This week we reviewed a case study of how Moosejaw used interactive mobile marketing to achieve a number of marketing goals.  Our Assignment was to find a different company and create a case study of their use of mobile marketing.  I chose Coca Cola’s new global mobile marketing partnerships with wireless carriers, which essentially turns the customer’s mobile phone itself into a type of loyalty card.

COCA COLA PARTNERS WITH WIRELESS CARRIERS IN CANADA AND THE U.K:

Coke partnered with Rogers Wireless in Canada for a “Twist Txt Save” issuing their mobile calls to action in a cross-platform campaign using email, Coke’s website, Rogers Wireless website, and on-package under the cap of each beverage.

The program is an opt-in relationship, much the same as Coke has been doing for years with their on-package caps where a unique PIN is provided as proof-of-purchase and can be redeemed or used as a contest entry.

UNIQUE TWIST:  DIRECT TARGETING OF MOBILE CONSUMERS IN PARTNERSHIP WITH WIRELESS CARRIERS:

The unique twist to this campaign is in the partnership with Rogers Wireless,  and their direct targeting of mobile users.  When customers txt in their PIN number using a short code of 42653, they get a reward:  75 cents off their mobile phone bill or,  1000 in iCoke Points on the iCoke.ca website,  or MyCokeRewards.com website in the U.S.  Customers are limited to a maximum of 10 discounts per week.

In Britain, Coke uses this same mobile campaign but provides an INSTANT discount of 75 cents that can be redeemed with O2 or Rogers Wireless networks.  This creates immediacy and alleviates the consumer from having to carry the caps around with them until they can access a computer.

SAVING TIME AND MONEY:

Gary Schwartz, CEO of Impact Mobile/Toronto, states “AirBonus is an exciting opportunity for brands as it offers a new way of driving a sale without discounting the product, and eliminates time delays, the need for coupons, clearing houses all while offering a mobile CRM channel”, where the shopper does all the work.

BUILDING THE SOCIAL COMMUNITY:

In addition, on the iCoke.ca website, there is a call to action for a “Summer’s Sweetest Moments Contest”, where the Consumer is able to text in photos from their Rogers Mobile Phone to a short code, which enters them to win a Blackberry Pearl 9100 and a $100 Rogers Wireless Giftcard.  This contest creates a social community that is engaging and interactive for the participants, not to mention a trusted community for Coke and Rogers Wireless.

Source:  http://www.mobilemarketer.com/cms/news/database-crm/6882.html

The assigned article “Improving location tech will get more opt-in”,  by Chris Harnick, addressed the advertiser-side of location tech for mobile advertising.

The idea of a coupon stalking me as I walk through my day is still disconcerting to me, despite the Market trials cited by Martin Fuerstein, that indicated “once they experienced the tangible benefits of a relevant service, they became comfortable with loosening privacy settings.”

The idea that a mobile operator will have a tighter radius on me with a 4G deployment is even creepier.  I am truly of the opt-in mindset.  I cannot see myself walking through an open air market and having my phone constantly go off:  Pass Starbucks, $1 off a Latte; next store is a Subway five feet away and I get free chips and a soda with the purchase of a foot long.  Turn the corner and as I walk past Nine West, I get 20% off a purchase of the newest summer sandals and as I approach Barnes & Noble I get a coupon for 40% off one of the newest releases in stock.

NO THANK YOU!!! I already have a tough time dealing with my phone, but if the Coupon Stalkarati become that big of a nuisance, I will probably leave it in the car!

In addition, last week I did cite in my blog post that Virgin Mobile USA has a plan called Sugar Mama that  allows mobile subscribers to earn free airtime by participating in online surveys and interactive commercials.  Involving your brand in such an event would be a great way to create awareness.  However, if it extended to shoving coupons down my throat, I would definitely opt out!

I also disagree with Mr. Feuerstein’s statement that ““High-accuracy location in areas where consumers use their phones the most will provide the required context and relevance required for mobile marketing and advertising to succeed.”  As I described in my rendition of the high accuracy location I was walking through above, I believe it could ultimately end up being more of a nuisance like TV commercials (where most of which get muted or walked away from by many people).

