1. BSI Mobile Viral Marketing – Basics and Status
Marketing 2.0 Conference, Amsterdam 2007

2. Join the conversation
MARKETING 2.0 CONFERENCE
www.marketing2conference.com

3. 3. International Word-of-Mouth Marketing Conference
Amsterdam, 10-11 May, 2007
Mobile Viral Marketing –
Basics and Status
Dietmar G. Wiedemann
Mobile Commerce Working Group
Chair of Business Informatics and Systems Engineering
University of Augsburg
Universitaetsstrasse 16, 86159 Augsburg, Germany
Tel. +49 (821) 598-4431, Fax -4432
www.wi-mobile.org

4. Research Application
cutting-edge in mobile, analysis and consulting in
international co-operation research-driven projects
Teaching
high-class education for graduates and
executives in the mobile ecosystem
Mobile Commerce Working Group
Chair of Business Informatics and Systems Engineering
University of Augsburg
Universitaetsstrasse 16, 86159 Augsburg, Germany
Tel. +49 (821) 598-4431, Fax -4432
www.wi-mobile.org

5. Research area: mobile (viral) marketing
Campaign management
> Development of a tool-based process model
Success factor analysis
Market studies
> Consumer acceptance of mobile viral marketing
Projects
> Development of Napoleon (Bluetooth System)
> Standardization for Bluetooth Marketing

6. Agenda
What makes the mobile channel interesting for
marketing?
What is mobile viral marketing?
What are the characteristics of mobile viral
marketing?
> Literature review: morphological box
What are typical campaigns and strategies?
> Case study research: standard types
What are challenges in mobile viral marketing
How successful is mobile viral marketing?

7. What makes the mobile channel interesting
for marketeting?
Marketers can reach people
anywhere and anytime
> 79 % of Germans are available at least 9
hour per day (n=1,034) [In04]
Mobile devices are an essential
element in people’s life
> 20% would rather lose their wedding ring
than their mobile (n=5,500) [No06]
… and indispensable for human
relations
> 86% of Swedes have flirted using SMS
(n=685) [Te06]
High degree of attention
Mobile communication
technology allows
> Ubiquity
> Context-sensitive advertising including
personalization, interactivity, and location
based advertising
> Identification of consumers
> (Command and control function)

8. Usage of Mobile Marketing Campaigns
Information Entertainment Contest Coupon
Increasing Mobile newsletter Logo, wallpaper or Raffle in which all Free SMS or MMS
brand theme consumers win contingent on the
awareness brand website
Changing brand Portal informing Mobile game Placing image through Coupon for a
image about product the prize of the raffle promotional gift that
attributes places the image
Increasing Information about Ring tone provided via Raffle provided via an Cash, quantity or
sales season products an on-pack campaign on-pack campaign seasonal discounts via
SMS
Establishing Question-answer Download-center Provision of a raffle for Mobile discount ticket
brand loyalty application existing consumers book
Building Personalized Provision of a logo or a Participation in a raffle Provision of a coupon
customer information ring tone on condition on condition of on condition of
database of registration registration registration
Motivating Send-to-a-friend- Mobile greeting card Participation in the Discount in return of
mobile viral option, URL, raffle requires partici- recommendation
marketing WAP-Push pation of other people
> Campaign Type Selection Toolbox [PW06]

9. Examples of mobile viral marketing
Mobile viral marketing
as distribution concept
Location- Mobile Communication
based communities services
friend finders (opinion
platforms)
Mobile viral marketing as
communication concept
Send-to-a- MMS Greeting Voice Cards
friend options Cards

10. What is mobile viral marketing?
Mobile viral marketing
> is a concept for distribution or communication
> relies on customers to transmit content via mobile communication
techniques and mobile devices to other potential customers in their
social sphere and to animate these contacts to also transmit the content
Mobile viral content comprises mobile products,
services, or ads
> Also WAP Push and URL

11. Method
Case study approach [Ei89]
> Definition of research questions
» RQ 1: What are the characteristics of mobile viral marketing?
» RQ 2: What are typical campaigns and strategies?
> Selecting cases: Web content analysis (34 case studies)
> Crafting instrument
» Morphological box derived from literature (RQ 1)
> Analyzing case studies
» With-in case analysis
» Cross-case pattern search
> Searching for relationship between emerging standard types (RQ 2)
> Enfolding literature
> Research closure

