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1 19320 Mobile Marketing Three Principles for Success

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February 7, 2012

Mobile Marketing: Three Principles For Successby Melissa Parrish for Interactive Marketing Professionals

Making Leaders Successful Every Day

For Interactive Marketing ProfessionalsFebruary 7, 2012

What Interactive Marketers Should do To reach Mobile Phone users Effectivelyby Melissa Parrish with Jennifer Wise, david Truog, and Elizabeth Komar

Mobile Marketing: Three Principles For Success

ExEcuT I v E S u M Ma ryMore people own smartphones than ever before and theyre using them more often too. This makes a mobile marketing strategy crucial for any interactive marketer. Yet today we find that although mobile budgets are beginning to increase, the majority of interactive marketers are just starting to experiment, and many still treat mobile phones as mini-PCs. This report explains how marketers at each phase of mobile marketing evolution should craft successful mobile campaigns by hewing to three key principles: immediacy, simplicity, and context.

Tabl E O F cO n TE nTS2 Mobile Phones Are Becoming A New Locus Of Consumer Interaction 5 Marketers Must Evolve Their Mobile Strategies To Catch Consumers Attention Marketers: Identify your Phase Of Mobile Marketing Evolution 6 The Three Pillars Of Mobile Experience: Immediacy, Simplicity, And Context Immediacy: Provide content That Is Timely and actionable In The Moment Simplicity: Provide content That Is Easy To See and navigate On a Mobile Phone context: Send relevant Messages based On location and Mobile behaviorsrEcOMMEndaTIOnS

n OT E S & rE S O u r cE SForrester interviewed five vendor and agency companies, including 360i, GoldSpot Media, Jumptap, Pontiflex, and xtify.

Related Research Documents How To Grow your Mobile campaign Expertise november 18, 2011Evolving your Mobile Marketing Presence March 3, 2011 How Mature Is your Mobile Strategy? October 18, 2010

15 Apply The Principles To Your Phase With Help From The Right Partners 15 Supplemental Material

2012 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective owners. Reproduction or sharing of this content in any form without prior written permission is strictly prohibited. To purchase reprints of this document, please email [email protected] forrester.com. For additional reproduction and usage information, see Forresters Citation Policy located at www.forrester.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

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Mobile Marketing: Three Principles For SuccessFor Interactive Marketing Professionals

MOBILE PHONES ARE BECOMINg A NEW LOCuS OF CONSuMER INTERACTION Just as marketers focused on the 30-second spot when consumers flocked to their TVs en masse, now is the time to embrace mobile phones as the next marketing frontier. What makes this alwayson, personal device worthy of a marketing strategy today?

Smartphone ownership is growing, and users are embracing the phones unique features.

Consumers are trading in their feature phones for smartphones. In fact, smartphone owners were expected to constitute 39% of US subscribers by year-end 2011.1 These phones features, unavailable on PCs, offer consumers and marketers unique ways to connect like a portable camera for taking pictures but also scanning 2D bar codes and GPS connectivity that helps people navigate to locations but also helps marketers send location-targeted messages. The use of these features is on the upswing too more US mobile phone owners are downloading applications and receiving SMS/text alerts than last year, and 48% are using their mobile phone cameras to take photos and videos (see Figure 1-1).

Mobile phones are becoming an important additional resource for consumer content

needs. To be effective, marketing seeks eyeballs and consumers eyes are increasingly focused on their mobile phones to access content and information. One-fifth of consumers look up directions or maps, and twice as many as last year research products for purchase. Time spent on mobile phones is also supplementing the time consumers spend with other media such as print newspapers, TVs, and iPods almost one-fourth of US mobile owners check the news, sports, or weather on their phone at least monthly, and 9% watch TV and videos and 18% listen to music at least weekly (see Figure 1-2).

People increasingly interact with formerly PC-centric channels on mobile phones.

Consumers are turning to their mobile phones to access channels like websites, search, and email whether you have prepared a mobilized version of the channel for them or not. Onethird of US mobile owners access the Internet on their phones weekly or more, an increase from one in five only last year. And 30% send and receive personal emails from phones, up from 20% last year.

