a ridiculously easy way to build a database of mobile numbers which can be integrated into your CRM activities. Sending information or service alerts, mobilizing ‘flash mobs’, distributing coupons to ‘VIP’ customers are just some examples of how you can leverage the mobile channel to build deeper customer relationships.

So will your New Year’s resolutions include more mobile?

Bears, Bulls and Mobile Marketing

Despite widespread uncertainty in the economy in general, it seems to be a bullish time for the mobile sector. Several announcements in recent weeks indicate ongoing optimism about continued growth and increased opportunities for marketers using the mobile channel.

• Leading mobile advertising network AdMob has secured $15.7 million in funding from Sequoia Capital. This is the same Sequoia whose CEO recently gave a presentation on the downturn in the digital space entitled R.I.P Good Times.
• RIM has announced an application store for 3rd party developers to build apps for the Blackberry a la the iPhone app store (which itself has seen over 200 million app downloads so far).
• Mobile web results are showing returns that are outperforming the internet. And there's lots of traffic there too: AdMob serves 5 billion mobile ad impressions, while Yahoo has 20 million unique consumers every month in the U.S.
• 8.9 billion SMS messages were sent by Canadians in the first half of 2008 compared to a total of over 10 billion for all of 2007.

Okay, so there’s your optimism for continued growth. What does all this mean for marketers who are likely to be asked to trim budgets and be placed under increased scrutiny to deliver positive campaign ROI?

The Self-Selected Consumer
As mobile marketing is permission-based pull marketing, all of your interactions are with a self-selected consumer. They’ve taken the first and most important step of actively volunteering to participate with your brand.

Responding to an SMS call to action, downloading a widget, mobile coupon or ticket, clicking through on a mobile display ad or visiting a mobile internet site all require the consumer to ‘opt-in’ to your brand message and experience. What that means is higher brand recall and the opportunity for easier conversion of purchase intent or marketing message acceptance.

Responsiveness & Relevance
One of the great strengths of mobile is the ability to deliver situationally relevant information to consumers at the point of interaction with your media executions. You have to capitalize on the consumer’s self-selection.

Instant gratification via SMS contests is the low-hanging fruit but you can also use SMS tips & trivia or voting interactions, IVR calls or MMS content to create an extended brand experience.

Smartphone platforms such as the Blackberry or iPhone take this one step further with location-based services, Google Maps mash-ups, streamed content and the easy delivery of mobile coupon solutions. And with higher than normal click through rates, mobile advertising conversions to specially designed mobile internet sites offer great content delivery solutions.

Measurement
The ability for marketers to track campaign effectiveness in the mobile channel is robust enough to warrant a lengthy post of its own, but consider the following scenario:

A retailer has a SMS call to action integrated into their media. Different media executions (whether by media type or place) have their own keywords. Consumers entering the keyword are delivered a SMS with a link to a mobile internet site where they can download a mobile coupon. The mobile site also contains brand content, sign up for future brand/product info and a store locator with mapping features which could tell Smartphone users the closest retail location to them. That downloadable coupon is tagged with a unique identifier which will be validated at the point of redemption.

You now know when the consumer interacted with the media and conversion rates to site visits/downloads, which media generated more interactions & interactions by time of day, mobile site page views, types of handsets consumers are using to visit your site, the # of coupon downloads, conversions to purchase and purchase value per consumer.

Best of all, you’ve delivered highly relevant information to a qualified consumer and converted that to a verifiable sales lift.

That’s why I’m bullish on mobile.

The 8 Different Mobile Consumer Segments

Last month I had the opportunity to participate at CTIA in San Francisco and spent a day on the “mobile strategies” tract.

One of the more interesting presentations was from Pankaj Asundi who is the VP Multimedia and Content at Ericsson Inc.

He presented his view on consumer segmentation models for mobile which I thought would be useful for any planner looking to better target the mobile component of their marketing campaign.

Just like any other marketing channel, the more you know about who you are targeting, the more effective your call to action message can be.