12. What are the characteristics of mobile viral
marketing?
Characteristic Instances
Participant Marketer Connection point Initial contact Communicator Recipient
Motivation of
Intrinsic Extrinsic
communicator
Role of communicator in
Active Passive
persuasion
Added value for recipient Information Entertainment Contest Monetary incentive
Content type Mobile application Video Voice Image Text
Content generation Company-generated content User-generated content
Impact Positive Negative
Level of network
High Low
externalities
Cost of communicator or
Premium rate Transmission costs None
recipient
Recommendation type Push Pull
Radio
Mobile network type Cellular phone WLAN/ Near Field
Frequency Bluetooth Infrared
network WiMAX Communication
Identification
High level Wireless Multimedia
Enabling Short Messaging Interactive Voice
programming Application Messaging
technology Service Response
language Protocol Service
Source: wi-mobile

13. Application of the morphological box
Tool for designing and analyzing mobile viral
marketing
Example: L'Oréal (Mobile Kiss)
Characteristic Instances
Connection Initial
Participant Marketer Communicator Recipient
point contact
Motivation of
12snap & Intrinsic Extrinsic
communicator
WellaDesign! The Role of
mobile Kiss: Who do communicator in Active Passive
persuasion
you like to kiss?
Added value for
SMS with YOUR Information Entertainment Contest Monetary incentive
recipient
name, type of kiss Mobile
(F=Female;M= Content type Video Voice Image Text
application
Male) mobile
number of recipient Content generation Company-generated content User-generated content
to 74033
Impact Positive Negative
Level of network
High Low
externalities
Cost of
Transmission
communicator or Premium rate None
12snap & Wella recipient
costs
Design! The Kiss Recommendation
Push Pull
Kiss via IVR was from Susi! Kiss type
back! Who is kissing Mobile network type
Cellular
WLAN/
most frequently phone RFID Bluetooth IrDA NFC
WiMAX
network
flies Ibiza von Wella
Design! Enabling
High level
programming WAP MMS SMS IVR
technology
language

14. What are typical campaigns and strategies?
Conducting within-case analysis revealed two
groups of case studies
> Mobile services with network externalities represent the distribution
concept
> Mobile marketing campaigns with viral component represent the
communication concept
Conducting cross-case search revealed typical
patterns composed of the instances of two
characteristics

15. Mobile viral marketing standard types
Source: wi-mobile
Role of communicator in persuasion
> Active: communicator is personally involved in the process of
acquiring new customers
> Passive: request to forward or to use the content is integrated into
the process by an additional message sent by the marketer or part
of the content
Level of network externalities
> High: value of a unit of the good increases with the expected
number of units to be sold or used
> Low: value of a unit of the good and expected number of units to be
sold or used are independent.

16. Motivated Evangelism
Examples: proprietary communication
services, location-based friend finders, or
mobile communities
Network externalities are high as both
and others users benefit from a wider
diffusion of the service
Active participation of communicators in I love Amsterdam
acquiring new users
It is conceivable that new recipient turns
into an evangelist for the good inside his
or her circle of friends, and the installed
base grows exponentially
Company Description
The communication service enables creation and sending of so called Zlango
messages made up of over 200 icons to express words, concepts, or feelings.
Zlango
Communicators as well as recipients are required to download the mobile application to
use the service.

17. Signaling Use, Group Membership
Examples: mobile file compression
software or proprietary document
formats
> Mobile Payment
> PDF-writer
> Real Player
Both and other users benefit from a
wider diffusion of the service
Recipient are informed about the service
by the marketer
> WAP-Push to a landing page
Company Description
The mobile payment procedure enabled among others money transfers between
customers. When a user sent money to an unregistered user, he or she was able to
Paybox
receive the money only after signing up for the mobile payment procedures. Paybox
informed the unregistered user about this issue with an SMS.

18. Targeted Recommendation
Example: send-to-a-friend-options
No change of benefit when
communicators forward the mobile viral
content
Communicator can roughly predict the
recipient’s interests and preferences
based on private information
Spreading specific product information
within a target group which could be
extremely difficult to reach otherwise
Company Description
Initial contacts were briefed on the commercial WAP portal by advertisement on a
mobile network operator portal. Communicators use a send-to-a-friend-option and
Adidas (+10) recommend the commercial WAP portal by entering his or her name as well as the
name and the MSISDN of recipient who receives a WAP Push leading to the WAP
portal.

19. Awareness Creation,
Benefits Signaling
Examples: free SMS services,
mobile greeting cards, micro 132
movies including URLs characters
No benefit from a wider diffusion powered by
www.aubergemediale.
com
Recommendation is part of the
mobile viral content
Company Description
Initial contacts were briefed on the sound greeting cards by Push SMS.
Communicators sent an SMS with their name, the selected a sound card indicated by
L'Oréal
“F” or “M” according their sex and the recipient’s MSISDN to L'Oréal. The company
(Mobile Kiss)
sent the sound greeting card and afterwards an SMS with information about the
communicator and the forwarding mechanism to receivers.

