Will Mobile Kill the Internet Star?

In my recent article, The Next Huge Marketing Boom: Mobile-Influenced Marketing, I previewed the future of mobile as a marketing tool. In short, it is revolutionizing the field and practice of marketing more than any other single channel, and proving much more effective than social media.

Here are some statistics: Mobile advertising and marketing was the fastest growing segment in 2011, growing 53.7% year-over-year to $3.39 billion. Total revenue from mobile and social advertising is up 30.2% from last year to $45.38 billion, according to PQ Media.

This article will explain the phenomenon, and provide advice and case studies on how to use mobile effectively.

mobile media spend

The Limitations of Social Media

This video, summarized below, shows why mobile is poised to be the next huge marketing wave.

Social media isn’t the most effective channel, according to the presentation by MobiletoMobileWebsite.com:

  • Facebook: There are 8 non-users for every user.
  • Twitter: There’s only 8% usage, and 75% follow fewer than 5 brands
  • Most social media posts never get seen, no less read.
  • 60% of marketers never look at their online analytics.

Trust is a big issue according to emarketer:

  • Only 5% of internet users completely trust bloggers’ streams.
  • Only 5% completely trust product or company Twitter streams.
  • Only 9% completely trust Facebook posts by a product or brand that they follow.
  • Only 8% completely trust fellow social community members’ comments.
  • 75% surveyed elsewhere say a Facebook “like” does not indicate a fan or advocate of the company.

Why Mobile Marketing is More Effective

Nothing works better than bulk texting, according to MobiletoMobileWebsite.com, because

  • Smartphones are used 84% of the time for internet browsing  – a large part for local searches.
  • 62% of of local searches are performed from a mobile device.
  • Yet 81% of web sites are not visible on or optimized for mobile devices.
  • Smartphones are used 92% of the time for text messages – including incoming.

Se this infographic from Deloitte showing that email was the most popular mobile activity, followed by search and using social networks.

The Key is Channel Integration

Data from the UK Mobile Media Consumption Report for Q2 2012 highlights the importance of integrated mobile and location-based advertising. It found that:

  • 48% of respondents claimed that mobile and PC advertising had influenced a purchase decision compared to 55% from mainstream TV advertising.
  • 20% respondents stated mobile advertising influenced their subsequent in-store purchase.
  • 21% stated it influenced them to buy via their mobile.
  • 41% of respondents claiming that a mobile ad had helped them find something nearby while 20% said it had influenced a purchase decision in-store.

Integration with Brick and Mortar: House of Fraser currently uses QR codes in-store to give access to product information or let consumers check-in, which then allows the company to target them with contextual advertising. House of Fraser E-commerce director Andy Harding said recently that mobile is the glue that binds together the multichannel experience:

It digitises the consumer and allows you to merge offline and online environments, and that is the store of the future. Digitising the in-store experience is key. Multichannel customers are 3 to 4 times more valuable than single channel customer each year.

A survey of European consumers carried out by Tradedoubler found that 42% of smartphone owners use their device to compare prices in-store, while 13% claim to have switched stores after finding a better offer elsewhere.

Integration with TV: Looking at when mobile owners use their devices, inMobi’s survey found that more than two-thirds (69%) of respondents said they use their mobile while watching TV, 39% while commuting and 36% while shopping.

A  report from Econsultancy, The Multi-Screen Marketer  shows that 52% of respondents that own a television and computer are likely to be using another device while watching TV. This rises to 60% among smartphone owners.

Integration with Email: Email works better with mobile, and may be better received than SMS according to a June 2012  independent industry survey “Consumer Perceptions of Mobile Marketing” carried out by Forrester Consulting and commissioned by StrongMail, a provider of email marketing and cross-channel marketing solutions found respondents picked email as their preferred form of mobile brand messaging.  The study found that smartphone users are the most likely to open email and then to make a purchase following receipt of an email promotion.

While most respondents said they were willing to open SMS messages from a brand once a week, fully 60% indicated they did not want to receive SMS and 63% didn’t want to receive in-app messages.

  • 32% of smart phone users have made a purchase after receiving a promotional email.
  • Only 9% did so following an SMS message.
  • Only 6% did so following an in-app message.

Forrester’s research report concludes:

Promotional emails among smartphone owners have the most success for resulting in a purchase with a little over a third of this group reporting they have done this previously.

