of Mobile Marketing by jdo18246




                of Mobile Marketing
                        BY ELISABETH A. SULLIVAN//STAFF WRITER
                         esullivan@ama.org

                         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

                         marketers’ mobile experience.

            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-

“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





                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-

                                         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

                                         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.

                                             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
                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
                                                                                                                          marketing channel on the verge of adoption.
                                            Don’t Screw Up Your Mobile Marketing Opportunity

                                            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

                                            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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