Mr. Feuerstein states, ““High-accuracy location technologies for dense urban and indoor areas do exist but wireless service providers have not deployed the same.”  It is very possible that the mobile carriers have a valid reason for not deploying them until they get a better feel for THEIR customer and the customer’s reaction to such high-accuracy targeting.  Obviously advertising revenues are important, but not as important to them as keeping their paying subscriber would be!  Just ask Sprint.

I also disagree with his idea that consumers are not motivated to receive mobile location-based ads because they are not compensated well enough for doing so.  There are very few businesses I would “opt-in” with for location based ads.

However, where the tipping point may be is with the under 25 age bracket – whose entire life is broadcast with little or no filtering across the net for anyone and everyone to share.  Theirs is a new, brave world of open and full transparency, and they live it to the fullest.  Give them great compensation and you have a market that will grow!

RURAL AREAS vs. URBAN AREAS:

As someone living in this rural area of 26,000 people, with urbanized zones throughout it,  I would be less concerned with the feeling of having my privacy invaded here, than I would have when I lived in the Tampa Bay area of Florida with its population of over 2 Million people.

This makes it very interesting in how I see location based targeted advertising now.  The scenario I laid out in my example above, was the exact path I took last month through the open air mall that is 9 miles north of my home.

Rural areas are underserved by the very nature of their small populations.  However, they are truly a diamond in the rough for mobile advertising.  Most folks in this area get “to town” about once a week.  Their shopping is usually well planned out in advanced and very budgeted.  As a result, they may be more susceptible to location-based mobile ads. Introducing them during peak buying times, like “back to school” would be an interesting proposition that I believe would drive opt-ins.

Sources:

http://www.mobilemarketer.com/cms/news/search/4989.html

http://www.mobiadnews.com/?p=3007

http://sharonodell.com/2010/07/16/mobile-global-reach-demographics/

Our Assignment in Mobile Advertising & Desgin Class for Week 2:

How can a marketer connect with their consumers?

Mobile Marketing connects with consumers in a more direct and targeted method.

There are any number of ways to get started.  If you currently have an email opt-in list, you could use that database to create a mobile opt-in list of those subscribers.  Offering something of value to them will certainly help convince them to opt-in for your messages.  Be sure to have them define the type of mobile message they prefer to receive.

You could also “piggy back” on other subscriber services that have existing databases.  You could also work with any of the Mobile Operators, who have intimate knowledge about their subscribers that help define the audience and target the message specifically to:

• Age of the Consumer
• Gender
• Income Range
• Hometown location
• Real-time Location
• The type of Device the Consumer is using
• The way the consumer uses their mobile device
• The preferences the Consumer has set for their mobile device
• The Consumers browsing history
• The Consumers purchase history

This helps the marketer not only define their message to a specific demographic, but also to deliver it properly to the Consumer’s mobile device in a precise way that the Consumer prefers (SMS, TXT, M:Media), ensuring that the Consumer (a) will see the message; and (b) the Consumer will be easily able to act on the message.  By defining it to their location – hometown or real-time, the Marketer can deliver messages that the Consumer may immediately take advantage of due to their proximity.

Whether you are using mobile marketing to build awareness or to sell a product or service, you can build an opt-in list  via your messaging, and get to know your consumer better.  This will allow you to deliver messages directly, based on a relationship.

Q: Can you think of some ideas that marketers can use when targeting another culture?  Targeting the Adult Market?

Targeting advertising to other cultures should focus on how the message is delivered.

A recent report from e-Dialog, who carried out a study of 13,000 consumers in 13 countries located in Europe, the U.S. and Asia-Pacific regions,  indicated that there is a diversity in cultures that is dependent on the type of message received and how they will react:

For instance, when delivering the mobile message via email, Consumers in Japan, Singapore and the US indicate the highest use of email interactivity on their mobile devices.

• In terms of SMS Conversions, the US and Asia-Pacific were radically different in their responses:
• In the US, 14% of consumers have done so, 34% have not, and more than half (52%) never give out their mobile number.
• In Asia-Pacific, 57% of consumers have made a purchase based on a mobile text promotion while 28% have not and only 15% never give out their mobile number.
• In Europe results tended more toward US results, with 21% of consumers having made a purchase based on an SMS text, 38% having not, and 41% never giving out their mobile number.
• Overall, 38% of global consumers have made a purchase following a mobile text promotion, 32% have not, and 30% never give out their mobile number.

