By Dan Butcher
NEW YORK - Retail giant Sears understands that its customer base is increasingly mobile and the company is making major strides in mobile commerce with its Sears2Go service.
Sears’ mobile commerce site at http://sears2go.com, which Sears promotes via SMS and mobile advertising, lets consumers buy on their mobile phone and pick up the item in-store. Items sold on mobile include appliances, automotive parts, apparel, computers, electronics, jewelry, toys and games, lawn and garden equipment, footwear and tools.
“Mobile messaging and information services [provides] the bulk of mobile transactions, and...where we really need to go is using the mobile channel to drive transactions...,” Thomas Emmons, team leader of mobile/innovation for Sears.
“...We’ve moved our way through these stages from letting consumers buy online and pick up the item in-store to and offering text alerts to customers, which was wildly successful,” he said.
The full appliance product line available at Sears2go joins a variety of other product categories, including apparel, electronics and computers, fitness and sports, jewelry, tools, toys and games.
Last Sunday, Sears even sold a $3,000 lawn tractor to a consumer shopping on his mobile phone.
“Mobile consumers are...utilitarian,” Mr. Emmons said. “They come to our mobile site and they either leave or they buy something."
“We get...store location requests on the phone,” he said.
Sears got a short code set up [in 2007] and execs listened to pitches for 2D bar codes.
EDITOR'S NOTE: Some great applications here...
“We tested various mobile initiatives and learned about SMS alerts letting consumers know an item was ready for pickup, in-store SMS for pushing out deals and a WAP site with product reviews,” Mr. Emmons said.
SMS is great as a promotional channel for branding, Sears’ mobile commerce strategy is focused on driving transactions via its mobile Web site.
“As far as our mobile commerce strategy, we’ve always had a spot for checkout on our mobile site,” Mr. Emmons said.
Sears has seen a disproportionate amount of mobile Web traffic come from Apple’s iPhone.
“Mobile allows us to think of retail in vastly different ways than we’ve done before,” Mr. Emmons said. “The idea that I can buy something on my phone in two minutes then receive a text message that it’s ready to be picked up—that’s a game changer."
“As computers get smaller and phones get bigger, the line between them is blurred—mobile is about new forms of convenience.”
Friday, July 10, 2009
Wednesday, July 8, 2009
Overcoming fear of mobile marketing
July 8, 2009
By Jeannette Kocsis
Everyone knows that mobile is hot, and many marketers are trying to understand how to leverage the technology. We hear about high response rates and higher levels of engagement and we want in. And yet, it’s still difficult to take the step.
Many brands are trying mobile in limited doses. Agencies may create one-off campaigns that have mobile elements, and in the context of those campaigns, the mobile portion performs its intended purpose.
If it was executed well, mobile may have lent to the success of the overall campaign. Or perhaps the brand is using mobile as a standalone channel and is seeing some success, but is not sure about making it mainstream as a communication channel for their company.
In some cases, the roadblock to greater adoption is fear. The economy is tough. Online media costs are rising. Spending is down in some categories, making decisions about marketing budgets more difficult. It is hard to justify new mediums and it is hard to change thinking.
As with all types of marketing, factors such as customer demographics, timing, product and brand reputation, potential market and costs over revenue also apply to mobile marketing.
But with mobile we need to add in factors such as channel adoption, technology requirements and opt-in requirements unlike anything marketers have had to manage to in the past. It’s no wonder that mobile is challenging to say “yes” to as an investment.
Now let’s consider the upside:
• The adoption rate is incredibly high
• Unlike the Web, this medium is starting out with a very high usage rate. The Web started at zero; 80 percent of U.S. adults have a mobile phone
• The mobile Web continues to increase in usage
• People who choose this channel will respond to relevant offers given the stringent opt-in requirements
When thinking about mobile today, we need to realize that it is part of the future of marketing. It is better to gain experience now while the channel is new and competitors may be lagging.
A single, one-off campaign may not show the results you need to prove the value of the channel to management. Marketers who approach mobile marketing from a multichannel perspective and integrate it with other mediums will likely have more success with their mobile campaigns.
These marketers will also be quicker to benefit from the value that mobile marketing has to offer.
The best advice is to take the leap and pilot a program. The cost of entry may be fairly low and your return may be high, but you won’t know until you try.
By Jeannette Kocsis
Everyone knows that mobile is hot, and many marketers are trying to understand how to leverage the technology. We hear about high response rates and higher levels of engagement and we want in. And yet, it’s still difficult to take the step.
Many brands are trying mobile in limited doses. Agencies may create one-off campaigns that have mobile elements, and in the context of those campaigns, the mobile portion performs its intended purpose.
