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April 21, 2015

90% of Mobile Marketing Revenue Comes from SMS

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It is increasingly apparent that the SMS segment of the global mobile advertising market is very dominant due to the rapid surge in smartphone and tablet use around the world. Some 90 percent of adults in the U.S. use mobile phones, 60 percent of which are smartphones.  The Mobile Marketing Association (MMA) believes that soon smartphone use in the U.S. will rise to 80 percent. 

“With consumers carrying mobile devices wherever they go, it has become crucial for marketers to target this large consumer base with mobile advertisements and promotions,” according to Transparency Market Research (TMR). “A mobile advertising platform firm provides services to marketers that allow them to send these advertisements to consumers using mobile devices. Each distinct mobile advertising platform contains opportunities for marketers to deliver their message to a broad range of consumers.” 

SMS is subsequently a “big deal,” as mobile advertising services are easily sent out via text message. Mobile advertising is also being used to place banner ads on smartphone apps, which appear either at the top of the app (mobile web banner) or at the bottom of the app (mobile web poster). One of the many advantages of SMS is it allows users to view and send short messages without worrying about privacy issues or seriously interrupting the receiver’s day. It’s therefore not shocking to note that SMS accounts for 90 percent of total mobile marketing revenue. Simply put, it's the most cost-effective of all mobile marketing tactics.

In addition to SMS, multimedia messaging services, aka MMS, are experiencing an increase in popularity. Other services gaining momentum include full-screen interstitials, mobile videos, and mobile games. 

Transparency Market Research believes the next few years will see advertisers in the global mobile ad marketing space focus increasingly on performance. An increase in ROI spending will likely occur, as will the quantifiable results that follow. Preference for location-based advertising is also growing, and will only get bigger and better in the future. Such advertising makes it possible for advertisers to target specific portions of their target demographic, therefore dramatically enhancing mobile ad effectiveness.  

Unlike traditional phone calls, “spammy” emails, and the days of going door to door, SMS is a safe and effective means of catering to target audiences. Most read text messages as soon as they come through compared to the hours that pass before reading an email or the disgruntled consumers on the other end of a marketing phone call. In addition to its effectiveness, SMS messaging is a low-cost marketing option. No wonder it makes up 90 percent of mobile marketing revenue….

 

April 15, 2015

Mobile Devices Mostly Impervious to Hackers, say Verizon

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Mobile has revolutionized the tech industry, creating as many new businesses as it has destroyed old ones. In the past decade, a ‘marketing strategy’ has turned into a ‘digital marketing strategy’ before morphing swiftly into a ‘mobile marketing strategy’ and it’s left countless heads spinning. 

Oddly, there is one perennial area of concern for the industry that has remained largely untouched by the smartphone: hacking. 

According to a recent report from Verizon, mobile devices are seldom used by hackers to commit their nefarious deeds, which is not all that surprising, given the limitations of inputting complex code into small-screen devices. Perhaps more surprising is just how few mobile devices are targeted by hackers. 

The Data Breach Investigations Report (DBIR) is Verizon’s annual paper on cybersecurity issues. This year’s DBIR has concluded that “mobile devices are not a preferred vector in data breaches.” In other words: criminals use laptops and desktops to hack into networks.

The report draws on data from tens of millions of mobile devices on Verizon’s own network. It found just 0.03% of tablets and smartphones were infected with serious malware - significantly below the 0.68% rate of infection from unwanted software affecting non-mobile devices. 

That’s not all the good news. The few infections that make it through to our phones are generally less serious than the types of spyware and malware affecting our computers. The lion’s share of ‘successful’ mobile viruses were relatively harmless pieces of ‘adnoyance’ software, which are aimed at trying to direct users to purchase security packages and other money-making schemes, or collect personal data. These types of infection are also much easier to spot than the more malicious desktop infractions. 

Apple users won’t be surprised to learn that the vast majority of infections were found on open-source Android devices. In fact, most suspicious activity logged on iOS devices were failed ‘hit and hope’ scams aimed at Android users. 