In this study, email was proven to be a permanent customer fixture with an established presence in the lives of most Global Consumers, whether delivered by a mobile device or to a PC:

Of the nearly 13,000 consumers e-Dialog surveyed around the world, 96% of them have a personal email account. Of the 13 countries surveyed,

• South Korea reported the highest percentage of having a personal email account at 99%.
• US adoption is at 97%.
• The lowest reported percentage is Italy at 87%.

Another method of gaining opt-in mobile subscribers is via Social Media.  A recent report by ExactTarget, indicates that opting in to email marketing can be motivated by incentives:

• #1 Discounts and Promotions @ 67% of the respondents
• #2 Getting a “freebie” in exchange for their email address @ 55% of respondents
• #3 Getting updates on upcoming sales @ 50% of respondents
• More interesting was that only 17% of respondents opted in because someone recommended they should,
• and only 11% opted in to show their support.

In terms of Social Media, which is definitely Global, the study focused on Facebook and reasons given for “Liking” a Fan Page:

• 41% responded they wanted to let their friends know what products they supported;
• 37% responded they wanted to receive coupons and discount offers
• 35% responded they wanted to stay current on available new products
• While the remainder responded they wanted to learn more about the company or organization (31%),  and they wanted to meet with people who had interests similar to theirs (28%).

This is important, because in terms of Smartphones, Facebook is a leader in the field of Social Networking. Facebook is the No. 2 website in America, according to research house Alexa.com, and its fastest-growing demographic is people over age 35.   This one social network can help a marketer get started in building their Mobile Marketing opt-in lists if they use an FBML page to create incentives that allow them to collect the mobile data.  They also can use Facebook messaging to send out links to events, discounts and other offers.  This is great for a low or zero budget.

In order to attract your Global audience, you must adapt to their specific needs.

Examples, presented in an article on MobiAdnews.com,  illustrated how to do this:

Mobile Operator:  Virgin Mobile USA

The Sugar Mama plan allows mobile subscribers to earn free airtime by participating in online surveys and interactive commercials.  Involving your brand in such an event would be a great way to create awareness.

Mobile Operator: Vodafone Egypt

This carrier accommodates their low-income subscribers using basic devices by allowing them to convey messages without paying for them using a free “Call Me” ad-funded SMS messaging.

Mobile Operator: Swisscom

This carrier allows mobile subscribers to view free videos of their choice that are ad-supported by video advertising for specifically enabled handsets.  Video advertising would be a prime method to create awareness and build a relationship with these subscribers.
Sources:

Assigned Reading:

http://www.imediaconnection.com/content/7717.asp

http://www.mobilemarketer.com/cms/news/research/3850.html

http://www.mobiadnews.com/?p=3007

Other resources:

e-Dialog Survey:  http://www.marketingcharts.com/direct/7-in-10-consumers-act-upon-mobile-email-13401/?utm_campaign=newsletter&utm_source=mc&utm_medium=textlink

Email and Social Media Study:  http://www.emarketer.com/Article.aspx?R=1007818

Social Media/Facebook Info:

http://www.alexa.com

http://financialguru.entrepreneur.com/2010/04/08/why-these-top-5-social-media-sites-to-grow-your-business/

This is a follow up to a previous post on this blog. The original post dated May 9, 2010,  is located at:  http://sharonodell.com/2010/05/09/digital-coupons-outpace-newspaper-coupons-10-to-1/.

As for J.C. Penney, it seems they are definitely moving ahead with their Mobile Coupon Marketing Program.  In an article Titled “J.C. Penney Plans more Social and Mobile Marketing, found at IntermetRetailer.com dated June 30, 2010,  [http://www.internetretailer.com/2010/06/30/jc-penney-plans-more-social-and-mobile-marketing]  J.C. Penney describest their “most coveted customers” to be young tech savvy women, ages 25-34″.  They further state the evolution of their brand will result from growth in this specific market segment.  “Marketing more and more is a conversation, and the days of the brands talking at people are numbered,” J.C. Penney chief marketing officer Mike Boylson said last week during a presentation at the Goldman Sachs Dot Commerce conference in New York.

J.C. Penny obviously has a firm belief in Mobile Coupons and in growing their brand around the specific market who use them.

