The SMS Marketing Blog

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Mobile Marketing Budgets are Smaller Than They Should Be

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Mobile devices have quickly become powerful marketing tools, yet brands are still not investing in mobile advertising as they probably should. Despite practically “everyone” owning a mobile device, mobile marketing accounts for a mere 5 percent of the average brand’s budget. Why? Usual reasons include difficulty tracking performance and gauging ROI.

According to recent Forrester research, 62 percent of marketers surveyed felt “confident” about measuring mobile ad campaign ROI, yet only 18 percent felt “very confident” in their ability measure ROI. Marketers want to see hard numbers if heavily investing in mobile, which many experts find “counter-intuitive.” 

“Consumers now spend over half of their leisure time on mobile devices,” says Gal Oppenheimer, senior product manager of built.io, a mobile back-end and application development platform. “Mobile advertising is clearly important, but it needs to get easier to track brand awareness and consumer spending.”

Other experts say marketers are too busy comparing mobile and desktop metrics, which is essentially a waste considering how different the mediums are. Marketers are used to cookie-based tracking, but such tracking doesn’t really work in the mobile world. A single cookie isn’t capable of tracking consumer actions as they go back and forth between mobile browsers and apps, nor can they follow consumers who click on mobile app download ads. The latter is a common mobile ad unit that encourages consumers to download a brand’s app. 

Mobile marketing is definitely a work in progress, yet current efforts are encouraging. Groupon, for example, works with at least three different mobile ad networks, and places ads on a wide range of publishers’ mobile sites and apps. The online retailer works with mobile advertising vendor Fiksu Inc. to discover which mobile attribution methods are best for tracking ad effectiveness.

Facebook is also working on a solution to the “mobile puzzle.” The social media giant introduced a mobile ad unit in April of this year, Audience Network, which allows marketers to target and place ads across an assortment of mobile apps utilizing what Facebook knows about its sizable user base. The network is designed to result in more relevant ads on apps, which leads to improved click-through rates, and subsequently a better ROI for the advertiser and more revenue for app developers.

Marketers are still hesitant, but if tracking abilities improve, more money will go into mobile ad efforts. “Forrester found that if marketers could track more reliably, 86 percent would allocate more of their budgets to mobile,” wrote Mike O’Brien in a recent post for ClickZ. “And 93 percent would run more cross-channel campaigns, something only 13 percent said they felt confident measuring.”

 

iBeacon Goes Mainstream in Mobile Marketing

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According to CMO.com, iBeacons and geomarketing are quickly becoming mainstream tools for marketers.

The iBeacon is defined by Apple as "a new class of low-powered, low-cost transmitters that can notify nearby iOS 7 devices of their presence.” It relies on Bluetooth low-energy proximity sensing to” transmit universally-unique identifiers”picked up by compatible apps or operating systems. These identifiers may be looked up via the internet to determine the device's physical location, or result in action, such as a push notification or check-in on social media.

Geomarketing involves geographic information used in the planning and executing of marketing strategies. It allows marketers to target advertising campaigns and subsequently appeal to consumers based on where they live or shop.

A U.S.-based team researching mobile marketing found some 18 percent of mobile marketers are utilizing Apple iBeacons, which is expected to double in 2015. Additionally, 49 percent of marketers noted they would use device positioning to deliver content, while 48.8 percent plan to add such capabilities to their mobile marketing strategy over the next year.

The Adobe Digital Team Index recently found 33 percent of average mobile users look to their mobile devices for help when shopping in-store, and 9 percent have used mobile wallets over the past three months. This percentage rises to 22 among “mobile elite” users. Adobe also discovered bounce rate referrals from social networks are higher on mobile devices than desktops at 61 and 53 percent, respectively.

Adobe’s digital team researched other mobile dynamics and trends as well, including social channels. They discovered Pinterest is the “most mobile” social network, with 64 percent of its referred traffic coming from either smartphones or tablet devices. Twitter is at 62 percent in terms of mobile use, and Facebook at 41 percent. Tumblr has the highest revenue per visit from mobile devices--$2.57--with Facebook coming in second at $1.85.

The company’s Mobile Benchmark Report was based on aggregate data from some 18 billion visits to retail, media, entertainment, financial services, and travel websites in June 2014. Behavioral data from companies using Adobe’s Marketing Cloud solution, Analytics and Mobile Services platforms was also studied. The report researched, in total, 700 million mobile app use sessions, 3,000 mobile users, and over 10,000 U.S. websites and apps.

With so many companies jumping on the iBeacon and geomarketing bandwagons, mobile ad campaigns will only become more and more location specific. 

