Monday, October 13, 2008

Mobile marketing made simple.

By Bob Morris

Mobile phone marketing, otherwise known as SMS marketing, is the present evolution of direct promotion. Direct promotion has always been supported by companies as a personalized and focused way of reaching potential consumers and, with the advent of cell phones, SMS marketing has increased in usage. Mobile marketing is perhaps best defined as the practice of advertising products and services using digital distribution channels to reach customers in a fast, relevant, personalized and economic manner.

The most well-known form of mobile marketing is SMS marketing, which has expanded rapidly in Europe and Asia. It is estimated that several hundred million promotional messages are sent via SMS every month in Europe alone. SMS stands for 'short message service' and is a communication form specific to cell phones where a short message can be quickly sent to any mobile owner. As well as sending material to consumers, marketers can often encourage consumers to join in promotional and brand publicity campaigns by encouraging consumers to SMS a selected number at an event in order to enter a competition, to receive a gift or to have their message displayed on a multimedia wall at an event. All of these techniques engages the consumer through the medium of SMS and creates brand awareness.

There are a variety of other methods of digital marketing. One variation is sending texts via MMS, which is a multimedia version of SMS, allowing customers to receive texts with color, pictures and video. There is also mobile web marketing, where companies publicize marketing objectives through websites accessed by cell phones. Marketers often make innovative use of SMS marketing such as location-based services where customers are offered bespoke advertising and other network-related information and promotional information based on their location. With the range of methods and choices available to companies, it is no wonder that a recent marketing survey found that 89% of major brands planned to advertise their products through digital marketing by the end of 2008.

Mobile marketing is an example of what is known within the industry as "push" marketing. The idea behind push marketing is that that the marketer has to send (push) the information to the customer in order for the information to be received. This is different to "pull" marketing, a passive form of promotion, where it is users who seek out the information from sources such as websites or blogs.

There are lots of positives to SMS marketing. Primarily, the attraction is that this form of promotion can be tailored to the user. This is the ideal in marketing as it means getting the campaign specifically to the audience it's focused on, instead of wasting dollars on an broad campaign. The specialization allowed by this mode of promotions, which results in a more economical campaign, is one reason why a high return on investment is possible with SMS marketing. Another advantage of SMS marketing is the detailed tracking and reporting of users it allows. Through this medium, marketers can track how many consumers received their information and also access specific information about each consumer such as their name, their age, their demographic and where they're located. This allows a business to raise profiles of their customers; information which then guides future advertising campaigns and, ideally, their success.

It is noted in the industry that push marketing, of which SMS marketing is a type, can help build new revenue and brand exposure if it is implemented correctly and appropriately. This is because it makes customers aware of new additions that they may not know to enquire about already and the way the information is phrased, and even the fact that the information is being sent by a innovative, hip medium such as SMS, can say a lot about a brand and a business.

There are, however, some negatives to SMS marketing. By its very nature, it must have a mechanism - the mobile - to be able to deliver information. The company, as well, must make use of specific technology and software in order to send the content to consumers, which can mean sizeable outgoings. Another disadvantage is the fact that SMS marketing is heavily regulated by the telecommunications industry in response to consumer disquiet about what information and promotions they get exposed to. Most Western countries have laws in place that compel companies to receive the approval of consumers before advertising material is sent to them and must clearly give them with an 'opt out' choice if they want to stop receiving information. If businesses are discovered to be in breach of these laws, network providers can block marketing material by companies.

As mobile technology improves, digital marketing will certainly continue to increase in relevance.

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