Permission marketing in the news
By Optism Team, Feb 25, 2011
This week we have a few articles with news from last week’s Mobile World Congress (MWC) as well as several pieces with advice on how to maximize the value of mobile marketing campaigns.
MSearchGroove columnist Jeff Hasen takes a look at where Google and Twitter stand in terms of mobile advertising. Google CEO Eric Schmidt and Twitter CEO Dick Costolo used their keynote addresses at MWC to present their visions for the future of mobile advertising. As always with Google, it comes down to creativity, innovation and technology. In his address, Schmidt told us, “the tools and technology that allow us to do targeted TV quality ads — again with permission and without violating privacy — is the next great frontier in advertising.”
In his keynote, Twitter’s Costolo focused on “usability, simplicity and the experience Twitter delivers” but Hasen directs readers to a video that outlines a new marketing service that may not be seen as a “service enhancement” by users. The new service will introduce ads into users’ personal timeline of tweets. This new service will be launched soon and even Twitter predicts that consumers will be put off by the change. In his analysis of the situation, Jeff notes that while people are likely to tolerate the ads, they won’t necessarily be listening to a brand’s messages. He writes, “A slick look and catchy copy aren’t the only criteria for effective mobile advertising. Relevance, permission and a compelling offer are much higher on my list of must-haves….If we marketers want to get consumers’ attention, then it’s our job to connect with the mobile user in a way that is welcome, non-intrusive and personal. After all, mobile is a personal device and we should use a personal touch (and ask permission first).” Well said, Jeff!
Light Reading Mobile reported on how operators are “playing” with SMS ads. This article continues the debate about the best way to reach mobile users and compares mobile banner ads and SMS. The article argues that, despite all the hype for advanced gadgets and new technology, SMS may be the better route. The author notes, “Wireless operators, developers and brands are getting more creative in the ways they use mobile ads to reach phone owners, but there’s a much higher level of scrutiny on the smaller screen. It’s important that ads be non-intrusive, contextual, targeted, opt-in and, hopefully, useful.” The author suggests that mobile operators “may be better off sticking with proven modes of reaching consumers, such as SMS, rather than pouring money into experiments.”
UTalkMarketing.com contributor Geoff Love provides some advice on “How to get the most out of SMS marketing.” Love provides an excellent overview of the key virtues of permission-based mobile marketing and he encourages businesses to explore its potential. Mobile marketing is concise, immediate, far reaching and cost effective. “It can be used to improve customer service, increase staff effectiveness, generate sales and communicate in a crisis.” And it can help businesses in a variety of ways including “sales promotions, brand building, CRM, loyalty and retention campaigns, and as a direct response tool for TV, radio or print advertising.”
To get the most out of SMS marketing, Love emphasizes three key points: be strategic, be personal and choose a quality supplier. You need to be clear about your objectives at the outset, so you can measure your success after the campaign. The true potential of mobile marketing can only be realized with intimate and highly targeted campaigns, so you need to know who are communicating with. SMS enables you to have a dialogue with consumers on one of their most personal devices. This can easily be perceived as intrusive if what you are talking about is not relevant to their lives. Finally, Love suggests that you focus on quality, not solely cost, when selecting a supplier. Read customer testimonials and case studies to determine the best supplier.
A recent Mobile Marketing Day panel looked at how to use SMS to increase the effectiveness of traditional media. A summary of their deliberations is presented in Mobile Commerce Daily. Panel members determined that “SMS can work with every form of traditional media there is and make it interactive, actionable and trackable.” Success stories from brands, including Domino’s, Arby’s, and Unilever’s Axe, were brought to the table to highlight what mobile advertising can do. “SMS is intimate and immediate, and the first thing brands have to start doing is build an opt-in SMS database of consumers that have raised their hand and said ‘I want to have dialogue and discussion with your brand” said panellist Jay Highly. Most panellists agreed that campaigns are lacking without a mobile element. Television, radio, and print advertising can all be supplemented by a call-to-action through mobile, and companies can’t afford to miss out on this opportunity. The article closes with a short video in which Matthew Valleskey encourages marketers to include mobile in their overall marketing strategies. He warns that it can take several months to get short codes lined up, so it’s important to plan ahead.
We close with an article from TMCNet.com that looks at “Using Subscriber Data to Enable Preference-Based Services.” The article looks at how the changes in the relationship between service providers and their subscribers are affecting revenue opportunities. As consumers become increasingly more informed and cost conscious, providers are seeing their margins shrink. Subscribers are less likely to pay for what they won’t use, and this is reflected in the contracts they are willing to sign. Luckily the evolution of the consumer occurred simultaneously with an evolution in advertising and there is now potential for providers to regain these shrinking margins through mobile advertising. TMCnet contributing editor Susan Campbell says “Through such platforms as location-based services, personalization in advertising and contextually aware ads, network providers are increasing revenue potential while delivering a better experience for the customer.”
As service providers adapt to the new business imperatives, they will often find it most effective to partner with someone who can help them with key issues such as creating a larger audience through subscriber aggregation. The article quotes Karl Bream, Vice President of Global Corporate Marketing at Alcatel-Lucent. Karl describes the ideal partner as one that takes “a holistic approach based on understanding what application and content providers and developers want, what end-users want, and what they’re willing to pay for.”