Are there any statistics on mobile phones or mobile marketing that don’t amaze you? Did you realize that more than 75% of smartphone users make use of location-based services to gain information about businesses near their location? The exercise includes reviews of businesses, getting directions, calling the business and using the businesses’ mobile app. Most could utilize an effective location mobile marketing ebook.
Location-based ads are the future and will lead to a revolution in mobile advertising.
- Eric Schmidt
It is simple … the objective of location-based, mobile marketing via mobile devices is to encourage these activities as well as drive foot traffic, share discounts, and build customer loyalty.
Check out our thoughts on creative marketing.
Businesses that are investing in efforts to increase their location-aware audience base are reporting improved conversions. This is because they have ensured that their business is easy to find and also because they have skillfully combined location-based marketing with an overall targeted marketing approach that includes social media, push notifications, email newsletters, and even offline marketing.
Context of mobile
Unless you have just returned from a deep sleep over the past few years, you are very aware of the mobile trends. The growth of the smartphone has been something extraordinary. Will this growth in smartphone utilization lead to an equal growth in mobile marketing campaigns?
We say yes in resounding fashion. Is your business employing mobile internet marketing? Here are 14 reasons you should be and why we believe the smartphone is becoming marketing’s next big thing:
It’s very personal
…enables social, location, preferences, and behavior, resulting in a HUGH advantage
It creates ability to influence and reward behavior
… to targets in near real time and location
It is fun to use
…a great social and casual entertainment source
It represents ubiquitous computing
… the local processing and storage is remarkable
It yields measurable
… real world activation
It can access
… nearly everything everywhere
… of applications and utility growth
The smart phone’s
… massive utilization acceleration
… and devices are much faster
JiWire, the location-based mobile advertising company, has interesting Mobile Audience Insights Report examining trends in location and mobile shopping, connected device adoption and public Wi-Fi usage.
Key highlights of the report include:
Connected device trends
Almost half of the ‘on-the-go’ audience is connecting to public Wi-Fi from smartphones (31%) or tablets (14%). By contrast, the connection from laptops has decreased from 70% last year to 55% currently.
Location-Based app adoption
70% of C-level executives use location-based apps on a weekly or daily basis. 73% of small business owners use location-based apps daily (57%) or weekly (16%), and more than half of all business executives use apps on a daily basis regardless of position or company size. The top three most-used app categories are travel, weather, and social networking for business travel, with booking reservations the most important service, followed by finding nearby business services.
Mobile shopping behavior
37% of ‘on-the-go’ consumers have used a mobile wallet in the past three months and rapidly growing.
When shopping in-store, 49% of consumers compare prices with other stores. Comparison shopping has become one of the biggest competitive threats and challenges for retailers. Retailers will need to make it a priority to develop a strategy that addresses this trend. For more information on value propositions, see our article on building the best unique selling proposition.
Have you prepared your business to take full advantage of a mobile marketing strategy to engage your customers? This data should convince you.
An offline business such as a restaurant, retailer, florist, or another retailer that places content about its business, operating hours, contact details, sales, discounts, and new arrivals on social media, blogs, and mobile apps derives two benefits. Mobile searchers are finding the immediate benefit with needs that require quick if not immediate gratification.
Another benefit is brand awareness for both new and existing customers. There are plenty of competitors and distractions out there, so what are you doing to stay top of mind with customers and prospects?
Location-based mobile marketing brings about the convergence of online marketing and the physical shopping experience. Preferred tools include QR codes, click-to-call, coupons, and mobile apps. Fewer than one out of four offline businesses are making effective use of these tools.
Those that are have already gained a considerable advantage over slow adopters, but all is not lost, it’s still early, and there’s time to catch up and capture market share with location-based mobile marketing.
Why mobile marketing strategy?
Your business needs a mobile marketing strategy for the same reason that you need a computer and Wi-Fi access – this is the age in which we live. Walk around any major city, and you’ll find more than just a few folks with faces glued to their smartphone screens. According to recent reports, 40% of users’ internet time is spent on mobile devices, which means simply ignoring the rise of mobile just isn’t an option.
