Case Study: Sweepstakes and Mobile Marketing

Publishers Clearing House (PCH) is one of the longest lasting direct marketers around. I don't think there's an American out there who hasn't wished and dreamed that Ed McMahan and team would show up on their doorstep with a giant check for millions of dollars. This visibility and recognition is a true testimony to Publishers Clearing House's longevity and marketing ability.

Whether you're a fan of sweepstakes or not, I don't think that anyone can argue that this direct marketing expert, PCH, has used sweepstakes successfully over the years. What's more, they've been able to expand beyond direct mail (and they were darn good at getting consumers to open their mail and interact with their piece); PCH has embraced a true multi-channel strategy.

Well, now they're jumping into Mobile Marketing, and with a vengeance. My opinion: when PCH decides to use a new channel, it's probably time for all direct marketers to take note and learn some things.

Take a look at this article from Mobile Marketer: Publishers Clearing House outlines 2009 mobile strategy

Publishers Clearing House, a longstanding sweepstakes giant using the direct mail and TV channels, is targeting a younger demographic with online and mobile initiatives.

“We are the premier sweepstakes company in the U.S., so people know who we are, but the challenge is maintaining relevance for the changing population that is using Internet and mobile applications more and more,” Alex Betancur, vice president/general manager of the PCH Online Network, Port Washingon, NY.

The article outlines PCH's strategy in developing mobile marketing apps with a focus on entertainment. It also briefly discusses their social marketing tactics. For anyone considering incorporating Mobile Marketing into their direct response mix, this article provides some nice detail.

“It will be interesting to see how it (mobile and social marketing programs) takes, because it’s a different demo, different customers that we’re targeting,” he said. “We are direct response marketers, so we test the waters, and once we get the formula right, we push advertising to make it successful.”

Today, it's all about coffee

So, what's a direct marketing blog doing talking about coffee? Well, it was on my mind today and the more I browsed around, the more coffee news I came up with, and felt the compulsion to share with you.

You've probably all heard about Starbucks' offer to give everyone who votes today a cup of joe. For free. Without requiring any proof of voting. I love that! We've been faced with so much depressing economic news (and don't get me started about the overkill on the election coverage...), that news about getting anything for free, especially one of my favorite things, puts a grin on my face. Kudos for Starbucks for being good to their customers and encouraging us all to vote. Oh, and kudos to them for garnering all of this good press and building customer good-will at the same time.

While I'm on the topic of Starbucks, check out this DM News article about their launch of a new loyalty program. If you spend more than $5/week at Starbucks, you will definitely find value in this card, even though it's not free. You know my take on this, as a database marketer--I'm drooling over the opportunities to mine the customer data and figure out new ways to sell more things and grow customer loyalty.

Here's an overview of the program, straight from the article:

The new Gold program, which goes into wide release on November 4, offers a 10% discount on most in-store purchases. Gold membership costs $25 annually and offers its own card, which users are encouraged to register for additional benefits such as complimentary beverages on their birthdays. Starbucks Card Rewards, the program that launched earlier this year, provides members with free drink customizations and WiFi hours with the use of a pre-loaded Starbucks card.

And, if that wasn't enough coffee news, take a look at this item (also from DM News) that talks about Caribou Coffee's launch of a mobile marketing campaign. I can see how this channel could be ideal for retailers like Caribou--catch your demographic (in this case, they wanted to boost sales to 18-34 year olds) when they're out and about and shoot them a valuable coupon ($1 off a large drink). Nice application of mobile marketing, wouldn't you agree?

So, there you have it, an update on direct marketing of coffee--with some loyalty ideas thrown in at no extra charge!

Gotta go--need to drink my Venti!

Mobile Marketing Advice

I continue to struggle with ideas on how to incorporate mobile marketing into my direct marketing tool-box. Specifically, I’m having a hard time getting my arms around practical applications, and thinking of real-life ideas that will benefit my clients. Yet, this is an industry that is huge and growing. Mobile marketing is a channel to be reckoned with and maximized for the right opportunity.

This article from DM News provides some interesting insight. The article presents four different viewpoints and tips on how to make mobile marketing work—how to incorporate this channel into your marketing mix.

The first tip is from David Spear, EVP of sales and marketing, mobile technologies, LSN Inc.

Takeaway: With mobile Web campaigns, it's best to keep the design elements simple

“Whether a campaign is designed to drive brand awareness, deliver knowledge or influence direct response, it must be easy for the subscriber to understand, engage and extract value from it. Make sure you consider all elements when reviewing a campaign for simplicity. If the campaign is designed to be simple and straightforward, then traction will follow and viral will grow organically and successfully. If the campaign is overly complicated, it will disappoint in almost every aspect.”