This makes total sense, since the Mobile Market continues it’s incredible rate of growth and new media is continuously being introduced.  No longer are mobile ads strictly SMS.  With Google’s purchase of AdMob and the new iAd platform from Apple, more and more rich media display and video ads are expected.

The article further states, in addition to more mobile marketing, J.C. Penney will use a new social media concept known as “hauling” to reach more back-to-school shoppers, especially fashion- conscious teenagers. Unlike bloggers who write about their shopping experiences and then post their prose online, “haulers” tape their shopping excursions and then upload the video and audio commentary to YouTube. For back-to-school, shopping J.C. Penney has chosen a series of “haulers” ages 14 to 18 who will shop online and in stores and post their shopping episodes on YouTube. “We’ve chosen haulers we think are also key influencers.  JCP.com is entering a new era for online and conventional retailing, he told attendees. “JCP.com is our flagship customer experience and our largest store,” Boylston said. “It’s the growth engine.”

The second part of this assignment was the question as to whether mobile couponing was a fad or the future and would it prove successful. This is a follow up to a previous post on this blog. The original post dated May 9, 2010,  is located at: http://sharonodell.com/2010/05/09/mobile-coupons-success-or-fad/

Recent reports these past few months have certainly indicated that Mobile Coupons are becoming widely accepted.  A recent article titled “Women Take the Lead on Mobile Coupons” dated May 17, 2010, indicates that  more than 2/3 of Women consumers report they have an interest in discounts via a mobile device.  In fact, in a study of Female Mobile Internet Users Worldwide, the study found that of the women polled:

• 67.89%  answered YES to receiving coupons on their mobile phone
• 10.63% were unsure if they would want to
• and only  21.49% said no thanks.

When th respondents were already visitors to mobile shopping and promotions channels,

• 33% of the women reported that they were regular users of those channels
• and another 46% more stated they used coupons “sometimes”

When asked, the women polled indicated that the mobile coupons most interesting to them were:

• The response for Retail Mobile Coupons was 53.49%
• The response for Concert/Event Mobile Coupoons was 21.37%
• The response for dining Mobile Coupons was 16.23%
• The response for cinema Mobile Coupons was 7.31%
• and the response for Theatre Mobile Coupons was 1.6%

In another new report titled “Mobile Shopping from In-Store, A Potential Game Changer” discusses a Multichannel Retailer  survey conducted in March 15, 2010 by m-commerce where these merchants reported:

• 10.7% use mobile advertising to promote sales and special offers
• 6.5% have an m-commerce site
• 6.1% have an iPhone app
• 2.8% already distribute mobile coupons
• 1.4% use mobile search ads
• and 1.4% report having search apps for other mobile devices.

This means that 79.4% have yet to use Mobile Commerce for sales.  Thus, while consumers are ready and waiting, the retailers have yet to catch up with their demand.  In fact, in a Forrester Research study  on March 8, 2010 indicates that in 2009 42% of total U.S. Retail Sales were “influenced” (take place online or are influenced by the web) by Online Research before the purchase was made.  That is expect to escalate to 53% by 2014.  Thus, mobile commerce will grow rapidly.

As a final example that Mobile Coupons are not a fad, but a fact of life, Coupons.com reported on July 2, 2010 that they surpassed 1 MILLION downloads on their two new apps for the iPhone and Android.  Proof in fact that mobile couponing is on the rise since the first increase in coupon use that occurred in 2009.

Steve Horowitz, CTO of Coupons.com states, “Because the apps are mobile, they are available in the store as consumers browse, compare and finally make their brand decision,” he said. “For brand marketers, it means they have the opportunity to engage with consumers throughout the entire path to purchase – from need identification to brand section in the store.  The application includes voice recognition and bar code scanning and lets users print the coupons for redemption or use the Save to Card feature that loads the coupons to a user’s store loyalty card.

“In fact digital coupons represented the fastest growing category of coupons, growing 10 to 1 over their printed cousins that are distributed in the newspaper – we also attribute growth to an eye to the entire mobile coupon ecosystem—from the user and with obvious benefits to retailers who need to ensure a quick pace at POS.”

According to Mr. Horowitz, consumers are clamoring for coupons and mobile access makes them more convenient.