Some other interesting mobile marketing statistics:
80% of mobile device time in spent on apps, with game apps eating up the largest percent of app time
People browse 70% more web pages on tablets than smartphones
Retail conversion rates are 2.2% on tablets, considerably higher than 0.7% on smartphones, but traditional PC conversion rates are still highest at 3.3%
Mobile searches increased 200% year over year in 2012
Mobile is predicted to surpass desktop in 2014
Mobile is here to stay, and if forecasts are correct, it will soon by eclipsing desktop usage. If you don’t have a mobile marketing strategy yet, it’s time to get going!
Now, the bad news. Most mobile marketing is missing the mark by sending messages that consumers don’t find relevant, useful, or personal enough.
While about half of respondents (45%) said their most recent text message or alert was useful, a similar percentage (46%) said it wasn’t. Worse, more than half (52%) say the message felt “intrusive or spammy,” while one-third said the message didn’t offer any value.
Consumers are eager to get relevant messages — so much so, in fact, that 41% say they’d be willing to share more of their personal information with businesses to get relevant offers or discounts. Location data (20%) and demographic data (19%) are the most common kinds of information consumers are willing to share.
How mobile is revolutionizing marketing
If the mobile is now the primary screen, far ahead of television, it is not a coincidence. For instance, 53.8% of the population in France are using a mobile device, and 4 out of 5 mobile users access the Internet almost daily from one. 43% of mobile shoppers buy at least 1 per week on a mobile. 18-44-year-olds are the most heavily represented group among mobile buyers (source MMA France).
Mobile technology has enabled the development of new usages not only for individual users but also for businesses. Here are five examples of the new scope that marketing is reaching through mobile.
One strong highlight of the mobile is the intrinsic quality of smartphones: immediacy. As it is located on a person almost constantly, mobile meets the needs instantly. You can reach your target straight away.
Mobile devices allow you to know the geolocation of the mobile user. One of the many use cases is proximity advertising. In the Salon E-Commerce Paris 2014, Renaud Biet, co-founder of Tabmo, showcases the power his company brings to advertisers and e-commerce through their specialty of mobile advertising and programmatic purchases.
Their offering establishes a link between the physical world and the digital display by synchronizing urban (local) ads with mobile advertising.
Contextualization “In Place, In Time, Insight.”
Mobile can take into account local information in real time and thus present information in the context of the mobile user. Then you can multiply that power by combining it with behavior data. Doing so allows you to connect with the right person at the right time and the right place to present him with just the right offer.
A recent study by Accenture in the US reveals that 65% of buyers at the point of sale want to receive contextualized offer related to their buying habits right on their smartphones.
The engaging mode
The many interactive possibilities on a mobile device can transform a user experience to make it more attractive and desirable, anytime and anywhere.
All the reasons above tend to create true intimacy with the user to create unique and personalized experience. One of the best examples is the iBeacon. iBeacons are small physical devices that are always broadcasting their location and unique identifier to a small nearby area. They broadcast only and receive no information back from the mobile device
iBeacons can be used to have a phone notify its owner of nearby items that are on sale and can enable payments at the point of sale (POS), so customers don’t need to remove their wallets or cards (source Wikipedia).
Thanks to mobile, marketing has a new high-performance tool to optimize campaigns and target its messages. It combines consumer data with contextual information.
This opens doors for innovations and approaches to reach the right customer with the right message at the right time. However, marketers must be careful not to become too intrusive.
And you, how do you market on mobile?
Location mobile marketing ebook … mobile marketing design
Here are several location-based mobile marketing options that businesses can use in different settings.
RFID tags are worn by people at events or placed within lanyards or even in stickers transmit locations, offer insight into an individual’s interests, or can provide specific information. RFID is in most cases short range and can also be referred to as NFC (Near Field Communication). In fact, if you have a relatively new Samsung phone it probably has this functionality built in.
This technology that can be put to great use by stores to automatically alert customers to deals, discounts, offers, and more when they are close to your store or restaurant. Here’s how it works. Let’s say we developed a mobile app for your small business. You would use the mobile app management system we provide to setup your geofence. You select a one-mile perimeter around your store and set up the push notification you want to be sent to people who have your mobile app when they come inside your fence.
