The Value of Mobile Marketing

Mary-Kate WilletteMorgan Powell

Malorie DonovanMarie Ledger

May 10th, 2012Marketing Capstone

Agenda

• Introduction MARY KATE

• Growth of Mobile MARY KATE

• Methods of Mobile Marketing MORGAN

• Usage of Mobile Marketing MALORIE

• Conclusions MARIE

Introduction

“Mobile Marketing is a set of practices that enables organizations to

communicate and engage with their audience in an interactive and

relevant manner through any mobile device or network.”

MMA 2011

Developments1979

• First handheld mobile phone made by Dr. Martin Cooper of Motorola

2000

• 132.2 million Americans have the internet

2006

• 3.2% of mobile subscribers owned a smartphone

2008

• 11 million Americans used mobile web

In 2011, 46% of U.S. mobile phone users owned a smartphone.

Mobile device uses have evolved to include:• Texting• Applications• Internet access• Social media• E-mail connectivity• Music• Camera

Mobile Phones: Today

Mobile Phones: Commerce• 1/3rd of mobile users have looked up or compared prices online or on their phones in the past 30 days

• 38% of mobile users browse products on their phone while in the store

• 38% of mobile users compare prices online while in the store

METHODS & USAGE• SMS• Applications• MMS• QR Codes

• Short Messaging Services• 160 characters• Created in late 1980’s• First sent in 1992

• King of communications and mobile marketing• 6.9 trillion SMS sent in 2010• 2011 expected to break 8 trillion• $114.6 billion revenues in 2010• Expected $127 billion revenues in 2011

SMS

• Airlines: American Airlines texts flight status information, delays, and cancellations.

• Banks: Bank of America texts overdraft alerts, balance notifications.

• Cafés: Starbucks invites My Starbucks members to Frappuccino Happy Hour via SMS

SMS Usage

Applications• A2P messaging• 2016 overtake all other

communications• messages to or from an

application to or from a large number of customers

•Available on smartphones•Financial services, shopping, games, social media

Application Usage

E-Trade Groupon Pizza Hut Shopkick

Mobile-Optimized Sites• Mobile web usage increased 148% last year

• Mobile-optimized sites are tailored to mobile phones• Smaller screens• Fewer buttons• De-cluttered

• 79% of large online retailers do not have mobile-optimized sites.

Mobile-Optimized Site Usage

Banner Ads• Used to drive traffic to mobile-optimized sites, applications, or social media accounts.

• Placed in relevant media spaces.

• Can be tailored to location, time of day, etc.

Banner Ad Usage

Conclusions

• Mobile is the next frontier for marketers

• New methods of mobile marketing are being continually developed

• Top retailers have begun to use mobile marketing, but the large majority have not

• Benefits of adapting to mobile marketing trends include: being in tune with consumers, recruiting new consumers, improving CRM and the value of existing consumers.