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THE BUSINESS DRIVERS FOR MOBILE MARKETING Course Faculty: Mrs Yasmin Malik Venue: IBA City Campus, Karachi Course Start Date: Spring 2012 (Feb 1) MIS553:

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Presentation on theme: "THE BUSINESS DRIVERS FOR MOBILE MARKETING Course Faculty: Mrs Yasmin Malik Venue: IBA City Campus, Karachi Course Start Date: Spring 2012 (Feb 1) MIS553:"— Presentation transcript:

1 THE BUSINESS DRIVERS FOR MOBILE MARKETING Course Faculty: Mrs Yasmin Malik Venue: IBA City Campus, Karachi Course Start Date: Spring 2012 (Feb 1) MIS553: Mobile Marketing Strategies

2 Mobile Marketing: Your View…?  How would you define mobile marketing….?  The 4 elements or attributes that define mobile marketing:  Brands  Mobile technology/platform  Mobile device/handset + applications  Targeting  The fundamental rule of mobile marketing: permission based marketing

3 Mobile Marketing: The Industry View  The Mobile Marketing Association ( defines “Mobile Marketing” as: “A set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network.”  One of the world’s most influential mobile adv company is Admob (

4 Mobile vs Other Marketing Media Reach (Pakistan): Mobile = 105 million+ CPM = 10 euros

5 Local Ad Spend 2011 1999: Total ad spend was only Rs 4 million! 2011: Total ad spend up by 18% from Rs 27 billion in 2010 to Rs 31.98 billion Internet based ad spend has shown a 33% increase for 2011 but overall still only makes up 2% of ad spend at 0.56 billion compared to 0.42 billion in 2010

6 Local Ad Spend On Digital Is Now Measurable  Of the Rs. 0.56 billion spent on Internet based advertising, the following sites were the most popular (Source: Aurora, Nov-Dec 2011):  Google (35%) at Rs. 0.2 billion  Facebook (16%) at Rs. 0.087 billion  Cricinfo (10%) at Rs. 0.055 billion  MSN (9%) at Rs. 0.05 billion  (7%) at Rs. 0.042 billion  (6%) at Rs. 0.035 billion  Yahoo (6%) at Rs. 0.035 billion  (6%) at Rs. 0.035 billion  (1%) at Rs. 0.008 billion  (1%) at Rs. 0.008 billion  Banner networks and others (3%) at Rs. 0.015 Question: Where is Mobile….?

7 Worldwide Spending on Mobile Advertising eMarketer Figures: Mobile advertising in US to reach US$ 2.6 billion in 2012 (an 80% increase over 2011) Compare this to expected US Online Advertising: US $ 39.5 billion Hence mobile advertising is only a fraction of advertising spend on the Internet! Google/Admob earned US $750 million in revenue from mobile ads in 2011 Apple/iAd earned US $ 90 million in 2011 “Mobile advertising is still immature when compared to online, print and TV advertising – but is is growing at a faster pace”, Noah Elkin, eMarketer

8 Drivers for Mobile Marketing  The most personal form of marketing (calls, texts, address books, entertainment, digital media)  The most targeted form of marketing (handsets and mobile networks used)  More immediate and more actionable form of marketing (last minute or time sensitive calls to action)  An excellent direct marketing channel (TV, radio and print campaigns can be turned into more responsive campaigns)  Questions: 1) How does all of this fit into our local environment….? 2) Do you know what Pakistan’s local/telecom business landscape look like….?

9 Rural/suburban/urban 2G cellular coverage (GSM by all 5 mobile operators and expanded 2.5G + 2.75G capability via EDGE, GPRS) Suburban/urban 3G broadband wireless coverage (WIMAX, EV-DO inc Wateen, Wi-tribe, PTCL) Pakistan’s Wireless/Mobile Landscape POTENTIAL: One of the fastest growing mobile markets in the world and a benchmark in wireless broadband (WIMAX) with very favourable telecom policies and regulatory support LIMITATIONS: Bandwidth provision (network issues when moving from voice centric to data-centric applications) Reach, infrastructure, quality of service Awareness Source: Adapted from What about cellular 3G license auctions? What impact will this have…?

10 Mobile Marketing Network Architecture

11 Who Exactly Are We Trying to Reach via Mobile…?  Overall: 105+ million current mobile users in Pakistan (compare this to approx 65 million users for traditional media)  Dual SIM usage puts industry estimates at approx 70 million “active” users – but this is disputed by the Pakistan Telecommunication Authority (PTA)  Approx 5% of mobile subscribers in Pakistan use the mobile Internet or GPRS/EDGE services  Handset tie-in (2011, as estimated by Converge Technologies): 5% of Mobile Handset Users10% of Mobile Handset Users 85% of Mobile Handset Users SmartphonesMid-range PhonesLow-range Phones Monthly spend: Rs 2,000+ Monthly spend: Rs. 300 Monthly spend: Rs 100-150 Converge research shows that Smartphone users are more receptive to mobile Internet based mobile marketing Note: It is not just the reach (number of subscribers) that matters Other factors such as handset, preferences and spending power must be taken into consideration as well

12 4 Types of Mobile Marketing  The most tried and tested mobile marketing forms can be categorized into 4 broad domains: 1. Text/SMS based campaigns 2. Mobile Portal based campaigns (including click-through banner and txt/MMS based ads) which may or may not involve mobile application downloads 3. Mobile Voucher/Coupon Redemption/Promotion based (includes QR Codes) 4. Location Based or “Digital Proximity” based (demographic and psychographic targeting)  All of the above make some use of “demographic”, “psychographic”, “device” and “carrier” targeting  Note that the latter three are image based

13 The Mobile Marketing “Mindset”  Which companies is mobile marketing right for?  Is it restricted to tangible brands?  Can it be applied to “intangible brands”?  Following are some of the industry sectors where mobile marketing has been applied successfully: FMCG automobile industry telecom/IT aviation Banking/finance retail education/universities TV/media hotel/leisure industry

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