The next tip, recommending Short Message Service (SMS), also known as text messaging comes from Steve Siegel, VP of brand solutions, HipCricket. His reasons for SMS are pretty compelling:

• The reach of SMS—everyone uses text messaging.
• The ability to measure results (you know I love this benefit!)
• SMS allows for remarketing opportunities
• SMS can be used to gather important data points from consumers (another benefit I love!).

Next, Bryan Morrison, President, Ipsh, brings us great information about mobile marketing’s ability to exploit proximity strategies. He says: “Proximity is the concept that makes mobile special.”

“While the Internet forced marketers to learn interactivity, mobile layers context on top, making your location the most important benefit the medium can offer. Understanding proximity allows brands to provide consumers genuine utility in their day-to-day lives.”

Just consider the possibilities—retailers can offer you coupons or special offers, at the point in time that you’re entering the mall! Timely, and valuable to consumers.

Finally, Michael Chang, CEO and co-founder of Greystripe, offers insight into the benefits of in-game mobile marketing—essentially embedding your advertising within a game people play on their mobile device (phone). More info on this concept, from the article:

“In-game ads are primarily priced on a CPM basis, reflecting the strong branding opportunities available from full-screen ads and rich data-gathering features. Pricing is also impacted by targeting. As with WAP banners, regional targeting is almost always available, and some providers offer more refined targeting such as by carriers, types of handset, or based on user demographics.”

“Advertising in mobile games provides bigger and richer ads than SMS or WAP banners, as well as a positive brand association for the advertiser. In-game advertising offers unique features, a great user experience and allows advertisers to benefit from a positive association with fun mobile content.”

Hopefully, these four unique perspectives have shed some light on practical applications of mobile marketing. I know that they’ve given me some great food for thought!

Data Mining for the Wireless Industry

It's not often that you see this Direct Marketing Blog announce new products or services. It's not our 'thing' to try to sell anyone anything (well, at least not here on the blog). But, sometimes, I come across announcements of new marketing solutions that really intrigue me and I feel compelled to share.

And, that's what happened today.

Xtract, a Finland-based firm that provides social advertising intelligence solutions (and also a firm that I'd never even heard of--shame on me) released this announcement just yesterday:
Xtract Social Links™ Now Available in USA, Adds Demographic Prediction.

You know I'm a sucker for data mining! This service offers a new spin on analyzing customer transaction data. Essentially, Xtract's tool combs through wireless carrier network data, and provides insight into each subscribers' personal contacts/phone numbers/people they call often. From the article:

Xtract Social Links turns raw customer data into a vital marketing tool for mobile operators. By analyzing the social networks within large scale mobile communication networks it identifies the underlying social network structures within the subscriber base and the most influential people in the network, which Xtract calls Alpha Users. The result is a completely new layer of customer insight and a tangible tool for increasing the efficiency of targeted marketing and advertising.

The add-on modules combine social network with demographic and behavioral information, providing a Three Dimensional (3D) view of the customers for specific business applications including marketing activities by mobile operators as well as targeting for mobile advertising.

Wow! Any marketer for a wireless carrier should be thrilled to hear about this solution. With the tool, now not only can you analyze your customer-base, but you'll have an understanding of your customers' friends and business colleagues. Think about the opportunities--the opportunity to present targeted offers, the opportunity to expand your customer-base.

And, of course, this insight provides mobile marketers with a wealth of data that can be used to target their ads to the exact right groups of prospects.

The other interesting thing is that the tool can be used to analyze usage of pre-paid customers--formerly customers that the carriers really didn't know much about (since they didn't send them a monthly bill).

Neat!

Segmentation Comes to Mobile Marketing

I'm not typically a huge fan of off-the-shelf segmentation packages. We've all seen them from leading companies such as Claritas, Experian and Acxiom. These data firms each sell their version of a consumer classification scheme that attempts to categorize each consumer/household into one of 50+ clusters.

And, they've come up with excellent names to allow us to visualize the segments (I especially love the Prizm cluster called "Shotguns and Pick-ups"!)

Typically, my take on using these off-the-shelf tools is that a marketer would be much better served developing their own customer segmentation strategy. I find that 50+ segments is simply too many clusters to act on. If you do the data mining exercise to find your own clusters, you'll end up with a manageable and actionable segmentation system--one that's more powerful than the non-customized version. By the way, if you'd like to see a sample segmentation deliverable from RRW, just request it here.

With that said, I was still quite pleased to hear that segmentation is being applied to mobile marketing! Check out this press release:

Nielsen Delivers PRIZM Insight for Mobile Advertisers
Combining Consumer Segments With Mobile Media Targeting Enables Advertisers to Connect More Effectively With Mobile Audiences

Neilsen's idea is to combine mobile usage patterns with Claritas PRIZM clusters to paint a full picture of mobile audiences. Makes sense to me! From the article:

By combining Nielsen Claritas' PRIZM lifestyle segmentation data with Nielsen Mobile's Mobile Media Marketplace, Nielsen is positioned to provide unique insights into consumer media habits.

