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Archive for June, 2010

The value in mobile advertising

Tuesday, June 22nd, 2010

When you’re all consumed with growing a new business like mobile advertising and the positive examples of ROI are measured in handfuls, how do you know if you’ve gotten it right?  On Friday afternoon, I found an Interactive Director that was completely unaware that his story was outstanding by any measure. With an attitude like that, these early wins will just be the tip of an iceberg for him and his station.

Sandy Martin

Sandy Martin, BAI Marketing Analyst

In May, he ran an annual campaign that was promoted on-air, online and on mobile devices. The station gave away an umbrella a day, every day, for the month of May. They started the campaign 15 years ago with entries via post card.  Post cards were followed a few years later by online entries which were now followed by SMS entries.  While they received almost 9,000 Web entries, this year they also included a text call-to-action in their promotions and received 4,342 unique entries via mobile phone. I was impressed enough with the 4,342 responses. But, dare I ask? Did he make any money? Yes.  $26,000.

Now, I’m pretty nerdy, so when I think about 4,342 entries, I think of databasing and the ability to remarket.  This Interactive Director, on the other hand, saw the campaign as an opportunity for the advertiser to reach an engaged audience, and the entries represented proof of engagement.  Remarketing to a list never came up in the sale.

So, I ask you, what are you doing in your market to demonstrate that you have an engaged audience for your advertisers? How can you use mobile advertising, the most personal of all media, to increase brand recall and call-to-action on behalf of your clients?

Mobile couponing comes up a lot because it’s easy to do with text messaging. While it may be effective, it offers a weak revenue opportunity when compared to the example above. It wouldn’t take long to get 500 to 1,000 people to subscribe to SMS alerts from a neighborhood pizza joint. Then what? The restaurant pays to remarket to the list again and again? That’s a commodity strategy for the media company and a discounting strategy for the restaurant. In neither case is it very profitable.

I just redeemed my first mobile coupon for a free personal organic cheese pizza this week. In fact, I nearly leapt across the table to seize the alternative weekly my friend was reading when I saw the text “FUSION” call to action out of the corner of my eye as he turned the page. Who doesn’t love pizza coupons? There are 14 pizza places within two miles of my house. I have a stack of pizza coupons in a drawer in my kitchen, but I’ve ordered pizza twice this week and only used one coupon. I prefer Pizza Fusion, coupon or not. That’s branding in action, and, against my better judgment, I’m a profitable customer.

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Mobile Marketing: Agile Advertising Comes of Age

Wednesday, June 9th, 2010

A few curious tidbits picked up at the Mobile Marketing Association’s Mobile Marketing Forum this week in New York:

  • 1 in 10 Brits thinks it is OK to text during sex.
  • A widely successful condom awareness campaign, running in India, is based on a ringtone download that sings “Condom, condom!” (get yours at www.condomcondom.org).
  • Victoria’s Secret is attracting eyeballs with an outdoor campaign that uses a sultry model in lace panties to promote a program allowing cellphone users to use Bluetooth outside their stores to get downloads and special offers.

If nothing else, this nascent industry has learned what every good advertiser knows: sex sells. Outside of these titillating facts I also learned that –

  • Disney predicts that half of all brand engagement with its customers will be through mobile media by 2012.
  • 1 in 3 mobile searches on Google involve a “local” intent.
  • Conversion rates for mobile advertisers are in the double digits.

The message was loud and clear: Mobile has arrived as a major media that cannot be ignored. In fact, the biggest hold up is not advertiser interest but bandwidth. And watch out, because once the pipe gets fat, the market will explode much in the same manner that broadband gave the Web its turbocharge over the last decade.

There are about 400 attendees at the Waldorf Astoria.  Nothing I’ve heard here conflicts with Borrell Associates’ aggressive forecast that local mobile marketing spend will surpass the Web in four years as it climbs $14 billion. (Then again, I wouldn’t expect to attend a mobile conference and hear less than rosy predictions about the topic.)

