A mobile-able feast: even in lean times, this emerging marketing channel is looking healthy
By Eric Holmen, President, SmartReply

It’s been another challenging month for the economy. The Fed’s Q4 Beige Book reported declines, downgrades and more woes, although the Black Friday weekend did shine a little light onto the retailing industry with sales up by 7.2% from ’07, according to the National Retail Foundation. But if 2008 is remembered as a tough year to be a banker or broker, 2009 is looking like a very tough year to be a consumer or retailer. And perhaps an especially difficult time to be a marketer or advertiser – but not so much for those engaging in mobile marketing.

Non-traditional media is the engine of growth in the today’s national ad market - outstripping traditional channels in terms of incremental increases and approaching giants like print and television in terms of total spending. In other words, mobile marketing is no longer a niche or trend.

As many marketers will need to defend their advertising spend, smart marketing teams are moving away from generic branding campaigns toward trackable, direct-response channels--one of which is mobile. Mobile marketing campaigns have better success when leveraged as lead-generation and customer acquisition tools rather than a transactional sales channel. In a July 2008 survey by the Direct Marketing Association’s mobile marketing arm, SMS campaigns were found to be the most successful mobile ad medium, with 70% of those surveyed having responded to a marketing text message, whereas only 41% responded to a survey and 30% to email offers.

Mobile Marketing Goes Mainstream
The pervasiveness of mobile phones in people’s daily lives means that the mobile channel will become more than a vehicle for sending texts and receiving calls. Mobile technology has the power to change the way people live – affecting everything from healthcare, social networking and activism, to entertainment, commerce and finances, so it is a natural progression for retailers and brands to turn to the targeted and personal medium of mobile.

More advertisers will shift to cost-effective online, mobile and voice strategies in 2009, as those channels provide quantifiable results with shorter turnaround and significantly lower costs than traditional mass-media counterparts. And with the pressures of a recession bearing down on marketers, retailers, and just about everyone else, here are some tactical tips for pursuing a successful mobile marketing initiative:

Think Beyond the Text - Mobile devices are always on, always connected and so should businesses be – with their customers, needs and preferences. While SMS is the most recognized format of marketing via mobile, think beyond the traditional “BUY2DAY” message. Think content downloads, product alerts, surveys, loyalty messages, even wake up calls – all designed to provide value and compelling content to your customers, while building a trusted relationship (read: more sales).

Go Forth and Integrate - Marketers must provide customers with content and services that fit their lifestyle and improve their lives. So how is this achieved? By ensuring communications are integrated across all media channels – including mobile. Use mobile as a compliment to other media initiatives, and vice versa. Print, direct mail, online, in-store, outdoor and/or other media can prompt consumers to take action through their mobile phones, and text messages can serve as reinforcing aspects to an existing campaign. Mobile elements included in traditional media channels extend reach and allow instant interaction.

Play Nicely and put the consumer first by balancing respectful communication and ease of use. Mobile users expect instant gratification, and do not want to jump through hoops to get the information they need, though they will bristle fiercely at any perceived invasion of privacy. Spam and unwanted calls have no place on mobile phones. Opt-in and express consent should be the only ‘hurdles’; complicated processes that frustrate consumers will ultimately drive down response rates and ROI.

Dial M for Mobile Coupons and give the consumer something they want. In this environment particularly, think mCoupons or other financial prompts to text for more information or log on to a mobile Web site. The MMA says that mobile couponing presents the best opportunity for mobile marketers. The best call-to-action includes an incentive, a promise of relevant and timely information, or, increasingly, a useful widget or service. Combine a mobile coupon with a store locator, and you’ll be adding even more value, saving customers precious time and money.

Rise to the Challenge of a weakened economy. With a gloomy 2009 ahead, the challenge for all retailers and marketers is to not only stay on the radar of their customers, but to remain relevant in their lives.

Mobile marketing should not be the first thing to get cut in a tough economy. While mobile is still considered an emerging channel by some, susceptible to uncertainty and hesitancy among late adopters, smart marketers are integrating trackable, quantifiable mobile components within campaigns to extend their reach and increase efficacy. Will you be one of them?

Going Mobile in 2009

• In 2007, eMarketer reports that US advertisers spent $878million on mobile, and double in 2008 to $1.7billion
• In 2008, US mobile phone penetration has exceeded 80% (Synovate)
• 70% of people sleep with their mobile phones (Zumobi)
• 35% of mobile advertising campaigns cost less than $10,000 (Forrester)
• Mobile web usage has increased year-on-year, for the past 3 years (MMA)
• 1 in 4 US mobile consumers are interested in mobile marketing (MMA)
• Mobile couponing presents the best opportunity for mobile marketers (MMA)
• 62% of marketing execs interviewed at Ad:Tech New York (11/08), saw mobile marketing having the quickest growth potential

Eric Holmen is president of SmartReply, the largest provider of voice mobile and loyalty solutions to US retailers. He has spent the better part of his marketing career seeking to redefine the nature of marketing messages and assist the industry in resisting the status quo. Exploring methodologies like express consent, permission marketing and respectful communications have been key aspects of his mission. Eric can be reached at [email protected] or www.smartreply.com.