For example, analysis of one PRIZM segment -- Bohemian Mix (a progressive mix of young singles and couples, students and professionals who are quick to check out the latest movie, nightclub, laptop or microbrew) -- shows that this group leads all other categories in mobile Internet usage, with 27 percent accessing the mobile Internet in the last 30 days (compared to an average 16.7 percent across all other segments).

"Targeted customized analysis of mobile usage patterns for PRIZM's 66 consumer segments allows advertisers to make more informed decisions about where to place mobile advertising," said Kanishka Agarwal, vice president of mobile media at Nielsen Mobile. "Mobile-PRIZM drives a stronger advertising ROI for our clients," he added.

I love to see technology mingling successfully with data (a passion of mine!), so I'm definitely going to learn more about this offering.

Obama and Mobile Marketing

If the way that Barack Obama is handling his marketing is any indication of how he'll run the country, he definitely has my vote. I love to see how his campaign is embracing the new. He's harnessed the power of social marketing. He's reaching the Millenial generation (see my recent post on same topic) and hopefully galvanizing young adults to vote. Now, he's pulled off a mobile marketing coup.

See this Washington Post article about the much-touted announcement of Obama's Vice President, done via text messaging.

What a smart move--publicize way ahead of time that you're going to announce your VP choice via a text message to those constituents who've signed up on your website. I can only imagine how many people signed up and relinquished their cell phone numbers, just so that they could be first to hear the big news. Kudos to Barack Obama for his data collection victory!

According to this Fox Business article, Obama, through his use of text messaging, is truly setting the stage to mobilize the vote come November.

"Allison Dale, a University of Michigan graduate student who has studied the impact of text messages on voting, said Obama's campaign was shrewd to give prospective voters a juicy piece of information -- the vice presidential pick -- in exchange for their cell phone number.

Cell phone numbers can't be obtained in a directory, she noted, and the Obama campaign should be able to collect tens of thousands of numbers this way. But she said it was unclear whether the database will be heavy with political junkies or people who would be inclined to vote under any circumstances.

"We're still sort of at the beginning of figuring out what you can do with the text messaging," Dale said."

I think that most marketers can learn a lot from the Obama campaign. So smart to keep an open mind about channels, media and technology. Lessoned learned: maximize all opportunities to reach, connect and sell to your core clients.

Mobile Marketing: Who's Doing It?

I have to be honest with you. Although we've been writing about the importance of incorporating Mobile Marketing into the direct marketing tool box for over a year, so far, not one of our clients has even come close to using this channel. Not a single client is even talking about it. And, the only advertising I've personally received on my own cell phone have come from Verizon Wireless, my service provider.

So, where's the disconnect? In an April blog post, we reported that Mobile Marketing is expected to reach $19 BILLION in 2012 (from $3 billion in 2007). I just wonder who's spending all this money...And, who's getting these ads served up to them?

This I know for sure--mobile marketing is happening, somewhere!

Take a look at this MarketWatch/WSJ article I found today that reports a 13% quarterly growth in mobile marketing advertising expenses.

"Limbo, one of the largest mobile social communities in the US, and GfK Technology, a leading market search agency, have released the latest joint Mobile Advertising Report (MAR). The second quarter report shows that a high percentage of mobile phone users in the US, UK and India indicate they are receiving advertising messages through their mobile phone; 85 percent in India, 51 percent in the UK, and 37 percent in the US."

Within the mobile marketing mix of Internet banner ads, text messaging and radio ads (sidenote--me being dumb again--what is a mobile radio ad? Anyone?), the most common format is the text message. For any of you marketing to the youth market, note that younger males typically view mobile Internet advertising the most.

And, to answer my question--which advertisers have adopted mobile marketing as a channel?

"The brands recalled in advertising via this channel were mainly mobile carriers, handset manufacturers, media brands and digital entertainment companies."

Finally, as is usual in all things cell phone related, the US lags behind other countries.

"Though the US lags behind the UK and India in many mobile phone usage categories, it shows strong growth. The number of people using mobile phones in the US has grown from 251 million in Q4 2007 to over 263 million this quarter, up nearly ten percent. The US also shows steady increases in the number of people who recall seeing advertising through their mobile phone, from 31 percent to 37 percent over the same time period."

So, there you have it, Mobile Marketing is a reality already and poised to take off in a big way. I would really love to hear from those marketers out there who have personally used the channel. Case studies, anyone?

Mobile Marketing: How Will it Grow?

Over the past five years or so, there's been more and more discussion about integrating mobile marketing into the direct marketing mix. You can find almost equal opinions on either side of the equation. Some feel that marketing to wireless phones won't work because the content isn't quite there yet, and consumers will feel that it is too much of a hassle to integrate mobile into their lives. Others feel that, as marketers, you're definitely missing the boat if you aren't actively engaged in strategically placing mobile marketing as an integral channel in your multi-channel marketing plan.