If it was executed well, mobile may have lent to the success of the overall campaign. Or perhaps the brand is using mobile as a standalone channel and is seeing some success, but is not sure about making it mainstream as a communication channel for their company.
In some cases, the roadblock to greater adoption is fear. The economy is tough. Online media costs are rising. Spending is down in some categories, making decisions about marketing budgets more difficult. It is hard to justify new mediums and it is hard to change thinking.
As with all types of marketing, factors such as customer demographics, timing, product and brand reputation, potential market and costs over revenue also apply to mobile marketing.
But with mobile we need to add in factors such as channel adoption, technology requirements and opt-in requirements unlike anything marketers have had to manage to in the past. It’s no wonder that mobile is challenging to say “yes” to as an investment.
Now let’s consider the upside:
• The adoption rate is incredibly high
• Unlike the Web, this medium is starting out with a very high usage rate. The Web started at zero; 80 percent of U.S. adults have a mobile phone
• The mobile Web continues to increase in usage
• People who choose this channel will respond to relevant offers given the stringent opt-in requirements
When thinking about mobile today, we need to realize that it is part of the future of marketing. It is better to gain experience now while the channel is new and competitors may be lagging.
A single, one-off campaign may not show the results you need to prove the value of the channel to management. Marketers who approach mobile marketing from a multichannel perspective and integrate it with other mediums will likely have more success with their mobile campaigns.
These marketers will also be quicker to benefit from the value that mobile marketing has to offer.
The best advice is to take the leap and pilot a program. The cost of entry may be fairly low and your return may be high, but you won’t know until you try.
Monday, July 6, 2009
Michael Jackson and text messaging
Author by Bob Bentz
ADOTAS — The King of Pop died two weeks ago. Now, that’s not news to anybody, but the way that we all found out about it may be.
You definitely remember exactly where you were and how you found out about 9-11, don’t you? What were you doing when the O.J. verdict was announced? You remember the details when Lady Diana’s car crashed and when Elvis died. And, if you are old enough, you remember where you were and how you found out when John F. Kennedy, Bobby Kennedy, and Martin Luther King were assassinated.
On Friday, I learned that Michael Jackson died via text message. The text message wasn’t sent by a friend. It was sent by a radio station that I listen to. I was in my car. I immediately turned off my Green Day CD and tuned in to the radio station to find out more details. Other than the cell phone, the only other medium that I had with me was my radio.
That’s why these two mediums are such a great match. According to Knowledge Network, 60 % of us have our cell phones with us 24 hours per day. I couldn’t find a similar statistic concerning radio, but the only time I’m not near a radio is when I’m working out at the gym. I have a radio at home, I have a radio at work, and I have a radio in my car.
Just like most Americans. And, the trend is continuing, especially if your target market is young adults. According to the Center for Disease Control and Prevention, 18% of all American households are now cell phone only. That means that these households have cut the cord of having a home phone. Why bother?
Like many American businesses, radio is struggling with tighter advertising budgets. But, the marriage of radio and cell phone can help pull radio out of those doldrums and above the din caused by the proliferation of the American advertising market.
Forward-thinking radio stations have been using text messaging, now known as “mobile marketing,” for several years. It started out as a bastion of the promotions department, but has since moved to the sales department.
“Text messaging started out as a promotions tool, but it’s now a sales tool,” said Bret Dunlap, chief executive officer at Spark Network Services which operates 84444.com—a do-it-yourself mobile marketing service that sells to radio stations.
“We’ve had CHR stations that couldn’t get in on the 12-24 demo for soft drink buys, but when they added a mobile marketing sponsorship, they got in on the buys,” said Dunlap. “We’ve had other radio stations sell sponsorships of their text messages and get double what we charge them for the online text message solution.”
The key to a successful radio mobile marketing campaign is the creation of an opt-in database of listeners. This is normally done through a sweepstakes program. Radio stations often use ticket giveaways to create its opt-in list of P-1 listeners. Then, when a newsworthy even like the Jackson death happens, a station can send a broadcast text message and be the first to notify its listeners.
All text messages sent by the radio station have an advertiser sponsor element. This is where the additional revenue comes in to the radio station. Since a text message is limited to 160 characters, the advertiser normally gets 40 of those characters for its sponsorship message. The largest category of use by advertisers is sweepstakes followed by mobile coupons.
While rap and hip-hop stations get the most response, country stations are also doing very well with mobile marketing as more middle-age listeners begin texting. In fact, the biggest growth area for text message use is the 35 – 54 year-old age group, according to statistics released by the Mobile Marketing Association.
“The hardest thing is to get advertisers to try it for the first time,” said Dunlap. “But, once they try it and somebody walks into the store with a mobile coupon, they will continue to use it.”