This information, while reassuring, is not an excuse for lax security practices. But it does suggest the new model of closed, app-based software - designed to be impervious to hackers - is working, and that can only be a good thing. As more and more online activity is conducted via mobile devices, the tolerance for security breaches will (hopefully) continue to plummet. 

 

April 04, 2015

Smartphones Are Now the Dominant Mobile Device

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Unless you’ve been living under a frightfully large rock, you know the impact smartphones have had on the digital industry. Unsurprisingly the devices now make up 75% of the mobile phone market, a 10% increase from a year ago and a 73% increase from 10 years ago, according to Internet analytics firm comScore. 

Three-quarters of Americans aged 13 or older own smartphones, with the rest using basic cellphones, such as flip phones and TracFones. The percentage of people who don’t own a cellphone at all….well, that number is so low it’s not even worth discussing.  

“If you take a look at the big picture, it’s how mobile has taken over and become the dominant platform through which people engage in digital media,” said Andrew Lipsman, vice president of marketing and insights at comScore.  

People are spending more and more time in front of digital screens despite the fact that desktop use has gone down the tubes. Still, people are glued to their screens practically all day and night, whether on their way to work, watching TV, or any other time thanks to the prevalence of smartphones and tablets.  

The positive side to this screen addiction is the ability to stay better informed and even learn a thing or two more quickly, noted Lipsman. The negative side is a bit more complicated, as new research recently released by digital technology firm Apigee in San Jose, CA and Stanford University’s Mobile Innovation Group, found a “deepening dependence” on smartphones in terms of social interaction. Dependency was most severe among smartphone users, who say they’re on their phones “nearly all the time,” including while at family dinners. 

Shockingly, 21% of smartphone users said they couldn’t sustain a relationship with a partner without their phone apps, and 19% of users said they could not make new friends without the the assistance of their devices. Younger Americans use smartphones the most (surprise, surprise), with at least 85% of citizens ages 13 to 44 owning one, according to comScore. 

The numbers decline with age: 76% of people ages 45 to 54 use smartphones, and 63% of those ages 55 to 64 use such devices. The percentage is 48% people ages 65 or older. 

Apple devices remain the most popular, as they make up 41% of the market. The company is followed by Samsung, LG, Motorola, and HTC at 29%, 8%, 5%, and 4% respectively. 

Wondering about the most popular smartphone apps? Facebook still rules them all with 70% of the market, followed by YouTube (55%), Google Play (52%), Google Search (52%), and Facebook Messenger (47%). 

What will become of the country’s smartphone addiction? Only time will tell….

 

February 11, 2015

South Africa's Mobile Future

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In Europe and North America, mobile marketing relies on an even-handed mixture of text messaging, mobile-optimized websites, apps, push notifications and targeted advertising. In the U.S., where smartphones comprise 70% of the mobile market and tens of thousands of new apps are launched each month, constant change is the name of the game.  

Not so in South Africa. An estimated 70.6% of the population use feature phones. Devising a mobile marketing campaign capable of reaching the masses requires a heavy reliance on SMS messaging, with less attention paid to the latest digital advertising buzzwords getting American execs in a tizzy. 

The beauty of text message marketing is you don’t have to worry about differentials between operating systems. It doesn’t discriminate by device. Ads necessarily have to follow the same format: concise messages with small images (or none at all). In developing economies like South Africa, mobile marketers must be as cost-sensitive as their audience if they want to synchronize. 

Despite the proliferation of feature phones - which have limited internet capabilities and can’t support apps - voice usage is declining in South Africa as much as everywhere else. Mobility 2014, a study conducted in association with the First National Bank, little more than half the money spent on mobile by Millennials goes towards voice (down from 66% in 2012). Data spend, however, has increased from 17% to 24% - an impressive rate of growth for a country with notoriously expensive data packages. 

Although it’s currently a supporting player, smartphone usage is growing in the region. According to the South African Social Media Landscape 2015 study, YouTube’s South African audience grew by a staggering 53% between 2013 and 2014. This audience will continue to grow as data costs become proportionate to the rest of the world.