There are essentially 8 consumer types:
1. Careerist – The believe that to say ahead of the game you need the best tools. They are 25-39 years old. Their bills are paid for by company. They have limited free time and mobile is key part of day to day life. Knowledge is power… and time is money!

2. Experiencers – They are all about new experiences, possessions, technologies etc… They are early adopters.

3. Pioneer Youth – I want it all from my mobile… and now. Second best is not good enough. Always texting. 15-24 years old

4. Mainstream Youth – They want the latest gadget so that they can belong. They aren’t necessarily technical experts. 15-24

5. Mainstream Materialists – Gadgets and mobile are fashion accessories – anything that will make them look good. 25-29 years old. They live for today and not tomorrow. Use more for show than communication

6. Basic phoners – They use their mobile to call only. Many have mobile phones as emergency backups. They likely don’t know how to text message. 40+ years old.

7. Family phoners – need good reason to adopt new technology. They are happy with what they’ve got and they mostly use their mobile device to stay in touch with family.

8. In touch organizers – my mobile keeps me connected. 30-64 years old. These are parents who juggle busy professional and social lives, organizing their family, friends, and local community. Average tech users - competent but not experts

Want to learn more about how to to entice the mobile consumer more effectively? I’ve posted a related article here that you may find of interest.

Optimize Your Mix: Five Lessons from Email Marketing

I am frequently approached by senior marketers – from across industries – who confide in me that they are grappling with how to achieve an optimal ‘marketing mix’ in light of all the available new media and traditional media. They want to build on their history of success in one medium or technology platform (e.g. mobile, print, web) and leverage all marketing media.

As someone who has seen many marketing and technology trends over the last 13 years, I have identified some consistently powerful lessons that, while drawn from permission-based email marketing, can be applied to improve marketing results across all platforms. These five lessons include:

1. Always Deliver Relevant Content and Segment

Technology has progressed to the point where recipients can choose key components of the marketing information they are to receive – including method of contact, content, timing and frequency. When customers and prospects have control over what marketing information they want, when they receive it and how it arrives, they are dramatically more likely to act upon a marketing campaign’s call-to-action.

2. Collect Your Customers’ Permission: They Demand It

Because gathering permission helps marketers build a positive brand experience and engage with customers, it has become a fundamental to all marketing campaigns – online and offline. The Do Not Call List is another demonstration that securing customer permission is every marketer’s obligation and responsibility. Furthermore, Canadian privacy legislation (PIPEDA) mandates permission is gathered.

3. Test. Measure. Test. Measure.

There are four key lessons regarding measuring and testing:

• Campaign metrics need to be tied to specific business goals at the onset of any campaign. For example, ‘brand reach’ can be linked to the number of new subscribers and successful initiatives to build referrals.

• Use campaign-specific and company-established benchmarks in addition to industry-wide stats.

• As technology and campaigns progress, the meaning and importance of metrics evolves. For example, at one time, email open rates had been held out as the key measure of campaign success. However, with image-blocking software and the popularity of preview panes, the focus has switched to achieving specific conversions.

• As marketing technologies have evolved to allow for variable delivery options, so too has the ability to test several component parts of each marketing campaign. In email marketing, that means the ability to test subject lines, copy, personalization and the specific offer.

4. Focus on “Relative Time” Rather Than on “Absolute Time”

Marketers have long recognized that timing can make or break a campaign. The challenge however is the tendency to seek a ‘perfect time’. Throughout the year, email marketing studies are published that point to a particular day of the week and/or time-of-day as ‘the best time’ to reach out to customers and prospects.

However, because marketing is about establishing, nurturing and enriching relationships, choosing the right times to optimize a campaign’s results involves addressing several items such as: when the previous communication was delivered, the nature of the communication and the time-sensitivity of the message.

5. Integrate with Business Applications

Whether you are leveraging call centres, point-of-sale tracking or any other media, integrate the flow of appropriate data into business applications so that the effectiveness of each campaign can be tied to key metrics such as revenues and acquisition costs. One of the reasons that email, for example, is poised to become an even more powerful marketing tool is because it can be easily integrated into business platforms such as Customer Relationship Management systems and Content Management Systems.