ADOTAS — The King of Pop died two weeks ago. Now, that’s not news to anybody, but the way that we all found out about it may be.
You definitely remember exactly where you were and how you found out about 9-11, don’t you? What were you doing when the O.J. verdict was announced? You remember the details when Lady Diana’s car crashed and when Elvis died. And, if you are old enough, you remember where you were and how you found out when John F. Kennedy, Bobby Kennedy, and Martin Luther King were assassinated.
On Friday, I learned that Michael Jackson died via text message. The text message wasn’t sent by a friend. It was sent by a radio station that I listen to. I was in my car. I immediately turned off my Green Day CD and tuned in to the radio station to find out more details. Other than the cell phone, the only other medium that I had with me was my radio.
That’s why these two mediums are such a great match. According to Knowledge Network, 60 % of us have our cell phones with us 24 hours per day. I couldn’t find a similar statistic concerning radio, but the only time I’m not near a radio is when I’m working out at the gym. I have a radio at home, I have a radio at work, and I have a radio in my car.
Just like most Americans. And, the trend is continuing, especially if your target market is young adults. According to the Center for Disease Control and Prevention, 18% of all American households are now cell phone only. That means that these households have cut the cord of having a home phone. Why bother?
Like many American businesses, radio is struggling with tighter advertising budgets. But, the marriage of radio and cell phone can help pull radio out of those doldrums and above the din caused by the proliferation of the American advertising market.
Forward-thinking radio stations have been using text messaging, now known as “mobile marketing,” for several years. It started out as a bastion of the promotions department, but has since moved to the sales department.
“Text messaging started out as a promotions tool, but it’s now a sales tool,” said Bret Dunlap, chief executive officer at Spark Network Services which operates 84444.com—a do-it-yourself mobile marketing service that sells to radio stations.
“We’ve had CHR stations that couldn’t get in on the 12-24 demo for soft drink buys, but when they added a mobile marketing sponsorship, they got in on the buys,” said Dunlap. “We’ve had other radio stations sell sponsorships of their text messages and get double what we charge them for the online text message solution.”
The key to a successful radio mobile marketing campaign is the creation of an opt-in database of listeners. This is normally done through a sweepstakes program. Radio stations often use ticket giveaways to create its opt-in list of P-1 listeners. Then, when a newsworthy even like the Jackson death happens, a station can send a broadcast text message and be the first to notify its listeners.
All text messages sent by the radio station have an advertiser sponsor element. This is where the additional revenue comes in to the radio station. Since a text message is limited to 160 characters, the advertiser normally gets 40 of those characters for its sponsorship message. The largest category of use by advertisers is sweepstakes followed by mobile coupons.
While rap and hip-hop stations get the most response, country stations are also doing very well with mobile marketing as more middle-age listeners begin texting. In fact, the biggest growth area for text message use is the 35 – 54 year-old age group, according to statistics released by the Mobile Marketing Association.
“The hardest thing is to get advertisers to try it for the first time,” said Dunlap. “But, once they try it and somebody walks into the store with a mobile coupon, they will continue to use it.”
Friday, July 3, 2009
Mobile is priority for new FCC chairman
Mobile got key attention in Chairman Julius Genachowski’s first remarks June 30, 2009, to staff of the Federal Communications Commission, the top regulating agency for wired, wireless, broadcast and broadband communications nationwide. Excerpts from his speech:
As the country’s expert agency on communications, it is our job to pursue this vision of a more connected America, focusing on the following goals:
• Promoting universal broadband that’s robust, affordable and open.
• Pursuing policies that promote job creation, competition, innovation and investment.
• Protecting and empowering consumers and families.
• Helping deliver public safety communications networks with the best technology to serve our firefighters, police officers, and other first responders.
• Advancing a vibrant media landscape, in these challenging times, that serves the public interest in the 21st century.
• Seizing the opportunity for the United States to lead the world in mobile communications.
These are just some of the goals we will pursue in the days ahead.
How we will work will be central to what we can achieve.
We will be fair.
We will be open and transparent.
Our policy decisions will be fact-based and data-driven.
We will strive to be smart about technology; smart about economics and businesses; smart about law and history; and smart every day about how our actions affect the lives of consumers.
We will use technology and new media to enhance the everyday worklives of FCC staff, green the agency, and improve overall operations of the FCC – running efficiently, communicating effectively, and opening the agency to participation from everyone affected by the FCC’s actions. And, stay tuned, we will have a new FCC Web site.