It’s that easy. Now every time someone with your mobile app comes within 1 mile of your store, they will automatically receive your offer, discount, announcement, etc. via push notification. All you have to do is be there to serve them when they walk in.
Effective location-based marketing with mobile devices demands that you run a data-driven campaign. Data collected from different marketing experiments and consumer behavior should be leveraged to create messages that are as personalized as possible.
One in three adult social media users has his account configured to display location, on the other hand, a sizable number of people, out of privacy concerns, deny mobile apps access to location-based information. This is primarily caused by a lack of trust or simply because they haven’t been presented with the benefits of accepting push notifications and sharing their location.
In my experience, if customers are asked to accept push notifications and share location data to receive special offers, discounts, event announcements, etc. they are happy to do so. After all, they are shopping or dining with you because they trust you and want to return. You just need to give them a reason to do so.
App based marketing
With the increasingly widespread use of smartphones, app usage has also greatly increased. Therefore, mobile marketers have increasingly taken advantage of smartphone apps as a marketing resource. This allows for direct engagement, payment, and targeted advertising.
There is a lot of competition in this field as well. However, just like other services, it is not easy anymore to rule the mobile application market.
There are essentially three major trends in mobile gaming right now: interactive real-time 3D games, massive multiplayer games, and social networking games. This means a trend towards more complex and more sophisticated, richer gameplay.
On the other side, there are the so-called casual games, i.e. games that are very simple and very easy to play. Most mobile games today are such casual games, and this will probably stay so for quite a while to come.
Brands are now delivering promotional messages within mobile games or sponsoring entire games to drive consumer engagement. This is known as mobile advergaming or Ad-funded mobile game.
Mobile web marketing
Advertising on web pages specifically meant for access by mobile devices is also an option. The Mobile Marketing Association provides a set of guidelines and standards that give the recommended format of ads, presentation, and metrics used in reporting. Google, Yahoo, and other major mobile content providers have been selling advertising placement on their properties for years already as of the time of this writing.
Advertising networks focused on mobile properties, SMS resellers and advertisers are also available. Additionally, web forms on web pages can be used to integrate with mobile texting sources for reminders about meetings, seminars and other important events that assume users are not always on their computers.
Also, Mobile websites are another aspect of mobile web marketing and can be a tool that can use to help make purchasing goods and services easier as well as create better communication opportunities.
Location-based services are offered by some cell phone networks as a way to send custom advertising and other information to cell-phone subscribers based on their current location. The cell-phone service provider gets the location from a GPS chip built into the phone or using radiolocation and trilateration based on the signal-strength of the closest cell-phone towers (for phones without GPS features).
Some location-based services work without GPS tracking technique, instead of transmitting content between devices peer-to-peer.
QR code employment
Until recently, the ability to employ QR codes was one of the most untapped marketing resources available. (And we say this with a great deal of respect for the efforts that advertisers poured into their QR code campaigns.)
In my years working in the industry, I was particularly struck by the alleged “low conversion” rates of traditional QR codes. Now, however, QR codes are enjoying increasing levels of popularity.
Nowadays, we’re making great strides towards a much better understanding of QR codes and how to unleash their true potential. But let’s start at the beginning.
What are QR codes?
Quick Response, instant contextual information that the customer reaches out for. They are a simple symbol designed to transmit digital messages. The ultimate permission marketing technique.
Some of the most common applications are opening the website to a key landing page, dialing a company telephone number, reading an RSS feed, sending an e-mail message, scheduling a calendar event, launching any App on the smartphone, retrieving location data, or sharing a contact card. Just about anything you can imagine. Be creative.
Considerably more than the old bar codes. Numbers = 7089 and alphanumeric = 4296
QR code generators
There are considerable differences in QR code generators. Do your homework on the available generators. And then establish you QR code objectives before selecting the generator that is best for you. Make sure you consider the different metrics and tracking you will need; your error correction level requirements; and the graphic customization you want.
Lots of metrics to consider, such as where your customers are opening the codes; which ad locations are most effective; and which creative attract the most attention to the code. Lots to experiment with and it is definitely worth the experimentation with your target customers.
