Enpocket's COO says mobile marketing took off in 2004; look for multimedia and richer consumer experiences this year.
2004 was a turning point for mobile marketing in the United States. Early 2004 saw the use of simple text messaging blossom as a marketing channel, with brands engaging consumers via text-to-win, text-for-info and text-for-coupon pilots. With more than 180 million wireless subscribers in the U.S., this dynamic marketing channel continues to evolve as marketers realize and better understand this unique communications medium.
According to Enpocket’s quarterly U.S. Mobile Media Monitor, in December 2004 mobile phone adoption surpassed PC/laptops for the first time ever. Of 1,000 survey respondents interviewed, 617 owned cell phones compared to 614 owning PCs/laptops. With such a strong penetration rate of the mobile phone, brands need to be thinking about how mobile media strategies will help shape their communications in the coming years, particularly with the advent of richer mobile media.
Mobile marketing to date has mainly been used by brands on two basic levels:
1) Informing -- centered on reminding and alerting consumers of products/services they were interested in.
2) Involving -- adding an interactive element. Consumers text into a short-code, or have a multi-directional dialogue whereby they reply to messages from a brand.
2005 and beyond will see brands taking mobile to the next level by offering services that genuinely entertain audiences and this is where longer-lasting loyalty will be built.
The story so far
In 2004, mobile campaigns were executed in myriad ways. The most popular executions included polling, text-to-win, text-back-for-coupon and trivia. The successful campaigns were the ones where mobile marketing companies offered a compelling reason for many people to want to get involved in the interaction.
For example, in early 2004 The History Channel ran an interactive campaign based on the launch of a new show, "BARBARIANS." Using the profiling and targeting capabilities of the Enpocket Engine, The History Channel promoted new programs directly to viewers’ mobile handsets using text messaging.
Following the success of the mobile marketing efforts for its "BARBARIANS" program, The History Channel decided to promote its two new series through the mobile channel – "Decisive Battles" and "Command Decisions" -- with viewing reminders, contests and interactive game play, via SMS. The second promotion leveraged the solid opt-in base created during the "BARBARIANS" program and invited all viewers to participate with the programs by advertising a short code on air.
"Decisive Battles" and "Command Decisions" recreated three-dimensional views of battles and key moments in wars. The interactive game play actually put the viewer in the general's chair and gave them the chance to win exclusive prizes if they correctly chose the best course of action.
The History Channel was a pioneer in understanding the significance of using mobile as a marketing channel and not a one-time promotional vehicle. Because the company gained the interest of its viewers with mobile content of value during the first series "BARBARIANS," viewers were much more interested in mobile communication for the subsequent series.
Research on the back of "Decisive Battles" and "Command Decisions" shows that 58 percent of participants said they were more likely to watch The History Channel as a result of the project.
Mobile in the marketing mix
The heightened role of the mobile phone in people’s everyday lives makes it increasingly important for brands to understand how to best utilize the mobile medium in 2005 and beyond. When mobile campaigns first emerged in 2004, many pundits were critical that they would take away attention from print, web or other media elements. An interesting analogy of this lack-of-foresight is brand catalogs. When brand websites were first introduced, forecasters were fearful there would be a decrease in print catalog circulation and popularity. The reality was almost inverse -- brand websites seemed to enhance the success of traditional media. The same holds true for the mobile channel -- used correctly, mobile can make a brand’s integrated marketing efforts much more effective.
It’s become evident that gaining a firm understanding of the mobile consumer will be a marketing necessity from here on out as the mobile phone clearly established itself in 2004 as a major channel for people to receive content, chat and interact with brands.
The trend seems set to continue with number of adults text messaging to TV show or radio stations doubling over the last six months. Additional statistics from Enpocket’s Mobile Media Monitor survey point toward what to expect from consumer usage of cell phones in 2005; it asked what consumers would like to use their phones for. Sharing photos emerged as the most favored content application with 73 percent of 18- to 24-year-olds and more than 50 percent of 25- to 49-year-olds naming it as their preferred application.
As consumers begin to think more about the growing functionality of their mobile handsets, capabilities not available in past years such as a built-in camera can now be looked at as an important feature. Mobile media companies, handset manufacturer, carriers and brands are all taking note.
2005 Outlook: MMS and communities take center stage
Multimedia Messaging Service (MMS), an extension of SMS that allows mobile users to exchange messages including a combination of text, color pictures, video and audio, is becoming more mainstream. In the 25- to 34-year-old demographic, MMS usage is now at 20 percent, a six-month growth rate of 100 percent.
With increased interest in MMS which enables the sending of photos, many brands are considering offering applications like peer-to-peer photo/video sharing -- applications that best leverage camera phones and enable even greater involvement and interaction.
Media planners and brands know that consumers pick their media carefully and are increasingly savvy when it comes to opting out of irrelevant services. Consequently, brands don’t want marketing spend to be wasted.
As phone technology improves, rich media will drive compelling mobile interactions and help brands build mobile communities. Instead of directly pushing content onto consumers, brands will act as community enablers, and consumer choice will win out.
Mobilizing brands: mBlogs and mobile communities
One application that combines the pervasive use of mobile with camera phone functionality of today’s cell phones is mBlogging. Essentially mBlogging allows users to update a web or WAP blog whilst on the move by sending in pictures, audio, text and even video. These applications point towards the future of consumer generated media.
The ability to send in pictures to an email or short code that is immediately posted to the web is clearly interesting for consumers who want to share and save photos, or to publish them to the world. As the more long-lasting usage trends emerge, we’ll see mBlogs come into their own as they are sewn into the fabric of other mobile applications. Entertainment and information applications that are created by, or supported by, sponsors have already surfaced and increasingly these will have integrated chat and mBlogging capabilities.
Picture a basketball application, sponsored by a brand that sits on your phone and provides instant access to scores, leagues and latest updates. Then add functionality that allows fans to send in pictures from the game or receive blogs from the MVP after the game. Here you have an example of an application that really illustrates where the newest marketing channel might go.
Product placement in films is now well established, but you won’t see the brand dictating the plot. In consumer-generated mobile media, it’s the customer that writes the script, takes the photo and ultimately creates the community. Brands can take a central role by enabling these applications and providing targeted content to special interest groups.
Peer-to-peer mobile communities already exist with brands such as Match.com, best know as the No.1 online dating site, seeing increased traffic on their mobile internet sites. These type of mobile communities will continue to grow and over the coming year brands will branch out by aligning themselves with mobile content that matches their brand goals and ultimately entertains target audiences.
This is the truest way to offer compelling value to the consumer and let them be in the driver’s seat. The successes of Match.com Mobile and The History Channel demonstrate that mobile must be treated as a unique and distinctive media. In all of the campaigns, it is clear that mobile accompanies other media well, but it is not simply the Internet on a small scale. Consumers are sophisticated, so brands and companies must offer value and figure out what the wants and needs are for the consumer in the mobile space.
Mike Baker is President & COO of Enpocket, responsible for executing Enpocket's day-to-day operations, as well as for creating the strategy that is enabling Enpocket to sustain its rapid growth across the globe. Baker also serves on the Company's board of directors.