SMS, however, can also be extremely effective. Five billion people text on mobile phones, vs. two billion people who use the Internet.James Citron, the founder and chief executive of Mogreet Inc., the venture-backed company that handles the technology end of text marketing for clients including Vans, Jack in the Box and Charlotte Russe says the response to SMS is much greater than internet. His numbers:

  • People are five times more likely to open a text than an email.
  • People respond to texts within one to three minutes in general.
  • By contrast, consumers generally open emails only after six to 12 hours, if at all.
  • Young adults are more likely to forward a marketing text than an email to a friend.

5 Ways to Drive Foot Traffic and Build Relationships

The interaction of social media, mobile and brick-and-mortar business can drive foot traffic, foster brand awareness and customer relationships (a loyal community) and create conversions. Summer Boone  of Marketing Profs provides five ways social media can support your efforts to do this:
1. Be Present

A company needs to get out and meet prospects and customers by attending that they promote on social networks, and to take advantage of opportunities to meet people influential in that industry. The personal connection you make with them might be what finally gets them to purchase.

2. Offer Real World Connection

Give members of your online community an opportunity to be a part of something in the real world, something concrete they can point to in your store or online kiosk and say, “I was part of that.” An example given by Summer Boone:

We offered “Christmas-grams,” inviting people on Facebook to nominate friends or family to receive one. We chose a few recipients of the Christmas-grams, showed up at their door unannounced to deliver it, and filmed the entire, hilarious experience! Then we posted the video on YouTube and played it on our campus. The only way to know if your nomination was picked was to show up on the weekend to watch the video.

3. Be Relevant

If you pick up on what’s already on people’s minds, you don’t have to manufacture awareness from scratch. Examples:

For 9/11 this past year, we used Facebook and Twitter to locate four soldiers to fly home for a surprise visit to their families. We captured the whole thing on video for a total Oprah moment!

4. Make it Easy To Use

The Forrester Consulting survey, “Consumer Perceptions of Mobile Marketing” found that smart phone owners experience the greatest number of technical challenges when trying to interact with their brand via their device, with top issues being:

  • Bad links (28%).
  • Non-mobile optimized email templates (28%)
  • Network connectivity (23%).

Customers either won’t know how to find you online, or won’t make the effort on their own, so  you need to help them find and follow you. An example given by Sommer:

We’ve set up our own “Geek Squad” in our lobby with laptops to show people how to sign up for Twitter and also how to find and “Like” us on Facebook.

5. Be Everywhere, Including Point of Purchase

Promote your social presence on every print piece: fliers, direct mailers, business cards, including Twitter and Facebook URLs. A best practice:

One thing we’ve recently started doing is capturing tweets from people who are mentioning us and projecting them up on our giant high-definition screens for 15 minutes before one of our programs kicks off. It’s another reminder that we are on Twitter.

Integrated Mobile Solutions Create Conversions

Deloitte found that shoppers who use a retailer’s dedicated app were 21% more likely to convert than those who didn’t, and this may be attributable to an improved shopping experience that aided their purchase decision via mobile resources. The Forrester Consulting study finds smartphone users the most likely to open email and then to make a purchase following receipt of an email promotion.

Mobile can be effectively used as part of an integrated strategy to bring people to you and persuade them to purchase. Here’s an example of an integrated marketing experience in which mobile engagement directly drove a purchase:

One success story involves a pre-teen shopper who paused in front of a clothing store at the mall. Christina Binkley in the Wall Street Journal  reports the account of one teen, Dahvi Cohen, a 13-year-old from Irvine, Calif., who was shopping for jewelry at a local mall in the spring when she saw a sign in the store offering 15% off jewelry if she texted in, and used the coupon on the spot. But it’s not limited to teens, as arts-and-crafts chain Michaels, Payless Shoes and Jack’s Surfboards all text.

Tal Nathan, vice president of client services, StrongMail says:

With smart phone adoption approaching 50%, marketers ignore mobile marketing at their peril.  At StrongMail, our internal strategists are helping our clients to get ahead of the curve with mobile-optimised email templates and fully integrated cross-channel campaigns that expertly blend the strengths of email and mobile.

There are multiple stages in the purchase decision making process. Brands can provide the information relevant to the customer’s buying decision in the place where consumers are increasingly looking for this information on their mobile devices. This shows incredible promise for companies to influence consumers’ buying decisions by being the resource they consult as they research product information before, and during, their shopping trip, and by being the digital voice they are hearing from while they are in their stores.

Related Posts:

The Next Huge Marketing Boom: Mobile Influenced Commerce

Text: The New Face of Guerrilla Marketing