Category: Mobile Marketing

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Sponsored SMS bulletins show promise

New media consultant and columnist Steve Smith speculated recently in MediaPost that we will soon be receiving many more sponsored messages with our cell phone’s text bulletins. These text bulletins, also known as SMS messages, are the 140-character packets that helped Justine Ezarik rack up a 300-page AT&T cell phone bill. (She reports that Twitter and the SMS feature of Facebook were the biggest culprits. Each message sent and received was separately itemized.)

The good news is these messages will be extremely targeted, and are “opted into” in exchange for the content received. An example cited by Smith is NASCAR race updates, sent to the 200,000 subscribers to this branded program. He explains that if a supermarket chain would want to target those interested in NASCAR, “There is enough mass there to net perhaps 80,000 users in a general geographic region.”

That’s enough to make quite an impact. Especially since response rates are impressively high.

Although the initial calls to action must be quite brief — 20 to 80 characters — the extremely targeted nature of the messages helps response. A “response” is usually hitting reply, to receive a full (up to 140 characters) expansion of the offer and a URL to click on. This graphic , provided by the MoVoxx site, helps illustrate the typical process:

How InTxt by MoVoxx works

Alec Andronikov, who is the managing partner of MoVoxx, says that of the many billions of SMS messages sent each month, somewhere around 500 million of them are some kind of publisher-pushed alert. And each could conceivably be sponsored. Smith continues:

Right now, [Andronikov] claims about 3.5 million uniques with sports, travel, dating and newspapers comprising the largest content categories. … Andronikov claims a response rate of 2.5% to 4% on the SMS ads.

That means a hypothetical, regionally-based supermarket chain running a NASCAR promotion could get their entire message in front of at least 2,000 fans (80,000 recipients of the initial, sponsored message multiplied by a 2.5% response rate). If the offer is compelling enough, this can win the chain hundreds of new customers.

The ability to target consumers by age, gender and zip code — as well as areas of personal interest, as implied by the content to which a consumer subscribes — promises a way to take the junk out of junk text messages.

Through testing we’ll soon see whether these campaigns “have legs” — whether they can generate enough of a return on investment to make them a smart, new marketing tactic.

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Growth of out of home ads reflects our fragmented media consumption

Physicists tell us the universe is ever-expanding, a concept that can make the mind reel. Advertisers trying to reach their target audience know this feeling well, as media alternatives continually fragment and multiply. One solution: Forget about media as we would ordinarily think about them and look to the places your market congregates as the medium itself.

I’m only a recent convert to the power of out of home advertising, but that only seems to make me more of a zealot. Here are three examples worth filing away in your new media mental database:

  • Billboards that greet you by name — Tested last year and rolled out in the April of 2007, the Mini Cooper Motorby program is ingenious. Have owners register online, and receive a free key fob. When that key fob gets within 500 feet of a billboard, it triggers a personalized message. The billboard is 5 feet tall and 33 feet wide. My only questions: What are the results? And how are they translated to a true ROI?
  • Virtual billboards, Second Life-style — If an ad is on the side of a building, but that building is on Second Life, is that an interactive ad or out of home? A little of both, because it is far more interactive (try clicking through the side of a real building without getting injured or arrested), but has the same ambient quality of the real world. The biggest down-side: Ads are everywhere in Second Life.
  • Literally touch your consumers as they drink their coffee — Coffee cup sleeves have come of age. According to BriteVision, an industry leader in their production and distribution (they have their own ad network of coffee shops), the average consumer spends 49 minutes with their “Ad-Sleeve,” what an average recall of the ad at two-thirds (65%). The biggest up-side: Since many cafes offer WiFi, providing a URL can help measure effectiveness and reach an upscale segment of consumers. You can also include a phone number or short code for a mobile marketing play.

The reach and creative potential with out of home are a couple of reasons it is growing when other media types are stagnant or shrinking. According to the OAAA, revenue for out-of-home advertising so far this year has increased by 7.9% (within a rounding error of the growth seen last year, and the year before). This projection for 2007 is based on spending in the first six months of the year. The graphic below shows prior growth.

Growth of out of home this year is projected again at roughly 8 percent

All of this is great news for brands that want to make a difference. There are many ways to truly involve consumers — some quite high tech, some that are extremely “out there,” and some that are frankly both. It all makes for an interesting ride with plenty to see and do.

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A magical feat worthy of Hogwarts: Harry Potter book materializes via text message incantation

I read somewhere that Italy has more pet dogs than it does children. That is a bad thing in a country — a sign of negative population growth. However, I tell you very selfishly that this ratio — more dogs than kids — is an excellent thing in a high rise. Take mine for example. The elevators and lobby are teeming with canines, usually on the business end of leashes held by a slack-skinned residents such as myself.

So how do you account for the fact that the mail room of our building today was full of USPS notices of the arrival of the same parcel: The last in the Harry Potter book series? Obviously I’m not the only “kid at heart.”

But this kid has a decidedly geeky side. I pre-ordered mine three months ago using nothing but the keypad of my cell phone. As I stated then, in my account of ordering the book, the service that made this miracle of commerce possible is a harbinger of things to come.

Here were the steps I used to order my copy of this juvenile horse-choker:

I registered (just once) at the ShopText site. I provided the usual: My name and shipping address, and my credit card information. I also gave them my email address and cell phone number. That’s when the real wizardry began.

I received a receipt via email and SMS (i.e., cell phone text message). It included my short password, something needed to avoid ordering fraud

Then, all I had to do was send a text to ShopText’s “short code,” which is a 5- or 6-digit cell phone number that communicates with an SMS server. I placed the keyword in the message body, “Potter,” as instructed in the print ad that offered this ordering option.

