Future Trends in Mobile Advertising

American marketing and advertising companies are testing new advertising trends because mobile is going to - and already does - play a huge role in the way people consume media. Mobile devices are as personal as a women carrying a purse, or a man holding a wallet. From an advertisers point-of-view, they see it as a way to connect directly with their audience, not by relying on traditional methods of marketing, but instead, embracing these newer technologies for their campaigns.

Mobile advertisers will continue to test the viability of their ads to see which ones are generating an ROI. Think of how the mobile phone has changed our lives within the past 15-20 years? Many would agree, that yes, the mobile phone has greatly impacted the way we communicate as humans. Advertisers are testing to see how mobile ads can influence brand building and increase consumer awareness.

Mobile advertising will continue to grow in the years to come. The ads will become more personalized and targeted to certain groups of people based on their location, interest, demographics, psychographics and many other factors. Small business owners who utilize location-based mobile marketing can increase foot traffic to their storefronts and increase their sales. In fact, "94% of retail transactions still take place in physical stores." By targeting ads based on the relevancy of where customers are and what they are looking for, advertisers can dial-in their marketing message until it creates optimum results.

Once mobile becomes the primary media consuming device, more rich media campaigns will be delivered at greater levels of accuracy to consumers. More people are likely going to opt-in to these ads, in exchange for free content that is beneficial to their lives.

Security is going to be a concern for many mobile users. This presents a huge challenge for mobile advertisers. A system needs to be put into place to establish trust for potential and current mobile users of ways in which advertising can benefit their needs. The end-goal for advertisers is to profit and constantly grow, while for mobile users, its to feel more comfortable receiving ads on their phones. Tons of advertising dollars will be dumped into mobile ad campaigns for testing purposes to see which content is effective and will actually "stick". Once consumers can accept the new way of receiving advertising, as opposed to the traditional way, it will eventually create a win-win situation for both parties. Consumers need to recognize either a physical or social benefit, otherwise, they are likely to distant themselves from these newer technologies.

Sources:

http://www.scribd.com/doc/9816243/Mobile-Marketing-Challenges-Dissertation

http://www.pascalrossini.com/wordpress_eng/2010/03/31/the-future-of-mobile-advertising-is-local/

http://searchreversephonenumber.com/blog/468/advantages-of-mobile-phone-advertising-to-the-small-business-owner/

Mobile Advertising - A Case Study of Eastbay.com

When it comes to the latest in sports fashion apparel, where do customers turn to? One place to consider is Eastbay.com. I clearly remember the first time I placed an order with this company. It was during the summer of 1998 when a buddy of mine brought the direct-mail catalog with him to school. My initial impression of the catalog left me with this feeling of amazement. I was impressed with the wide selection of shoes and sports apparel this company offered. At that time, I was a huge shoe collecting fanatic, and much to my surprise, there were shoes that Eastbay.com offered that my local Footlocker or Champs did not have. Since then, I have watched the company grow, continuing to offer its customers the widest selection of sports apparel in the U.S.

The company has undergone many changes over the past 12 years. While many other businesses have been forced to shut down their doors of operation, Eastbay.com is still thriving, making them a clear example of a business that is recession proof. In my opinion, I feel that the primary reason why they have been able to withstand the economic downfall is due to their brand reputation. Furthermore, they have learned to address the needs of their current customer database by giving them even more options to shop, be informed, and stay connected with their brand. Mobile advertising is an important aspect of the company to remain competitive and to differentiate themselves from the competition.

Developing a mobile version of the actual website was the first step to providing a platform for customers to engage and participate in an interactive online environment. Unlike the website, the mobile site is much more compact, can easily be scanned through, and doesn’t have long pages of continuous text across the page. The goal here to be keep it simple, and present the customer with products they are likely to purchase right then and there from their mobile devices. However, the mobile version is entirely different that the website. The lack of interactive content and overall levels of engagement are simply not present. Simple things such as: zooming in on a product, or reading customer reviews on existing purchases are nowhere to be found. This presents a huge challenge for customers that may be interested in a making a purchase, but need the confirmation from other customers that whatever it is they are buying is worth it. I’m glad that they have a mobile version of their site, which is a good step towards the right direction in generating more sales and building their brand, but it is only the first step.