DM News just posted an article with two very different viewpoints on this subject. Entitled "Should Cell Ads Cost more than Web Ads," they pit Roger Woods, SVP and GM of the Americas at Amobee Media Systems against Robert Arena, VP and Interactive Director at Carton Donofrio Partners. Both gentlemen bring up some very interesting points in this very topical debate.

Woods argument is that "when visual real estate is severely limited and highly desired, demand for it among media buyers is naturally very high. It's why mobile ad inventory will com­mand a premium price." Woods also believes that wireless carriers will maintain a significant advantage for at least the short-term due to the fact that they are the ones that have virtually unlimited access to all of those wireless screens. Finally, he reminds us that "the fundamental elements of reach, precision and supply are aligned for the wireless carrier to charge a premium price in any scenario" -- no matter how mobile marketing continues to evolve.

On the other side of the equation, Arena argues that mobile marketing is far from commanding the premium pricing of traditional display advertising. He compares lower mobile advertising revenues (at $871 million) to higher internet advertising revenues (at $24 billion), even though more people have access to mobile phones than they do a computer and the internet. According to Arena, this is due to the fact that "metered pricing, slow networks and a frustrating user experience have dissuaded consumers from integrating mobile into their daily lives." In Arena's opinion, while a viable channel to keep our eyes on, mobile marketing still has a long way to go before it is adopted as a widely-used direct marketing channel.

So, here are two very different opinions on a direct marketing channel that we've been talking about for some time -- and is continuing to gain in importance. I'm thinking that mobile marketing will, in fact, command a premium price as the technology becomes more "consumer- friendly." There are many new, forward-thinking firms out there who are creating the technology to enable interactive media campaigns via the wireless instrument (take a look at CommerceTel's website). So, the technology is here . . . therefore, consumer-friendly is not that far off.

Consider the fact that the largest Generation alive today -- the Millenial Generation (those 8-22 year olds) absolutely depends upon their wireless phone, and you can start to believe that mobile marketing will continue to grow in importance as a marketing channel. This Generation embraces the wireless phone so much so that it has become almost an appendage to their bodies -- they literally depend on their phones to keep them connected. Millenials are now entering the workforce and will bring their ideas/needs to those companies that they work for. They may become (or perhaps have become) the springboard that will launch mobile marketing into the same stratosphere as internet advertising as they demand to have content delivered to them on their all-time favorite electronic device.

We'd love to hear your opinions as this debate rages on!

Exciting New Wireless Broadband Venture

When Google is part of a new company, I personally perk up and listen.

I was thrilled to see this press release from Sprint, announcing the creation of a new, "next-generation" wireless broadband business.

The high-points from the release:

• Sprint and Clearwire to Combine WiMAX Businesses, Creating a New Mobile Broadband Company
• Intel, Google, Comcast, Time Warner Cable and Bright House Networks to Invest $3.2 Billion in Combined Company, at Target Price of $20.00 per Share
• Formation of New Company Brings Together the Nation's Leaders in Communications, Technology Innovation and Entertainment
• New Company to Speed Deployment of First Nationwide Next-Generation Mobile WiMAX Network

From the release:

Clearwire Chairman Craig O. McCaw, said, "The power of the mobile Internet, which offers speed and mobility, home and away, on any device or screen, will fundamentally transform the communications landscape in our country. We believe that the new Clearwire will operate one of the fastest and most capable broadband wireless networks ever conceived, giving us the opportunity to return the U.S. to a leadership position in the global wireless industry."

"Google is a firm believer in supporting new ways for people to access the Internet," said Eric Schmidt, chief executive officer and chairman of Google. "We are proud to invest in the new Clearwire alongside several leading technology and communications companies, and we believe that its planned WiMAX network will increase the ability for users to get high-speed broadband anytime, anywhere."

I have a couple of thoughts on this announcement:

1. It's high time that the US wireless industry is announcing something new. Wouldn't it be great if the US does return to a global leadership position?
2. It will be interesting to see what Google is up to with their involvement in the new company. Some people are suggesting that they'll become an ISP or a mobile carrier (although they are denying this). Another thought is that this network will allow Google to offer location-specific ads through mobile devices (as they'll now know where the consumer is). Google says, however, that they are most interested in the 'openness' of the new network. From Google's blog: "As we've supported open standards for spectrum and wireless handsets, we're especially excited that Clearwire intends to build and maintain a network that will embrace important openness features."

I look forward to seeing how this new company evolves, and to enjoying an enhanced wireless experience in the near future.

Good Examples of Mobile Marketing

Call me narrow-minded. Tell me I lack imagination. But, for me, it can be hard to visualize exactly how something new will work until I see it in action. I can read about exciting new ways of doing business, but until I see real companies doing business that new way, I have a hard time believing it will work.