You definitely must do thorough testing before launching your code, as there are many variables that could create problems. Start with scanning your printed code and then try several readers on each of 3-4 phones.
Test all major operating systems. Make sure you use the lighting you expect from locations you expect customers to be scanning the code. Don’t take anything for granted.
Common QR code employment mistakes
When I examine ads that are employing QR codes today, here are some of the common mistakes I see:
Not telling customers what they will receive from the code.
Not placing the information about what they will receive close to the code.
Poorly defined campaign.
Leaving customers hanging.
Putting material in QR codes that are limited in value.
No contact information for the brand
Pay attention and try not to repeat these mistakes.
Here are two very good examples of applications and their results:
The American ketchup brand Heinz placed QR codes onto its bottles in US restaurants. Patrons were offered prizes for answering trivia questions. About one million customers subsequently scanned the bottles. One of the most creative campaigns we have seen.
L’Oreal received a 7% increase in sales when it advertised inside NYC taxicabs. The QR codes were linked to videos with Lancôme and Yves Saint Laurent beauty products. During the five-day campaign, the app was downloaded on average 80% more.
The number of smartphone users sits in the region of 2 billion. This not only serves as a massive incentive for marketing departments to find innovative means of attracting customers, but it also makes mobile marketing more attractive.
In the West, QR code usage is enjoying a much warmer reception among patrons. The use of visually appealing QR codes is fast gaining traction. QR codes are now being incorporated into marketing messages in such a way that causes users to find them too enticing to resist. The goal is to seamlessly juxtapose QR codes into messages, images, and marketing strategies.
Here is the thing to remember. Clutter is not too much information; it is a failure in design. Employ QR codes to help you make designs more effective.
Location based mobile marketing guide … mobile campaign tactics
We’re leaving you with some quick mobile marketing tactics to make sure you make the most of the mobile.
Be clear and concise
Mobile devices have small screens, which means words should be used sparingly. Cluttered and crowded ads will just drive users to scroll past. When it comes to mobile, it’s best to keep things simple.
Optimize for local
Be sure to remember that 1 in 3 mobile searches have local intent. Users often use mobile devices to complement their immediate worldly interactions – where is the nearest gas station? Is there a nearby coffee shop that has Wi-Fi? Optimize for local mobile marketing to make sure you are aligning with users’ queries.
Consider your audience
The type of audience you’re hoping to reach should influence the kind of mobile ads you use. Are they gamers? Then try taking advantage of in-game ads. Are they young and tech-savvy? Mobile Facebook promoted posts might be more likely to get their attention.
Timing is essential
Text messages and alerts are extremely personal and the most intrusive forms of digital marketing. It’s crucial to be certain you are sending messages and alerts at relevant times, or consumers will quickly cut you off.
If your business is e-commerce or another industry with customers around the country, it’s important to be aware of customers’ time zones. You don’t want to wake someone with an ill-timed message.
Tap into history
Use data you’ve collected from customers’ past shopping habits to tailor mobile marketing messages to their needs and interests. Relevance is especially important when messages are interruptive.
Start slow and build on success
Track how customers respond to mobile marketing messages, and use that information to expand your campaigns. If certain customers are highly responsive, you may want to message them more often. Two-three messages per month is a good frequency to ensure you don’t wear out your welcome.
Make it clear how you will use personal information and what the benefits to the customers are. Customers are more willing than you might think to share personal data, but you need to state what they will get out of the exchange and provide offers and coupons that have substantial value.
Experiment with different strategies
There’s a lot of room for experimentation when it comes to mobile marketing. Don’t be afraid to test out some ad extensions with your AdWords enhanced campaigns – try the Google offers ad extension, or the click-to-call extension, and see how they work for you.
Benchmark your results
Experimenting is great, but there’s no point in trying new techniques if you’re not tracking your results to see what works and what doesn’t.
Mobile trends to watch
With mobile and mobile apps playing such a significant role in the successful marketing of the business, let’s take a look at some of the top mobile marketing trends and what they mean for mobile apps and the businesses utilizing them.
Better targeted marketing
Because location technology has improved so much this year, companies can better target their audiences. And it’s not just targeting a large group of their audience, but the capability of targeting individuals. When targeting an individual, businesses must use a more personal approach.
