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Mobile Marketing

Avoiding the novelty trap and breaking into mainstream

April 25, 2008
Avoiding the novelty trap and breaking into mainstream
By: Warren Billington, VP of Sales – Mobile Marketing, 5th Finger
 
This article was contributed by Mobile Marketer and can also be found at www.mobilemarketer.com.
 
Bend it like Brady, not like Beckham – how mobile marketing can avoid the ‘novelty’ trap and break through to the mainstream

As an Australian, my idea of ‘football’ always involved a round ball. Goals, not touchdowns were the aim of the game. Having recently moved to the U.S., it’s a different story. It’s hard to see what lasting impact David Beckham’s move to the U.S. will have on a country that’s not obsessed with his kind of football. In many ways, you could say the same about the realm of mobile marketing.
For many countries, including Australia, mobile marketing is already a part of the strategic tool kit for brands. Here, there’s still some work to do in integrating a mobile component as part of an extended marketing campaign. In some quarters, it’s seen as an afterthought, or worse, not a thought at all.
 
So, here are some challenges preventing mobile marketing from breaking through to the mainstream marketing consciousness. And, ways that mobile marketers can learn from the sports world when it comes to making mobile count in the mass market:
 
·          Help wanted: major players in the U.S.: In part because of the slower pick-up of “mobile” in the U.S. compared to other markets, the mobile marketing industry here is in its infant stages – the experienced professionals aren’t here, like with soccer in America. It can be challenging to get campaigns off the ground without the army of seasoned mobile marketing professionals that many other markets have on their side. Marketers should consult those who are experts in the field to ensure they get value out of their campaigns.
 
·          Breaking down the defensive walls: Even after the uptake of SMS messaging in the U.S., brands have been limited by the walls between carriers. Brands that did earlier promotions with a single carrier, were disappointed with limited reach to one carrier’s subscriber list. Brands are now able to do more cross-network promotion, so should take advantage of the potential here. Complex and often restrictive policies make it necessary to enlist industry veterans who have the expertise in navigating these policies for a mobile campaign.
 
·          Breaking through other, proven marketing strategies: There are established and proven marketing methods that already work in the U.S., which have a clear ROI. Now that the U.S. mobile market has skyrocketed over the last few years, marketers feel more comfortable with trying out this technology. Many early programs didn’t dedicate enough budget to mobile pieces or promote them in the most effective way, leading to an even smaller participation rate than the market at the time would have expected.
As some of the tangible results from mobile marketing become more high profile -- just like Beckham, others should stand up and follow to achieve that success.
You have to invest and support a game if you want it to be successful. In the same way, mobile marketing needs to be supported financially - marketers need to begin testing mobile and increase their understanding of the game so they can then integrate it into their strategic marketing planning for the long term.
 
 

This article was written by Warren Billington, VP of Sales – Mobile Marketing. The content was contributed by Mobile Marketer and can also be found at http://www.mobilemar

Sowing Seeds: Why Planning for Experimentation in Emerging Media Pays Off

March 24, 2008
Sowing Seeds: Why Planning for Experimentation in Emerging Media Pays Off
Patrick Moorhead | February
 
The debate continues to rage in digital media – is mobile at or near maturity? Is 2008 the year mobile is going to matter? When will mobile media be a truly valuable channel investment for marketers?
 
While opinions vary, lately I’m inclined to take a somewhat controversial position – the year that may turn out to matter most in mobile was last year. Further, I suggest from now on, the year that will matter most in mobile is going to be last year. Not 2007, but whatever the previous year happens to be. I can hear the collective “huh?”, so let me explain a little, and in the process shed some light on mobile as a marketing tool. More importantly I’ll explain why we believe so firmly in staking out budgets and strategies for testing emerging media channels as a regular part of the ongoing planning process.
 
Problem:
Organizations debate how and when to invest marketing resources in new digital media, such as mobile technology.
 
Solution:
Emerging media is an empirical science that requires a pioneering approach in order to truly understand all of the factors involved.
 
Benefit:
Marketers who approach planning for new media experimentation proactively have access to real outcomes, in addition to increased confidence and skill with media testing in general.
 
We started building the machine last year
As we get involved in account planning with our clients this year, it’s apparent that those who invested in test programs with mobile as part of campaigns in 2007 are now reaping the benefits. Seemingly small )and sometimes challenging) first steps into mobile marketing are suddenly jetpropelling clients and brands into a new dynamic with their marketing and their conversations with customers. Many clients over the years have heard me talk about why investing in new media tests is important – I tend to speak in terms of “the machine.”
 
If we think of mobile )or any emerging media technology) as an entirely new mechanism within our marketing and media ecology, its critical to understand how difficult it is to both build the machine and use it at the same time, especially when market forces apply pressure and technology becomes a competitive price of entry. I’m not going to dwell on that here – instead I’m going to discuss a handful of ways that I’ve seen our clients leap ahead in their skill and use of mobile marketing as a result of making the decision to start building the machine last year.
 
We know if our targets respond or not, and what aspects they gravitate to
Many readers have also heard me say that mobile is empirical science, so no matter how much eMarketer, Jupiter, and m:Metrics data you look at about your target consumer, the only real way to understand if he or she will respond to you on mobile is to try. In response, many of our clients say, “Well, if they don’t, I just wasted a bunch of money I could have used someplace else.” To this I say – I don’t see any waste. Getting the right mix of media channels sorted out around your core customer is critical, and if it costs us a bit to determine definitively they aren’t someplace, so be it. Knowing for certain that your core customer is reachable )or isn’t, as the case may be) in mobile is a huge benefit in planning, allowing you to either embrace it and develop, or cast it aside and spend time and resources more profitably elsewhere.
 

We know who owns campaigns in the organization

 

Knowing for certain that your core customer is reachable )or isn’t, as the case may be) in mobile is a huge benefit in planning.
 
A resolution that initially posed significant challenges to client mobile campaigns ultimately resulted in a new level of clarity about responsibility within the organization, determining where budgets came from and how everyone should go about collaborating to take advantage of mobile marketing. While I can’t disclose specific scenarios I’ve witnessed in our clients businesses, I can make some generalizations that illustrate the benefits. In many companies, media and marketing behaviors are compartmentalized from both a budgeting and staffing perspective. Sometimes lines are drawn around direct marketing and brand marketing; sometimes between digital and traditional, and for larger businesses with a deep product portfolio, between lines of business within the categories above.
 
What’s tricky about this landscape is that when mobile really functions well, it tends to cross organizational lines, which is the reason we refer to mobile as a kind of “connective tissue” in the media mix. For example, we’ve seen great results from opt-in SMS programs last year, in particular those that had opt-in integration in print or collateral advertising materials. These organizations shattered the wall between digital and traditional media teams, forcing the decision of who calls the shots on mobile opt-in from a strategy perspective. Figuring out who pays for mobile and out of which budget can be tricky. Tests funded out of “digital” or “direct” marketing budgets, which achieved success in ’07, are gaining subsidies from their colleagues in “brand” marketing. All of this is shaking out because the testing of last year helped crystallize issues. While I can’t tell you where mobile belongs in your organization, I can tell you that those clients that rolled up their sleeves in mobile last year are a fair way down the path of knowing the answer for themselves. And that’s exciting!
 