February 7, 2012

2012, Forrester research, Inc. reproduction Prohibited

Mobile Marketing: Three Principles For SuccessFor Interactive Marketing Professionals

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Figure 1 People are Embracing Mobile Phone Functionality1-1 People increasingly use unique mobile phone features at least monthly Which of the following activities do you do on your primary cell phone or handheld wireless device at least monthly? Take photos/videos N/A Receive SMS/text alerts Send/receive MMS (picture messages) Check news/sports/weather Send/receive instant messages (e.g., MSN) Use applications N/A Look up directions or maps Download applications Send/receive work email Check nancial accounts Research products for purchase 7% 12% 14% 34% 28% 23% 41% 48%

37%

21% 17% 21% 21%

15%

11% 8% 6% 5% 11% 2011 2010*

10% 10%

Download music N/A Receive coupons/promotions Enter a contest or vote via SMS/text messages Check ight, bus, or train status Purchase products 2%

7%

6% 5% 4% 3% 4% 2%

2% Access operator portal (e.g., AT&T MEdia Net) 1% No answer None of these 3% 5% 33%

46% Base: 8,352 US adults ages 18 and older who own a mobile phone *Base: 30,453 US adults ages 18 and older who own a mobile phone (multiple responses accepted) Source: North American Technographics Benchmark Survey, Q2 2011 (US) *Source: North American Technographics Benchmark Survey, Q2 201061256 Source: Forrester Research, Inc.

2012, Forrester research, Inc. reproduction Prohibited

February 7, 2012

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Mobile Marketing: Three Principles For SuccessFor Interactive Marketing Professionals

Figure 1 People are Embracing Mobile Phone Functionality (cont.)1-2 People increasingly use mobile phones as a resource for content and communication at least weekly How frequently do you do the following activities on your primary cell phone or handheld wireless device? (At least weekly) Send or receive SMS/text messages Send or receive personal email Access the Internet 2011 2010* 2011 2010* 2011 2010* 2011 Play games 2010* Listen to music 2011 2010* 2011 2010* 2011 2010* 12% 5% 23% 11% 9% 14% 18% 20% 22% 20% 34% 30% 52% 60%

Watch video/TV Access social networking sites (e.g., Facebook, Myspace)

Base: 8,352 US adults (ages 18+) who own a mobile phone *Base: 30,453 US adults (ages 18+) who own a mobile phone (multiple responses accepted) Source: North American Technographics Benchmark Survey, Q2 2011 (US) *Source: North American Technographics Benchmark Survey, Q2 201061256 Source: Forrester Research, Inc.

February 7, 2012

2012, Forrester research, Inc. reproduction Prohibited

Mobile Marketing: Three Principles For SuccessFor Interactive Marketing Professionals

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MARkETERS MuST EVOLVE THEIR MOBILE STRATEgIES TO CATCH CONSuMERS ATTENTION As a marketer, you must connect with these mobile users to boost brand engagement and meet their expectations in the channels theyre already accessing on their mobile phones. And many marketers are in fact already trying to do just that by committing more resources to mobile marketing in 2011, spend on mobile display and search marketing surpassed email and social media.2 But despite this increased investment in and prioritization of mobile marketing, budgets still remain small relative to the opportunity. And in practice the majority of marketers are not taking full advantage of this channel: Most are still testing, reusing existing creative, and in the early phases of their mobile marketing evolution.3 The solution starts with identifying what phase of mobile marketing evolution youre in. Marketers: Identify Your Phase Of Mobile Marketing Evolution Forrester has identified five phases that organizations and marketers pass through as they take increasing advantage of expanding mobile marketing opportunities. Depending on your current approach, youre at one of these phases: foundation, experimentation, device strategy, channel strategy, or comprehensive strategy (see Figure 2).4

2012, Forrester research, Inc. reproduction Prohibited

February 7, 2012

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Mobile Marketing: Three Principles For SuccessFor Interactive Marketing Professionals

Figure 2 The Five Phases Of Mobile Marketing EvolutionExperimentation Conduct inexpensive, PCderived test campaigns. Device Strategy Channel Strategy Comprehensive Strategy Treat mobile as the connective tissue between online and o ine channels.

Phase

Foundation

Approach Establish a solid foundational presence on mobile that will serve the whole business as it matures through mobile Resources IT, development, eBusiness, product strategists/ management Goal Learn about the capabilities of the mobile phone Tactics Optimize the website for mobile, crea

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