As senior marketers, we are all working towards one common goal: creating and sustaining a positive experience to acquire and retain customers. These lessons, drawn from permission-based email marketing, allow every marketer to harness and optimize their marketing mix.

I welcome hearing any lessons that have helped you optimize your marketing mix - share here on the CMA Blog, or feel free to contact me directly at president@thindata.com.

Don’t focus on mobile, focus on the customer

It’s great to see how mobile as a marketing channel is going mainstream and becoming a mass medium in North America.

Barack Obama has done his part by announcing on his website that people can opt-in to be the first to know via SMS message who his running mate will be during the week of August 25th. Obama has already launched 25 other SMS based campaigns to his supporters so far during this campaign.

Even in Canada we are starting to get it.

The CWTA reported in July that more Canadians are texting more often. 40% of last year’s total was sent in Q1 alone this year. We are on track to reach 20 billion SMS messages sent this year – which would be double last years.

With the iphone having finally arrived in Canada and other next generation smartphones arriving this summer (Blackberry Bold, Palm Centro, Samsung Instinct etc…), we expect massive growth in the mobile internet in Canada.

Having said that, don’t allow the technology to drive your marketing strategy.

Mobile is a great way to extend and support your marketing campaigns – but it’s rarely successful on its own. Without proper integration and support in other channels (web, email, print, TV etc..), Mobile campaigns are rarely successful. In one recent campaign mobile drove 20% of customer activity – but that was supported by other “traditional channels.”

How much of your marketing budget should you allocate to mobile?

I’m recommending that marketers interested in learning how to best incorporate mobile into their overall marketing strategies should allocate up to 10% of their budget to mobile… which includes SMS, mobile web, Bluetooth, and mobile advertising. Unlike a year ago, there’s now some good inventory to buy through Yahoo! Canada and a few other local providers.

Treat the 10% as an investment into your future marcom activities – although like other digital channels, you can still expect to get measured results that can be incorporated into your dashboards.

It's A Hot Summer For Mobile

It’s been a July full of activity in the mobile space, most notably a 60,000 signature petition to reduce data fees, the launch of the iPhone in Canada and the announcement by Bell and Telus that SMS fees will be both sending AND receiving party pay.

I’ll breakdown each of these announcements and what it means for marketers:

1. 60,000 signatures to reduce data rates.
This is good news for marketers! It means more pressure to bring down data rates. Eventually rates will fall – it’s a question of when NOT if - so brands continue to develop your mobile internet and mobile display strategy. The petition by Canadians is also putting added pressure on wireless carriers to adopt an “all you can eat” plan, which leads me to my next point.

2. The iPhone effect
In a previous post I discussed the implications of the iPhone effect and I talked about the symbiotic relationship between data rates and the Apple brand. Therefore I wasn’t surprised to hear the news about Apple pulling its phones from its Canadian stores in disgust. In addition, despite low penetration rates of iPhones in Canada, it’s been a catalyst for marketers to think not only about their mobile internet presence, but also downloadable iPhone apps. It’s still early days for widgets, gadgets and apps but these “Full clients” are raising eyebrows. (Note an example of “thin clients” are RSS feeds on a mobile Internet site – example: http://pcworldcanada.mobi - best viewed on your mobile browser). The important thing to consider when you’re evaluating apps is that your app must be platform agnostic. That app must port across various mobile operating platforms, such as Symbian, Blackberry, Android, Windows mobile...etc.

3. Consumers charged to receive SMS
Bell and Telus’ announcement that consumers will be charged two ways (for sending and receiving text messages) has no doubt been a PR nightmare. I have received confirmation that text messages received via standard rated shortcodes will NOT be charged to Bell consumers. I am still waiting to receive confirmation from Telus if they will follow suit. (I really hope they do). If Telus does start charging to receive incoming SMS via a standard shortcode then I suggest you speak to your mobile partner to re-evaluate the setup of that shortcode. My company, Vortex Mobile, will take appropriate measures to ensure that no brand associated mobile marketing will charge consumers to receive promotional alerts.