A great personalized way of doing this is by incorporating native advertising into their mobile app marketing strategy. Businesses are using mobile app marketing techniques to create a more personalized experience for their users. Examples of such sites implementing this include USA Today, CNN and Facebook.
Going native provides a more personalized and meaningful experience for users. Through location technology and knowing a user’s mobile history, businesses can target each user with relative mobile apps and sites. Doing this means their users are more likely to download the apps and visit the sites shown, which also means those businesses will better monetize their mobile visitors.
Mobile app burnout
There are hundreds of thousands of mobile apps available. The average smartphone user downloads anywhere from 25-40 apps, but then only regularly uses half or a third of those. It’s common for people to download an app and only open it once or twice.
More apps are out there than people can handle, causing a serious case of mobile app overuse. With this happening, a business needs to make sure if they create an app for their consumers that they create a useful app their users can connect with.
One brand that did this most successfully is Starbucks. With the Starbucks app, customers pay for their coffee and track their purchases on their smartphones. It also has a loyalty program, My Starbucks Rewards, where customers earn rewards when they purchase with their phones and then can redeem their rewards for free Starbucks products.
This app shows Starbucks understands its customers’ needs because it makes life easier for every on-the-go Starbucks customer by helping them more quickly get in and out with their coffee, not to mention a chance at free stuff which all customers love.
Growing use of social media apps
Let’s be honest; society is addicted to social media. Social media has penetrated nearly every element. According to one study, social penetration (how much of the population is using a social network on a monthly basis) is around 40% across the globe and growing.
And why shouldn’t we be? It’s a way to stay connected with friends and family, a way to get and share information, and a great way for businesses to reach their consumers. About two-thirds of smartphone and tablet users access their social network accounts from mobile devices, with Facebook being the top smartphone app accessed.
This means businesses looking to better connect with their consumers and market their brand to a wider audience — including several potential clients — should look at ways to use social media apps for ad campaigns. Facebook, for example, lets you quickly set up mobile app ads to push to users. Other tactics could include Facebook remarketing, promoted tweets, LinkedIn sponsored updates, Stumbleupon paid discovery and other tools or maximum exposure.
More video on the go
Mobile users engage with video content daily. Nearly 40% of YouTube video views are via mobile. The video is a fun way of sharing information, not to mention easier for users to digest that information. Because video is such a strong mobile traffic driver, businesses need to start producing awesome video content.
Businesses can capitalize on mobile video platforms to connect with their audiences similar to Facebook. Businesses can capitalize on this by using tactics like YouTube’s true view ad channel.
The craze of the future is wearable technology, and we see that craze only growing in the future. Wearable devices aren’t meant to replace people’s current mobile devices. Instead, they’re devices with apps that collect a user’s data and relay real-time notifications and feedback to them.
Fitness trackers and smartwatches are currently the top ones used. Businesses wanting to jump on this wearable craze don’t need to create a brand new app. All that’s required is making some tweaks to their existing mobile app to fit their wearable design.
Technology advances and people’s wants change every day, which also means mobile trends regularly change and businesses have to keep adapting to these trends. Adapting isn’t a new concept, it’s very possible for a company to do. Partnering with other companies to give customers exactly what they need is one way of adapting. But the best way of being prepared and adapting to these changes is staying up to date with the mobile industry, taking the time to understand mobile trends and making mobile a top priority.
These trends don’t necessarily negatively affect mobile apps. They just mean businesses need to continue evolving and improving with technology and the times.
Nielsen recently released a report that showed a trend between mobile users and television engagement. Many consumers use their mobile devices while watching television and this can give marketers a chance to convert on people watching advertisements instantly.
Nielsen reported 14 percent of US tablet owners and 7 percent of smartphone owners had used their devices while watching TV to purchase an advertised product. They also noted that 18 percent of US tablet owners and 12 percent of smartphone owners use their devices to discuss programs on social media while watching TV.
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Mike Schoultz is the founder of Digital Spark Marketing, a digital marketing and customer service agency. With 40 years of business experience, he blogs on topics that relate to improving the performance of your business. Find them on G+, Twitter, and LinkedIn.
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