How Smartphones Are Helping the Fight Against Drug Addiction

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Can smartphones help users overcome drug addiction? 

Research says Yes! Back in 2011, an 80-person study by the National Institutes of Health found smartphones highly beneficial to those overcoming drug addiction. The study was based out of East Baltimore, Maryland and featured smartphones programmed to let addicts track when they craved and used drugs. Phones were set up to beep randomly three times each day, and ask questions such as “Where are you?”, “What are you doing?”, and “How are you feeling?”.

"We want to know the events surrounding that," lead researcher Dr. Kenzie Preston said at the time. "We're really interested what's triggering drug use, relapse."

Phones were partially disabled to lower their street value; however, associate scientist David Epstein noted no issues with phones becoming lost or getting stolen.

"We tell them, if you lose or break one of these, we'll replace it and that's fine," he said. "But if you lose or break a second one, we're going to detox you from the methadone and you can't be in the study anymore. And we hardly ever have to do that. People know that they'd rather stay with us."

The study was meant to pinpoint the precise moments addicts decided to use, as Epstein remarked on the difficulty addicts have recalling the specifics of their relapses. This isn’t to say addicts lie about their relapses; rather it’s more about how the brain functions.

"People, whether it's someone who's addicted to drugs or anyone else in the world, make up stories that sort of explain their behavior," he said during the study. "But if you could've been monitoring them in real time, you would see that things didn't happen quite the way they remembered."

Smartphones allowed researchers to obtain data in real time. The study also included addicts carrying pager-sized GPS monitors to track their movements, which made it easy to log where addicts go. For example, an addict could be sober for weeks, then visit a certain block or neighborhood and have a relapse. Knowing where addicts were hanging out helped researchers understand what type of environments encouraged drug use.

Epstein said the study could lead to new smartphone-based treatments.

"A sort of clinician in your pocket," he said. "You can give them on the spot feedback... and that does seem helpful."

 

 

5 Ways to Hemorrhage Cash with your Mobile Marketing Strategy

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A solid mobile marketing campaign is a great way to increase revenue over time and otherwise promote brand awareness. However, plenty of businesses are actually losing rather than making money from mobile campaigns. So what are they doing wrong? Rather than discovering wasted time and money on your own mobile marketing strategy, check out five actions to avoid:

1) Wrong Ad Placement

Many businesses, big brands included, “fall for the lure” of television and radio ads for their mobile apps. Don’t rely heavily on television and radio ads to draw people to your mobile site or app. Instead, use traditional advertising for branding purposes and as a supplement to mobile ad networks and incentive-based download programs. The latter is a proven channel for mobile user acquisition.

 

2) No Optimization

Optimizing your website for mobile device use is essential to avoid losing money on a marketing strategy. It’s also a surefire way of deterring visitors, so when considering how to promote your business, be sure that mobile site optimization tops the list.

 

3) Unattractive Offers

The best small business ideas include enticing customers with fabulous offers. Any mobile marketing strategy that fails to pique prospect interest is doomed to fail, as it results in missed business opportunities and general brand damage. Avoid this by creating a campaign that encourages potential customers to engage with your business through their mobile devices. Think loyalty and time-based discounts, coupons, mobile-only offers, bulk purchase deals, and similar promotions.

 

4) Lack of Social Media Integration

Consumers mainly use mobile devices to check email and social media, so failing to integrate your mobile marketing strategy with Facebook, Twitter, Instagram and other channels means seriously reducing your audience. Tweets, Instagram pictures and Facebook posts are just some of the many social media-based options for reaching your target demographic and informing them of your app or mobile offers.

 

5) Not Following Up on Initial Marketing Efforts 

Don’t make the mistake of letting marketing efforts wash down the drain following initial engagement. Acquiring customers means sustaining their interest, so rather than wasting time and money, “strike while the iron is hot” and begin building a relationship immediately. An automated system that is already in place after an initial download begins the engagement process or requests that the user opt-in. Either way, you’ll make certain your brand stays fresh in the minds of consumers.

Avoid these mistakes, identify metrics associated with the success of your campaign, and earn money effectively rather than lose it ignorantly

SMS: Crime Fighter

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Text messaging as a mobile marketing tool is standard practice across most industries, but the public sector is also harnessing the power of SMS. Healthcare, emergency services, schools - all are benefitting from the possibilities opened up by the speed, affordability and convenience of mass texting.

One of the most significant applications of text messaging is in the fight against crime. Earlier this year, the four major wireless carriers began offering free text-to-911 services. Police departments across the country are realizing what mobile marketing campaign managers have long understood: there’s no greater guarantee of effective communication than SMS. Victims of crime can surreptitiously send text messages in dangerous situations where making a phone call may be impossible, and law enforcers can use SMS to streamline their processes and thus become more effective. Let’s take a look at some of the most innovative uses of SMS messaging in the fight against crime.