So, how do these announcements impact your mobile strategy?

6 Tips for building and managing consent for mobile marketing

Did you know that you can’t buy a mobile customer list for a mobile marketing campaign?

Unlike email or other channels, if you want to start a conversation with a current or prospective customer, you need their specific permission first.

You need mobile consent.

The downside of this requirement is that it can take more time and more money to reach the people you want to communicate with.

The upside is that response rates tend to be much higher. In many cases, we’ve seen response rates 3 times better or more than other channels.

So where do you start?

1. Leverage your existing customer database. Chances are you already have a customer list with permission to communicate in other channels. Ask them if you can communicate to them on their mobile device next time they reach your call centre or read your email newsletter.

2. Update your terms and conditions policy or statements. Although it can be expensive to update your policies to include a clause that allows you to reach customer through mobile, this is an effective way of getting enough consent to at least reach out once using mobile. Many companies are already in the process of updating their T&Cs to reflect the new “do not call” list law – so leveraging that process to add a clause on mobile would be cost effective…. And if you’re really lucky completely covered out of somebody else’s budget!

3. Update your website. Update your customer profile page to include a line specific for mobile numbers. Many sites have a field for “other” phone numbers but they aren’t specific to mobile. On the same page, give users several mobile opt-in options. For example, opt-in for contest or promotions and alerts or reminders specific to your product or service. You can even have alerts for when content is available in other channels – like a reminder that your cable bill is due and can now be viewed online.

4. Leverage events and sponsorships to drive acquisition. Text and you can win promotions at events are a great way to engage and acquire new customers (especially if the offer is really relevant), so be sure to include an opt-in SMS message after entry. Keep it simple.

5. Create awareness. You can have the best mobile channel offer in the market, but it’s only good for those who know about it! Be sure to promote your mobile services and options through other channels. For example, POS, statement stuffers, website, email and your above-the-line media. Remember when you had to convince your Art Director to include a URL on that Ad? Now that you have that practice, convince them to include a shortcode or mobile web address too - with a call to action. Better awareness will mean more opt-ins…which means it will be easier to justify the investment you just made in mobile.

6. Be sure to deliver exactly what they asked for! Once you have consent, you want to ensure that you keep it. By giving customers or prospects exactly what they opted in for, you can harvest your mobile customer list well beyond your initial campaign.

Trends in Wireless Phones and Usage - 2008-2011

The wireless business has been driven by technological advances in phones so far. Eight years back, wireless phones did not offer email, music or video, or the Internet. Today, most wireless phones sold worldwide incorporate at least one advanced feature. Competition among phone manufacturers is primarily based upon a race to add additional features within accepted price ranges. But that is about to change. Packing more features into a smaller phone as its limits. The transition to content as a differential for telecom companies is likely to accelerate over the next five years. The addition of content as a significant revenue stream for telecom companies, in addition to subscriber fees and sales of phones is likely to drive innovation in cell phone features.

The big trends over the next five years include the following:

1. Advanced features are standard in phones

In a recent Arcus survey of over 1,200 individuals to get a sense of where consumer sentiment is today, over 95% of wireless phone users said they use at least three of the technological innovations introduced in the past five years.

Increasingly, cell phone users consider these features to be integral to the phone and not an extra feature. These innovations have become part of a “basic phone.” This trend will increase the emphasis on other differentiators to engage cell phone customers. Cell phones of the future will incorporate features in a combination of what the value chain needs to support its business, what end-users want, and what the different players need as the environment changes. The value chain, which consists of the manufacturer, a distributor, the wireless carrier, and, in about 25% of the respondents, the employer of the end-user, need an ongoing stream of innovation and consumers open to new features. This appears to be the case in spite of some warnings that the wireless phone market will soon be “saturated.”