An example that comes to mind is social marketing. Think about how social marketing seemed so foreign only a year or so ago. Wasn't it hard to visualize how companies could benefit (or, gasp, make money) with social marketing programs? Now, marketers have definitely jumped on THAT bandwagon.

Well, I'm at about that same place when I think about mobile marketing. How will consumers embrace their phone delivering advertising? Seems like a hard sell, to me.

Don't get me wrong, I text message my friends and family all the time. I also understand how the people in Europe and Asia are light years ahead of us Americans; they definitely use their cell phones for lots more than simply making phone calls. But, the concept of integrating cell phones as a marketing channel continues to be a hard one for me to accept.

However, this article from DM News has opened my mind to the concept. It talks about how many firms are successfully using mobile marketing. Playboy, Coca Cola, Jaguar, Virgin Mobile and grocery store chain, Kroger (who offers coupons on your cell, while you're grocery shopping--wow!) are other examples of marketers using this channel.

In addition to these real-world examples, the article does a good job of explaining logistics, the opt-in process, the importance of integrating mobile marketing with other channels and discusses measurement issues. It's pretty thorough.

According to CTIA — The Wireless Associa­tion, mobile marketing has become close to a $1 billion business, with 1 billion text messages sent per day in the US and 70% penetration of mobile use in urban areas. Mobile market­ing is projected to grow from $708 million in overall revenue in 2007 to $2.2 billion in 2012, according to JupiterResearch.

In a nutshell, mobile marketing is already big business. Done correctly, it is a channel that should not be ignored. It's probably time to add it to your direct marketing tool-kit.

Now, if I can just wrap my narrow little mind around this...

The Increasing Importance of Mobile Marketing

After a few years of a lot of hype, mobile marketing is finally taking off. According to BizReport Online, mobile marketing spend will reach $19 billion (with a B) in just 4 years from now -- 2012. Just to level set, mobile marketing spend in 2007 reached just under $3 billion.

According to the article, the real growth will come from the US market due to the increasing availability of wireless phones with cheaper service plans. Also, text messaging will continue to generate the bulk of the spend due to those countries who cannot support video and display ads on their phones. Check out the response rate of text messaging ad campaigns in 2007 . . . a whopping 10%!

How can we as direct marketers integrate mobile marketing into our marketing strategies? I mean, 10% is a response rate that is too good to pass up, right?

In our opinion, it all comes back to targeting and intelligent marketing strategy. More folks have jumped on the mobility bandwagon. We know that kids and young adults are very much into messaging and that their mobile phones have become like an additional appendage. However, adults can also be accused of the same behavior. Just drive on any freeway and you can be reminded of how tied we are to our mobile phones.

When you are looking to bring mobile marketing into your direct marketing toolkit, start out with a comprehensive look at your customer base. It may be helpful to append attributes such as profession, income level, lifestyle and number of children (who will be calling their parents a zillion times per day -- and vice versa).

From this profiling exercise, you'll gain a better understanding of who may more responsive to mobile marketing. Once you've completed this profiling, you will be armed to do some intelligent testing on your customer base to determine if your scientifically-based hunches are right on. The simple beauty of testing is that it allows you to test those hunches prior to rolling out the campaign to your entire customer base. In addition, you can then look for prospects that fit your customer profile, too. This will make them much more likely to response to your mobile marketing campaigns, too. By the way, if you'd like to read more about customer profiling, take a look at our other blog that is specifically focused on analytics.

Meanwhile, we'll be keeping our eyes out for mobile marketing success stories to share with you. Keep in mind that it's all about customer preference. The more you learn about your customer base, their likes and dislikes, how they prefer to communicate with you, etc., the more targeted and precise your marketing campaigns will become. And, i think that's how you can get to that 10% response rate.

If you have any success stories to share with us on this topic, please do!

Mobile Marketing and the Presidential Race

If you've been tuning in to the already almost year-long Presidential race, you know that this one has been very different -- on many levels. Not only have we had a longer head-start to understand the various contenders, but we have also seen an unprecedented number of debates and other "media moments" thus far. And we still have almost 9 months to go before the election!

Direct marketers have definitely been involved in this process. And this time around, it's gone further than direct mail and telemarketing campaigns. Case in point . . . according to DM News today, mobile services firm, Mogreet, is jumping on the election bandwagon with a new free video text service. According to the article, “It's all about empowering young voters with a voice through the channel that they know best,” said James Citron, CEO of Mogreet. “The youth vote is very important in this election and using new media channels is the best way to reach a younger demographic.”

