Brady Murphy

Brady Murphy is a founder and managing partner of Vortex Mobile. Since 2004, Brady has been leading Vortex's sales and marketing efforts and has acted as the company's chief evangelist for all things mobile marketing. His expertise lies in leveraging mobile applications to create compelling brand experiences that encourage dialogue between companies and consumers.

Prior to founding Vortex, Brady worked in promotions where he gained valuable insight into media, sponsorship, word of mouth & viral marketing, CRM, and direct marketing. Ever an advocate for permission based marketing, Brady has helped Vortex clients such as Levis, Bacardi, Procter & Gamble, Nestle and Energizer cut through the media clutter and forge stronger relationships with their customers.

Brady is a prominent member of the IAB's Mobile Committee and has regularly contributed his expertise through both published materials and speaking engagements.

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!

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.