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					THE BUSINESS DRIVERS FOR
      MOBILE MARKETING
                    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 (mmaglobal.com) 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 (www.admob.com)
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
    Measurable
   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
       Geo.tv (7%) at Rs. 0.042 billion
       Jang.com.pk (6%) at Rs. 0.035 billion
       Yahoo (6%) at Rs. 0.035 billion
       Dawn.com (6%) at Rs. 0.035 billion
       Brecorder.com (1%) at Rs. 0.008 billion
       Tribune.com.pk (1%) at Rs. 0.008 billion
       Banner networks and others (3%) at Rs. 0.015


Question: Where is Mobile….?
    Worldwide Spending on Mobile
    Advertising
                                              •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
         like….?
         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)




                                                          •POTENTIAL:
                                                          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…?
                                                          •LIMITATIONS:
                                                          •Bandwidth provision (network issues when moving from voice
Source: Adapted from motorola.com
                                                          centric to data-centric applications)
                                                          •Reach, infrastructure, quality of service
                                                          •Awareness
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
        media)
       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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