And, as we've seen thus far in the primary's and caucuses so far, there has been an unprecedented amount of involvement from America's youth. Mogreet has seized this opportunity by sending a mobile phone to each of the major presidential candi­date's new media managers. Those interested in the candidates viewpoints can go to http://www.mogreetthevote.com/, and "select from a series of 10- to 15-second videos, deemed Mogreets, on topics that include the economy, gay marriage, the Iraq War and global warming and send them to a candidate's mobile phone, with a personalized text message, for free. General consumer-to-consumer Mogreets cost 99 cents."

As you can imagine, Mogreet is doing this for more than just educating kids about the voting process. They are also educating them on their platform, and hope to create more awareness nationwide about their services. Since texting is most widely embraced by the youth market, this is a brilliant idea!

Results so far show that Barack Obama has received the most texts (37.5% of the 4,000 messages sent so far). Hillary Clinton has received 22.5%. The area of most interest so far is global warming.

What a wonderful idea! This is where creating awareness through social media and mobile marketing can come together to create a direct marketing success story. It will be fun to see how widely used this campaign becomes as we get closer to the election.

Great Links!

Welcome to another edition of our Friday Blog Log!

The first link that we're featuring today is from Jesse Sands, of RoughStock Studios Blog. Jesse's blog post on Recession-Proof Marketing is a good read. We like Jesse's style! She discusses how to look at direct marketing spend in the time of an economic downturn. She brings up some great points for us to use in consulting with our clients, as well as for an internal look at our own businesses.

Staying on the same theme, take a look at Peter Kim's link that discusses why it may be difficult to make Mobile Marketing work -- particularly in this time of economic downturn. Peter is blogging from a recent OMMA Mobile Conference. Like Social Media was, Mobile Marketing is now in the beginning stages of marketer acceptance and use. There are some good reasons for this, as Peter outlines in his post. The good news is that he is also conducting some research on how to make Mobile Marketing work for you -- even in these turbulent economic times. So, we'll keep our eyes out for that more positive piece and feature it on an upcoming post.

Finally, we invite you to take a look at this link from the CRMIndustry.com Blog. This post discusses a recent survey that reports on how high-value customers are now requiring a seamless cross-channel experience. "The survey, which polled 1,005 adults between January 18 and 20, 2008, found that nearly two-thirds (64%) of all respondents went online before making a purchase in the past three months. That percentage was even higher for 'high-value' consumers, such as those with household incomes of about $75,000 (81%), college graduates (78%) and consumers age 25 to 34 (77%)." Take a look at the link for the full readout. Once again, this proves that as direct marketers we must become experts in creating a cross-channel experience that is transparent -- and relevant-- for our clients. For example, they must be able to effectively navigate your web site, then take that insight to the retail outlet to make purchases.

It's always good to end on a positive note! We hope you enjoy these links as much as we did.

TGIF!

Boomers Alert: We are Technology-Savvy!

There is a new study out about the Baby Boomer Generation (one that's near and dear to me for obvious reasons), and it reports that direct marketers better not try to reach us using our parents' technology. HA! I feel like such a rebel! Apparently, we Boomers are branching out and adopting newer technology to do all kinds of things -- including shopping, researching products and services, and receiving advertising messages.

In a recent article from BizReport, author Kristina Knight reports that "Baby Boomers said they are spending less time each week reading books and newspapers than they were six months ago. At the same time, the group says they are spending more time on their computers and using their cell phones. Listening to music, watching television and using the Internet have remained at a steady consumption rate." This is important to us because the Baby Boomers are still the largest generation alive today -- and the age range is wide enough to impact lots of different purchasing decisions (generational experts put Boomers at between approximately 43 - 61 years of age).

As Knight reports, although these results aren't earth-shattering, they do point to the fact that marketers should include this group in their online advertising efforts for sure. And, mobile marketers should also take note of this trend -- there are lots of Boomers who actually use their wireless phones for more than staying in touch with the kids and grandkids. This is certainly a departure from the thinking that it's only the skate-boarding, extreme sports kids who use their mobile devices for downloading videos and music. Boomers are using these devices for email, news and driving directions.

As we've posted about before, it is really important to keep all of the six generations alive today in mind when creating your marketing strategy. And, as this study points out, we need to also keep a finger on the pulse of generational evolution and how each generation prefers to be communicated with over time. In fact, if you haven't read our Impact of Generational Attributes on Marketing white-paper already, you may want to take a look at it now.

Meanwhile, I'm going to go do some online shopping, and then text my buddy and see what she's up to. : )

Using Your Direct Marketing Expertise in Mobile Marketing Campaigns

As direct marketers, we know that the proper mix of data, careful analysis and measurement, and the correct channels can mean campaign success that can be proven and improved upon over time. This approach leads to better profitability for our companies, more satisfied customers, and more money in our pockets -- all very happy endings for everyone concerned.