Tip Offs

A number of local police departments have set up shortcodes allowing members of the public to anonymously tip the police about a crime they have witnessed. In Bakersfield, CA, citizens have been providing law enforcers with valuable tips for some years; Kern County runs a similar program. In both cases, police stress that these channels are not intended for emergency situations requiring immediate attention, but for anonymous tip offs from people who may not otherwise feel comfortable reporting crime.

Campus Crime

In Tennessee, local authorities are encouraging students to report crimes anonymously. When the scheme was rolled out in 2009, Sgt. Charles Warner from the Franklin Police Department said that young people “don’t want to be labeled as ‘snitches’... they don’t want to be retaliated against and they’re fearful of that.” But many young people are happy to report, say, a student who brings a gun to school, or is dealing drugs on campus. The first police department in the state to launch a text message tip program, other precincts soon followed suit, and similar programs are now widespread all over the United States.

Human Trafficking

Based in Washington, D.C., the Polaris Project runs the National Human Trafficking Hotline, which accepts calls and texts 24/7. A Washington Post story recounted the plight of one 18-year-old sex-trade worker who alerted the authorities via text message from her pimp’s phone. Police arrested the man shortly after. An app called Redlight Traffic goes further still, with an educational component designed to teach citizens how to identify tell-tale signs of human trafficking and give them a way to combat it.

Law enforcers believe such programs can improve public understanding of potentially criminal situations, even when no actual crime has been witnessed. Citizens can report suspicious behaviour to the app, upload photos and GPS locations, and provide information on vehicle registrations and personal descriptions. Officers can review individual reports and map suspicious activities to improve their chances of being there when a crime is committed. It’s an ideal solution for members of the public who are unsure whether to call 911, but believe they have witnessed potential wrongdoing.

Misdemeanors

It’s not just serious offences like trafficking and gun crime that are being tackled by SMS messaging. Minor misdeeds which clog up law enforcement processes can be prevented by improved communication between the police and the public. In Moscow, drivers can sign up to receive a text alert 20 minutes before their car is about to be towed. When the program launched in June, officials predicted monthly savings of up to $2.6 million.

Record Growth for India's Mobile Marketing Industry

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Mobile marketing tactics such as SMS coupons and geo-targeted ads are being used in practically every global economy, but one part of the world has taken to it more rapidly than any other. In India, the mobile marketing industry has grown by 260% in the past year. Compare that to the 70% growth in the Asia Pacific region and you start to get a clear picture of just how big the strides taken in India are.

The cause for such rapid growth is undoubtedly the proliferation of smartphones and other mobile devices, which in some parts of the world are becoming the primary point of access for web users.

The expansion of the mobile advertising marketplace in India was studied in detail by Opera Mediaworks, a San Mateo ad platform. The analysis was published in a report called “State of Mobile Advertising.”

In addition to the overall growth figures, the report compared various mobile devices and their success in India. Android has the largest share of the market, with 41.7%. Apple devices, meanwhile, are trailing significantly, with less than a 1% share. 

The face of mobile marketing in India bears some striking differences to its American and European counterparts. This is largely because people living in remote regions often don’t have smartphones, and can’t experience the kind of rich content we’ve become used to seeing on handheld devices in the West. 

According to a Business Week article from earlier in the year, Unilever is issuing 15-minute recorded programs that can be listened to on old-fashioned cell phones. The shows include popular Bollywood songs, comedy routines and product commercials. The free service has proved popular, gaining 2 million subscribers when it first rolled out.

Original, bespoke mobile marketing tactics like this are the only way for businesses to get a foothold in new territories. As of the beginning of the year, there were 364 million rural mobile phone users in India. In January 2014, the pace of mobile adoption in villages was faster than in cities for four consecutive months. In 2013, Indian businesses spent 3 billion rupees ($49.9 million) on mobile ads, and the market is expected grow by nearly 45% by the end of the year (according to the Mobile Marketing Association).

The key, as Unilever has discovered, is to develop a mobile marketing strategy targeted at basic-feature phones. That means voice-based and SMS messaging services. Understand this, and your mobile marketing campaign in India will reach more people.

5 Reasons Why Mobile Marketing is Top Dog

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Mobile marketing is now so sophisticated and ubiquitous, it’s easy to forget just how new the phenomenon is. Web marketing has been around since the advent of the internet, but apart from a few rather crude SMS blasts, the concept of mobile marketing didn’t really exist until the first wave of smartphones came out less than a decade ago.