Shopping for the best deals online sometimes takes a little patience and motivation to search for bargains. The prices you see on the website aren’t always what you must pay. Chances are, if you aren’t using any discount coupons during the check out process, then you probably aren’t getting the best deal possible. Eastbay.com offers customers with loyalty rewards programs that are designed to entire the customer to make more purchases in exchange for: coupons and discounts, cash back rewards, college savings, points, and even frequent flyer miles and hotel rewards! How exciting is that, right? Eastbay.com generates a majority of their sales through many of its affiliate sites. Customers are motivated to take advantage of shopping through an affiliate because they are rewarded for it. For example, if a customer makes a purchase off one of the affiliate sites, then they might receive 5 frequent flyer points for every $1.00 they spend. Good idea? Of course!

Mobile advertising can help any business create positive results. Keeping the customer informed, engaged, and building a community of people that share a common interest to participate in meaningful conversations is what mobile advertising is really all about. The content offered should be authentic, and should be supported by the likes and/or dislikes of others through customer reviews and ratings. Fortunately, Eastbay.com realized the importance of social proof, and why the opinions of the marketers that work for the company don't mean as much as the opinions of their customers. Sharing the content is just as important. Eastbay.com has done a fairly good job making their product offers easy to share with their friends on Facebook. Lets see if they can bring their mobile advertising to another level, by introducing fun games for mobile users such as a: three-point shooting contest, home-run derby, touchdown action; all aimed to encourage the customer to participate and be a part of a community formed form within the brand.

Uses of Mobile Advertising in different cultures

Being an Internet marketer entails having the ability to identify possible opportunities to connect with consumers regardless of the type of media channel. Mobile technology is a channel that allows marketers to create unique content and communicate it directly to consumers that have an “on-the-go” mentality, based on their needs, wants, and desires. One of the most effective ways to connect with consumers when it comes to mobile advertising, is by focusing on location-based search results and rich-media mobile apps. It’s important to remember that consumers - as a whole - have already adopted the use of mobile technology. Therefore, we as marketers must pay close attention to the relevancy of the content we provide, and to ensure that it is appropriately being displayed in relation to the small screen size and the scrolling function of these smartphones.

Marketing to different cultures can sometimes be a dreadful task. You might even spend countless days, months, and even years trying to get your message across, only to be left disappointed with the low response rates to your otherwise targeted ads. An Internet marketer is one that digs below the surface, in the most targeted manner, to identify the demographic factors that impact the decisions of different cultures. One way to communicate your message is to simply deliver it in their spoken language.

For the Latin American culture, this would mean creating ads in Spanish, Portuguese, or French. Another thing to consider is the average household income that widely varies across different cultures. Oftentimes, it may not be your product or service to blame, but instead the actual wealth of consumers in a certain country. Understanding the consumer habits of a culture gives you additional insight as to why they make the decisions they do. The age profile of your target market is a factor that should be considered, because their characteristics can be completely different from one another.

If you’re a mobile advertiser and you’re seeking ways to grow your business, then consider extending your reach out to the adult audience and not just teens. A great way to do this is by creating an e-mail registration form on your website with an option for mobile subscribers that are already interested in your products or services to opt-in to receive text messages on their cell phones. Have a strong “call-to-action” on the form and follow through with whatever it is you promised to deliver - whether its coupons, free giveaways, and anything else along the lines of what you initially offered when they filled out the form. The key here is to make your adult audience aware that they will be receiving a message on their cell phones. Make it easy for them to share the relevant piece of information with their friends and family members whom which they feel might also take interest in.

In order to capture the attention of adult audiences, there needs to be mobile applications that are relevant to that specific demographic group. Since we’re thinking in the perspective terms of an adult, the applications that come to mind include: mobile banking, mobile career search, interactive gaming, or if you have the technical aptitude, you can even create your own app. In fact, it may even be a lot easier than you think! A social media and Internet consultant by the name of Navarrow Wright mentioned this in one of his articles.

