The Untapped Potential of Mobile Marketing
I never thought very much about mobile marketing until I researched the topic this week for class. I have a cell phone, however I just recently moved to civilization. Before, we lived out in the country with no cell reception. I personally have not received a mobile marketing message, but now I see the great possibilities that mobile marketing has to offer.
Today phones are used for far more than just as a phone. In 2005, text messaging was up to 7.5 billion from users up from 2.5 billion the year before. Text messaging is expected to create over $4.6 billion in revenue. The reason why? Because more than 95% of mobile phones support text messaging and over 62% of users use this feature of their mobile phones. (Becker, 2005)
The demographic most receptive to mobile marketing would be teens and young adults. In 2005, more than 500 billion text messages were sent and received and by 2010, it is projected to be more than 2.3 trillion. Teens and college students spend so much time text messaging that their communication skills are at risk. (Barker 2006)
Mobile marketing can greatly expand the e-commerce industry. Currently, e-commerce revenue is $204 billion and expected to increase to $335 billion by 2012. Also, there are 3.3 billion mobile phone subscribers as opposed to 1.3 billion internet users. These statistics show that there is a lot of untapped potential in mobile marketing. Applebee’s will get a jump on the competition since currently only 42% of retailers currently even have products available for view on mobile phones and only 15% of them offer mobile e-commerce capabilities. (Cisco, 2008)
Marketers have to be careful though not to irritate their customers. By 2008 it is expected that 89% of marketers will be using some form of mobile marketing. However, results of studies have indicated that up to 80% of cell phone users would be willing to change cell phone plans if they receive unwanted advertising on their mobile phones. Consumers do seem willing to trade off a little inconvenience and privacy for freebies like ringtones, music, and wallpaper. Consumers also welcome advertising from products or companies that they opt-in to receive. The key is to get consumers to opt-in to receiving the marketing material. How do we accomplish this? By getting the consumers to not only op-in but be eager to receive the marketing message or by getting them to do the marketing for you by actively participating in the mobile marketing. In Steve Smith’s article, “Off the Hook”, he gives examples of consumers doing the marketing themselves through picture taking contests or by voting for their favorite contestant on a TV show. He states, “Give the mobilistas reasons to use technology the way they want to use it.” (Becker, 2006) (Chappell, 2006) (Chappell, 2006) (Smith 2006)
I think over the next several years as mobile technology continues to increase, we will be seeing more and more e-commerce capability. Wouldn’t it be great to be able to order a pizza from a mobile phone and pay for it? Or even order dinner for your family from a restaurant like Applebee’s from your car. We are a civilization on the go and the convenience of having a computer on hand with you wherever you go offers many opportunities for marketers.
For more reading on the topic of marketing, check out these sources:
Technology Leaves Teens Speechless.
Mobile Marketing Research Priorities: Roadmap to Engaging the “Connected Consumer”. Marketing Science Institute 2006)
Research Update: Unfolding of the Mobile Marketing Ecosystem: A Growing Strategic Network.Mobile