We have real data on what tactics delivered the desired results
Mobile, perhaps more than most other emerging media opportunities, offers a startling array of complex options at the tactical level – so much so that it can be daunting to comprehend even after being in the space for some time: mobile display, mobile text links, search, SMS, MMS, WAP, downloads, and applications. And that’s not counting the variety of ways to look at buying mobile – CPC, CPM, CPA, SMS rates per message, bulk message pricing, premium messaging, ad supported content, in-SMS advertising – it can sometimes seem too much to sort out. Our clients have advantages that go a long way towards simplifying and refining the decision making process about what to buy, how to buy it, and what works in getting through the goal posts in a mobile campaign.
 
First, they’re leveraging our expertise in digital media planning and buying. We’ve been steadily building our competency in understanding this landscape for some time and are hitting our stride on how to organize, price, negotiate and buy the various components of mobile. It’s been trial and error, but through the ups and downs, we’re wrapping our arms around it.
More importantly, we managed the investments of our pioneering clients in 2007 and made these resources perform for the campaign and the brand. That’s been really exciting. Delivering the year-end reviews on our 2007 mobile campaigns and showing which tactics hit, which missed, which were priced for value, which were bargains, and which ones didn’t get us what we wanted, has been a revealing activity this past month. Further, as I’ve started the 2008 planning cycle with these teams, our ability to make crisp, quick decisions around tactics has liberated us to think bigger and better about the overall possibilities for the campaign and the channel mixture. Knowing that buying mobile ad media on a certain network or under a certain negotiated scheme )CPM, CPC, guaranteed impressions, etc.) has allowed us to laser focus our client investments in tactics we’ve proven to perform and deliver value.
 
When mobile really functions well, it tends to cross organizational lines, which is the reason we refer to mobile as a kind of “connective tissue” in the media mix.
 
What we do with data – measure, pick through, translate, analyze
We love measuring. Everything. In emerging media and in particular in mobile, as performance data comes back from the campaigns we begin to pick through it, translate it, and start to draw some conclusions. Having the real numbers in front of us has opened up some new frontiers in cross-media analysis, revealing relationships between online and traditional media, between online and mobile, and between mobile and print and out of home. It has also shown us some unexpected anomalies that seem to signal new directions in the mobile space. For example, in more than one campaign, we’ve been able to follow a sales conversion at the Web site from a click on a mobile banner. Not just once. Several times. We were surprised on two fronts – we didn’t think it was possible to follow a user across that trajectory. Two – and this is critical – if a handful of users are finding a way )and expressing a desire!) on the handset to complete a transaction initiated by a mobile ad, which we didn’t do anything to facilitate or enhance – imagine what could happen if we did!
 
These little revolutions aside, just seeing how many clicks, landing page and WAP page views, and SMS messages sent from marketing programs has given us a new vantage point on what’s possible and has exposed places where mobile performance measurement needs some improvement to really deliver.
 
We have a viable structure for prioritizing the next round of investment – this paper should make that obvious. Because of the tactical insights we’ve uncovered, we’re now in a solid position to draw lines around what level of investment is appropriate )and will yield results) in mobile for our clients. This advantage is one enjoyed by all of our clients, not just those who waded into the water last year. As we develop and refine the various aspects of mobile through these executions, we’re shaping the industry and beginning to set benchmarks for the kinds of results possible at various levels of investment.
 
At the very least, for those clients who are now examining what year two in mobile looks like, we can turn a rational and well informed eye towards making decisions. Should you scale up?
Should you cut back because you hit enough marks? Should you hold over your allocation from last year, but tweak it based on new information? Now, we have the tools we need to help you make decisions with managed risk and high confidence.
 
Conclusion: Spring Is On The Way, Time To Plant Some Seeds.
The point of this essay is not to say that mobile is the right channel and tool set for all marketers.
On the contrary, we discovered a couple of campaigns where mobile is not a good option, at least right now. The point here is to unravel issues around the other side of emerging media
experimentation, to demonstrate at the very least, we can qualify and quantify tangible advantages our pioneering clients are enjoying as a result of developing structured, focused new media programs last year. After all, last year was a pretty important year in mobile.
 
About the Author
Patrick Moorhead is a specialist in emerging media at Avenue A | Razorfish where he leads R&D efforts and client implementations on behalf of the agency’s Emerging Media Solutions group in the Central US. As the digital landscape evolves and new ways of accessing content proliferate, Patrick helps clients and staff understand and assess a number of emerging media technologies and their practical applications as marketing vehicles. A sought-after expert and evangelist for cutting-edge media technology, Patrick has counseled many executives of the agency’s Fortune 500 clientele, including JCPenney, Kraft Foods, Wyeth Pharmaceuticals, and Starwood Hotels Group. He has presented at numerous industry conferences and events, including Ad:tech, OMMA Expo, SXSW )South by Southwest) Interactive, Digital Signage Expo, and Digital Hollywood Media Summit. A prolific writer on emerging media topics, Patrick was a key contributor to the 2006, 2007, and 2008 Avenue A | Razorfish Digital Outlook Reports’ and his white papers are widely read in new media and Internet advertising circles.
 
You can contact Patrick Moorhead at [email protected].
 
About Avenue A | Razorfish™
Avenue A | Razorfish™ is one of the largest interactive marketing and technology services agencies in the world. The company helps industry leaders such as Starwood Hotels, Kraft, Ford Motor Company and Carnival Cruise Lines use digital channels to acquire and service customers. Avenue A | Razorfish's full suite of digital offerings includes online advertising, Web site design and development, email and search engine marketing, emerging media strategies, and enterprise portal development. Its award-winning client teams have a great understanding of customer needs and provide solutions through distinct business disciplines, which include: analytics, strategy, technology, media, creative design and user experience. Avenue A | Razorfish has offices in markets across the United States, and global operations in Australia, China, France, Germany, Japan and the United Kingdom. Visit www.avenuea-razorfish.com for more information.
 
Avenue A | Razorfish
821 2nd Avenue, Suite 1800
Seattle, WA 98104
Phone: 206.816.8800
Fax: 206.816.8808
For more information please visit: avenuea-razorfish.com.
 
 
© Avenue A | Razorfish™. All rights reserved.
Avenue A and Razorfish are registered trademarks.
 

 

Just because it’s mainstream, it doesn’t mean it’s boring

February 26, 2008
Just because it’s mainstream, it doesn’t mean it’s boring
An agency perspective on the US mobile marketing industry
 
By Laura Marriott, President, Mobile Marketing Association
 
Early in the New Year, it is time to assess the state of the industry and get the industry leaders commentaries on what the year holds. For this column, I touched base with a few of the leaders in the agency space to get their take on where we are headed with mobile marketing in 2008. My original intent for this column was to compare a person’s time in mobile to dog years -- as time either stands still or we put on more years in the short period of time that we have been immersed. All those that I spoke with feel they are 7 - 18 in dog years. Don’t know about you readers, but some days, maybe those after walking the floors of Mobile World Congress, I feel much older.