Sources:

http://www.mobilemarketer.com/cms/news/research/3850.html

http://www.mobiadnews.com/?p=3007

http://www.imediaconnection.com/content/7717.asp

http://getinternationalclients.com/5-factors-to-consider-when-marketing-to-cultural/

http://www.blackweb20.com/2010/01/26/mobile-app-development-high-usage-and-higher-opportunities/

Digital Couponing - Brand Name vs. Imitation products

The recession in our economy has greatly impacted consumer spending. People are now looking for ways to save money and live more frugally. In fact, so much so that “digital coupons” are now becoming popular as a way to save big bucks on purchases. For the average middle-class American living in this country, we simply cannot afford the luxury of buying things are full retail prices anymore. We are all wanting to save as much as possible on not only the things we want, but even the simple necessities that we human beings need in order to survive (ex: food, water, clothing). Before this digital-age, we used to browse through the bundle of junk mail that never seems to find its place away from our mailboxes. We filtered through the valuable grocery coupons, tire replacement services, and many other money saving coupons.

Consumers aren’t giving up the purchase of brand name products. Digital couponing actually enables them to purchase the name brand products they have learned to trust at a fraction of the cost. Personally, I prefer purchasing the brand name version of two similar products? Why? It’s because I’ve developed trust, and feel loyalty towards the brand because of their marketing message. Some people are very loyal when it comes to the certain types of products they use. There are those who don’t feel comfortable using imitation products – especially when they’ve never heard of the brand before. An example of where this situation may be partly true is, over-the-counter medication. If a person has been using Tylenol their entire life, it’s unlikely that they will buy the imitation version only because it’s cheaper. Many might even feel that the imitation version is inferior and may have unknown chemical added that might even be unsafe for human consumption.

Brand name products usually tend to offer more discounts because they built more brand awareness. This of course didn’t just happen overnight. It was through testing and continually improving their marketing plan did they attract this much recognition. It may be partly due to the fact that they have a larger and more established client base of distribution centers and suppliers that provide the products to local business and retail chain stores across the world. In general, yes, I do believe that brand name products offer more discounts. Imitation brands are already priced lower than the brand name version, so therefore, they don’t offer any additional discounts.

Sources:

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=117207

http://www.insightbuzz.com/2010/03/02/digital-coupons-online-coupon-growth-10x-that-of-print/

http://mashable.com/2010/02/10/online-coupons/

JCPenneys Mobile Couponing Pilot Project

JCPenney announced its leap into developing a pilot program for mobile advertising. There decision to do so was based on the idea for customers to redeem savings during point-of-sale transactions. This saves the customer time by not having to worry about bringing in the direct-mail coupon that they received. Instead, they can access the coupon right on their phones and present it to the cashier once they are ready to pay for their items. Not only is this more convenient, but it provides more control in terms of the immediacy of having a coupon readily available.

Though this campaign is aimed towards the retention of existing customers, it will also be used to increase brand awareness with the hopes of bringing in new customers. I feel that the company will ultimately find success with their “mobile computing” pilot project mainly because its where the latest trend of technology advancement is leading towards. Although it may be “unexplored territory”, one thing is for sure, and that is the demographics of their targeted audience are females between the ages of 25-44 years old, and many of whom which own a web-enabled phone.

Mobile couponing is an indication that times are moving closer and closer to a digital world of communication. Interactive rich-media environments are going to be the basis for business to connect with the customers. In this fast-paced world that we live in, the one thing that a majority of us are pressed for is “time.” It gives companies such as JCPenney a competitive advantage against its rival competitors who are not utilizing this technology. Understanding the needs of customers is crucial to the success of any company, so by delivering a way to put the customer in control, they are essentially addressing their needs, which I’m sure every customer can truly appreciate.

Will this form of advertising be successful? Surely, time will only tell if success is in the works of occurring. However, I feel that the ability to track analytics to see if the coupons are impacting the sales is a huge step in determining the likeliness for success in a campaign such as the pilot project”. As long as mobile growth and the sales of portable web-enabled handheld devices continue to expand, more and more customers are going to use mobile coupons, which means that, yes, there is a huge possibility for this type of advertising to be successful.

Sources:

http://www.paymentsnews.com/2009/09/mobile-coupons-interest-more-merchants.html

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=124040

http://www.mobilemarketer.com/cms/news/commerce/4269.html