16 TA THE of Mobile Marketing BY ELISABETH A. SULLIVAN//STAFF WRITER email@example.com Eastern markets like Japan and South Korea have led the way for mobile marketing. While the power is shifting noticeably westward—especially as the iPhone’s technological tentacles wrap around the globe—U.S. marketers can learn from Eastern 04.30.10 marketers’ mobile experience. marketingnews 17 T hree or four years ago, U.S. marketers and consumers were e Asia-Paci c (APAC) region has approximately 2.4 billion mobile marveling at the innovative mobile marketing going on in high- subscribers and could surpass the 3 billion mark by 2012, according to tech markets like Japan, South Korea and Hong Kong. Many the GSMA, a global mobile communications association. By next year, Eastern mobile marketers seemed eons ahead of their coun- APAC marketers are expected to spend $7.7 billion on mobile market- terparts in the West as they reached their increasingly wired ing, according to ABI Research, a market intelligence company based in customer bases with creative, relevant, multichannel marketing. Oyster Bay, N.Y. A lot has changed in the mobile space and leading-edge mobile In some Asian markets, such as areas of Indonesia and China, mobile marketing efforts are being produced in our own backyard now— isn’t just a primary mode of marketing communication, it’s the mode of thanks in large part to the iPhone. But there’s still much to be learned communication to reach consumers, says Rohit Dadwal, managing director from the path laid out by those intrepid mobile marketers who’ve gone of the Mobile Marketing Association (MMA) Asia-Paci c, the Singapore- before. In that spirit, Marketing News spoke with mobile marketing based branch of the global mobile industry organization. Dadwal, who experts in Hong Kong and Singapore to find out what Eastern market- previously worked for Microso and MSN in India, says that millions more ers have learned about the mobile channel after experimenting with it Indian consumers are reachable through mobile than through TV. for the better part of a decade. We also spoke with marketers closer to While marketing channels abound in the United States and, thus far, home to get a sense of how U.S.-based marketers have been inspired by the Internet has been this country’s primary medium for digital market- Eastern marketers’ mobile advancements. ing innovation, there’s a growing segment of the U.S. population who turn to their mobile phones for everything from communication and Inter- Keep in Mind Mobile’s Extensive Reach net access to entertainment and banking. “Something really fundamen- marketingpower.com “We can see what’s happening in Europe and Asia and the Middle East, tal is happening here,” says Alexander Muse, co-founder of Big in Japan, a and we can get an example of what’s going to trickle down here,” says Zak Dallas-based mobile app developer (so named because “there’s a lot of cool Dabbas, co-founder and managing partner of Punchkick Interactive Inc., a stu going on in Japan”). “ ere’s a whole class of people living in mobile Chicago-based mobile marketing rm. “I was just in Tokyo a few months … and they don’t ever touch a desktop [computer].” ago and I couldn’t believe the smartphone penetration that I could con rm As of January, there were 234 million mobile subscribers 13 years old just visually. Everyone was holding a smartphone.” or older in the United States, 42.7 million of whom owned smartphones, Population Mobile subscribers Internet users Landline phones 18 (in millions)* (in millions)** (in millions)** (in millions)** 1200 By the Numbers 900 600 300 0 Country/Market Population Mobile subscribers Internet users Landline phones (in millions)* (in millions)**, and as a (in millions)**, and as a (in millions)**, and as a percentage of population percentage of population percentage of population China 1,300.0 634.0 (47%) 298.0 (22%) 365.6 (27%) Hong Kong 7.1 11.4 (161%) 4.1 (58%) 4.1 (58%) Japan 127.0 110.4 (87%) 90.9 (72%) 47.6 (37%) Singapore 4.7 6.4 (137%) 3.4 (72%) 1.9 (40%) South Korea 48.5 45.6 (94%) 37.5 (77%) 21.3 (44%) U.S. 307.0 270.0 (88%) 231.0 (75%) 150.0 (49%) Source: Central Intelligence Agency’s World Factbook, www.cia.gov * in 2009 ** 2008 according to Reston, Va.-based comScore Inc. (Some organizations esti- rience?’ whereas in the United States, I think a lot of marketers are still looking mate that the U.S. mobile subscriber base is much larger.) for that bright, shiny object,” says Maria Mandel, senior partner and executive e numbers paint a pretty clear picture of the United States’ increas- director of digital innovation at OgilvyInteractive in New York. ingly mobile culture (see page 5 for Marketing News’ exclusive research on Leading-edge Eastern marketers think of mobile less in terms of its American’s mobile use). Yet last year U.S. marketers spent approximately disparate tools and more in terms of how those tools might complement $390 to $400 million on mobile advertising—just a fraction of marketers’ their branding e orts, loyalty programs, retail environments, value propo- overall digital ad spend in 2009, which hovered around $25 billion, accord- sitions and overall marketing strategies, which brings us to the next lesson. ing to Forrester Research. (To really hammer the point home, compare U.S. marketers’ mobile spending with the more than $15 billion they allocated Look Beyond the iPhone App to search marketing in 2009.) Of the 240 million-plus mobile subscribers in the United