Mobile evolution might be moving more slowly in South Africa, but it is moving. A forward-thinking mobile marketing campaign will cover both bases. It will recognize that diverse countries require diverse strategies. For most businesses, SMS messaging will be the fulcrum of a good mobile marketing campaign. 

That’s not to say that a text message marketing campaign in South Africa is a picnic. With 11 official languages and a wide social strata covering everyone from rural farmers to globally successful entrepreneurs (Elon Musk is a Pretoria native), mobile marketing in South Africa demands a wide-ranging approach. Keep one eye on the dominant feature phone and the other on the growing data economy and you won’t go far wrong.

February 10, 2015

5 Mobile Marketing Lovebombs for Valentine’s Day

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Valentine’s Day might be harvest time for the jewelers, florists and chocolatiers of this world, but almost every industry can tweak its marketing strategy to take advantage of the holiday which, after Christmas, sees more spending than any other. 

According to recent research from the National Retail Foundation, Valentine spending will go up 13% from last year, and much of that revenue will come from smartphones and tablets, with mobile coupons and special offers playing a significant role. To give your mobile marketing strategy some heart-shaped oomph this year, try these six ideas to help your audience get engaged in more ways than one!

 

1) ‘Bring a Partner’ Discounts

For Valentine’s-themed mobile coupons, why not offer a 2-for-1 deal? Intuitively suitable for restaurants, spas, hotels, mobile coupons can drive traffic to virtually any type of business.

 

2) Social Media Makeover

In the run up to the big day, overhaul your social media presence to give off a hearts ’n’ flowers vibe. Facebook should be a primarily visual medium, so focus on creating strong images with a lovelorn bent (a themed variation of your logo is a good start). Humor is key, as it makes your posts more shareable, so if you can find a way to poke fun at the holiday whilst invoking its warm center, you’ve hit the Valentine’s mobile marketing jackpot. Whatever you do, social media should be front and center of your mobile marketing strategy.

 

3) Dedicated Microsite 

To reinforce your Valentine’s Day message, create a separate landing page or microsite. Forget about using it as a direct sales channel. Instead, hand it over to your most creative people to showcase their talents. Run a themed competition such as a Saint Valentine quiz with a romantic vacation as the prize. A separate site provides a chance to amplify the themed design elements and show your customers you’re serious about whatever Valentine offers you’re making. Plus, the SEO value of a dedicated holiday site is huge. If it works, use the same tactic for July 4, Thanksgiving and any other national holiday you can make use of.

 

4) Be Ready for ‘the Last Minute-men’

In 2013, Adobe found that spending on gifts steadily increased throughout January and early February, but spiked during the last five days before the 14th. Much like at Christmas, there’s a significant portion of consumers who leave their Valentine’s shopping until the last minute, so pushing last minute mobile coupons and other mobile marketing tactics can really pay off. And with Valentine’s Day falling on a Saturday, the ‘last minute’ effect promises to be even greater this year.

 

5) Originality Breeds Attention

Ok, so this applies to all mobile marketing tactics, irrespective of the time of year, but if your strategy has been lacking in originality, Valentine’s Day is the perfect opportunity to try something fresh for Q1. Encourage user engagement by asking them to share love stories, or take a leaf out of Tiffany’s book and try something along the lines of their ‘Concierge of Love’ campaign. If you have the resources to create a Valentine’s app with your original idea, go for it - you can resurrect it every year to maximize your ROI.

Whichever mobile marketing strategy you adopt, be sure to combine your approaches in a creative, engaging fashion. Give your mobile marketing strategy some love this Valentine’s Day and your bottom line will come up smelling of roses.

 

January 16, 2015

The App that Stops You From Using Apps

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Is one of your new year’s resolutions to spend more time with friends and family and less time absorbed in your mobile device? Perhaps you’re looking to limit screen time while at the family dinner table? Believe it or not, there’s actually an app for that.