None of this will happen overnight. I’ve been around this enough to know – and you’ve been around this enough to know – that you can’t just snap your fingers and make it happen. It will take hard, often unglamorous, work by all of us. But with all of the talent in this agency, I know that, when we pull in the same direction and when we focus on our mission and what the American people expect of us, we can achieve great things. In the end, I want people to look at the FCC – our FCC – and say “this is an agency that works.”
So far, I’ve talked about what we are going to do, and how we are going to do it. I’d like to close by talking about why. Why do we serve in government and why do we serve at the FCC?
We serve because we believe our nation can always do better and that it must do better. We serve because, in our America, we are defined not by what we earn, but by what we give.
We all have our own stories, our own personal reasons for choosing public service. For me, it starts with my parents, immigrants, from whom I learned the meaning of the American Dream. And from whom I learned another powerful lesson.
Some of you may have heard me tell the story about the time I was in high school and my dad took me into the dusty stacks of the MIT library, and showed me engineering plans he had drafted as a graduate student. They were for a device designed to someday help blind people “read” words on paper by translating text into physical signals.
The formulas and drawings didn’t make much sense to me, but the core lesson has remained with me: communications technology has the power to transform lives for the better.
That’s never been more true than today. Communications must play a role in solving many of our nation’s most pressing challenges. It’s the FCC’s job – our job – to turn this aspiration into reality. We will be judged by whether we find concrete, practical ways to improve the lives of all of our nation’s people.
Why do we serve at the FCC?
We do it for this moment. We do it for this opportunity. Will we capture it? Looking at the faces in this audience, I already know the answer.
Let’s get to work.
Best Buy joins mobile shopping bandwagon
By Giselle Tsirulnik
Between the recession and the fact that consumers aren’t glued as much to their PCs, retailers are increasingly turning to the mobile channel to extend their brand and increase customer loyalty.
That is the case with electronics retail powerhouse Best Buy, which has quietly launched a new iPhone application available now for iPhone and iPod touch. Created by Slifter, the application, “Best Buy Gamers Club,” was released June 25 without much formal to-do.
“I think in general retailers look at mobile devices as a great way to provide value and communicate with people who are on the go,” said Alex Muller, CEO of Slifter, New York.
“Everyone has a mobile phone these days and so for a brand it is a powerful tool to help consumers with their shopping needs,” Mr. Muller said.
Consumers will certainly feel as if they have Best Buy in the Palm of their hands when using this application.
Other features of the application include weekly deals, a personalized shopping list and Blue Shirt Picks, which are Best Buy staff favorites.
This new mobile application is not Best Buy’s first foray into mobile.
Best Buy is currently running mobile advertising within the brand new msnbc.com application for the iPhone and iPod touch.
“I think at a high level, every bricks-and-mortar retailer is aiming to ultimately drive in-store sales,” Mr. Muller said. “Retailers are able to communicate special in-store events, offers and what is and is not in stock right to the consumers’ hands.
“The mobile channel is a great way to get local consumers aware about what you are doing,” he said. “We view the mobile phone as the centric device that has power of location and to connect retailers with the shopper.
“Mobile makes it very easy to facilitate loyalty, commerce and to give consumers access to a brand and its products and services right into the palm of their hands, whenever and wherever they may be.”
Between the recession and the fact that consumers aren’t glued as much to their PCs, retailers are increasingly turning to the mobile channel to extend their brand and increase customer loyalty.
That is the case with electronics retail powerhouse Best Buy, which has quietly launched a new iPhone application available now for iPhone and iPod touch. Created by Slifter, the application, “Best Buy Gamers Club,” was released June 25 without much formal to-do.
“I think in general retailers look at mobile devices as a great way to provide value and communicate with people who are on the go,” said Alex Muller, CEO of Slifter, New York.
“Everyone has a mobile phone these days and so for a brand it is a powerful tool to help consumers with their shopping needs,” Mr. Muller said.
Consumers will certainly feel as if they have Best Buy in the Palm of their hands when using this application.
Other features of the application include weekly deals, a personalized shopping list and Blue Shirt Picks, which are Best Buy staff favorites.
This new mobile application is not Best Buy’s first foray into mobile.
Best Buy is currently running mobile advertising within the brand new msnbc.com application for the iPhone and iPod touch.
“I think at a high level, every bricks-and-mortar retailer is aiming to ultimately drive in-store sales,” Mr. Muller said. “Retailers are able to communicate special in-store events, offers and what is and is not in stock right to the consumers’ hands.
“The mobile channel is a great way to get local consumers aware about what you are doing,” he said. “We view the mobile phone as the centric device that has power of location and to connect retailers with the shopper.
“Mobile makes it very easy to facilitate loyalty, commerce and to give consumers access to a brand and its products and services right into the palm of their hands, whenever and wherever they may be.”