So is the future bright for mobile marketing in the United States in 2008? According to Courtney Acuff from denuo, a Publicis Groupe Company, “We are beyond the introductory stage but we still have a long way to go. Internal and client education is still necessary, a task that isn't as easy as it sounds given the plethora of companies in the ecosystem today.”

And, from Maria Mandel, Ogilvy, similar thoughts about the mobile marketing industry in the United States. “We have come a long way in mobile, but we have a long way to go,” she says. “The mobile industry seems to think we are way ahead but in terms of total spend, we are only just beginning. There is lots of education to do.”

The factors

So what is holding us back for broad scale mobile marketing in the United States?

--Reach

Although we are seeing significant adoption of wireless services, the consumer is only just beginning to interact with their favorite brands through their mobile devices. We also need to encourage broader adoption of more advanced data services -- mobile web, MMS, video and television, etc. Only by expanding reach can we optimize the always on, always available mobile channel.

--Complexity of Mobile Programs

Developing applications for each handset and operating system is very complex, depending on what you are trying to do. WAP sites/downloads add their own complexities.

--Measurement

Industry standard metrics and measurements are only just beginning )based on work from organizations like the Mobile Marketing Association). But the consistency of measurements are only the beginning. Category-specific benchmarks will be key as the media channel continues to mature and then, understanding mobile’s impact in cross media will also be key. Mobile is the bridge to engagement and understanding the metrics around it will only help encourage adoption.

--Operators

From each agency I spoke with, more than are referenced here in this article, each asked to work with the wireless operators to help get the industry further aligned and expedite timelines for the large brands. Then there is the topic of revenue shares and making the rev share deals optimal for all in the value chain.

--Mobile’s fit in the brand spend

And perhaps one of the largest impediments to brands spending money is the fact that mobile is not a separate budget line item, but instead competes with interactive dollars. For 2008 mobile is becoming a line item for some companies but how do we raise the overall awareness to have mobile highlighted?

What’s working today? According to Mandel, we should be talking about what is here, now and ubiquitous but we tend to jump to the “sexy” applications -- video, location services, etc. Overall we are doing a disservice to the industry by talking about future opportunities, which often cause the new entrants to miss the tried and true -- SMS, mobile media and voice. Each of these wireless media types are seeing enormous interest and significant interactions from brands and consumer alike. Let’s focus on the mobile elements which are driving ROI for the brands that are engaging them. “Just because it is mainstream, doesn’t mean that it’s boring,” says Mandel. Similar to the article I wrote last year for RCR Wireless News, voice is often overlooked and for certain demographics, it really makes sense. Key is selection of media depends on target audience and what you are trying to achieve.

What have some of the successes been in mobile marketing to date:

--ROI )Return on Investment)
Simple programs sometimes perform the best
Focus on utility or entertain, surprise and delight.
Leverage the mobile device for what it is best used for -- interaction and engagement.

--The Hype
Building the Buzz: The industry has done a great job of building the buzz, excitement and energy around mobile.
Recognition: Much recognition has been given to leaders in the space for their achievements and excellence in mobile campaign success. This recognition has ultimately helped to build our industry -- and drive the hype for new entrants and new opportunities.

2008 Predictions

In the last few years in the United States mobile marketing industry, much has happened but we have a long way to go. Mandel says she “looks enviously at other markets and sees how we could apply the large ad spend that we have here, the way they do there.” We have the budgets in the United States, let’s make it easier for the brands to spend it.

John Hadl, Managing Partner & Founder of BrandinHand, Inc. tells me, “We are at the tipping point in terms of consumer adoption and the starting gate in term of marketers readiness to embrace the medium. 2008 is the year or rising tides ... a rising tide lifts all ships.”

According to Acuff, “2008 isn't going to be ‘the year’ but I anticipate that we will see further program sophistication and tighter integration with larger communications plans; the majority of consumers are no longer novices and the programs need to reflect this even if it is a client's first execution.”

And on a final note, comments from MMA Global Chairman Cyriac Roeding last week at the AlwaysOn conference in New York, "How do we expect anyone to take this )mobile) seriously as an advertising device if we keep telling them about the unbelievable complexity that arises out of the fact that we have 20 carriers in the U.S., then we have fundamental technologies, GSM and CDMA. Let's make it simpler. Let's talk about usability, let's not talk about the next 15 menu items, and let's not try to copy another medium. )Mobile) is a new medium in its own right."

Let’s keep it simple. Let’s expand the mobile knowledge base. And let’s teach brands, agencies and consumers how to leverage mobile marketing )and advertising) successfully. Let’s make 2008 the year for mobile marketing!

You may contact Laura directly at [email protected]. You may contact RCR Wireless News at [email protected].
 

The Triple Play of Mobile Marketing

January 29, 2008
The Triple Play of Mobile Marketing
by Per Holmkvist, Managing Director, Mobiento
 
The mobile operator has a unique opportunity and responsibility in the mobile marketing value chain. Never before has one player in the marketing value chain had so big influence on the development of a new marketing channel. It is as if the print shop would rule the world of print advertising, or if the ISP would be an important player in the online advertising value chain.
 
The mobile operator holds three major mobile marketing roles; The Enabler; the Advertiser; and the Media owner. These roles have been important in different stages of the mobile marketing industry, chronologically:
 
1. The Enabler. For advertisers to be interested in a new media, it requires reach. Reach is created when a lot of people understand a media and how to use it. In order to make this happen it is very important that the operators strive to set common commercial and technical standards, not just nurturing their own walled garden. In the beginning of mobile marketing common messaging short codes was a very important step. Today setting understandable data traffic business models )read: flat rate) and supporting mobile ad format standards is equally important for the continued development of the industry.
 
2. The Advertiser. The mobile operators’ marketing departments’ use of the mobile channel seems obvious today, although some operators have been very slow in the adoption of it. The role as early adopter, showing what is possible in mobile marketing and allocating budgets for it, has been and is very important. If the mobile operators themselves aren’t using mobile marketing, who should?
 
3. The Media owner. It is now dawning on most mobile operators that there might be a new revenue stream in mobile advertising. It is quite a late awakening as the opportunity is not new. For example, who knows how many voice mail sms alerts that have been sent without utilising the spare space in them? A problem is that the operator revenues derived from mobile advertising will be minor in the beginning, compared to voice or messaging for that matter. However the mobile operator portals will provide the best reach and the most detailed segmentation information for advertisers, so to make advertisers interested, again the mobile operators’ role is very important.
 
Hence, the mobile operators’ contribution is necessary to continue to drive mobile marketing and advertising forward. However, to reach the full potential the mobile operators must not only get the above three roles working internally. Mobile operators must also work together, towards common goals. Having worked closely with mobile operators in all three roles, the impression is that in an often vast organisation one hand seldom knows what the other hand is doing. Mobile operators lack a common mobile marketing approach that all their units know and strive for.
 
For the mobile operator with the mobile marketing opportunity looming ahead this is a problem. For the industry as a whole it is catastrophic. The problem lies in the mobile operators’ transition from technology enabler to media house. This is a quantum leap, which has to be made in short time. Some of their employees will never understand it, but most of them must.
 
