Mobile marketing offers a cheaper, frequently more effective way of reaching your target audience; Briabe Media's CEO gives three tips.
In recent months major marketers have made it clear that they intend to make interactive media, such as mobile marketing, a larger part of their marketing mix. For proof of their commitment, one needs look no farther than the recent changes in agency relationships that firms such as Nike have undertaken. Even so, despite the optimism and the growing investment in the mobile channel, the majority of marketers I speak with are still struggling to fully comprehend how the mobile medium should be used, effectively and today.
Their confusion is understandable. Over the last few years the mobile marketing industry has been almost single-mindedly focused on convincing major marketers to simply try the mobile channel. As with any new technology or channel, this type of evangelizing is of course necessary to get past the early adopters and into the marketing plans of mainstream brands. However, given the growing adoption of the channel, now is the time for a new, more sensible dialogue to take shape that takes into account both the core strengths of the channel and the needs of the consumers on the receiving end.
So what should this new, more sensible approach entail in order to help marketers most effectively incorporate the mobile channel into their marketing mix? In my opinion the next step in the evolution of the mobile channel is greater emphasis on the channel's ability to render more effective targeted campaigns.
Below I have outlined three reasons a targeted approach to mobile marketing warrants consideration for marketers looking to maximize the channel:
1.) The demographics driving the mobile marketing channel are clear. Why fight them? With mobile phone penetration in the U.S. at nearly 80 percent, it is true that just about everyone in the country owns one. However, not everyone has embraced the technology as a marketing channel. In fact, once we drill beneath the surface of the mobile channel there are largely three demographic groups that are driving the acceptance and adoption of mobile media. These are: Hispanics and African Americans between the ages of 18 and 44, and the highly attractive 18-34 young adult demographic, also known as Generation M.
Although we are starting to see the adoption of Short Message Service (SMS) messaging and other cornerstones of mobile marketing growing among other demographics, for the time being, marketers seeking to reach the three demographics described above should see the greatest returns on their investments in the channel.
2.) A targeted approach can be a cost-effective differentiator for brands previously challenged to reach attractive demographics. Today, marketers are spending millions of dollars on TV and other expensive media outlets to reach the same demographic groups already easily assessable via the mobile channel, only to be disappointed by the results. The average mobile campaign costs around $100,000 and can generate returns in excess of 8 to 10 percent, far exceeding most other media channels. Further, much like with the internet, with the mobile channel, marketers are only limited by their own creativity when it comes to executing differentiated campaigns that set their brands apart from the competition.
3.) Consumers are more receptive and responsive to targeted mobile campaigns. In numerous studies the consumers most comfortable with the mobile channel have expressed a willingness to embrace brands on their mobiles, provided that the messages are well targeted, not intrusive and value-rich. In fact, a recent study by the Yankee Group revealed that among the 18-34 demographic, 40 percent were willing to accept advertising on their mobile if they were able to receive a discount on content as a result. This should come as some consolation to both content owners struggling to monetize their content and marketers seeking a familiar approach to spending their marketing dollars.
The evolution of the mobile channel is only slightly different from what we witnessed during the early years of the internet as a marketing channel. When the "dot com" dust clouds finally settled, more sensible approaches prevailed, and the internet is now proving to be an extremely powerful and growing marketing channel. The mobile channel has the potential to be the most personalized media channel ever. However, to let it live up to its potential, marketers must embrace a targeted approach to the channel that delivers to consumers the relevant, tailored messages they demand for permitting engagement.
James Briggs is CEO and co-founder of Briabe Media. Read full bio.