20. What are challenges in mobile viral
marketing?
Perceived usefulness by recipients
> Informational added value (IAV)
Reward for communicators
> Money, mobiles services, e.g., ringtones etc.
Perceived ease of use
> “Design to mobile – 3 clicks”
Free mobile viral content
> Except transaction cost
Initial contacts
> Mobile viral mavens
First-mover’s advantage
> Innovative products
Critical mass
> “winner takes it all”
Scalability
> Possibility of setting of limits

21. How successful is mobile viral marketing?
Potential of mobile viral marketing for distribution and
communication purposes
> Case study
» L'Oréal (Mobile Kiss): Push-SMS to 200,000 users; result: 750,000 contacts
> Surveys
» 17% forwarded mobile ads (n=500) [BS02]
» 30% said a friend’s recommendation would convince them to download a
mobile application (n=2,500) [Ip05]
» 45% would intend to share music with friends via Bluetooth (n=1,477) [IN06]
Own expert study (n=44) [MW06]
> Personal messages sent by friends gain more credibility
> (Viral) recipients participate more frequently in a campaign as initial contacts
> Lower company expense

22. Outlook
From „Web 2.0“ to „Mobile 2.0“
> Need for business model
> Indirect revenue sources: provisions or advertising

23. Conclusion
Mobile channel offers many opportunities for viral
marketing
> as distribution concept
> as communication concept
Most mobile campaigns are copied from
(connected with) the stationary Internet
> E.g., send-to-a-friend options, greeting cards, etc.
Challenges of the mobile channel
Case studies, trials, and survey revealed high
degree of viral effects
“It stays suspencive!”

24. Research and industry meet at…
8th Conference Mobile Commerce Technologies und Applications
University of Augsburg, 28–29 Jan 2008
Program:
28 Jan: Tutorial (½ day) on the various areas of the mobile ecosystem
29 Jan: Conference Program; Planned sessions include: M-Marketing, M-Payment, M-
Banking, M-Entertainment (Music, Gaming, TV), Mobile-Integrated Business Processes,
GALILEO, …
www.mcta.de

25. Literature
[BS02] P. Barwise and C. Strong, “Permission-based Mobile Advertising”, Journal of
Interactive Marketing, 16 (1), 2002, pp. 14–24.
[He00] S. Helm, “Viral Marketing – Establishing Customer Relationships by ‘Word-of-
mouse’”, Electronic Markets, 10 (3), 2000, pp. 158–161.
[He04] T. Hennig-Thurau, K:P. Gwinner, G. Walsh, D.D. Gremler, “Electronic Word-of-
Mouth via Consumer-Opinion Platforms: What Motivates Consumers to Articulate
Themselves on the Internet?” Journal of Interactive Marketing, 18 (1), 2004, 38-52.
[Mod01] M.F. Modzelewski, „Finding a Cure for Viral Marketing“, Direct Marketing News,
2000-09-11.
[Mon01] A.L. Montgomery, "Applying Quantitative Marketing Techniques to the Internet“,
Interfaces, 31 (2), 2001; pp. 90-108.
[In04] Instituts für Mobile Marketing, "Handynutzungsverhalten in Deutschland“,
Schriftenreihe des Instituts für Mobile Marketing, 2004.
[IN06] Intuitive Media and New Media Age, Kids Go Mobile – Ownership and Use of Mobile
Phones By Children aged 6 to 13, http://intuitivemedia.com/ie.html, 2006.
[Ip05] I-play, “I-play Outlines Collective Industry Action Required for Mobile Gaming Market
to Reach True Potential”, press release, June 6, 2005.
[PW06] Pousttchi, K. and Wiedemann, D. G. „Mobile Commerce I“ Arbeitsgruppe Mobile
Commerce. Augsburg 2006.
[MW06] Marini, S. and Wiedemann, D. G. „Entwicklungen im Bereich Mobile Advertising aus
der Sicht von Experten. Ergebnisse der Expertenbefragung MM1“, Pousttchi, K. (Ed.)
Studienpapiere der Arbeitsgruppe Mobile Commerce. Bd. 1, Augsburg 2006, S.1-49.
[No06] Nokia research into mobile habits (5,500 people aged between 18 and 35 in 11
nations). 2006.http://news.bbc.co.uk/1/hi/technology/5048966.stm
[Te06] TeliaSonera, „Twothirds of Swedes secretly read partner‘s SMS message, press
release.