The final realisation a mobile operator must make is that not only must they get common mobile marketing goals internally; they must also start cooperating with other operators. Mobile advertising revenues will continue to be minor unless all operators realise it is not about the traditional operator vs operator competition.

It is about mobile advertising against print and TV advertising.  

Some mobile operators have come very far, some have barely started. But all players in the mobile marketing value chain should work for pushing these giants to take the necessary steps for continued evolution.

Mobile Opportunities for the Financial Sector: The Americas

December 17, 2007
Mobile Opportunities for the Financial Sector: The Americas
 
by Diarmiud Mallon, Vertical Markets Senior Offer Manager, Sybase 365
 
Throughout 2007, Sybase 365 conducted mobile banking surveys of consumers across three regions: the Americas, Europe, and Asia-Pacific. The survey was conducted by Loudhouse Research, an independent research company based in the UK.
 
 
A wide range of mobile users were surveyed in each country. Questions ranged from whether those surveyed had used mobile banking and frequency, if they knew whether or not their bank offered mobile services, whether they would switch banks to gain access to mobile banking, and what types of services they have used via mbanking.
 
Mobile users in the Americas—specifically the U.S., Canada, Brazil, Mexico, and Argentina—showed a keen eye for their personal finances—42% claim to know exactly how much money they have in the bank. Argentineans are the most on the ball when it comes to the state of their finances )54% claim to know their exact bank balance), although they are also the most likely to have no idea, demonstrating an “all or nothing” approach.
 
Such strong financial insight was achieved by regular checking of their bank balances. Americans and Brazilians are the most likely to check their bank balances daily, while Canadians prefer to check their balance every few days.
 
These two trends—closely watching personal finances and interacting regularly with a financial institution—clearly point to the positive impact mobile banking services could have on these markets. Basic services that can be offered include “push” SMS bank account balance alerts and bank balance inquiries. Capitalizing on this “nano-economic” mindset will enable banks in the Americas to launch services that will greatly appeal to their customers.
 
One consistent result across all three of our global mobile banking surveys )Europe, Asia- Pacific, and the Americas) is the need for raising awareness of mobile banking services among consumers. More than half surveyed did not know whether their bank offered mobile banking services or not, and only 13% were able to categorically state that their bank does not offer mobile banking. Awareness of their bank’s mobile banking services was the highest in Brazil )56%), and was the lowest in the U.S. and Mexico. In Canada, almost three quarters did not know if their bank offered the service or not.
 
Banks that have launched mobile banking services, or are planning to do so, must first focus on educating their customers about the many benefits of mobile—over and above the benefits of current banking channels, such as the Internet or visiting a local branch.
 
For banks, selecting new services to launch is vital to building interest in the mobile channel. More than 6 in 10 mobile users said they would be interested in being able to access account balances via their mobile. Security safeguards )transaction alerts, blocking a card) are the second tier of popular offerings, followed by account alerts. Over 25% of those polled said they would be interested in the transaction side of mobile banking and would like to make payments via their mobile.
 
Carefully selecting services that address consumers’ current needs will enable banks to build momentum in the mobile channel, and to reach the critical mass of customers that is required to make the service successful. Once completed, the more niche services—such as making mobile payments—will find wider adoption rates.
 
Finally, there is potential for converting interest in services into a willingness to pay. Respondents in the Americas survey were more willing to pay for mobile services than were their European counterparts. Money transfer services are particularly ripe for paid service, followed by making payments to existing payees. Security services are another area where almost 50% of potential users were prepared to pay. There is strong resistance to paying for informational or marketing services, generally, with stock market information being the exception.
 
If you would like to find out more about the Americas, Europe, or Asia-Pacific survey results, please go to http://www.sybase.com/365. Then, in the lower right corner, click the “Mbanking Survey” medallion, and download the survey of your choice.
 
 

Mobile commerce: Coupons, 2D Codes and Purchases...Oh my!

December 17, 2007

Mobile commerce:  Coupons, 2D Codes and Purchases...Oh my!

by Laura Marriott, President, Mobile Marketing Association

There has long been a debate about mobile commerce. When will it come to the United States en masse? When will the consumer have unfettered access to purchasing via their mobile phone? When will coupons take on mass adoption and appeal worldwide? The following article highlights three mobile commerce companies and their solutions—as well as assesses when we can expect to see mass rollout in the United States.

 
ShopText: Physical goods purchasing
 
Brands are beginning to see mobile as an opportunity to extend the reach with the consumer and measure the success of their marketing initiatives. A New York based company called ShopText provides the brand or advertiser the opportunity to drive ROI )return on investment) and link the consumer directly to a product or service through an ad. Through ShopText, advertising is now enabling acquisitions and not just purchases, but sampling, loyalty, etc. The ShopText application allows marketers to know who their customers are, including their address, demographic profile, etc.
 
How is the service enabled? A consumer will set up an account instantly on their mobile phone or at shoptext.com, which will not only collect their demographic information but allow them to input their credit card to purchase physical goods through the ShopText network. In the mobile registration scenario, the consumer is called back via an IVR )interactive voice response) system that will walk them through the registration process. Security, on an ongoing basis, is ensured by the customer entering a PIN code whenever they enact a purchase through their mobile device, like withdrawing cash at an ATM.
 
So far, the response has been tremendous. Consumers are able to send a text message and purchase products when they see them in magazines, on billboards, or in any other medium—immediately!
 
M-commerce applications will be a key driver for educating consumers on how to use mobile. According to Mark Kaplan, co-founder and CMO for ShopText, “After one campaign, we received about a dozen e-mails telling us our application was the first time that they'd interacted with mobile. Overall, there's been little resistance. Outreach is obviously a top issue in terms of educating consumers on the capabilities of their mobile device.”
 
ShopText implementations to date have included over 50 pages in CosmoGIRL, sampling for Pantene as well as Old Spice, Neutrogena, Clean & Clear, Bonne Bell; "Lucky," which has featured products from Elizabeth Arden, Mavi Jeans, Calvin Klein; and Knitting Factory, which is selling concert tickets by text from its print media and off its Web site.
 
Sweepstakes, digital and physical goods pairing, ticket purchasing—the options are truly endless.
 
Scanbuy: 2D Codes
 
2D codes are a hot topic! And, at most conferences, the question is eventually raised, when will 2D bar codes come to the United States? These codes allow consumers to use their wireless devices to interact in a graphical manner with traditional and digital media. The unique, two-dimensional bar codes, which can be placed on any item, allow the consumer to take a picture using their cameraphone. Then, through bar code reading software, the 2D code is interpreted to provide product information, downloads and more. 2D codes are a visual system allowing consumers to access relevant information much like short codes, IVR or other mobile media techniques.
 
In Japan, approximately 40% of consumers have used bar codes through their mobile device. Why so high? Japanese operators and handset manufacturers have worked together to ensure devices support visual bar code technology, helping to drive adoption. However, the Japanese business model isn't supported by mobile advertising, and instead consumers are charged standard data rates. In South Korea, where codes are also utilized, each operator has chosen to pursue its own 2D strategy, hindering broad scale consumer adoption. There are many implementations of 2D codes in Korea, but no ubiquity for brands looking to deploy cross operator campaigns. In the Philippines, handset manufacturers sell directly to the consumer and in this market, adoption of 2D codes is having some success. In this ad-supported market, brands are able to secure their own codes and launch to the consumer. Brands pay on a per-campaign basis, but per-click may prove to be the ideal business model.
 