States, only about one-quarter of U.S. smartphone users own iPhones, according to comScore. Yet many U.S. marketers are primarily gearing their mobile e orts toward the iPhone and seemingly nine out of 10 times, they’re U.S. marketers are “right at the edge of a focusing on applications, Dadwal says. In the United States, mobile channels such as SMS (aka text messaging), quantum leap. … Asia could lose the lead in MMS (multimedia messaging), Bluetooth, voice and the mobile Internet mobile if North America gets serious.” “are not being totally explored for marketing needs,” Dadwal says. “I believe [the iPhone app] is the North American stepping-stone into mobile,” which Sean Rach, director of digital media and corporate events for Prudential Corp. is a good rst step, he says, but in markets in Japan, South Korea, Australia, Asia and chairman of MMA Asia-Paciﬁc Hong Kong and Singapore, marketers’ focus is broader and “the consumers are getting exposed to every channel of mobile.” For example, SMS is the lowest common denominator in mobile commu- nications throughout the world and many marketers are running creative e reach is there, experts say, and it’s time to up the ante on mobile text-based campaigns in Eastern markets, Dadwal says. Beginning in 2008 marketing. U.S. marketers are “right at the edge of a quantum leap,” says Sean and running through last June, Procter & Gamble’s Pampers brand ran a Rach, director of digital media and corporate events for Prudential Corp. Asia, successful interactive SMS campaign in the Philippines called the Pampers an insurance and nancial rm in Hong Kong, and chairman of the MMA’s Hearts Club in which it sent parents text messages containing baby care tips APAC region. Rach, who previously was managing director of marketing tailored to babies’ developmental stages, he says. And parents could receive agency OgilvyOne Hong Kong and also worked in marketing at Sprint, says, points toward gi certi cates for toys and entries into contests to win educa- “Asia could lose the lead in mobile if North America gets serious.” tional grants by texting in specially marked codes on Pampers packages. e campaign was intended to build brand a nity and customer reten- 04.30.10 Think Strategically, Not Just Tactically tion. It succeeded in compiling more than 100,000 consumers’ contact When Dabbas started Punchkick Interactive four years ago, he and his information for the Pampers database and reportedly boosted Pampers team struggled to educate companies on why they should add mobile Hearts Club members’ diaper consumption by 50%. As a tangential bene- marketing to their mix. One year later, companies were interested in t, the text-based campaign “positioned P&G as a custodian of health for marketingnews texting and the mobile Web. Now Punchkick Interactive is “getting more babies,” Dadwal says. iPhone app inquiries than we can handle.” In Japan, marketers make great use of mobile’s interactive capabili- at’s great progress in a relatively short period of time, but the problem is ties with QR codes—short for “quick-response codes,” which are two- that too many U.S. marketers still think of mobile as a disruptive medium best dimensional bar codes that consumers can scan with their mobile phones’ suited for ashy, gimmicky, one-o marketing e orts that aren’t necessarily cameras to access product reviews, pricing information, coupons, links integrated into a company’s overall marketing strategy. In leading-edge Asian to company Web sites, pretty much any marketing information that a markets, many marketers ask themselves, “ ’How does mobile t into the expe- company wants to make available through mobile, experts say. 20 QR codes serve as a bridge for marketers to provide a depth and mobile,” Dadwal says. Print ads all have breadth of information that’s not possible in just one marketing chan- a mobile plug directing consum- World Use nel—and they’re on seemingly everything in Japan. “ ere’s mobile ers to text for more information activation of everything in the whole society; every newspaper, every or to visit a mobile Web site. Scanning the Globe 67% print ad has QR codes,” Prudential’s Rach says. Most mobile phones in Consumer touch points are Japan now come with code-scanning capabilities preinstalled. better integrated and “mobile Mobile Phone While some U.S.-based marketers are experimenting with incor- porating mobile-ready bar codes into their campaigns, many have yet is becoming an integral part of the 360-degree market- GS1 a Brussels, Belgium-based global trade group that aims to provide standards that make supply to try adding bar codes to their packaging or campaigns because most ing campaign.” and demand chains more efﬁcient, is trying 26% U.S. consumers don’t have the appropriate technology in their phones Not only do they incor- to create industry standards for bar code Web to scan them. But mobile bar codes are gaining ground stateside. For porate mobile into a designs so that, for example, codes used example, Muse’s company is best known for its ShopSavvy bar code- broader multichannel strat- on a product’s packaging to convey pricing scanning app for iPhones and Android phones, which has more than egy, but also they make the data to the checkout scanner also could hold 67% of the world’s 4.5 million users and is attracting 30,000 additional Android users most of mobile’s own chan- marketing information that consumers could population is using and 10,000 iPhone users each day, he says. nel portfolio. In