Transcript mobilemarketing2012

THE BUSINESS DRIVERS FOR
MOBILE MARKETING
Course Faculty: Mrs Yasmin Malik
Venue: IBA City Campus, Karachi
Course Start Date: Spring 2012 (Feb 1)
MIS553: Mobile Marketing Strategies
Mobile Marketing: Your View…?
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How would you define mobile marketing….?
The 4 elements or attributes that define mobile marketing:
 Brands
 Mobile technology/platform
 Mobile device/handset + applications
 Targeting
The fundamental rule of mobile marketing: permission based marketing
Mobile Marketing: The Industry View
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The Mobile Marketing Association (mmaglobal.com) defines
“Mobile Marketing” as:
“A set of practices that enables organizations to
communicate and engage with their audience in an interactive
and relevant manner through any mobile device or network.”
One of the world’s most influential mobile adv company is
Admob (www.admob.com)
Mobile vs Other Marketing Media
Reach (Pakistan):
Mobile = 105 million+
CPM = 10 euros
Local Ad Spend 2011
1999: Total ad spend was only Rs 4 million!
2011: Total ad spend up by 18% from Rs 27 billion in 2010 to Rs 31.98 billion
Internet based ad spend has shown a 33% increase for 2011 but overall still only
makes up 2% of ad spend at 0.56 billion compared to 0.42 billion in 2010
Local Ad Spend On Digital Is Now
Measurable
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Of the Rs. 0.56 billion spent on Internet based advertising, the following sites were the most
popular (Source: Aurora, Nov-Dec 2011):
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Google (35%) at Rs. 0.2 billion
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Facebook (16%) at Rs. 0.087 billion
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Cricinfo (10%) at Rs. 0.055 billion
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MSN (9%) at Rs. 0.05 billion
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Geo.tv (7%) at Rs. 0.042 billion
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Jang.com.pk (6%) at Rs. 0.035 billion
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Yahoo (6%) at Rs. 0.035 billion
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Dawn.com (6%) at Rs. 0.035 billion
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Brecorder.com (1%) at Rs. 0.008 billion
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Tribune.com.pk (1%) at Rs. 0.008 billion
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Banner networks and others (3%) at Rs. 0.015
Question: Where is Mobile….?
Worldwide Spending on Mobile
Advertising
•Google/Admob earned US $750 million in
revenue from mobile ads in 2011
•Apple/iAd earned US $ 90 million in 2011
“Mobile advertising is still immature when
compared to online, print and TV advertising –
but is is growing at a faster
pace”, Noah Elkin, eMarketer
eMarketer Figures:
Mobile advertising in US to reach
US$ 2.6 billion in 2012
(an 80% increase over 2011)
Compare this to expected US Online
Advertising: US $ 39.5 billion
Hence mobile advertising is only a fraction
of advertising spend on the Internet!
Drivers for Mobile Marketing
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The most personal form of marketing (calls, texts, address books,
entertainment, digital media)
The most targeted form of marketing (handsets and mobile networks used)
More immediate and more actionable form of marketing (last minute or
time sensitive calls to action)
An excellent direct marketing channel (TV, radio and print campaigns can
be turned into more responsive campaigns)
Questions:
1)
2)
How does all of this fit into our local environment….?
Do you know what Pakistan’s local/telecom business landscape look
like….?
Pakistan’s Wireless/Mobile Landscape
Rural/suburban/urban 2G cellular coverage (GSM by all 5 mobile operators
and expanded 2.5G + 2.75G capability via EDGE, GPRS)
Suburban/urban 3G
broadband wireless coverage
(WIMAX, EV-DO inc Wateen, Wi-tribe, PTCL)
What about cellular 3G
license auctions?
What impact will this have…?
Source: Adapted from motorola.com
•POTENTIAL:
One of the fastest growing mobile markets in the world and a
benchmark in wireless broadband (WIMAX) with very favourable
telecom policies and regulatory support
•LIMITATIONS:
•Bandwidth provision (network issues when moving from voice
centric to data-centric applications)
•Reach, infrastructure, quality of service
•Awareness
Mobile Marketing Network Architecture
Who Exactly Are We Trying to Reach
via Mobile…?
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Overall: 105+ million current mobile users in Pakistan (compare this to approx 65 million users for traditional
media)
Dual SIM usage puts industry estimates at approx 70 million “active” users – but this is disputed by the
Pakistan Telecommunication Authority (PTA)
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Approx 5% of mobile subscribers in Pakistan use the mobile Internet or GPRS/EDGE services
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Handset tie-in (2011, as estimated by Converge Technologies):
5% of Mobile Handset Users
10% of Mobile Handset
Users
85% of Mobile Handset
Users
Smartphones
Mid-range Phones
Low-range Phones
Monthly spend:
Monthly spend:
Monthly spend:
Rs 2,000+
Rs. 300
Rs 100-150
Converge research shows that Smartphone users are more receptive to mobile Internet based mobile marketing
Note: It is not just the reach (number of subscribers) that matters
Other factors such as handset, preferences and spending power must be taken into consideration as well
4 Types of Mobile Marketing
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The most tried and tested mobile marketing forms can be categorized into 4
broad domains:
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2.
3.
4.
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Text/SMS based campaigns
Mobile Portal based campaigns (including click-through banner
and txt/MMS based ads) which may or may not involve mobile
application downloads
Mobile Voucher/Coupon Redemption/Promotion based (includes
QR Codes)
Location Based or “Digital Proximity” based (demographic and
psychographic targeting)
All of the above make some use of “demographic”, “psychographic”, “device”
and “carrier” targeting
Note that the latter three are image based
The Mobile Marketing “Mindset”
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Which companies is mobile marketing right for?
Is it restricted to tangible brands?
Can it be applied to “intangible brands”?
Following are some of the industry sectors where mobile marketing has
been applied successfully:
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FMCG
automobile industry
telecom/IT
aviation
Banking/finance
retail
education/universities
TV/media
hotel/leisure industry