In France, the Paris transport system has launched an interactive campaign using 2D codes with New York-based Scanbuy. The consumer can scan a code and see when the next bus or subway will arrive. Consumers who don't have a bar code scanning tool on their device can access the application to download through text messaging or a wireless Internet site.
 
What have been obstacles to adoption in the United States? The lack of cameraphone consumer adoption, cost-effective pricing models as well as overall consumer education. A broad effort at educating consumers and advertisers about the technology is needed, as well as point-of-sale integration for applications that use 2D codes for mobile commerce, says Jonathan Bulkeley, CEO of Scanbuy.
 
Demand on the advertiser side is huge. Advertisers get it, says Bulkeley. Print publishers are especially interested in 2D campaigns and what the visual opportunity can do for them. Most promising uses for 2D technology include ticketing, couponing and product or service information. The key is applications which rely on consumer pull to access the information.
 
Cosmo Girl launched an application with Mobot in 2006 based on pure image recognition. Cosmo Girl readers were encouraged to take photos with their mobile device of ads or features in the publication and send them to the magazine for a chance to win prizes. The Cosmo Girl application wasn't based on 2D codes, but rather image recognition. Bulkeley says image recognition is the “holy grail, but making it a reality is years away."
 
In the United States today, Scanbuy is launching U.S. campaigns targeted towards specific devices and demographics. "People change their behavior based on ubiquity," Bulkeley said. This means 2D applications, on a broad scale in the U.S., are at least 18 to 24 months away. Scanbuy has used the technology as part of the U.S. Air Force's "Do Something Amazing" campaign, which has been featured at venues including NASCAR and other sporting events across the country.
 
Cellfire: Mobile coupons
 
Ever try a mobile coupon application? I recently downloaded the Cellfire application to my Blackberry and was surprised to see the number of offers and opportunities for redemption through the Cellfire service. I contacted Brent Dusing, CEO of Cellfire, to learn the current status of their mobile couponing business in the United States. Is mobile couponing a reality for U.S. mobile users today? The short answer is yes! The Cellfire application is today available to every consumer on every network—either on-deck, or as a downloadable application.
 
Is it successful? In the print coupon world, industry average for redemptions is around 0.58% but for the mobile coupons from Cellfire, redemptions are in the 5 to 15% range. What drives redemption? Merchant, brand, and type of offer )i.e. buy one, get one free vs. discount off total purchase). The Cellfire coupons are currently redeemable across over 10,000 locations across the country and include large retailers such as Enterprise Rent-A-Car, Virgin and others. To date, there have been approximately 7 million coupons issued for a total of $21 million in savings.
 
What are the inhibitors to broad scale mobile coupon adoption in the United States? Why are we not seeing more merchants using the services? Some would argue that broad scale adoption has already occurred—but given broad retailer awareness, I would argue this is not yet the case. Although point-of-sale )POS) integration is not necessary, a successful deployment will require successful expertise and implementation at the retailer. “POS integration is not a cookie cutter approach—expertise is critical” says Dusing.
 
What about other markets outside of the United States? Couponing is not a global phenomenon and every market is unique. Mobile Dreams Factory in Spain has deployed a mobile couponing application with a large beverage company which is showing success.
 
For more information on mobile coupons, download the Introduction to Mobile Coupons guide from the MMA, available at www.mmaglobal.com/mobilecoupons.pdf
 
You may contact Laura directly at [email protected]. You may contact RCR Wireless News at [email protected].
 
 

Mobile Ain’t Email: Navigating the Nuances and Nuisances of Mobile Marketing

October 12, 2007

Mobile Ain't Email: Navigating the Nuances and Nuisances of Mobile Marketing

Written on February 22, 2007, published on www.adotas.com
By Brian Hecht
Used with permission from ADOTAS, Copyright 2007. All rights reserved.
Submitted to the MMA by Kikucall

Back in 2002, I took a research trip to London to investigate the emergence of mobile marketing. Then as now, the Europeans were far ahead of us Americans when it came to mobile. Americans in 2002 were just realizing that they could receive and actually send a text message from their very own cellphones. Meanwhile in Europe, teenagers were furiously texting to each other, and big brands were beginning to experiment with mobile as a marketing channel. So, in those days, if you wanted to glimpse the future of mobile marketing in America, you only needed to hop a plane to Heathrow and start taking notes.

I went to see a friend who worked at an interactive agency in London. He’d said that they were doing some mobile marketing themselves, and I wanted to see first-hand how it was being done. I had already set up a shop to start testing mobile in America, but I was a bit stymied by the technology end of things. I’m a marketer, not a telecommunications expert. So the first thing I wanted to know was how the guts worked. How did the messages actually get from your database out into the cellular ethersphere and into consumers’ handsets?
When I met the CEO of this agency, that was the first question I asked. He looked at me like I was an idiot. He pointed to his laptop sitting on his desk.

“I don’t understand what you’re asking,” he finally replied. “It all comes out of there.”
I begged him to elaborate. “I just plug my phone into the back of my laptop,” he explained, “and we wrote a little script that just, you know, sends them through the phone.”
To my British friend, it was the most obvious thing in the world. But to my American ears, it didn’t add up. There was no way to plug my American cellphone into a laptop. And even if I could, there’s no function to just send text messages. I knew enough about the American market to understand that there were many complications to take into account. Each American carrier )like Verizon or Sprint) had their own very particular way to send messages through their system. And even if you were technologically able to send bulk messages, you needed the carriers’ permission to do so.

I’m still no expert on the British mobile networks, and I’m not entirely sure whether what my friend was doing was kosher. But our firm has now operated scores of mobile marketing campaigns in the U.S., and there’s one thing I’m sure of: In the U.S. there simply is no “plug and play” way to operate a mobile campaign the way you’d send an email blast.
It is tempting to think of sending text messages like sending email. But there are crucial differences on both the marketing and the technological fronts that every marketer needs to think about. Here are the key differences to think if you’re someone who is familiar with email marketing, and thinking of moving into mobile marketing:

1. The Pipes are not Open: The Internet is not owned by anybody, so if you have an Internet connection then you can send email. There’s no real barrier to sending out batches of emails, notwithstanding whether they’ll make it through spam filters and to their intended recipients. This is not the case with mobile. Each mobile carrier owns its own network and has the right to control what passes through its system. Carriers typically require explicit approval of whatever you plan to send to their subscribers. Carriers have an acute interest in making sure that their hard-won paying subscribers are not bombarded by messages they do not want. So you’ll need to plan for the time and effort to get those carrier approvals before you can start sending text messages.

2. The Pipes are not Free: An email service provider may charge you to send your emails out through their system, but there’s no fundamental cost to using the Internet. Sending a text message incurs a cost that must either be paid by the sender, the consumer, or both. It’s more like postage than like email. If you’re a marketer, you probably don’t want to charge your consumers to receive your message, so you’ll wind up footing the bill. It’s only a few pennies per message, but with volume it adds up. That’s a significant constraint that you need to bear in mind and budget for.