Tuesday, June 30, 2009
The complex mobile strategy of footwear giant Foot Locker
By Giselle Tsirulnik
When reviewing the mobile initiatives of Foot Locker, it is safe to say the specialty retailer has quite an aggressive mobile strategy.
Foot Locker offers consumers mobile coupons, text alert services, has a mobile VIP club, a mobile Web site and has done text to win promotions.
"Economic realities have forced retailers to carefully evaluate where they invest and how they interact with consumers,” said Curtis Rapp. “Because of mobile's effectiveness we are seeing increased interest from our retail partners.
“With the mobile channel, retailers are able to provide targeted communications to interested consumers leading to measurable return on investment,” he said.
Foot Locker is a specialty athletic retailer that operates approximately 3,800 stores in 21 countries in North America, Europe and Australia.
Consumers that text in get a coupon texted to their phone for $10 off their next purchase of $50 or more. This coupon can only be redeemed in-store.
“Because of the uptake in newer devices like the iPhone, a lot of retailers are leveraging the mobile platform via mobile optimized site, apps, coupons and SMS,” said Tom Nawara, managing director of digital strategy and design, Aqcuity Group, Chicago.
“This day in age with the economy, retailers are looking to increase revenue and reduce costs and mobile offers this,” he said. “Look at mobile campaigns and sites verses traditional counterparts. Mobile can reduce cost and mobile is a location-aware personal medium.”
The VIP Club’s mobile site gives consumers 24/7 access, since members always have their phone on them.
VIP members also get advanced notice of new product arrivals and get offers and content from Foot Locker partners.
Membership is customizable so users can choose preferences to receive more info about the brand and products they want to hear about.
When reviewing the mobile initiatives of Foot Locker, it is safe to say the specialty retailer has quite an aggressive mobile strategy.
Foot Locker offers consumers mobile coupons, text alert services, has a mobile VIP club, a mobile Web site and has done text to win promotions.
"Economic realities have forced retailers to carefully evaluate where they invest and how they interact with consumers,” said Curtis Rapp. “Because of mobile's effectiveness we are seeing increased interest from our retail partners.
“With the mobile channel, retailers are able to provide targeted communications to interested consumers leading to measurable return on investment,” he said.
Foot Locker is a specialty athletic retailer that operates approximately 3,800 stores in 21 countries in North America, Europe and Australia.
Consumers that text in get a coupon texted to their phone for $10 off their next purchase of $50 or more. This coupon can only be redeemed in-store.
“Because of the uptake in newer devices like the iPhone, a lot of retailers are leveraging the mobile platform via mobile optimized site, apps, coupons and SMS,” said Tom Nawara, managing director of digital strategy and design, Aqcuity Group, Chicago.
“This day in age with the economy, retailers are looking to increase revenue and reduce costs and mobile offers this,” he said. “Look at mobile campaigns and sites verses traditional counterparts. Mobile can reduce cost and mobile is a location-aware personal medium.”
The VIP Club’s mobile site gives consumers 24/7 access, since members always have their phone on them.
VIP members also get advanced notice of new product arrivals and get offers and content from Foot Locker partners.
Membership is customizable so users can choose preferences to receive more info about the brand and products they want to hear about.
Popeye's goes mobile -- campaign garners 54 percent opt-in
By Giselle Tsirulnik
Popeye's mobile coupon campaign that promotes the fast food chain's three-piece chicken dinner has achieved a 54 percent double opt-in.
Cox Media is running television spots in Wichita, KS, encouraging consumers to text the keyword POPEYES to short code 74642. Already 750 consumers have texted and more than 50 percent have opted in for future communications from Popeye's.
“This type of mobile advertising campaign was a perfect fit for the Popeye’s stores in Wichita,” said Mike Orr, account executive at Cox Media.
Consumers that texted in received a message that said, “Show this msg at Popeye’s Chicken & get a FREE 2PC DINNER with ur purchase of a 3 pc dinner & medium drink. Hurry into Popeye’s TODAY offer ends 7/31/09.”
Then consumers are asked whether they would like to join to receive future communications from Popeye's.
Consumers that join the Popeye's mobile VIP Club get the following message, “Success! UR in! To quit txt STOP@anytime. Don’t keep the savings to yourself - tell your family and friends to get in on it too by texting POPEYES to 269411!”
“The strategy for this client was to find a unique and fresh way of promoting their three piece dinner- combining a great promotional offer, with a spontaneous and convenient method of redemption,” said Shira Simmonds.
The results of this campaign show how positive an impact mobile marketing has had on the Popeye’s promotion.
Mobile was a perfect tool for the Popeye’s brand because it enabled them to reach out to their target demographic (families) via a medium that is not only accessible to them, but also one that is their most personal and convenient device.
