Pulling consumers into this emerging marketing channel.

Although still in its infancy, mobile marketing is one of the most personal forms of one-to-one marketing available. But with this personalization comes concerns for both marketers and consumers. What is the cost effectiveness of mobile marketing? What are the current limitations? Mobile marketing is proving to be a worthy branding vehicle and a truly interactive channel this year, with campaigns using pull and opt-in tactics. Consumers are receptive to mobile marketing when they are presented with fun and engaging campaigns, and particularly when marketers are aware of -- and address -- their concerns.

The Mobile Marketing Association (MMA) reports there are 165 million mobile consumers, 2.5 billion SMS messages sent each month and the US is the second-largest single pool of cell phone users in the world (after China). The MMA predicts that the mobile industry will grow to an estimated $5 billion by the end of 2005.

It's no surprise that marketers are tapping into this emerging mobile channel.

In the middle of October 2004, Unilever, the manufacturer of Dove brand soap, launched the first interactive billboard in New York's Times Square. The billboard flashed women's faces and asked people "What is beautiful?" while cell phone users cast their votes via text message. A running tally appeared in real-time on the billboard.

In Spring 2004, Fox's "American Idol" teamed up with AT&T allowing viewers to vote for their favorite singer via text-messaging. The campaign generated 7.5 million text messages during the show's season. Text voters got a chance to win all-expenses trips to New York or Beverly Hills with nine of their friends, so there was also an incentive to participate in the campaign. But you had to be an AT&T subscriber to participate.

Unlike the "American Idol" mobile marketing campaign, the Dove Times Square billboard offered no prizes and used Short Message Service (SMS) cross-carrier polling. Therefore, anybody with cell phone text-messaging could participate.

So, what does all this mean for marketers? What do these two campaigns have in common? And how do marketers enter this channel?

"At an entry level, the goal is to bring the consumer into mobile marketing by making it fun and entertaining," answers Michael Becker, president, iLoopMobile, who is also working on a doctorate in mobile marketing from Golden Gate University.

Pull vs. Push

For mobile marketers, the "pull" is more powerful than the "push" in bringing consumers into your campaign. If you give the choice of an opt-in or a prize, consumers are more likely to be receptive to mobile marketing. The "how" of pulling in the consumers can be explained in Becker's definition of mobile marketing.

"Mobile marketing is the process by which the brands, content owners and marketing agencies interact with the consumer through a mobile channel. Mobile marketing is an interactive channel, however: it does not stand alone. Mobile marketing uses traditional media to invite people to participate with the brand," says Becker.

The Dove campaign fused tradition media (billboard) with a mobile channel (text-messaging) while in the "American Idol" campaign, text-messaging teamed up with television. The "American Idol" offered a travel prize incentive while the Dove campaign didn't have any prize incentives. However, both campaigns fused traditional media with a mobile channel; and in doing so, created fun and entertaining campaigns.

Another recent example of mobile marketing in the United States was Procter & Gamble's Herbal Essences brand teaming up with mobile marketing firm m-Qube. The "Never Underestimate the Power of Herbal" campaign enabled users to download cell phone ring-tone music, hair and beauty tips, images and text-messaging. Users had to sign-up through the Herbal Essences Web site before participating in the campaign with charges going directly to their wireless bill.

"Teens and young adults view mobile content as an integral part of their lifestyles and frequently update and personalize their mobile phones," says Mimi McGrath, interactive marketing manager, Herbal Essences at Procter & Gamble. "By providing them with Herbal Essences branded content, we are strengthening the bond we have with our target consumers."

Mobile marketing hurdles: spam, technology and privacy

Spam

Mobile spam worries both cell phone users and marketers. In September 2004 the Mobile Marketing Associated formed the Wireless Anti-spam Committee to make sure that wireless content applications remain spam-free. The MMA established an anti-spam Code of Conduct for phone carriers and marketers in the mobile industry. The MMA's Code of Conduct advises all brands, carriers and advertisers and technology partners to adopt a double opt-in standard for mobile marketing campaigns.

The MMA Code of Conduct is broken into the Six Cs of privacy:
• Choice: mobile marketing is acceptable only to consumers that opt-in to receive it.
• Control: consumers who opt-in must have any easy way to opt-out of all mobile marketing.
• Constraint: consumers should be able to set limitations on messages received.
• Customization: analytical segmentation tools will help advertisers optimize message volume, ROI and relevancy to the consumer.
• Consideration: consumers must perceive value in any mobile marketing campaign.
• Confidentiality: Privacy policies must be aligned between the carrier and the brand.

"Unlike email spam, which is an open network and is difficult to stop a person from sending it, the mobile network is a closed network," explains iLoopMobile's Becker. "If I am a spammer and send spam, the mobile phone carrier can shut me down. Also, SMS is not free like email."

Technology

Another concern for marketers is cell phone technology compatibility. "Disparate networks are slowing the growth of mobile marketing. The US market is comprised of no less than four entirely different network technologies, each with its own set of proprietary software," says Tom Burgess, chief executive officer, ThirdScreen Media. So, marketers envisioning mobile TV phone consumers viewing rich media ads have to wait a while. TV mobile phone technology is developing and will take a while for consumer to adopt. Unfortunately, there's not standard yet for picture phones yet so mobile cell phone marketing is primarily text-message based. 

Thankfully for marketers, text-messaging is cross-carrier compatible and works all text-message capable phones. It's also low bandwidth data so marketing messages don't really consume minutes or memory on your cell phone. How many text-messages you can receive or send per month is dependent on each individual's wireless data plan.

Privacy

Mobile marketing must also grapple with consumer privacy concerns. Burgess does not see these hurdles as insurmountable, but they must be appropriately handled so as not to become stone walls.

"Most wireless carriers realize the incredibly important role they play as the 'protectors' of their subscribers. Therefore, in most cases, they are already taking steps to safeguard their privacy. It is important for marketers who wish to effectively reach consumers on their wireless devices to stay abreast of the ever evolving privacy issues and 'best practices' associated with this market," suggests Burgess.

Burgess also believes that another significant hurdle is that the wireless carriers must accept and understand the advertising business model. "The difference between the online companies of the 90s and today's wireless carriers is the wireless carrier business model was designed around a consumer-pay model only. Deriving revenue from advertisers has only recently been considered in their business model. This is a fundamental change the wireless carriers are currently grappling with. It will be important for marketers to get involved with companies who provide solutions for marketing to mobile subscribers," says Burgess.

Consumer Acceptance

The final hurdle comes down to consumer acceptance. "Consumer acceptance will drive the mobile marketing industry," predicts Burgess. "If privacy is dealt with correctly and the wireless carriers find equilibrium with the advertiser business model then all that is left is the acceptance by the consumer," he adds.

The Future of Mobile Marketing

The MMA predicts significant growth of the mobile industry to an estimated $5 billion by the end of 2005. Who are these consumers? Teens and young adults, according to Burgess.

"With over 33 percent of mobile phones users between the ages of 18 and 35, mobile represents a media channel that is growing-up with the next generation of primary consumers," says Burgess. "Advertisers are craving new, creative channels and mobile is emerging as the next great opportunity."