3. The Opt-In Barrier is Higher: By now we’re all familiar with how to collect email opt-ins, and we know the specific opt-out provisions required by CAN-SPAM. There are a whole different, and more elaborate, set of opt-in/out requirements for mobile, and each carrier has a slightly different formula. It makes sense: receiving a text message is far more personal and intrusive than sending an email, so you’ll want to make sure that the consumers on your list really want to hear from you. And you’ll need to be prepared to receive opt-outs in a variety of formats. Any consumer needs to be able to opt-out by replying to your text with any sort of opt-out message. So your system needs to recognize a variety of opt-out messages coming from consumers, and these messages are not always polite!

4. You’ll Need a Short-Code: A short code is a five- or six-digit number that is your mobile “address.” That’s the number consumers will use to send messages to you, but it’s also the “return address” that you’ll use to send messages out. Procuring a short-code is an essential but time-consuming process. You’ll need to file an application that needs to be approved by the carriers or their designated representatives, and approvals take at least a few weeks, and in some cases many months.

5. You’ll Need )at least one) Partner: If all of these caveats seem prohibitively daunting, there’s one ray of light: There are companies that handle most of these details for you. Some mobile agencies do it all and handle all aspects of carrier relations, billing, marketing, and short-code procurement. Others specialize in just one aspect. Even the biggest companies need at least one of these partners to make a mobile program work. And even with a comprehensive partner, the process is never completely turnkey or hands-off. You’ll need to be involved in carefully designing your program, budgeting for messages sent and received, and mapping opt-in and opt-out procedures.

I was reminded of my early research in London during a recent return trip. And despite all the complications I’ve described above, I came away with a positive vision for the future of mobile marketing in America. In Britain as in most of Europe, it is extremely common and relatively simple for brands and consumers to communicate via mobile. Far more common than in the U.S. True, they’ve been at it a bit longer, and the nature of the mobile networks makes it inherently easier.
But the outcome is really quite remarkable. Mobile marketers in Europe can spend more time focused on marketing, and less time on the nuances and nuisances of mobile technology. We’re headed to the same place. Here in America, we’re ironing out the complications and, in due time and with the right partner, your brand can successfully navigate the nuances of mobile.
 

Alternative mobile advertising opportunities: Relevancy and fun

September 27, 2007

Alternative mobile advertising opportunities: Relevancy and fun
By Laura Marriott, President, Mobile Marketing Association
Story posted: September 18, 2007 - 5:59 am EDT

Editor’s Note: Welcome to Reality Check, a feature for RCR Wireless News’ new weekly e-mail service, Mobile Content and Culture. We’ve gathered a group of visionaries and veterans in the mobile content industry to give their insights into the marketplace. In the coming weeks look for columns from Tom Huseby of SeaPoint Ventures, Mark Desautels of CTIA, Mark Donovan of M:Metrics, and more.

When the MMA first started publicly speaking about mobile advertising more than two years ago, some of the backlash I immediately received from consumers was extreme: “I don’t want that on MY device, my highly personal device, my mobile phone.” Today, two years later, reactions are still mixed. At times, consumers are upset that an advertiser can be allowed to interrupt them whenever and wherever they are. But mobile is a channel of engagement. The mobile channel allows consumers to engage the brand and elect to engage in mobile advertising, or not.

Today, a lot of the excitement in mobile advertising has been around the mobile Web. Even within the MMA, we have focused our format, guidelines and best practice work around defining the guidelines for mobile Web advertising. Let’s face it: Consumers love image-rich experiences! The colors, the graphics and the overall experience are stimulating! But there are lots of alternative mobile advertising models that are emerging, and this column will focus on a few of them.

A couple of months ago I spoke to a company that was launching a service that offered mobile advertising on ringback tones )or answer tones as some operators call them). Awesome idea and why not?! It really started me thinking about the other opportunities, beyond mobile Web, for mobile advertising—and there are lots of them. This column will focus on only three but there are lots more.

--Advertising opportunity No. 1: Text messaging

In mobile, text messaging is still the sweet spot for reaching consumers due to its ubiquity, price point and ease of use. Text messaging is pervasive and everywhere! And companies are beginning to exploit the text channel for mobile advertising. The CEO of 4INFO, Zaw Thet, tells me that “most people have overlooked text as an advertising medium.” Text allows companies to reach their consumer in an uncluttered manner, and deliver pure branding with measurable results.

But what does this mean exactly?

The 4INFO advertising experience means that consumers will receive advertisements on the back end of the company’s text service. For example, if you subscribe to the 4INFO Sports channel, when you receive your sports alert you may also receive an ad from Chevy or Citibank or 1-800-FLOWERS that includes an offer to participate in their services. Thus, if I am a marketer, I can buy advertising on a particular channel on the 4INFO network which will not only allow me to target based on that specific demographic, it will also allow me to report back on the success in terms of clicks, conversion, location, age, gender, etc. Text can deliver a targeted advertising experience. In text, 4INFO also knows who their consumer is, every step of the way, which allows them to also do frequency distribution on ads.

What types of advertisers are using the text-based advertising approach? Credit-card companies, travel agents, florists, automotive manufacturers—the brands that want to be in front of the consumer all of the time. So, given the opportunity, what are Thet and his team’s biggest challenge? “To raise the awareness that text is a viable form of advertising,” he said. However, it sounds like publishers are already waking up to this fact.

--Advertising opportunity No. 2: Social media

I spoke to Bob Morgan, VP and GM in North America for ShoZu, a mobile social media service that enables the experience between mobile consumers and their favorite online destinations )e.g., Flickr, Facebook, YouTube, Blogger and so on).

According to Morgan, “couple content of value, like social networking photos, videos and commentary, with targeted, relevant advertising and it changes the game.”

I really enjoy the ShoZu service: Take a photo and immediately upload it to your favorite sites or even a digital picture frame )in fact, we are even talking about getting one within the MMA to fully leverage this service). Or users can download personalized content feeds from those sites.

Now add advertising: ShoZu’s platform is able to deliver targeted ads in a variety of formats and calls to action. For example, Linkin Park is using ShoZu this summer to promote their latest album and tour with behind-the-scenes footage linking to their fan site. Rich media associated with the consumer interaction is key.

--Advertising opportunity No. 3: Voice

I was recently introduced to SayNow, which has a service that allows celebrities to pass out a unique, exclusive phone number to promote interaction. Yes, real celebrities interacting with Joe Consumer through their mobile device. Fans can send voicemails and receive responses back from the celebrity; or the celebrity can call and leave exclusive information about upcoming shows or releases or their news. The most compelling feature is that the service can broker a conversation between the celebrity and the fan.

The advertising opportunity? Text-message followups, voice-based advertisements before or after the message from the celebrity, the opportunities are endless. The goal is to facilitate action or click-based ads through the voice channel. For example, imagine that after you hear your favorite rapper, you are then able to connect to TicketMaster to immediately buy tickets, CDs or concert shirts for an upcoming show. The experience becomes HIGHLY RELEVANT for the consumer.