It may have taken a while to come of age, but mobile commerce has been making up for it over the past few years, with sales derived from tablets and smartphones expected to reach $100 billion by the year’s end. Google analysts predict mobile search volumes will outstrip desktop by 2015. Every business worth it’s salt is pursuing some kind of mobile marketing strategy, each hoping to corner their share of a smartphone audience that accounts for more than half of the population of the United States.

We’ve identified five key reasons why mobile has become the top priority of businesses great and small:

It’s Local

Right now, 40% of mobile searches are local; 77% of those take place from a user’s home or workplace, indicating an active preference for mobile even when alternatives are available. This is tremendously important for small businesses serving their local area. By targeting local keywords, a small business owner can conduct an effective mobile marketing campaign on a relatively tight budget. Which brings us to…

It’s Affordable

Before the mobile revolution, effective marketing campaigns were expensive. Really expensive. Television, radio and billboard advertising cost a lot of money, way more than your average small-to-medium sized business owner can afford. Big corporations got bigger and everyone else was priced out. SMS messaging has changed all that, allowing start ups to have a realistic chance of success on shoestring budgets. The ROI for mobile advertising is also easy to track, with analytics providing invaluable data like peak search times and customer preferences. With mobile, businesses can tweak their service according to consumer behavior and make their ad spend go further.

It’s Fast

Four out of five mobile conversions happen within five hours of the search. This is critical because searches turn into leads, and ultimately sales. Make yourself available via mobile and you can grab more customers faster than ever before.

It’s for Everyone

The first generation of cell phone owners are now in the valuable 55-64 demographic – and their children are even more tech savvy. Mobile growth is happening across all age groups and ethnicities, which is a solid gold gift for marketing managers.

…and Everything

The top five tasks performed on smartphones are making phone calls (83%), checking emails (74%), search (67%), taking photos (62%) and accessing social media (57%). There’s hardly an online activity that isn’t conducted via mobile. Another gift for marketers, who can focus variously on each task as part of their campaign.

Mobile marketing is here to stay, and it represents a real revolution for small business owners who no longer have to be drowned out by corporate clout. Get on board with your own mobile marketing campaign and you’ll find out for yourself why mobile is top dog.

Gauging Morality via Text Message

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Psychologists have long argued that moral behaviour is a zero sum game. Commit an act of kindness today and you’re more likely to be rude tomorrow, goes the theory. In other words, do-gooders and do-badders are the same people – it’s simply a matter of timing. 

Researchers have now attempted to test that theory in the real world by tracking moral judgments via text message. The study – published in Science earlier this month – measured the frequency of moral and immoral behaviours during a typical day. Thus far peer reviews advise caution but broadly accept the findings of the research.

A team of scientists from the University of Cologne recruited 1,252 people to respond to text messages asking about ‘good’ and ‘bad’ incidents that happened to them or were witnessed by them. An SMS message was send to each participant five times a day for three days. The text asked recipients to gauge the morality of an event that just occurred in their lives. The results were striking.

On average, participants reported one moral incident a day, with ‘good’ and ‘bad’ judgments being attributed in roughly equal measure. Categories included: 

  • Care/harm. Eg, opening a door for somebody versus letting it slam in their face.
  • Fairness/unfairness. Eg, tipping generously or not.
  • Loyalty/disloyalty. Eg, having dinner with your wife versus your mistress.

According to one researcher, the responses provided ‘a sense of the moral baseline of a typical day… and the slice of the moral pie occupied by each of these categories. 

The findings apparently corroborate the long-held moral credit theory, where no good deed goes unpunished. It also supports other historical lab experiments that suggest good deeds are contagious. But while those on the receiving end of an act of kindness were around 10% more likely than the average person to do something nice later in the day, the person granting that kindness was around 3% more likely than average to be rude or dismissive later that today.

It appears that committing an act of kindness really does imbue us with a sense of moral license to behave less well in future. This modest SMS experiment is the first tentative step towards a greater understanding of our moral makeup, and though we may not like what we see, it’s undeniably fascinating.

Five of the Best: Strategies for SMS Marketing

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As we move through this ever-changing era of new media marketing, many businesses are innovating with the latest and greatest of tech strategies to reach their customer bases. Certainly geo-targeting and push notifications are significant mobile marketing tactics. Smart business owners, however, maintain that SMS marketing is still at the top when it comes to affordability and ubiquity. Here are five of the best techniques for maximizing your returns with mobile text marketing.

