WIRELESS
Cash in on Mobile Marketing
July 07, 2004

How to get your share of the $6.9 billion "sell" phone ecommerce market (last of two parts).

Mobile commerce market has officially gone mainstream, after generating revenues of more than $6.9 billion worldwide last year, according to Telecom Trends International, a research firm in Falls Church, Va.

So how do you cash in on this new selling platform without ringing up spamming complaints and hang-ups?

Build it and they will come

First, recognize that even in these days of do-not-call lists, spam killers and electronic junk-mail shredders, techno-savvy mobile consumers remain amazingly receptive to peer-to-peer messaging. As 'American Idol's' 13.5 billion text mail votes show, the motto "don't call us, we'll call you" seems to work wonderfully with the text-enabled Gen Y audience and their families.

Voting, polling, surveys and alerts are small pebbles in the pond of potential for mobile marketing campaigns when 'opt-in' is a cross-media effort. TV programmers flash the number to text on screens and explain how to text on companion Web sites, radio jingles, DJ promos and print ads, and celebrities urge users to "text now."

To maximize your marketing, you'll want to plan at least six weeks in advance and add a "short code" (four to six digits) to maximize your cross-media promo. The Common Short Code Administration (CSCA) leases these numbers. Confused? Think of URLs for Web sites and you'll get the idea fast. More than three million 'Survivor All Star' fans texted their votes to short code 2616l or logged on to CBS.com to vote for their favorite, Rupert. Quiz shows, soap operas, news broadcasts and even dramas like 'West Wing' are recognizing that text messaging adds interactivity on a third screen beyond the TV and Internet.

Promote that short code well and you'll find that the text-back response will create a permission-based mobile data-base for future direct response programs.

They'll pay for it

Second, don't miss out on Premium SMS, the next stage of messaging. It can be a goldmine for marketers and content producers who want to monetize campaigns. Yes, people will pay to play. Downloadables like ring-tones, wallpaper and games must be a part of any mobile campaign today, and users pay from 10 cents to $10 in the United States for those Premium SMS features (carriers do take a percentage of profits from the Premium SMS campaigns). That's why many experts see this as the perfect micropayment system. Want users to join a club, subscribe to a newsletter or purchase a ticket? Premium SMS fits the bill.

If you're still skeptical, think how many lottery tickets are sold or how many raffle tickets you bought at the church supper last year. Contests are a proven motivator. Just be sure to make the odds low, so one out of 10 entrants win or every contestant gets a low-cost freebie from you. Of course, check with your lawyer to make sure you play by the rules.

Premium SMS is a cool way to get the next generation to realize the value of content versus peer-to-peer piracy.

You're always open

Third, think of the mobile phone as an electronic wallet that's open-for-purchase 24/7/365. Supermarket shoppers, mall patrons, concert goers and freeway drivers are all available in real-time. That's the Holy Grail for every marketer -- to be able to reach anyone, anyplace, anytime, everywhere. Sure, coupons, raffle numbers and VIP passes are all great incentives, and they go right into the hands of your targets. But if you're thinking you need millions of mobile numbers -- you don't. Use billboards and electronic media to get them to text you.

AT&T is tying in with McDonalds for a text-message driven Olympic trivia contest, promoted on 250 million to-go bags. Check out one of Kellogg cereals 80 million boxes, and you'll soon see an AT&T sweepstakes promotion or text messaging trivia game with Cartoon Network. AT&T wireless spokesman Jeremy Pemble says, "We are about to kickstart a new trend in text messaging…to allow customers to interact immediately."

You're everywhere

Fourth: think beyond the box -- or the handset. Wireless is becoming ubiquitous, and with Wi-Fi hotspots and wireless broadband showing up around the world, mobile marketing means much more than texting to phones. For example, in New York's Times Square this spring, Yahoo! and RGA created a billboard that enabled pedestrians to user their cell phones to play a video game broadcast on part of the 23-story Reuters. It promoted Yahoo!s revamped auto site, and gave hundreds of players a chance to "drive" a car on the sign, steering with their cell phones.

Shopping malls and retail centers are using short codes printed on posters or displayed electronically to encourage mobile interactivity. Grassroots promos allow New York club goers waiting behind velvet ropes to jump to the head of the line with special VIP passes sent to their mobiles. Baseball stadiums are enabling fans to order snacks with their mobiles and even purchase club merchandise.

To cash in, update traditional radio or television programming with mobile tie-ins to give your viewers a voice. WDRQ radio in Detroit uses text messaging to empower listeners to give digital thumbs up or down by text messaging "H" for hit or "M" for miss when the DJ plays a new song. FOX Television's New Year's Eve special included a highly visible mobile component -- text messages from viewers scrolled on the bottom of the screen during the bash. AT&T reported that tens of thousands of users sent messages and waited anxiously for their words of wisdom, love or comedy to stream 'live' worldwide.

Reap the rewards

Finally, be prepared for success. Hundreds, thousands and even millions of responses may overwhelm phone lines or your response capability. New AI systems and natural-language software may be key in processing and sorting through messages and capturing data for the future. And mail and phone number merge/purge programs are just reaching the market.

Before you venture into this arena, talk to vendors, application developers, carriers, agencies and aggregators who know mobile and can prepare you to deal with carrier rules, regulations, approvals and deployment. They've been there and done that.

The worldwide revenue stream for messaging is expected to reach $27 billion this year. Tech advances like mobile imaging, video, high-fidelity sound and advanced multimedia messages will further expand opportunities for adventurous marketers who want measurable results in a new medium.

Are you still feeling timid about venturing into this vast land?

Watch some teens at the mall, and you'll see you're next generation of consumers walking, talking and texting at the same time. Many young people only go online for homework or turn on a monitor to play video games. The Internet and television marketing as we know it today-- with banners and commercials -- could quickly be displaced by entertainment-to-go advances, such as the Palm-sized DVR just announced by Archos and handheld MP3/personal video players.

Text and voice messaging could soon be dwarfed by multimedia greetings, all sponsored by your client or brand if you're a 21st century marketer with vision. For more info, visit the Mobile Marketing Association.

Joyce A. Schwarz is an author/analyst and consultant in emerging entertainment and media. She heads JCOM, a consulting firm located in Marina Del Rey, Ca.