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Trends and perspectives
           -
   Mobile marketing




                          page 1
Definition and recent development

                                  Mobile Marketing…

     ...refers to marketing activities in order to address consumers directly and to lead
     to a certain behavior by using wireless telecommunications and mobile
     devices.



                                   Recent development
             …growing significance of mobile marketing since Apple’s
             introduction of the iPhone

             …increasing popularity through new cell phone technologies
             and flat rates (almost 4.4 billion mobile contracts worldwide in
             2009)

             ! But…still an inferior role of mobile marketing as source for
             advertising turnover!



                                                                                       page 2
Characteristics and specific features of the media



                                                      What mobile network
                      Locatable                       operators (potentially) know
                                                      about their customers…

                                                      • dialog partner
     Locally
                                        Interactive
  independent                                         • location
                       Mobile
                       device                         • movements (cell to cell)

                                                      • communication time

                                                      • type or quantity of data
         Individual               Available




                                                                                   page 3
Pros and cons of mobile marketing

               Opportunities                                      Risks

  + Ability to address consumers in a context   -   Reactance
    relevant and geographic relevant way
                                                -   High costs until now (only few can
  + Brand management via multi-media                access permanently and in a cost-saving
    based contents                                  manner)

  + Customer loyalty retention                  -   Absence of range measures makes
                                                    media planning difficult
  + Sales management for stationary brand
    stores                                      -   Small number of page views of the
                                                    mobile Internet
  + Particularly appropriate for younger
    target groups and business customers        -   Only 60-65% of the biggest German
                                                    websites provide web pages adapted to
  + Possibility of response assures a good
                                                    mobile devices
    control of success




                                                                                 page 4
Forms of mobile marketing (1)



                                     Mobile direct
                                  response marketing

                                  Interaction initiated
                                  by user through
                                  sending a SMS or
                                  activation of the
                                  Bluetooth function

                                  Bluetooth-Marketing:
                                  City-light-poster
                                  showcases, provided
                                  with Bluetooth
                                  transmitter



Source: direkt marketing, 2008.


                                                          page 5
Forms of mobile marketing (2)

                                           Mc Donald’s Japan: Kazasu Coupons
    Mobile permission            contact-less coupons
       marketing                 loyalty and payment program
                                 tested in 175 subsidiaries
  Companies address              implemented 2009 in each of the 3,800 subsidiaries in Japan
  users by sending
  mobile coupons, voice
  cards, SMS or MMS
  Requisite: Previous
  user acceptance


  Sales management
  for stationary brand
  stores

                                By using RFID technology (installed in mobile phones),
                                consumers can choose their desired menu, use vouchers
                                and make cashless payments over their mobile phone.
Source: www.cscscoutjapan.com



                                                                                      page 6
Forms of mobile marketing (3)

  Nissan Murano on RTL mobile portal
                                                           Mobile advertising:

                                                         User perceives
                                                         advertising message in
                                                         the mobile content
                                                         (mobile Internet, games,
                                                         videos, mobile TV)


                                                         Display advertising
                                                         formats:
                                                          Banner
                                                          Applications
 The growth rate of brand awareness constitutes 30%       Interstitials
 within a campaign duration of three months (October -
 November 2008)




                                                                            page 7
Classic display advertising

   … is not the best solution…




                                 page 8
How should it look like? – practical implications


                Practical implications

      Usage of consumer accepted formats
      providing high effectiveness and readiness
                                                      Your new balance:
      for mass implementation                         $14,24

                                                      ADVERTISEMENT:
                                                      An important
      Advertising when consumer reaches               consumer
                                                      information can be
      highest level of alertness: During request      placed here ;)

      of balance for prepaid account


      Avoid losses based on media disruption:
      Direct response of participant via phone call
      or SMS



                                                                     page 9
Gettings

                                     Gettings…

   …is another strategic approach in order to avoid reactance by rewarding
   the receptor for his attention.




                                                 Rewards:

                                                        credits

                                                              free text messages

                                                                  free minutes




                                                                            page 10

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Interactive Marketing: Trends and perspectives – mobile marketing

  • 1. Trends and perspectives - Mobile marketing page 1
  • 2. Definition and recent development Mobile Marketing… ...refers to marketing activities in order to address consumers directly and to lead to a certain behavior by using wireless telecommunications and mobile devices. Recent development …growing significance of mobile marketing since Apple’s introduction of the iPhone …increasing popularity through new cell phone technologies and flat rates (almost 4.4 billion mobile contracts worldwide in 2009) ! But…still an inferior role of mobile marketing as source for advertising turnover! page 2
  • 3. Characteristics and specific features of the media What mobile network Locatable operators (potentially) know about their customers… • dialog partner Locally Interactive independent • location Mobile device • movements (cell to cell) • communication time • type or quantity of data Individual Available page 3
  • 4. Pros and cons of mobile marketing Opportunities Risks + Ability to address consumers in a context - Reactance relevant and geographic relevant way - High costs until now (only few can + Brand management via multi-media access permanently and in a cost-saving based contents manner) + Customer loyalty retention - Absence of range measures makes media planning difficult + Sales management for stationary brand stores - Small number of page views of the mobile Internet + Particularly appropriate for younger target groups and business customers - Only 60-65% of the biggest German websites provide web pages adapted to + Possibility of response assures a good mobile devices control of success page 4
  • 5. Forms of mobile marketing (1) Mobile direct response marketing Interaction initiated by user through sending a SMS or activation of the Bluetooth function Bluetooth-Marketing: City-light-poster showcases, provided with Bluetooth transmitter Source: direkt marketing, 2008. page 5
  • 6. Forms of mobile marketing (2) Mc Donald’s Japan: Kazasu Coupons Mobile permission  contact-less coupons marketing  loyalty and payment program  tested in 175 subsidiaries Companies address  implemented 2009 in each of the 3,800 subsidiaries in Japan users by sending mobile coupons, voice cards, SMS or MMS Requisite: Previous user acceptance Sales management for stationary brand stores By using RFID technology (installed in mobile phones), consumers can choose their desired menu, use vouchers and make cashless payments over their mobile phone. Source: www.cscscoutjapan.com page 6
  • 7. Forms of mobile marketing (3) Nissan Murano on RTL mobile portal Mobile advertising: User perceives advertising message in the mobile content (mobile Internet, games, videos, mobile TV) Display advertising formats:  Banner  Applications The growth rate of brand awareness constitutes 30%  Interstitials within a campaign duration of three months (October - November 2008) page 7
  • 8. Classic display advertising … is not the best solution… page 8
  • 9. How should it look like? – practical implications Practical implications Usage of consumer accepted formats providing high effectiveness and readiness Your new balance: for mass implementation $14,24 ADVERTISEMENT: An important Advertising when consumer reaches consumer information can be highest level of alertness: During request placed here ;) of balance for prepaid account Avoid losses based on media disruption: Direct response of participant via phone call or SMS page 9
  • 10. Gettings Gettings… …is another strategic approach in order to avoid reactance by rewarding the receptor for his attention. Rewards: credits free text messages free minutes page 10