We can use this expertise when looking to expand our campaigns to new channels, too. According to a recent article in DM News, parlaying basics of DM knowledge to mobile marketing can increase your reach and response rates. In the article, Crystal King of iAnywhere states, "Currently, only a handful of mobile Internet services are able to provide messages that are more detailed. That’s where direct marketing can really be a boon to savvy marketers who are looking to take advantage of the emerging mobile market. Direct mail, permission marketing and CRM specific campaigns are all excellent candidates for integration into a larger mobile marketing strategy."

King goes on to talk about the differences in response rates between online and mobile marketing -- and it's pretty astounding stuff! "Online and direct marketing often mix nicely. The ability of their messages to point to online resources and Web sites give advertisers the ability to track some level of response rates. However, the 0.2 percent online marketing response rates currently don’t hold a candle to the 2-3 percent of mobile marketing’s response rates, which direct marketers need to find a way to harness." I can't think of one client who would turn down a 2-3 percent response rate -- wow!

As you're designing your marketing strategy for 2008 and beyond, begin thinking about how you can harness the power of mobile marketing to improve your campaign results and integrate it into your marketing tactics. King advises that "driving people to a mobile Web site through traditional advertising is a great way to service current customers as well as to introduce offerings to new customers. " Not only are you reaching more diverse groups of potential customers but you are embracing the technology that all generations of customers are becoming increasingly tied to -- the mobile phone. Using your own knowledge of direct marketing to guide you in this process will ensure your success! If you're interested in this topic, please take a look at our idea paper on Multi-Channel Marketing Best practices.

Ensuring Mobile Marketing Success: Being a Responsible Direct Marketer

We've been talking a lot about mobile marketing in the last week or so, and for good reason: it's becoming a more important part of our direct marketing toolbox.

Interestingly enough, mobile marketing is going through some of the same challenges and consumer scrutiny as e-mail marketing did a few years ago. There is a lot of focus on how direct marketers are communicating with customers and prospects via the mobile phone. In a recent article from Striata (an electronic messaging specialist), it is reported that there is a very strict code of conduct that must be followed in order to ensure the success of any mobile marketing campaign. In fact, Mia Papanicolaou, e-marketing manager at Striata said: “These are powerful direct digital marketing mediums -- but campaigns not executed within the code of conduct could seriously undermine the overall effectiveness of integrated marketing strategies where SMS and MMS direct digital communications are reinforcing the more conventional methodologies.”

Furthermore, Papanicolaou points to certain "do's and don'ts" for direct marketers to follow as they consider embarking on mobile marketing campaigns. Here are the do's:

• Ensure there is a reply path so that the recipient can easily unsubscribe at least cost
• Personalize the message with the recipient's name
• Start the message with the sender's brand name so that it is identified up front
• Regularly check replies and honor requests to unsubscribe
• Clearly communicate how to unsubscribe
• Use “STOP” as a general default unsubscribe keyword

And, here are the don'ts:

• Send messages exceeding 160 characters (or it requires two messages)
• Use sender ID because if the recipient responds the reply will be lost in cyberspace
• Send messages from a premium rated SMS short code as this prompts reply without revealing the cost
• Use capital letters unless it is to highlight something critical, or a capitals brand name, or the message's “call-to-action”
• Use SMS “talk” or “speak” such as phonetical abbreviations – the target market may not appreciate it.

While Striata references the South African market in this particular article, we think these are good points for direct marketers everywhere who are interested in embarking upon a mobile marketing campaign. The bottom line is to not be intrusive to the consumer. While trying to sell our products and services to customers/prospects, use good common sense as a good rule of thumb. This will help to spell success in your mobile marketing efforts!

Mobile Marketing: A New Way to Reach your Customers

Interesting read on the power of mobile marketing: Mobile simplifies marketing.

In a nutshell: "Mobile marketing reduces time to market because there is a direct link between the company and the end user through their cellphones." Other key benefits cited in the article:

- Mobile marketing is especially targeted and it offers the ability to segment customers.
- As a new, fresh channel, the author believes that "consumers are far more likely to view the MMS and show it to other people than say a TV advert for example."
- There is 0 waste--"This is because it is possible to verify with the networks whether cellphone numbers have been registered for MMS. All numbers that are not MMS registered can be removed from the campaign."
- Speed to market--the campaign can roll-out in days instead of months (for more traditional media, where the creative needs to be developed, the campaign needs to be implemented, etc.)

What was especially interesting (to me) about this article is that it heralds from South Africa. "Given that there are 36 million active SIM cards in South Africa (more than TV viewers, Radio listeners or Internet users); companies need to begin to thinking about reaching using mobile marketing campaigns to reach out to the largest group of users in the country."

In thinking about how mobile marketing applies to the US, I DO believe that there is an important place for it. But, we marketers need to make sure that we don't abuse this channel, even before it's introduced to the masses. We need to be responsible. We need to only employ this medium to groups that we are pretty darned sure will welcome the message. For example, send a cool announcement, or a great offer to a group of rabid fans. We need to make sure that there is a value to the recipient of each and every message we put out there. We cannot let SPAM take over this channel. We must develop and then follow opt-in rules.

