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:
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
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
Mobile Marketing: The Industry View The Mobile Marketing Association (mmaglobal.com) 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 (www.admob.com)www.admob.com
Mobile vs Other Marketing Media Reach (Pakistan): Mobile = 105 million+ CPM = 10 euros
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
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 Geo.tv (7%) at Rs. 0.042 billion Jang.com.pk (6%) at Rs. 0.035 billion Yahoo (6%) at Rs. 0.035 billion Dawn.com (6%) at Rs. 0.035 billion Brecorder.com (1%) at Rs. 0.008 billion Tribune.com.pk (1%) at Rs. 0.008 billion Banner networks and others (3%) at Rs. 0.015 Question: Where is Mobile….?
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
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….?
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 motorola.com What about cellular 3G license auctions? What impact will this have…?
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
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
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