February access by scanning the bar codes with mobile phones, and March 2007, Motorola their mobile phones. The group also Create an Effective Call to Action ran an award-winning mobile supports preinstalled bar code scanning compared with only U.S. mobile marketers face several barriers that Eastern marketers marketing campaign in Hong software on mobile devices to aid in 26% who use the don’t, including SPAM and telephone regulations that prevent market- Kong called “Say Goodbye,” which consumer adoption. Internet, according ers from reaching out to consumers through their mobile phones was created by Ogilvy & Mather Asia if those consumers haven’t opted in to receiving mobile marketing Paci c and e Hyperfactory, a global to a February report messages. Such barriers make U.S. marketers’ mobile calls to action mobile marketing rm based in Auckland, from the United even more important. New Zealand, that aimed to create a relevant, Nations’ International Yet experts agree that marketers in Asia have a much better handle value-added experience in which consumers could interact on incorporating prominently placed mobile prompts in all of their with their Motorola RAZR phones. Telecommunication mobile channels, pushing well beyond U.S. marketers’ current formula Say Goodbye allowed Motorola users to wish their loved ones Union. of attempting to drive tra c to mobile tactics via PR-generated buzz well as they passed through Hong Kong International Airport’s or vague prompts in print ads. In Japan, mobile prompts “aren’t o new terminal by taking a photo of themselves with their phones’ to the side. ey aren’t u ,” Dabbas says. Rather than just vaguely cameras, adding a goodbye message to it and texting it to a special directing consumers to “text 12345 to nd out more,” he says, “your phone number to get the photo displayed on interactive LCD call to action, it really should entice people.” It should give consumers screens in the terminal. Users also could send pre-recorded goodbye a sense of what they’ll get if they make the e ort to text your company messages from soccer star David Beckham or Taiwanese pop star or log on to your mobile Web site. Jay Chou using their phones’ Bluetooth capabilities, says Pruden- OgilvyInteractive’s Mandel agrees: “I’m always telling my clients tial’s Rach, who worked at Ogilvy Hong Kong when the campaign this is simple direct marketing. You need a strong call to action if was created. you’re going to get people to engage.” Motorola’s mobile marketing e ort won a competition run by Some U.S. marketers are on the right track, Dabbas says. For example, Hong Kong International Airport to get the use of the new terminal’s last year Punchkick Interactive worked with UPS Corporate Workforce digital screens for free—the airport’s own way of marketing its new Planning and its agency, TMP Worldwide Advertising & Communica- advertising opportunity. e campaign also garnered media atten- tions, on an integrated campaign called “Problem Solved” to recruit job tion and reportedly boosted handset sales signi cantly. e goodbye seekers for UPS. e interactive campaign ran calls to action through messages from Beckham and Chou ended up being forwarded tens social media, e-mails, SEO, radio, TV and print, among other chan- of thousands of times all over the world, spreading goodwill for the nels, that prompted consumers to seek out more information on UPS job Motorola brand. opportunities through their mobile phones. It generated about 345,000 Motorola execs smartly considered the medium—an airport termi- job applications for UPS. [Editor’s note: Read more about the UPS nal—and asked themselves, “How could we be useful in that space? campaign in the March 15 issue or online at MarketingPower.com.] And we stumbled upon this great idea of saying goodbye,” Rach says. Motorola wanted its mobile message to be so useful and relevant to Make Mobile Part of Your Multichannel Strategy consumers that it would move beyond its retail setting. “ e inten- In many Asian markets, “every aspect of brand managers’ brand tion was for [consumers] to spread that message out” and to turn the campaigns … actually has started having a call to action for mobile marketing e ort into “more than just a one-o activity.” m Find Out More @ MarketingPower.com Find links to all the cited resourcse below by visiting On the Map MarketingPower.com/MarketingNews and clicking Location-based mobile technology targets value-added marketing “current issue” or April 30, 2010. messages to consumers on an as-desired basis. This Marketing News article outlines what marketers need to know to do right by this Articles: marketing channel on the verge of adoption. Don’t Screw Up Your Mobile Marketing Opportunity 04.30.10 Marketing News columnist and Forrester Research analyst Josh Bernoff explains how to optimize and integrate mobile into Webcasts: your marketing plans in a way that satisﬁes customers and meets Mobile Marketing How-To: A Starter Guide for the Novice business objectives. Brennan Carlson of Lyris Inc. explains the basic “how-to’s” of mobile marketing, deﬁnes key terminology and provides examples of how marketingnews Hold the Line to get started. This Marketing News how-to article reviews some of the technical ramiﬁcations and legal requirements regarding mobile Community: coupon programs. Visit the Marketing News blog to access a video on the Motorola mobile marketing campaign referenced in this article.
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