2. The future is flexible and wearable

This year's Flexible Displays and Electronics Conference confirms that the future is with flexible, folding, and rolleable displays. Almost everything at the show is still a few years off, but there are actually two products with flexible displays for sale right now, Gyricon's electronic ink display and a wristwatch from Nike with a curved LCD screen (which has actually been out for years). A brilliant example is the Nokia 888 communicator concept phone. You're not going to see this in stores any time soon. But if you'd like to get an idea of what Nokia thinks the future of communications will look like, take a look at the Nokia 888 communicator, a concept design that recently won Nokia's Benelux design contest.

The bracelet-like 888 is envisioned to use a liquid battery, feature speech recognition, a flexible touch screen, and a touch sensitive body cover. A video showing off the device's potential features shows off close to a dozen functions, including an alarm clock, PDA, GPS, phone, push email receiver, digital wallet and, of course, jewelry. And, other than the "liquid battery," we can actually see this in the not-too-distant future.

The end-users wants are more ambiguous. The figure below shows that there is little interest in multimedia capabilities while there is significant interest in location services.

3. Software is the phone

High functionality SmartPhone will grow rapidly as consumers expect phones to integrate deeper into their lives. In addition, manufacturers will shift to platforms with user interfaces that deliver unique experiences from software upgrades rather than hardware changes. These will be stealthily incorporate a phone Operating System to easily morph new combinations of capabilities into the market quickly and economically.

4. Business applications will penetrate deeper into Corporate wireless

Wireless service continues to be treated as a corporate benefit. As data access becomes more integrated into mobile applications, there is likely to be a cultural shift of wireless phones from being “yuppie toys” to its recognition as productivity tools. As value-added data service will overtake the revenues from voice services, the industry will recognize that believing that one phone per person equates to market saturation. When society looks back on 2006 when it is 2011, it will be parallel to looking back to society looking at the days of Microsoft DOS. An example is the growing use of mobile phones to monitor customer purchasing patterns. Mobile phones look and feel like mini-PCs, improving the mobile internet experience and increasing the use of data services.

5. My Mobile Wallet

Cell phones are likely to become the new Interac. As consumers concerns about wireless security abate and the technology in North America catches up with Japan and South Korea where mobile commerce practicality of using a wireless phone in monetary transactions will overcome whatever consumer resistance exists to this application. While mass market purchase is focussed on services like tickets and entertainment, longer and more frequent online surfing is likely to broaden the goods and services purchased online. QR codes will drive the integration of product information with mobile commerce. South Korea has seen a dramatic increase in ARPU (average revenue per user) in the mobile sector as operators promote value-added services and customers respond enthusiastically driving mobile market blended ARPU by 13% to US$49.3 per month in the Asian market in the past year. Compared to Canada where the percentage of ARPU spent on data services increased by 4.5 % points to 12.1% last year, fuelled primarily by strong growth in the messaging sector. Canada has one of the highest postpay/prepay ratios in the world at 4:1. ARPU for postpay services is typically over 4 times that of prepay services in Canada and growth in postpay subscribers plays an important part in raising blended ARPU. Interestingly, Canada has a higher ARPU than South Korea even with an under developed mobile services market. ARPUs of Bell Mobility and Telus are $51 and $63 respectively. The recent CRTC wireless spectrum auction will hopefully open up the market for mobile content and services.

6. Local search now in your neighbourhood

Widespread adoption of Internet surfing from wireless phones will come with the use of more intelligent entry options. Android will dramatically change wireless search. The Open Handset Alliance, a group of more than 30 technology and mobile companies, is developing Android: the first complete, open, and free mobile platform. Take an early look at the Android Software Development Kit. It will combine information from the web with data on the phone -- such as contacts or geographic location -- to create new user experiences. Android does not differentiate between the phone's basic and third-party applications -- even the dialer or home screen can be replaced. Check out introduction from Sergey Brin on Android.

7. Biometric Security is here

Security will be a concern of the past just as online banking has become acceptable, mobile commerce will change dramatically after biometric security becomes standard on phones. The interaction between a cell phone and user is highly personal and interactive. So seamless, convenient and intuitive integration of security will speed up acceptance of mobile commerce adoption.