Mobile Marketing - Download Now PowerPoint

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                    Course Faculty: Mrs Yasmin Malik

                     Venue: IBA City Campus, Karachi

               Course Start Date: Spring 2012 (Feb 1)

MIS553: Mobile Marketing Strategies
Mobile Marketing: Your View…?
   How would you define mobile marketing….?

   The 4 elements or attributes that define mobile marketing:
      Brands

      Mobile technology/platform

      Mobile device/handset + applications

      Targeting

   The fundamental rule of mobile marketing: permission based marketing
Mobile Marketing: The Industry View

   The Mobile Marketing Association ( defines
    “Mobile Marketing” as:
        “A set of practices that enables organizations to
    communicate and engage with their audience in an interactive
    and relevant manner through any mobile device or network.”

   One of the world’s most influential mobile adv company is
    Admob (
Mobile vs Other Marketing Media

           Reach (Pakistan):
           Mobile = 105 million+
           CPM = 10 euros
 Local Ad Spend 2011

1999: Total ad spend was only Rs 4 million!
2011: Total ad spend up by 18% from Rs 27 billion in 2010 to Rs 31.98 billion

Internet based ad spend has shown a 33% increase for 2011 but overall still only
makes up 2% of ad spend at 0.56 billion compared to 0.42 billion in 2010
    Local Ad Spend On Digital Is Now
   Of the Rs. 0.56 billion spent on Internet based advertising, the following sites were the most
    popular (Source: Aurora, Nov-Dec 2011):

       Google (35%) at Rs. 0.2 billion
       Facebook (16%) at Rs. 0.087 billion
       Cricinfo (10%) at Rs. 0.055 billion
       MSN (9%) at Rs. 0.05 billion
     (7%) at Rs. 0.042 billion
     (6%) at Rs. 0.035 billion
       Yahoo (6%) at Rs. 0.035 billion
     (6%) at Rs. 0.035 billion
     (1%) at Rs. 0.008 billion
     (1%) at Rs. 0.008 billion
       Banner networks and others (3%) at Rs. 0.015

Question: Where is Mobile….?
    Worldwide Spending on Mobile
                                              •Google/Admob earned US $750 million in
                                              revenue from mobile ads in 2011

                                              •Apple/iAd earned US $ 90 million in 2011

                                              “Mobile advertising is still immature when
                                              compared to online, print and TV advertising –
                                              but is is growing at a faster
                                              pace”, Noah Elkin, eMarketer

eMarketer Figures:
Mobile advertising in US to reach
US$ 2.6 billion in 2012
(an 80% increase over 2011)

Compare this to expected US Online
Advertising: US $ 39.5 billion

Hence mobile advertising is only a fraction
of advertising spend on the Internet!
Drivers for Mobile Marketing

   The most personal form of marketing (calls, texts, address books,
    entertainment, digital media)

   The most targeted form of marketing (handsets and mobile networks used)

   More immediate and more actionable form of marketing (last minute or
    time sensitive calls to action)

   An excellent direct marketing channel (TV, radio and print campaigns can
    be turned into more responsive campaigns)

   Questions:
    1)   How does all of this fit into our local environment….?
    2)   Do you know what Pakistan’s local/telecom business landscape look
         Pakistan’s Wireless/Mobile Landscape
                     Rural/suburban/urban 2G cellular coverage (GSM by all 5 mobile operators
                              and expanded 2.5G + 2.75G capability via EDGE, GPRS)

                                            Suburban/urban 3G
                                        broadband wireless coverage
                                    (WIMAX, EV-DO inc Wateen, Wi-tribe, PTCL)

                                                          One of the fastest growing mobile markets in the world and a
      What about cellular 3G                              benchmark in wireless broadband (WIMAX) with very favourable
          license auctions?                               telecom policies and regulatory support
    What impact will this have…?
                                                          •Bandwidth provision (network issues when moving from voice
Source: Adapted from
                                                          centric to data-centric applications)
                                                          •Reach, infrastructure, quality of service
Mobile Marketing Network Architecture
   Who Exactly Are We Trying to Reach
   via Mobile…?
       Overall: 105+ million current mobile users in Pakistan (compare this to approx 65 million users for traditional
       Dual SIM usage puts industry estimates at approx 70 million “active” users – but this is disputed by the
        Pakistan Telecommunication Authority (PTA)
       Approx 5% of mobile subscribers in Pakistan use the mobile Internet or GPRS/EDGE services
       Handset tie-in (2011, as estimated by Converge Technologies):

       5% of Mobile Handset Users               10% of Mobile Handset                85% of Mobile Handset
                                                       Users                                Users
                Smartphones                         Mid-range Phones                     Low-range Phones
              Monthly spend:                          Monthly spend:                      Monthly spend:
                 Rs 2,000+                                Rs. 300                           Rs 100-150

Converge research shows that Smartphone users are more receptive to mobile Internet based mobile marketing

Note: It is not just the reach (number of subscribers) that matters

Other factors such as handset, preferences and spending power must be taken into consideration as well
4 Types of Mobile Marketing
   The most tried and tested mobile marketing forms can be categorized into 4
    broad domains:

    1.   Text/SMS based campaigns
    2.   Mobile Portal based campaigns (including click-through banner
         and txt/MMS based ads) which may or may not involve mobile
         application downloads
    3.   Mobile Voucher/Coupon Redemption/Promotion based (includes
         QR Codes)
    4.   Location Based or “Digital Proximity” based (demographic and
         psychographic targeting)

   All of the above make some use of “demographic”, “psychographic”, “device”
    and “carrier” targeting
   Note that the latter three are image based
The Mobile Marketing “Mindset”
   Which companies is mobile marketing right for?
   Is it restricted to tangible brands?
   Can it be applied to “intangible brands”?
   Following are some of the industry sectors where mobile marketing has
    been applied successfully:
          FMCG
          automobile industry
          telecom/IT
          aviation
          Banking/finance
          retail
          education/universities
          TV/media
          hotel/leisure industry

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