Popeye’s also made sure that the offer was relevant and appealing to the target – a mobile coupon for a discount on dinner provides added-value to families in a time of economic uncertainty.
Popeye's mobile coupon campaign that promotes the fast food chain's three-piece chicken dinner has achieved a 54 percent double opt-in.
Cox Media is running television spots in Wichita, KS, encouraging consumers to text the keyword POPEYES to short code 74642. Already 750 consumers have texted and more than 50 percent have opted in for future communications from Popeye's.
“This type of mobile advertising campaign was a perfect fit for the Popeye’s stores in Wichita,” said Mike Orr, account executive at Cox Media.
Consumers that texted in received a message that said, “Show this msg at Popeye’s Chicken & get a FREE 2PC DINNER with ur purchase of a 3 pc dinner & medium drink. Hurry into Popeye’s TODAY offer ends 7/31/09.”
Then consumers are asked whether they would like to join to receive future communications from Popeye's.
Consumers that join the Popeye's mobile VIP Club get the following message, “Success! UR in! To quit txt STOP@anytime. Don’t keep the savings to yourself - tell your family and friends to get in on it too by texting POPEYES to 269411!”
“The strategy for this client was to find a unique and fresh way of promoting their three piece dinner- combining a great promotional offer, with a spontaneous and convenient method of redemption,” said Shira Simmonds.
The results of this campaign show how positive an impact mobile marketing has had on the Popeye’s promotion.
Mobile was a perfect tool for the Popeye’s brand because it enabled them to reach out to their target demographic (families) via a medium that is not only accessible to them, but also one that is their most personal and convenient device.
Popeye’s also made sure that the offer was relevant and appealing to the target – a mobile coupon for a discount on dinner provides added-value to families in a time of economic uncertainty.
Monday, June 29, 2009
Forecast: Ad-funded MMS Revenues to Hit $87M by 2014
Posted: 29 Jun 2009
A new forecast by Juniper Research suggests that ad-funded MMS revenues will reach $87 million over the next five years, with annual growth rates reaching 94%.
In addition, the forecast also states that SMS and mobile email will continue to dominate the person-to-person (p2p) mobile messaging market during the same time period. The basis for the forecast being that the number of brands using MMS as an advertising medium is still growing rapidly, with push MMS and SMS in particular being employed very effectively in both mature and emerging markets. This alone has enabled network operators to support ad-funded voice and SMS tariffs and combat falling ARPU, while providing brands with new advertising channels along the way.
The findings indicate that the Far East and China will lead the global ad-funded MMS market by a considerable margin, followed by North America and Western Europe respectively. It's nice to see the North American market leading a segment of mobile technology, which doesn't seem to happen very often.
A new forecast by Juniper Research suggests that ad-funded MMS revenues will reach $87 million over the next five years, with annual growth rates reaching 94%.
In addition, the forecast also states that SMS and mobile email will continue to dominate the person-to-person (p2p) mobile messaging market during the same time period. The basis for the forecast being that the number of brands using MMS as an advertising medium is still growing rapidly, with push MMS and SMS in particular being employed very effectively in both mature and emerging markets. This alone has enabled network operators to support ad-funded voice and SMS tariffs and combat falling ARPU, while providing brands with new advertising channels along the way.
The findings indicate that the Far East and China will lead the global ad-funded MMS market by a considerable margin, followed by North America and Western Europe respectively. It's nice to see the North American market leading a segment of mobile technology, which doesn't seem to happen very often.
Thursday, June 25, 2009
Economy Boosting Prospects For Mobile Coupons
January 09, 2009 | Rick Mathieson
Juniper Research is reporting that the economy could very well boost use of mobile coupons upwards of 200 million people by 2013, according to RCR.
“We believe that consumers will be attracted to mobile coupons compared to traditional paper, and by the ability to tune the types of coupons received to their personal preferences rather than receiving all types through the vanilla distribution mode that is allowed by paper coupons,” Howard Wilcox of Juniper Research writes in a statement.
“Today, the overwhelming majority of coupons are paper-based, but the mobile phone is the ultimate individual marketing device, and mobile coupon pilots show great increased redemption rates — often double-digit percentages.”
The pub points to Cellfire as a leader in the space. We've covered the San Jose-based firm a lot here at BRANDING UNBOUND. The Kroger Co. trial we posted about saw a 20% redemption rate, which compares favorably to the 2% return typically seen with print coupons.
Why does that matter?
Because a.) the total value of coupons has to be reflected as a liability on balance sheets, regardless of whether they're ever redeemed and b.) most important of all, people spend far more than they otherwise would have when they redeem a coupon - often for a product they wouldn't normally buy, or on additional products when they go to the store.