Entitled Moment was originally launched as a “well-designed and practical tool” for anyone wanting to shorten time spent staring at their mobile device screen. Designed by developer Kevin Holesh, Entitled Moment makes it easy to set daily smartphone use limits, and runs in the background of your phone. It makes a noise and sends a notification when you exceed your limit for the day. 

Currently being promoted as a “family application,” Moment now allows family members to track each others’ daily phone use from their devices and create “screen-free” timed sessions that includes loud alerts should someone pick up their phone.

Holesh notes that most people underestimate how much time they spend on their smartphones by some 50%. The developer’s own mobile device “addictions” helped inspire the app, as he found time spent in the digital world was interfering with his real-world relationships.

Similar apps were released following the launch of Moment, including Checky, which tracks how often users check their phones each day. 

The app’s creator also remarked that parents wrote to him thanking him, as Entitled Moment significantly helped manage kiddie screen time. This prompted Holesh to create Moment 2.0 and make limiting screen time a family activity.

Subsequently, consumers can now view daily family member phone use patterns, and configure “family dinner time” mode—an hour-long block that encourages users to put their phones down while at the table. Should a family member break the “phone down” rule, the person will hear a loud alert until they stop using their device.

Downloaded over one million times thus far, the app’s alerts are quite humorous, and include sirens, thunder, buzzer/alarm clock, and “the most annoying sound in the world” from the comedy classic Dumb and Dumber. A free app, it currently has about 200,000 active monthly users. Moment is available on iTunes, and includes the option of paying $3.99 for three months, or $19.99 for the whole year.

Rather than punishing children with a “no phone” rule, this app makes family dinner time something any member can implement at any time. Moment serves as a highly useful tool in decreasing kids’ screen time at home, and may be used in conjunction with other parental controls for mobile devices. 

December 30, 2014

What Will Happen to Mobile Marketing in 2015?

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Change is inevitable (with the possible exception of vending machines), so what will become of mobile marketing in the coming year? Let’s take a look at what continues to dominate, what will change, and perhaps make a prediction or two: 

The Visual is Essential

One thing’s for darn certain: visuals aren’t going anywhere. The competition for consumer attention continues to gain momentum, and as such photos, videos and infographics are necessary to every piece of content created. A recent survey by the Nonprofit Times found nonprofits rank higher than for-profit organizations in content marketing strategies, with some 63 percent reporting current work on visual content as a big part of strategy. 

Personalization Increases

In-the-know marketers utilize analytics to create successful marketing campaigns, and in 2015 businesses will no doubt study customer behavior and interests in depth to craft customized content marketing strategies to stay ahead of the competition. Businesses are learning how to make adjustments with each new social media update, blog, etc. Measuring efforts will be easier than ever before in 2015 thanks to a number of new analytics tools. 

Consumers served content tailored to personal tastes will prevail in 2015 over marketing efforts that barely rings any bells. This includes blogs, guest blogs, articles and tweets, as brands have realized the value of personalizing content so as to reach different demographics rather than posting the same blog or tweet across all social media platforms. 

Mobile Friendliness: A Must

The mobile device surpassed the PC in usage for the first time in 2014, and brands are making adjustments to ensure content marketing efforts work for smaller screens…and shorter attention spans. Content designed for mobile devices, including location-based search terms, will be incredibly important in 2015. 

“Marketers have been advised to create and tailor different formats of content with customized copy for highly-fragmented marketing channels from TV to print to various social media platforms in order to reach their target audience,” says Pam Didner, a global integrated marketing strategist for the Intel Corporation. “It’s the right thing to do.” 

Interactive Applications for Product Storytelling Becomes Integral

Interactive storytelling will become an “integral part” of product demonstration in 2015, particularly at events such as conferences and expos. Brands are finding ways to use interactive 3D product models among other meticulously-crafted content to attract customers and give them a proverbial taste of the product without having said product on premise. 

These are just some of the ways mobile marketing will grow and change in the new year….