Nikhyl Singhal, CEO of SayNow, says, “The consumer is only delivered relevant offers to their experience.” Remember they have access to an exclusive number to reach their celebrity and hear exclusive messages. Fun!

Hopefully I’ve provided a flavor of some of the other mobile advertising opportunities available, but this is only a start. Let’s not forget about Bluetooth and location services and MMS and loading-page ads and, well, the list is almost endless.

We must work together to build a sustainable channel, but let’s not forget about the consumer. 4INFO’s Thet tells me “our first and primary focus is on the consumer and putting the consumer experience first. Consumers are not opting in to have ads pushed to them.” Let’s collectively keep that in mind.

You may contact Laura directly at [email protected]. You may contact RCR Wireless News at [email protected].
 

 

 

The wild, wild west is on its way out

August 29, 2007

The wild, wild west is on its way out
By Laura Marriott, President, Mobile Marketing Association
Story posted: August 21, 2007 - 5:59 am EDT

 

Editor’s Note: Welcome to Reality Check, a feature for RCR Wireless News’ new weekly e-mail service, Mobile Content and Culture. We’ve gathered a group of visionaries and veterans in the mobile content industry to give their insights into the marketplace. In the coming weeks look for columns from Tom Huseby of SeaPoint Ventures, Mark Desautels of CTIA, Mark Donovan of M:Metrics, and more.

When you hear the term “wild west,” the images that are normally conjured might be of John Wayne or Clint Eastwood riding horseback across the frontier, or at least the Hollywood frontier. In our mobile marketing and media industry, the wild west refers to the conditions that existed at the very beginning of the launch of premium text messaging services: The early days, in 2003, when we first launched cross-carrier text messaging services in the United States. At the time, it was the new frontier!

When cross-carrier text messaging campaigns began in late 2003, there were no published, industry-wide rules or guidelines for how these services would be offered to the consumer. Companies from the United States and abroad were launching campaigns to consumers in a rapid-fire fashion. It was a land grab for consumer interaction, market share and revenue.

There wasn’t consistency in the user experience—no STOP command, no opt-in or opt-out guidelines, no rules around subscription services, etc. There was no transparency or disclosures around the types of campaigns the consumers were signing up to participate in. In fact, consumers were not sure, in the days of the wild west, what they were signing up for, and they certainly didn’t know how to cancel their subscription.

But this is a success story, a story where the cowboy rides off into the sunset having secured his/her victory. Jay Emmet, president of mBlox and vice-chairman of the MMA’s board, says the early days were about delivering programs in rapid-fire succession to the consumer.

While it was early days in the United States, the market in Europe was much more developed, and companies with expertise offering premium text campaigns in the European region were beginning to come to the United States to offer their services. These European entrants helped to develop the industry in the United States and offer consumers a broader catalogue—while also helping the industry come to terms with the need for guidelines and best practices. By 2004, we had seen a significant spike in A2P (Application to Person) text messaging traffic. A SIGNIFICANT spike in traffic!

Then along came the cowboy in the white hat: The Mobile Marketing Association and CTIA collaborated with their members, in late 2004, to develop and subsequently launch the first Consumer Best Practices for Cross-Carrier Mobile Content Services (affectionately referred to by those in the industry as CBP). The wireless carrier leaders in these early days were AT&T, Cingular Wireless, Sprint, T-Mobile and Verizon Wireless. The first version of the CBP guidelines was launched in late Spring 2005.

Since then, the guidelines have expanded to include chat, subscriptions, advertising and promotion, marketing to children—the list goes on and on. More recently, we also developed rules around recycled numbers to help drive a healthy, sustainable ecosystem. Recycled numbers have been addressed to ensure consumers, particularly in tight markets, won’t be subscribed to services set up by the previous owners of their phone numbers.

Indeed, the west has been discovered and developed. The forts and foundations are strong.

And today, in 2007, this is an even bigger industry! According to Steve Largent, president and CEO of CTIA, “Last year, 158 billion text messages were sent in the U.S. alone, which is up 95% from 2006. This translates into approximately 300,000 text messages per minute. Moreover, 94% of all text messages are opened and read.”

“The development of the market took collaboration across the ecosystem,” says Chris Black, director of mobile marketing and interactive media for AT&T Mobility and co-chairman for the MMA Consumer Best Practices Committee (the committee that drives the creation of the CBP guidelines for cross-carrier mobile content services). AT&T Mobility has been one of the companies leading in the development of a healthy mobile marketing industry.

The industry has recently collaborated again to drive the creation of the monitoring and auditing function, validated against MMA Consumer Best Practices, which is led by CTIA. The program monitors each and every operational short-code campaign to ensure compliance to the Consumer Best Practices. Thus far, the results have been positive. Programs that are not in compliance are given a warning period to comply, at which time they must be corrected or risk being shut down. In addition to the industry-monitoring function, each carrier also maintains their own separate monitoring facilities and services for independent audits, and to address specific consumer areas of concern.

Dave Oberholzer, associate director of Verizon Wireless and former co-chair of the MMA Consumer Best Practices Committee, agrees that we have invested a significant amount in the infrastructure to help develop a sustainable industry in the United States. He tells me that for long-term growth and development, the economics may need to change. Does this mean penalties for violators? Or incentives for those companies that are adhering to the rules? Perhaps the impact of adhering or the consequences of breaking the rules could possibly include credits for superior service, penalties for violating guidelines, etc.

Jim Manis, chairman for the Mobile Marketing Association from 2003 to 2005 and now president and CEO of 1024 Wireless Services, tells me that, “We did our job with CBP and now there is a bigger job to do. As an industry, we need to create new opportunities for content providers and more incentives for them to invest, market and innovate.” What does this mean? It means we have laid a firm foundation, the wild west has been discovered and we are on the verge of a new frontier… A frontier that will start again with financial health and innovation.

According to Louis Gump, who is from The Weather Channel Interactive and was MMA global chairman in 2006 (and who is still a current MMA board member), the frontier is moving. Not only do we have significant opportunities for text messaging, but we are moving toward more image-rich experiences, and we have learned how to domesticate along the way.

Kudos to the pioneers of our mobile marketing industry in the United States and abroad. It was your collective dedication to a positive and consistent user experience that helped move us quickly to where we are today: a billion-dollar-plus mobile marketing industry in the United States alone. Let’s all work together to take it to the next frontier. “It is all about consistency of user experience,” says Emmet.

You may contact Laura directly at . You may contact RCR Wireless News at .[email protected][email protected]

 

 

 

 

 

 

 

 

 

 

Voice, the (Often) Forgotten Media Channel

August 29, 2007
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Voice, the (Often) Forgotten Media Channel
By Laura Marriott, President, <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Mobile Marketing Association
Story posted: July 24, 2007 - 5:59 am EDT
 Editor’s Note: Welcome to Reality Check, a feature for RCR Wireless News’ new weekly e-mail service, Mobile Content and Culture. We’ve gathered a group of visionaries and veterans in the mobile content industry to give their insights into the marketplace. In the coming weeks look for columns from Tom Huseby of SeaPoint Ventures, Mark Desautels of CTIA, Seamus McAteer of M:Metrics, and more.