I'd love to bring the power of this targeted marketing vehicle to my clients. But, I'd hate for our industry to abuse the power of mobile marketing even before it's widely used. Thoughts anyone?

House of Blues -- Using Mobile Marketing to Effectively Target the Youth Market

The House of Blues really hit it this time! Not only are they an excellent nightlife and music venue, but they are forward-thinking, leading-edge direct marketers. Recently, a case study was published by Mobile Marketing in the News outlining what the House of Blues (in partnership with Motorola) accomplished with the help of Soapbox Anywhere.

Here's what they did: "House of Blues, presently using the Web for consumer interactivity in addition to other more traditional means of marketing, decided to leverage the mobile channel to deepen its relationship with its existing and new customers. Recognizing mobile as a personal, one-to-one mass market medium that is 'always on', House of Blues tapped Soapbox Mobile to create its mobile campaigns. The Soapbox Anywhere platform provided personalized mobile interaction in addition to a valuable database of mobile users. The House of Blues mobile trivia campaign placed a 'call-to-action' across in-house TV screens and person-to-person street team interaction by means of unique short codes assigned to House of Blues venues across the U.S. The Soapbox Mobile solution empowered House of Blues to track and report, in real-time, the effectiveness of its mobile campaigns for each of its nationwide locations."

So, here's a case where a company, i.e., House of Blues, used emerging technology to accomplish a lot of things. First, they have built a unique way to acquire new customers and build loyalty (and stronger relationships) with their existing customers. Second, they have definitely figured out a nifty way to build brand awareness. Third, they were able to use their creativity to bring value to their partner, Motorola, in a way that most certainly makes their hearts sing: new revenue streams. Finally, and near and dear to us, they were able to create a program that was easily trackable so that they could see the effectiveness of the campaign in real-time. That's smart direct marketing for sure!

We are advocates of using technology in creative ways to effectively build profitable customer relationships. Kudos to House of Blues, Motorola and Soapbox Mobile for leading the way!

Using Mobile Marketing for Social Networking

The Coca-Cola Company is hoping its new mobile site for social networking, Sprite Yard, will become the MySpace of the cellphone world. This is reported in an article from Commercial Alert.

Over the past 2 weeks, we've discussed Mobile Marketing a lot. Well, Coca Cola is about to dive into this area-- head-first -- with their new mobile site. According to Mark Greatrex, Senior VP for Marketing Communications and Insights of Coca-Cola, "People will type in codes from Sprite bottle caps to redeem original content, like ring tones and short video clips called mobisodes. Recently, one of the most redeemed prizes from Coca-Cola promotions has been virtual clothing and furniture to use in virtual online worlds." Yes, we now have other worlds for our alter-egos (i.e., Second Life) to vicariously live through. Coca-Cola is definitely using cutting-edge marketing here.

It will be interesting to see how widely and quickly Sprite Yard is adopted by teens. Not many big companies have been brave enough to do this to date, and those who have tried have had mixed results. For example, BudTV (introduced by Anheuser Busch last February with original content), is cited by the article as having lagging web traffic.

However, the fact that Coca-Cola is the first to really commit to using mobile as part of their marketing mix is a good sign that this may become a viable channel for direct marketers. Kudos to Coke for being pioneers in this exciting new space!

Social Shopping the next "In" Thing?

As we discussed on Friday, our monthly newsletter (which will be distributed today) will highlight the world of Mobile Marketing. I learned a lot in the 6th Annual Global Mobility Roundtable sponsored by USC's Center for Telecommunications Excellence this past weekend.

One of the topics that is closely intertwined with Mobile Marketing is Social Networking. Obviously, the wireless phone is becoming another way to interact with friends, business and all types of social networks. The concept that drives this is Web 2.0 -- as defined by Wikipedia, "a social phenomenon embracing an approach to generating and distributing Web content itself, characterized by open communication, decentralization of authority, freedom to share and re-use, and the market as a conversation."

In a post by Mitch Joel of Twist Image, he points out that a new social network is taking hold -- Social Shopping. In fact, Joel feels that by looking at how far online social networking has come in the past few years gives us a realistic indication of where Social Shopping is headed in the very-near-future. Joel states, "If we’re currently doing it to find other like-minded people who have similar interests, what makes you think we would not do the same thing to find others who are similar to us in terms of our commercial interests … especially if the price becomes more attractive as the social shopping network grows."

As direct marketers, we need to pay close attention to this rapidly growing phenomenon. It will change how our customers interact with us, and those who change their marketing paradigm quickly in order to embrace it, we believe, will become direct marketing leaders within their industries.

Jump on board!