Mobile offers a targeted interactive channel with great CRM opportunities and can offer very good results if the marketing is relevant. It is a marketing channel which still needs to mature in a number of markets, including South Africa, but one that also needs to be understood for its brand marketing opportunities.
Mobile marketing offers two-way interaction and whereas SMS marketing has perhaps been abused, it shouldn't become another form of marketing spam. Marketing can be pushed or pulled and although it may succeed for it novelty factor initially, most mobile marketing campaigns have had very high consumer response rates and "likeability". Unlike any other marketing media, a mobile phone is a device that consumers will always have with them, which is a marketers dream. Like short-form mobile entertainment, it targets those times in a consumer's day when they have a few minutes to spare.
Korea is one of the most mature mobile markets in the world and examples of mobile marketing were presented during a panel discussion at MIPTV covering brand marketing with mobile. They have taken a unique approach to mobile marketing where consumers subscribe to an advertising service but receive various benefits and rewards for doing so. The rewards include various brand offers and coupons as well as a reduction in their mobile phone bill. For example, a consumer is sent a 30-second ad for a new vehicle. He chooses to watch the ad and at the end is prompted on whether he wants more information or would like a test drive. Response is via one button, a hot key, and if a test drive is chosen, the nearest dealer is sent the consumers details automatically, the consumer is sent an SMS in return with a few time options for the test drive. If the consumer wanted more information, he would be directed to the mobile internet site and can interactively get more information. At the end of the interaction, the consumer will be rewarded by getting a reduction in his mobile phone bill which is paid for by the vehicle manufacturer or dealer. Further rewards can be obtained if the consumer forwards the ad to other consumers and they also interact.
Another example was cited: Joe Bloggs wants to meet his girlfriend for a quick lunch. She likes McDonalds so he goes to the McDonalds mobile website and sends a McDonalds branded SMS. His girlfriend receives the SMS with directions and Joe receives an SMS with a bar-coded coupon for a free dessert. When ordering the meal, the barcode is scanned from the mobile phone screen by the store.
The question here is whether consumers would be prepared to watch marketing content on their mobile phones in exchange for rewards and benefits? I think yes. If you asked consumers whether they would be prepared to pay a lot more for a magazine if all the ads where removed or even pay a television license fee for a free-to-air channel such as eTV, I think they would opt for the ads. As in any advertising medium, brands help fund the medium. Although ad breaks during television programming might be irritating, the subsidization of the medium makes the ads bearable. Unlike TV, which is a lean-back experience, mobile marketing offers a very interactive experience with the brand and requires a new understanding and a different creative approach from ad agencies.