 

 

December 15, 2014

The Ten Best Mobile Marketing Campaigns of 2014

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2014 has seen some terrific mobile marketing campaigns. By utilizing both social media sites and all of the functionality of mobile phones, we’ve seen some innovative ways that advertisers have increased their reach with mobile users. Here are the ten best campaigns of 2014:

1. NASA’s #GlobalSelfie engages users to create a worldwide mosaic of photos.

Nominated for its use of multiplatform social media for engagement, NASA invited users to take selfies that they would organize and compile into a global mosaic on Earth Day 2014. Using Twitter, Instagram, Facebook, Flickr and Google+, NASA urged users to include the hashtag #GlobalSelfie. Users could also access the event directly on Facebook, Flickr and Google+.

2. White House’s #getcovered spreads the word about Obamacare.

The social media campaign from the White House received a huge response from users, even in 2014. #Getcovered allowed users to tweet their personal stories regarding securing health insurance, and utilized a Storify slideshow to enhance their website.

3. NPR’s company page on LinkedIn provides rich content for workers.

By offering LinkedIn users exactly what they’re there to receive, NPR increased its brand awareness. Users can access NPR’s company page right from their mobile phones to get information about how to improve their career and to increase their knowledge of their industry. Many of their posts are educational and inspiring, and have tremendous reach.

4. Nissan launches a multiplatform B2B campaign with comedy and celebrity.

Nissan’s digital and social marketing campaign promoted its rugged commercial vans, and achieved a wonderful response from the companies it reached. The ads, entitled “Tough Love,” featured rock-and-roller Bret Michaels getting in touch with his softer side. The juxtaposition proved a hit, and garnered terrific ROI for the car company.

5. Nivea’s Bluetooth-enabled print ad helps to track your children at the beach.

Nivea launched an innovative print campaign that featured a removable protector strip that can be placed on a child’s wrist. An app called Protégé then allows parents to track where their kids are by locating the protector strip using Bluetooth 4.0 technology. Very handy for beach trips, indeed.

6. Hershey’s unveils a sponsored mobile data opportunity with a video campaign.

In an astoundingly simple way to get mobile users engaged, Hershey offers to pay for part of your mobile data when you watch their Scharffen Berger brand commercial. The sponsored content, offered by AT&T and partners through advertisements on apps like Pandora, has been well-received by mobile users.

7. Movie theatres incorporate mobile-enabled interactive ads into their lobbies and on screen.

Thousands of movie theatres have enabled moviegoers to interact using the camera on their mobile phones. The visual search platform Slyce teamed up with Screenvision to enhance the audience experience when going to the movies. Consumers have eaten up the ads, downloading games and purchasing film-inspired merchandise due to these effective interactive advertisements.

8. Pepsi – London #LiveForNow turns a bus stop into a wild and weird space.

PepsiMax created a bus shelter ad that made it appear as though crazy events were taking place. The entire experience was recorded and converted into an advertisement (that consequently went viral). Watch the advertisement here: http://youtu.be/Go9rf9GmYpM.

9. Red Cross collects donations after Hurricane Sandy with an SMS short code.

In an unprecedented example of human kindness, people around the world donated money to help victims of Hurricane Sandy through the Red Cross’ donation efforts. Donors texted “REDCROSS” to 90999 to donate $10, which billed mobile users directly through their cell providers. 20% of all of the donations received by the Red Cross for Hurricane Sandy relief came through text message donations.

10. Samsung’s #Oscars Celebri-tweet dominates Twitter.

Everyone who is anyone heard about Ellen’s celebri-tweet during the Oscars. Very few knew that it was a ploy, created by Samsung, to increase brand awareness among the viewers of the awards program. Probably the most brilliant mobile marketing stroke to date, the famous photo was shared and shared – causing viewers to create their own selfies and engage with the brand as well. 

The key to good mobile marketing is to consider all of the ways that you can roll out your campaign: the capabilities of devices, the variability, and how to incorporate every platform available. Then, keep it as simple as possible. All of the above examples do just that, by simplifying the strategy while increasing customers’ awareness of the brand.