I received a confirmation on pricing, which also requested the security password. Once received, the system sent my cell phone — and my email Inbox — a receipt for the purchase. Poof! Within three minutes I had scratched my itch and bought this last of the Harry Potter series.

And that’s the point.

If SMS ordering catches on at all, it will be because of the ease with which spontaneous purchases can be made before having time to think something like, “Heck, I can always go to the bookstore.”

This is a system that deserves to succeed, and it probably will, considering what big, pampered kids I and my fellow boomers have become.

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Explosion causes a potty-mouthed Twitter skeptic to see the light

I had vowed to readers I would never again write about Twitter. It is, after all, a frivolous little diversion. True, in the same breath, I had also acknowledged (in one of my last posts on the topic) that this trivial toy has the potential to save lives. It can spread news when all other sources are slow to arrive or completely cut off. In a time of rising terrorist threat levels around the world, that makes Twitter sound far less trivial.

Proof of my theory arrived today. Here’s the story that has brought me out of my Twitter silence. Warning: The blog entry I cite, on the other side of this link, includes a profanity in one of the images.

A friend had been trying to coax Howard Lindzon into the Twitter habit. He refused, and finally conceded only on this condition: His “Tweets” would only come from him via his cell phone, and only when he was — ahem — using the facilities. Since he considered Twitter a waste, he was only going to Twitter about waste. But that all changed when there was a terrifying steam pipe explosion. Caught with no other way to get or receive news about it, you can guess where he turned:

Lindzon uses the one tool he bashes and pokes fun at to inform and hopefully inform himself of a crisis situation. Instantly! Wirelessly! … My buddy Loic Le Meur’s twitts a few days ago about how he catches up with news on Twitter more that by reading his RSS.

Now excentric [sic] Lindzon accepts my invitation to join and unwilingly [sic] offers this awesome example of the right person at the right time in the right place using the right service and instantly informing his peers he networked with registering to Twitter. Is this the real web 2.0? Ought to be, as Lindzon did not blog or email about the blast. He freakin twittered it!

When the telephone was invented, it wasn’t thought of as a tool for doing business. It was imagined by most as a way, before consumer radio appliances entered the picture, of carrying music and news across great distances. That all changed of course. Relatively speaking, it didn’t take long for this “toy” to earn its keep in society (just a few decades).

Could Twitter, the first truly widespread mobile time-waster, be on its way to its own social legitimacy?

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Serving SUPERVALU customers one niche at a time

I really like the direction that Kevin Hillstrom’s One Positive Day blogging concept is taking. While I used the occasion this month to share a favorite work tool, Kevin was inviting many of his social networking and database colleagues to speculate on how to improve the online presence of SUPERVALU, a grocery and pharmaceutical retail and supply chain company.

I’ve had the luxury of a week since that July 1 post to think about my response. I started with the question of corporate mission. There are many ways to drive consumers to your site, such as an online version of the old “Green Stamps” promotion, but as Kevin states at the end of his post, you ultimately have to show something beyond raw page views. You have to add to the stores’ bottom lines, either by saving money by automating something that is now labor-intensive, or generating greater sales totals, or both.

In the comments, Ron Shevlin and another contributor mentioned how helpful it would be to create an aisle-by-aisle shopping list of items. I can understand the logistical challenge of this, since every store floor plan seems to be at least a little different, something exacerbated by the thousands of new products introduced (and pulled!) every year. This last point was made another contributor to the dialog — 10-year food business veteran Harry Joiner.

A Store-generated Shopping List

I had even wondered if something could be done with a mobile-enabled service. For instance, from your cell phone, you call or text a list to a SUPERVALU short code. Then, either through voice recognition (in the case of a voice call) or standard database look-up, you get back a list in your email box, ordered in the walking pattern of the store and complete with related specials and exclusive couponing.

Perhaps something could even be done with a WiFi-enabled version of this voice-activated shopping list device. This device would take your family’s accumulated voice lists of groceries, digitize the list into text using its native voice-recognition system, and — after it is sent via a wireless internet connection to SUPERVALU computers — the device receives and prints the final list with coupons.

This certainly would align itself with SUPERVALU’s Mission  Statement: “To serve our customers better than anyone else … provide our customers with value through our products and services, committing ourselves to providing the quality, variety and convenience they expect.” The mission statement goes on to talk about building strong communities surrounding its stores, which is the other theme of how to help this web site become a greater contributor to the store’s success.

Harry Joiner mentioned creating Ning-like online communities surrounding each of the most significant lifestyle and demographic categories. He gave some examples of how other product marketers have succeeded with this tactic.

A few community examples for SUPERVALU that spring to mind are the following: Young, growing families, single adults looking for tips on cooking for one (and perhaps even place-based events specifically for singles), and of course cooking enthusiasts.

Some value-creating tactics could be things like product-related cooking demonstrations or give-aways, or tie-ins with non-profits that the SUPERVALU business supports through its foundation. Only online community members would be privy to them, of course. One thing is clear. These communities would need to find a great deal of value on the sites.

Many companies have tried to build a critical mass among their “wired niches.” Most have failed.

And speaking of long tale strategies, here’s one that my friend Steve Ward had cooked up well over 10 years ago, and I think still has promise: An online database of all nutritional information for every product on the shelves (or as many as possible)!

Those who are striving to reduce their sodium or fat consumption, or improve their nutrient intake, could create shopping lists that tell them the exact nutritional values of what they eat.

Would this, or any of the above ideas, fundamentally change the way SUPERVALU returns shareholder value? No. Would it help the company fulfill its mission? Absolutely. But like so many online endeavors, this would be accomplished slowly and at a significant investment, one niche at a time.