The term mobile refers to cell phones, smart phones, tablets, and other devices, in which users tend to carry within close proximity for the greater part of each day. The boom of the usage and availability of these devices has created quite an enticing environment for the marketer, whose goal is to find more personalized ways to promote products and services. Add this to the low cost of entry, high response rates, and vast potential reach of mobile marketing campaigns, and it is quite obvious to see how mobile will become the premier means of marketing in the New Year. The savvy marketer will quickly recognize the endless opportunity to reach this population of mobile users, and in turn will develop stronger and more long lasting connections with its ever more savvy client base.
As mentioned 2012 will certainly be a boom year for mobile marketing. There will be a projected 318 million mobile subscribers within the United States, which will account for over a 95% penetration rate. While this statistic shows the apparent maturation of mobile subscriptions within the U.S., it presents an opportunity for the growth of Mobil marketing, as nearly every individual will have the means of receiving mobile content on a daily basis.
One of the key differentiators between mobile and other channels of marketing, is that mobile provides unheard of response rates. More than 90% of text messages are read within the first hour they are received and most text campaigns have a response rate between 15% and 30%. Compare this to email and direct mail, which are lucky to see response rates of 6.64% and 3.42% respectively, and the vast potential for mobile as the basis of any marketing campaign can easily be recognized.
A major factor, which contributes to the high receptivity of mobile campaigns, is the fact that it is a very intimate form of communication. Each person on an SMS distribution must first opt-in, in order for a marketer to have the privilege of informing them of promotions and specials offers. This can actually be beneficial, considering that these individuals will tend to be those who are most interested in hearing a company’s message, thus eliminating the need to shell out advertising budget to habitual non-responders.
Another key advantage that mobile marketing offers, is the ability for the marketer to reach its audience in real-time, i.e the time in which potential clients are most willing to make purchasing decisions. A coupon mailed to a customer’s home, promoting a 50% off lunch special would tend to not be very enticing, unless the customer happened to check their mail in the middle of the day on their way to lunch. Mobile coupons, however, allow the opportunity for the same potential buyer to be reached while they are out shopping, between the hours of 11:30am and 1:30pm (even better yet, when they are within a specific distance of the restaurant), for example. This would create a much more immediate demand for the promotion at hand, due to the creation of an immediate opportunity for redemption. This being the case, mobile coupons typically see a redemption rate 10 times greater than that of print coupons.