December 10, 2014

Why Are Mobile Marketing Budgets Increasing?

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We see a lot in these pages about the growth of mobile marketing. But just how fast is that growth happening? And are the same trends expected in future? 

The more the industry swells its ranks and revenues, the more data we have to go on. A recent Tatango survey looked at mobile budget trends and forecasts and compared the results with previous mobile marketing metrics. So, are budgets going up in accordance with the mobile explosion? 

The answer is yes. Very much so. Some 44% of marketers said they were increasing their mobile budgets during 2014 – up from a little over 42% in 2013. Mobile is proving particularly popular with startups, who can devise creative mobile marketing campaigns on relatively few dollars.

Other surveys report similar upward trends. According to Gartner, digital marketing budgets are expected to increase by 8% in 2015. Exactly half of all respondents stated an intention to increase digital spending next year.

The message from businesses remains remarkably consistent. Gartner’s research was conducted with the participation of 315 companies located in the United States, Canada and the UK. They represent organizations with more than $500 million in annual revenue, working in six disparate industries: hospitality, tech, manufacturing, financial services, retail and media. The bigger the firm, the greater the marketing budget as a percentage of revenue; companies with revenues in excess of $5 billion report spending, on average, 11% of revenue on marketing. For companies generating between $500 million and $1 billion, marketing spend was 9.2%. 

And really, those dollars are what it all comes down to. Understanding how to exploit capital to it’s fullest potential is the primary challenge for cash-strapped startups. That’s why having an effective CFO is so important, and it goes a long way towards explaining the huge popularity of mobile marketing tactics like coupons and time-limited discounts, which are easily and affordably disseminated via text message.

The modern marketer is performing a delicate balancing act. Each strand of their campaign must be woven together into a satisfying whole. Integration is everything. The resultant consumer experience is nudging users towards a more self-service buying model, which means businesses can reduce traditional sales-led budgets without sacrificing quality. Marketing budgets in general – and mobile marketing budgets in particular – are the primary beneficiaries of this new model. If you’re yet to move ad spend into a coherent mobile marketing strategy, it might be time to start…

November 12, 2014

Generations and Their Gadgets

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It’s true: each generation has their own “gadgets,” and today’s young generations prefer laptops to desktops and smartphones to “regular, old” cell phones. A Pew Internet Study conducted between August 9 and September 13, 2010 found many devices are popular across the generations, with young people paving the way for increased mobility. 

In the study, only 11% of people surveyed did not own a cell phone, desktop computer, laptop computer, or other devices inquired about. Cell phones are the most popular device among adult Americans, especially those under age 65. Desktop computers are favored by adults ages 35 to 65, while the millennial generation is the only one more likely to own a laptop or a notebook than their stationary predecessors.

Over half of adults own an mp3 player such as an iPod, and this device is again most popular among millennials. E-book readers aren’t widely used by older adults, and while tablets, such as the iPad, are most widely used among Americans 65 and older, only 4% of adults total own the device. Game consoles remain a “younger person” device, and highly used among those ages 18 to 45.

In addition to owning more of the devices discussed in the survey than their elder counterparts, millennials are more likely to use them for a wider range of reasons. Cell phones were originally used for talking and texting, but Millennials rely on them for email, internet, music, videos and games. And that’s besides their original uses!

Gen X and Millennials are comparable in their ownership of certain devices, such as game consoles, but Xers are still more likely to own desktops.

Each generation may carry cell phones, however the survey’s largest drop-off was still the older generation with 48% ownership. This is compared to 95% of Millennials and 92% of Gen-Xers. When study participants were pressed further about cell phone ownership, 33% who did not own a cell phone resided with someone who did. This means that overall, 90% of all adults—including 62% of those age 75 and older—live in a household with at least one working cell phone. And as this number increases, the likelihood of landline phone connections decreases.

Every generation’s gadgets always seem to outdo previous incarnations, with today’s devices offering a (virtual) world of options right at the fingertips. The only question is, what grandiose feature(s) and usage options will the next generation’s devices include?