Much Ado about Mobile Marketing

Posted by on Jan 19, 2011 in Integrated Marketing Communication

When I got my oil changed at Valvoline, I texted VIOCC to 58720 and was sent a coupon for $6 off. I simply showed the code to the mechanic and saved a tree, time and money. The simplicity and accessibility of various target audiences has made companies take notice. This past year alone, Japan spent 1 billion dollars on mobile advertising. It its estimated that in 2011 companies in the United States will spend 1.24 billion dollars

According to BIA Kelsey, the revenue generated by mobile advertising is projected to generate $2.03 billion by 2014. There are three mobile ad formats: Search, Display (advertising applied to apps) and SMS. The largest player is the search format, or text advertising applied to search queries on mobile devices. It allows phone users to click on the text-based ad and be led to a homepage or prompt a phone call. The immediacy in which a consumer can connect to businesses can help drive traffic to websites, as well as store fronts.

Mobile marketing can be used to target every person that has internet access on their phone. Considering that smartphone sales grew 96 percent from the third quarter last year, and smartphones accounted for 19.3 percent of overall mobile phone sales in the third quarter of 2010, marketers are looking at an rapidly expanding audience. This is something to get excited about, as long as consumers are willing to adopt the practice.

Leppaniemi and Karjaluoto (2005) created a hypothetical model based off of prior studies done in the field.  They deduced that consumer willingness to accept mobile advertising was based on:

  • Quick transmission of information that was location-relevant to the consumer
  • Attractive ads
  • Easy and cost effective
  • Successfully personalized with user profiles and location while being privacy sensitive.
  • Enticing incentives such as coupons, rewards and control over message reception.

It will be interesting to see how mobile advertising is incorporated into the marketing mix, and what tactics prove to be effective. What suggestions do you have for those who are targeting their audience via search, display and SMS marketing? Have you encountered any caveats to be weary?

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