“The sliver lining of a negative economy for Cellfire … is that consumers’ interest in savings and coupons has gone up considerably,” Cellfire CEO Brent Dusing told the pub last week. “So marketers are viewing coupons as a valuable way to reach customers. We see advertiser promotions budgets remaining relatively stable vis-à-vis other media and advertising.”
Juniper Research is reporting that the economy could very well boost use of mobile coupons upwards of 200 million people by 2013, according to RCR.
“We believe that consumers will be attracted to mobile coupons compared to traditional paper, and by the ability to tune the types of coupons received to their personal preferences rather than receiving all types through the vanilla distribution mode that is allowed by paper coupons,” Howard Wilcox of Juniper Research writes in a statement.
“Today, the overwhelming majority of coupons are paper-based, but the mobile phone is the ultimate individual marketing device, and mobile coupon pilots show great increased redemption rates — often double-digit percentages.”
The pub points to Cellfire as a leader in the space. We've covered the San Jose-based firm a lot here at BRANDING UNBOUND. The Kroger Co. trial we posted about saw a 20% redemption rate, which compares favorably to the 2% return typically seen with print coupons.
Why does that matter?
Because a.) the total value of coupons has to be reflected as a liability on balance sheets, regardless of whether they're ever redeemed and b.) most important of all, people spend far more than they otherwise would have when they redeem a coupon - often for a product they wouldn't normally buy, or on additional products when they go to the store.
“The sliver lining of a negative economy for Cellfire … is that consumers’ interest in savings and coupons has gone up considerably,” Cellfire CEO Brent Dusing told the pub last week. “So marketers are viewing coupons as a valuable way to reach customers. We see advertiser promotions budgets remaining relatively stable vis-à-vis other media and advertising.”
Taco Maker’s text message coupon campaign boosts trial with help from traditional media
By MARK BRANDAU
(June 01, 2009) Jack and Wendy may want to do more interviews. As fellow quick-service mascot Juan Maker, spokesman for The Taco Maker, has shown, new-media marketing can benefit from a complementary push in traditional advertising methods.
The Taco Maker’s recent marketing push includes a text message coupon plan that yielded redemption rates of about 50 percent, according to chain officials.
The Taco Maker put Juan to work in a hybrid marketing campaign, which combined irreverent spots on talk radio with a text message coupon program that yielded redemption rates of about 50 percent and contributed to a 21-percent increase in first-quarter same-store sales, officials said.
The campaign was built around the launch of The Taco Maker’s new flagship product, a 1-pound burrito called “The Maker,” and was crucial to expanding the brand’s base of young customers, said Carlos Budet, president and chief executive of parent company FransGlobal Corp., based in San Juan, Puerto Rico.
“We realize how important it is to tap into a younger, tech-savvy segment of the market for growing our brand,” Budet said. “We’ve seen in just a few months, in fact, the impact this strategy can have on our total revenue gains. In the first quarter alone, over 2,200 customers have responded positively via their mobile phones for our free-burrito promotion.”
This new-media strategy depended on a more traditional advertising method: talk radio. For instance, on the “Obie & Lil Shawn Morning Show” on Orlando, Fla., station WPYO-FM, an actor playing Juan Maker does an unscripted interview with one of the hosts. In a Cheech Marin-style caricature, the Taco Maker spokesman talks up The Maker, throws in a double entendre and implores listeners to text a code to a certain number to receive their coupons.
Gary Bentz, chief creative officer of BxP Marketing, the agency that created the campaign, said market testing showed that radio would be the best way to aggressively roll out the text coupon campaign.
“When we decided what vehicle to use, we knew it was going to be focused on how effectively the medium would get people to text back to us,” Bentz said. “We’re pushing The Maker, but the most important part is the call to action to text. That was the point of the radio buy.
“Once we generated thousands of texts and had people come in and try the product, they saw we were for real. The training of our cashiers and employees in trying to upsell was phenomenal, and the repeat visitors loved our offering.”
The 50-percent redemption rate would have been “unheard of” for old direct-mail offers, Bentz said, which had redemption percentages in the single digits.
The mobile-coupon campaign’s next phase will promote the Juan Peso Value Menu, Budet said. Offers for the value menu will be sent to customers who redeemed coupons for burritos.
“This medium has been cost-effective,” Bentz said. “When people text in, it’s because they’ve listened to our message. But when they come in and come back, that’s the golden ticket right there.”
The Taco Maker has more than 185 stores in the United States, Latin America and Asia
(June 01, 2009) Jack and Wendy may want to do more interviews. As fellow quick-service mascot Juan Maker, spokesman for The Taco Maker, has shown, new-media marketing can benefit from a complementary push in traditional advertising methods.
