Tuesday, July 12, 2011

Motivation for Mobile Marketing Budgets

10 Reasons To Include Mobile Marketing In Your Budget

by: Michaela Cristallo

Mobile marketing has been steadily growing in popularity in recent years but there are still many companies who are yet to use the channel as part of their marketing plan. Given that there are more cell phones in the US than landlines, you have to ask the question; why are marketers missing the opportunity? Forecasts by the MMA (Mobile Marketing Association) indicate mobile marketing spend will grow from $1.7 billion in 2009 up to $2.16 billion in 2010 as the number of cell phone subscribers stands at over 250 million in the US alone. Here we outline the top ten reasons you should include mobile marketing in your next budget.

1. Targeted audience reach - mobile marketing allows you to reach a highly targeted audience with the ability to easily target and personalize direct marketing messages to different customer groups. Cell phones, unlike PC's, are usually used by one individual only meaning the targeted message will reach the right user every time. Targeting customer groups specifically will make your mobile marketing campaigns more relevant and ultimately more successful.

2. Highly effective two way communication - cell phones are with users practically 24/7 and are a highly trusted and personal device. Unlike emails, SMS text messages are almost always opened and read, often immediately when received. The average open rate for text messages is over 90% compared with approximately 20% for email campaigns. Cell phone users use their phones as a communication channel already, so communicating with a company in this medium becomes a much more familiar and easy task than it would be with a traditional media such as TV or print. Two way communication allows you to engage your consumer on a personal level and build stronger customer relationships.

3. More cost effective - Mobile marketing has a much lower cost than other marketing channels. The cost is minimal because the major costs incurred with a text message campaign are low per message costs sent to a targeted and engaged audience. Lower costs means you can maintain budgets and effectively spread your marketing spend across multiple marketing channels.

4. Fast to implement - Mobile marketing campaigns are quick and easy to create and can be deployed instantly meaning you can see the results of your campaigns far more quickly. Mobile campaigns can be set up and deployed instantly.

5. Higher response rates than traditional direct marketing channels - Mobile marketing has a higher response rate than traditional direct marketing channels, and because the channel is still relatively new it has not reached a point of saturation or distrust in the way other marketing channels have. Average response rates for mobile marketing are around 15%, around five times higher than the average email marketing campaign. Higher response rates means less wasted media spend and higher ROI from mobile marketing plans and budgets.

6. Potential to easily integrate with other media channels - mobile marketing can be easily integrated with other media channels including TV, radio, print, outdoor, email and online to create an integrated marketing campaign. Adding mobile marketing to the mix adds an element of interactivity and consumer participation that many campaigns using traditional media lack.

7. Relevant and accurate customer data - customer databases remain accurate and relevant far longer than traditional postal or email addresses because people generally keep their mobile numbers for a much longer time than an email or postal address. This means greater accuracy and less wasted media spend.

8. Reduced risk of investment - The ease, speed and cost effectiveness of a mobile marketing campaign means there is a reduced risk of investment as results can be seen quickly and messages can be adapted based on results with minimal spend throughout the entire process.

9. Highly trackable - Mobile marketing is highly trackable as customers can respond directly and instantly. Mobile marketing can also be used to track the effectiveness of other marketing channels by including a direct response call to action in, for example, a TV advertisement.

10. Your competitors are doing it - According to a recent report 'The State of the Industry: Mobile Advertising' by Millennial Media, 60% of non-mobile marketers plan to launch a mobile campaign in 2010. Of current mobile marketers 31% will invest between $100k and $249k and 13% will invest between $1M and $5M. The report also states that almost 80% of respondents felt the mobile medium met their goals with 9% saying mobile marketing performed beyond their wildest expectations. With more and more companies benefiting from the power of mobile marketing, if you don't use it, you might just fall behind!

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