1)     Create Timely Content

Reach your customers when they’re open to hearing from you, and hence more likely to respond. Find out what your clients value at any given time, and deliver offers to them that are relevant and time-sensitive. Existing campaigns that work should not be halted, but it’s always important to find new opportunities to grab hold of both potential and loyal customers based on current trends.

2)     Invest in Loyalty

Business owners that provide loyalty programs for long-term customers augment customer relationships while targeting a group that values the company’s products. Not only do companies increase repeat customer sales, they’re also able to analyze repeat customers’ buying habits, making it easier to create targeted product promotions. Create exclusive VIP clubs and promotions to make loyal customers feel special. Loyalty lists don’t have to be that large to be profitable either: many businesses make their bread and butter off of a relatively small group of people. Recent studies show that twenty percent of customers drive eighty percent of sales. Target your repeat and long-time customers to make sure they feel appreciated and valued.

3)     Contests & Sweepstakes

Make it simple for customers to enter into contests and sweepstakes through a text message. These days no one wants to hassle with filling out a form when a simple message will suffice. SMS accessed contests make the process easier on your clientele, while offering potentially valuable opportunities for customers to engage with your brand. Contests and sweepstakes are great incentives for opting in to a marketing list.

4)     SMS in Multi-Channel Campaign

Multi-channel campaigns often overlook the opportunities available through the SMS channel. Mobile marketers know the truth: since SMS is a built-in feature of every mobile device, and everyone has cellphones nowadays, why not take advantage of this channel? User data can be accessed seamlessly, and 95% of text messages are opened by mobile users. Include a call-to-action in the SMS-arm of your campaign, and provide ways for users to sign up for other offers to maximize the value of your advertising. Offer text messaging opt-in opportunities through other platforms, with special incentives for opting-in.

5)     Foster Interaction

If consumers agree to allow texts and calls to their personal phone, they expect something valuable in return. Think of exclusive offers, easy ways to purchase or ask questions, customer surveys to improve overall products and services, and other valuable information relevant to the consumers. The more positive interaction with customers, the more brand loyalty and potential sales your company will foster.

Follow these five strategies in your next text marketing campaign, and discover which work best for your consumer base. And remember, setting up a text message campaign is extremely easy, but reaching customers via text messaging is even easier.

 

What to Expect from the iPhone 6

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This week Apple unveiled a triad of new devices: the iPhone 6, the iPhone 6 plus, and the iWatch. The anticipation mounting over the new technology has the blogging world abuzz, but most of the talk is about the oversized iPhone 6 plus (which many iPhone users scoff at), or the iWatch (which nobody seems to take seriously). Unfortunately for the iPhone 6, the blogosphere seems to have failed to represent what she has to offer.

LARGER

The iPhone 6 has undergone a major revision in its latest release. Perhaps the most interesting thing we noticed about the new iPhone – it is a little larger than the last generation, the iPhone 5S, by about a half an inch. It appears that the designers of the latest iPhone have been interpreting the data about the competition: a little more than one-third of mobile users prefer to use a smartphone that has a larger screen. The smartphone is also heavier than its previous incarnation, weighing in at about 4.5 ounces.

SLEEKER DESIGN

The design of the body has been altered as well. The iPhone 6 has veered away from square edges, and now has a more rounded yet significantly slimmer shape (a little bit thicker than a quarter inch). This makes it one of the thinnest devices on the market. The power button has also been moved from the top of the phone to the right edge.

In the weeks leading up to the unveiling, Apple claimed that the glass in their screens will be upgraded to handle many more bumps and scrapes before shattering – good news for any mobile user who’s dropped their iPhone before. Also with the new Retina HD screen, the iPhone 6 has received a significant upgrade from its cousin, the iPhone 5S. When compared to other models though (like those of Samsung’s line of phones), many would argue that the screen designers could have gone further in creating a better display.

UPDATED HARDWARE & SOFTWARE

The camera has been upgraded in the new iPhone 6 to one with a wide-angle lens. Called the iSight lens, it incorporates a 2.2 aperture with noise reduction and an autofocus that’s twice as fast. The rear camera also has a slo-mo video mode to enhance slow motion recording. The front facing camera is much better too, now an HD camera with a 2.2 aperture that allows in more than 80% more light.

But there’s one big question about the operating system. Will Apple update its iOS – yet again – for the newer available iPhones? The answer is no. Apple is running the new iPhone 6 on the same platform it unveiled earlier this year, the iOS 8.

All in all, the new iPhone 6 will be exciting to see in action, due to the attention the designers have paid to the model. It may not be exactly what the critics would’ve asked for, but it will certainly prove to be an excellent addition to the Apple line of products. Due to hit the shelves on September 19th, the price will be comparable to previous versions (about $650).