The Taco Maker’s recent marketing push includes a text message coupon plan that yielded redemption rates of about 50 percent, according to chain officials.
The Taco Maker put Juan to work in a hybrid marketing campaign, which combined irreverent spots on talk radio with a text message coupon program that yielded redemption rates of about 50 percent and contributed to a 21-percent increase in first-quarter same-store sales, officials said.
The campaign was built around the launch of The Taco Maker’s new flagship product, a 1-pound burrito called “The Maker,” and was crucial to expanding the brand’s base of young customers, said Carlos Budet, president and chief executive of parent company FransGlobal Corp., based in San Juan, Puerto Rico.
“We realize how important it is to tap into a younger, tech-savvy segment of the market for growing our brand,” Budet said. “We’ve seen in just a few months, in fact, the impact this strategy can have on our total revenue gains. In the first quarter alone, over 2,200 customers have responded positively via their mobile phones for our free-burrito promotion.”
This new-media strategy depended on a more traditional advertising method: talk radio. For instance, on the “Obie & Lil Shawn Morning Show” on Orlando, Fla., station WPYO-FM, an actor playing Juan Maker does an unscripted interview with one of the hosts. In a Cheech Marin-style caricature, the Taco Maker spokesman talks up The Maker, throws in a double entendre and implores listeners to text a code to a certain number to receive their coupons.
Gary Bentz, chief creative officer of BxP Marketing, the agency that created the campaign, said market testing showed that radio would be the best way to aggressively roll out the text coupon campaign.
“When we decided what vehicle to use, we knew it was going to be focused on how effectively the medium would get people to text back to us,” Bentz said. “We’re pushing The Maker, but the most important part is the call to action to text. That was the point of the radio buy.
“Once we generated thousands of texts and had people come in and try the product, they saw we were for real. The training of our cashiers and employees in trying to upsell was phenomenal, and the repeat visitors loved our offering.”
The 50-percent redemption rate would have been “unheard of” for old direct-mail offers, Bentz said, which had redemption percentages in the single digits.
The mobile-coupon campaign’s next phase will promote the Juan Peso Value Menu, Budet said. Offers for the value menu will be sent to customers who redeemed coupons for burritos.
“This medium has been cost-effective,” Bentz said. “When people text in, it’s because they’ve listened to our message. But when they come in and come back, that’s the golden ticket right there.”
The Taco Maker has more than 185 stores in the United States, Latin America and Asia
Marketers test mobile coupons
by Helen Leggatt | Originally posted March 10, 2008
How many people leave the house without their cell phone? Not many. In fact, a recent Pew Internet and American Life Project survey found that Americans said it would be harder to be without their cell phone than television or a landline.
And how many people clip coupons yet forget to keep them close at hand, or neglect to use them in the timescale required? Quite a few, and coupon clipping has seen a decline over the last few years.
So what better way to ensure coupons and discounts are delivered to the right people at the right time than to distribute them via cell phone?
Many companies are seeing great response rates from mobile coupons. Subway’s recent MySubway Mobile campaign achieved mobile coupon redemption rates of 5% to 6%. The average redemption rate for print coupons is around 2%.
“There’s 240 million phones and text messaging is getting bigger than email,” said Michael Lewkowicz, chairman of the Subway Franchisee Advertising Fund Trust and president of Subway franchisee QSR Brands, Buffalo, NY via MobileMarketer.com.
“Our demographic is youth and youth has the phone and we have to get them to email and text. That’s where our youth are. They can type the numbers 1 to 10 better than they can do the ABCs.”
How many people leave the house without their cell phone? Not many. In fact, a recent Pew Internet and American Life Project survey found that Americans said it would be harder to be without their cell phone than television or a landline.
And how many people clip coupons yet forget to keep them close at hand, or neglect to use them in the timescale required? Quite a few, and coupon clipping has seen a decline over the last few years.
So what better way to ensure coupons and discounts are delivered to the right people at the right time than to distribute them via cell phone?
Many companies are seeing great response rates from mobile coupons. Subway’s recent MySubway Mobile campaign achieved mobile coupon redemption rates of 5% to 6%. The average redemption rate for print coupons is around 2%.
“There’s 240 million phones and text messaging is getting bigger than email,” said Michael Lewkowicz, chairman of the Subway Franchisee Advertising Fund Trust and president of Subway franchisee QSR Brands, Buffalo, NY via MobileMarketer.com.
“Our demographic is youth and youth has the phone and we have to get them to email and text. That’s where our youth are. They can type the numbers 1 to 10 better than they can do the ABCs.”
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