My phone rings, it’s Alec Baldwin from “30 Rock.” He’s calling to tell me to watch his new show, but the message contains personal information about me—my interests, where I live—all delivered from Mr. Baldwin himself. After the Alec personalized message, an announcer then comes on with more information about the show as well as providing details on when it is aired. Wow! Ok, I am in the mobile space so I have been sent a bunch of these from my friends in the industry, but every time it makes me laugh and I generally will pass it along to others.

For the past few years, the majority of interest around mobile marketing has been mobile data… text messaging, mobile video, mobile web… all great opportunities for the brands to extend their reach and their message to the consumer—but let’s not forget about voice. Voice applications are growing in popularity and are often the forgotten media channel when a marketer looks to offer mobile as part of their cross-media initiatives. According to Gene Keenan, VP of mobile strategy for Isobar, “Voice is still the killer application. As an agency, we use voice because it has the largest audience and has the ability to entertain, engage and inspire in ways that text messaging can’t.”

The excitement and growth of voice is also reflected in statistics from Telephia, which shows the average number of calls sent and received monthly was 208 during the first quarter of this year, as compared to 198 in the same quarter a year ago. The average monthly total voice minutes used per subscriber are also increasing from 738 last year to 780 in the first quarter of this year. (Date based on information from post-paid, non-corporate liable customers from top four national U.S. carriers.) Another interesting fact that we have seen in the Telephia data is the difference between voice and SMS calls sent and received as illustrated in the table below from first-quarter 2007 figures. As the graph illustrates, younger mobile subscribers are heavier users of SMS as opposed to older demographics who tend to be heavier users of voice. Voice creates an opportunity to target these older subscribers.

Q1 2007     Number of Calls Sent/        Number of Calls
                  Received                              Received
                  Mean                                    Mean
13-17          255                                       435
18-24          290                                       289
25-34          251                                       170
35-44          227                                         90
45-54          194                                         57
55-64          133                                         14
65+              89                                           6


Voice provides an opportunity to hook the consumer and then possibly have them engage in more advanced services via text, video, Web, etc. Voice is easy for the consumer to interact with based on their current experiences with their device, so there is no learning curve. A few agencies I spoke to told me that some of the most successful campaigns to date have been voice campaigns. “The numbers are staggering,” said Keenan.

A typical voice campaign can generate upwards of 200,000 consumer engagements in one campaign. The viral aspect is also significant—with an average pass-along rate of six to one. Today, voice is a great way to engage the consumer and build brand awareness; it is not so much of a revenue-generating opportunity. Voice is an important part of the mobile media mix.

Voice applications allow consumers who are not familiar with data services to interact with their favorite brands to buy mobile content, send greetings to their friends or engage in other types of mobile services. One fun campaign that I participated in recently was from VariTalk for the Virginia Tourism Board www.devdev.crookedroad.varitalk.com/
The consumer enters information about themselves or the person they would like a voice call to be made to—and the application creates a country song for the targeted recipient based on information provided by the consumer. I have already passed this off to at least 10 other people (note the above the viral pass along rate). Other voice applications have parents signing up to send pre-recorded calls to their kids from characters or celebrities. Elmo could soon be calling you to say, “Wow, you tied your shoes today.” Imagine how that would make a consumer feel about their favorite character. Talk about brand awareness!

Opportunities for further growth of voice services come from companies like SingleTouch Interactive who have perfected the vanity code or Abbreviated Dialing Codes (ADC) for mobile. The programs provide an easy means for consumers to access mobile content through voice services—either downloadable content or streaming audio. Tom Hovasse, SingleTouch’s general manager and EVP, tells me, “Our founder, Tony Macaluso, wanted his mother to be able to download a ringtone as simple as 1-2-3, hence our ADC service. We have been able to capture a much larger audience with voice.”

The opt-in requirements for these programs are the same for voice as for data (as defined by MMA Consumer Best Practices at http://www.mmaglobal.com/bestpractices.pdf  in order to protect the privacy of the consumer and ensure repeatable experiences. If you want to try an ADC service, try #BET or #MTV for downloadable content and #FOXN for streaming audio. Interestingly enough, ringtone downloads are doing the best today—but for the older demographics, streaming audio feeds, like the news, are doing well as well.

“Voice programs like the Pound Program from SingleTouch have been very successful in programs like #BET, #MTV and work with Univision (#323). Voice provides an easy and effective way for the consumer to get desired content without having to learn text. The services hit a different demographic and teaches the consumer how to access content through the mobile device, and will translate into greater usage of more advanced data services,” said Chris Black, director of mobile marketing and interactive media at AT&T Mobility.

Mobile advertising is also making itself known through the mobile voice world. Companies like Jingle Networks through their 1-800-FREE-411 service are reaping the benefits from the consumer’s familiarity with voice services. 1-800-FREE-411 is a free, directory assistance service where the consumer listens to a 10-12 second ad on the front end of the service and then a 15-second ad just before the number is delivered to them. The service currently generates about 21 million calls a month. The viral effect has also been a significant for the 1-800-FREE-411 service to raise consumer awareness around their service. The mobile directory assistance services also help educate consumers on voice search. Lyn Chitow Oakes, SVP of marketing for Jingle tells me, “Pay-per-call lead is perceived as more valuable than a pay-per-click lead” by the advertisers who are interested in leveraging their services. The reason is that consumers are interacting with the service when they are looking for a specific product, and usually when they are ready to buy. The service also offers the ability for consumers to receive the information through text and multimedia messaging. Again, using voice services to raise awareness and ultimately educate those consumers who are not familiar with mobile data services.

Andrew Osmak, senior VP at Lavalife Corp, and I spent some time talking about how they use voice services in their dating applications today. Lavalife will publish in print and television (an important cross-media element) local voice numbers for its customers to access the profiles of Lavalife users through Interactive Voice Response (IVR). Customers are able to listen to the profiles, leave anonymous messages, etc.—all through voice. The business model works by consumers buying buckets of minutes to participate, which today, will appear directly on the carrier’s bill, i.e. Sprint. “Voice is a great smooth way to offer our set of services to subscribers who do not know how to use data,” said Osmak.

What does the future hold for voice?

--Premium IVR is one of the topics that the industry is currently discussing. Conceptually similar to premium text messaging, premium IVR would provide the enhanced voice services for a fee. The MMA has recently launched an IVR Committee, currently chaired by mBlox and Cellfish, to focus on issues and opportunities like these.

--Single short code for both voice and text, where services can be accessed according to how the consumer would like to access and be available across all programs.

--Integrated Voice & Video Recognition (IVVR) could provide the opportunity for consumers to “hear it, see it and buy it—one call does it all.” The services are deployed in Europe today but not something we have seen yet in North America.

George Rogerson, EVP at Cellfish Media, tells me, “Voice can be more entertaining than text and can tell more of a story for the consumer. Voice should absolutely be a part of the multi-media equation for mobile entertainment.”

You may contact Laura directly at [email protected]. You may contact RCR Wireless News at [email protected].