National & Local Mobile Marketing Spend, 2006-2014

Perhaps the best morsel of advice was imparted by mobile marketing guru and author Tomi Ahonen, who kicked off a keynote with his “8 Unique Mobile Benefits.” Approving nods rippled through the audience as Ahonen proclaimed, “Mobile is as different from the Internet as TV is different from radio.” Keep that in mind, for this is a whole new way of marketing to agile consumers in new and challenging way that will require local media Web sites to mobilize faster than they did when the Web launched only 16 years ago.

Ahonen has an excellent point – one that we’re planning to explore deeply at our Local Mobile Advertising Conference in Dallas Sept. 27-29.  We’re taking a lot of pointers from the MMA forum and crafting a dynamic agenda that separates the hype from the real money-making mobile programs spawned from innovative thinking – not incremental steps built on media companies’ existing Web sites.   Check out our agenda at (www.borrellassociates.com/mobile), and watch next week for additional speakers.

More from the Mobile Marketing Forum — Twitter: @MobileMktgForum and #MMAF2010

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Down from the tower

Thursday, June 3rd, 2010

There’s a video interview I want you to see.  It’s about 5 minutes and well worth the time of anyone trying to understand how to tackle the mobile advertising space profitably. It’s my discussion with Clark Gilbert, who will be keynoting our conference in Dallas this fall.

Clark was recently named CEO of Deseret Digital Media in Salt Lake City.  The importance of this appointment cannot be understated.  Since his days at Harvard Business School, Clark has demonstrated deep academic knowledge about disruptive innovation.  He and I initiated a joint applied research project when I started Borrell Associates, studying how companies like Knight Ridder, Tribune, Media General and Belo were tackling the disruptive forces of the Internet.  They were, we concluded, unwittingly following the disastrous path of tackling it with internal managers – something later to be called “convergence.”

But academia isn’t reality, and as I tell all my clients, people like Clark and me have the easy task of saying interesting and logical things – then leaving.  Implementation is far more difficult than it sounds.

Clark has left the academic world of Stanford, Harvard and Brigham Young to get his hands dirty.  And he’s already doing some amazing things at Deseret Media.

I traveled to Salt Lake City recently to visit his operation.  I left realizing that his operation is probably the most forward-thinking, results-driven local media company in America.  They manage a newspaper, TV station, and two radio stations.  They are already knocking the ball out of the park with KSL-TV’s KSL.com, which will wind up driving more online revenue (about 40% more in my estimation) than any other TV-online operation in the country.  They bought a mobile “deals” company and are about to buy a texting company.

Perhaps the most remarkable thing I noticed while visiting Deseret Media was the contrast between two different meetings of Clark’s staff.  The first meeting included about 30 people, all bright-eyed and eager – and completely in tune with my presentation.  (If any of you have seen me present, you know how challenging I can be with the audience.)  This was one of the only local-media audiences where, after 5 minutes, I realized I was going too slow for them.  Here’s the difference:  Not a single person in the room was a “TV person,” “newspaper person,” or “radio person.”  They all considered themselves employed by Deseret’s digital operations.  After the presentation, many of them hung around and asked questions.

The second meeting was with the same number of people, but all were from Deseret’s TV or radio stations.  The presentation was a bit more challenging and basic, and I got the sense that a lot of them were strapped for time.  As soon as the presentation ended, all but two of them left the room.   They had allotted their 90 minutes to a presentation on digital media, and had to go back to their main jobs. (I’m certain they are just as terrific at their TV and radio jobs as the digital folks are at theirs, just as I’m sure the digital folks are equally as lost about the attributes of legacy media as the legacy media folks are about digital.)

The contrast was amazing.  THIS, I thought, is why legacy media companies have been losing share to the pure-play companies like Yodle, Google, ReachLocal, Truvia, and so many others who have no other distractions.

Clark will be a very enlightening speaker.  His credentials have gone from being a brilliant academic mind, to a brilliant operator.  I think he’s going to help us all lead the way as mobile becomes our new local-media disruptor, and I sincerely hope you can sign up for our conference Sept. 27-29 in Dallas to hear him and the other top performers in mobile whom we’ve lined up.

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