M-commerce is a fast growing marketing channel. In 2013 M-commerce generated $41.68 billion which was an increase of 68.2% on the previous year. In 2017 it is expected to generate close to $100 billion which would be a compound annual growth rate (CAGR) of 28%, and considering E-commerce is expected a CAGR of 13.8% over the same period, it is obvious that M-commerce is going to play a major role in companies marketing strategy (Jones, 2013).
Generic retailing websites are still more popular than the mobile version according to Foresee (2012) however the satisfaction gap is closing quickly as the graph below illustrates.
The graph shows that amongst the most popular companies, mobile sites are improving and are fast catching up to the retail websites. These multi-national companies are successful for a reason, they are innovative and are early adopters of new technology. Mobile marketing is growing and will soon be a dominant force in marketing, so adaptions need to be made now!
Whilst smart phones and tablets will never fully replace the functionality of a computer, due the intricate programs they are designed to run. They are quickly replacing computers as the optimum browsing method, and according to Murtagh (2014) mobile phones exceeded laptops and desktops for internet usage for the first time in 2014. This is monumental as it means that people are spending more time on their smart phones and less time on PCS therefore consumer needs are changing and companies need to adapt to ensure they continue to satisfy the consumer.
So we know that the mobile marketing industry is growing and more people are using phones than ever before, but why is that important? And why is mobile marketing going to be a critical tool for a company’s success over the coming years?
- 70% of mobile searches lead to online action within the hour (Rowley, 2013)
That is nearly three times higher than that of a PC. Users are seeking information and tend to be more motivated when using a phone rather than a PC.
- People multi-task with mobile phones
Many consumers use their phone whilst watching TV, this creates an opportunity for marketers to instantly convert consumers. According to Nielson (2014) 14% of tablet owners and 7% of smart phone owners have used their device to purchase a product they have just seen advertised on TV.
- Consider the 3 P’s
Personal, Pervasive and Proximity. It is the most personal as you will be able to get to a consumer because near enough everyone has a phone. It is pervasive, most people carry their phones with them all the time creating infinite marketing opportunities. Proximity marketing can be exploited, so businesses can target potential consumers who are within a close proximity of the area.
- High social media usage
According to Ofcom (2014) 55% use their smart phone to visit social networking sites. This creates an opportunity for companies to increase their social media presence with mobile ad campaigns.
We know why mobile marketing is important so let’s take a look at some of the successful mobile marketing campaigns.
- True Blood
The TV show True Blood embarked on a fantastic mobile ad campaign, when fans were on movie review sites they noticed a bloody finger print appear and when they touched the screen again another one appeared. Soon the screen was dripping with blood and an ad popped up enticing the user to watch the latest trailer of True Blood. The ad was successful as it increased viewership by 38% (60 Second Marketer, 2012).
2. Cartwheel by Target
Target took advantage of Facebooks mobile app install units, they positioned their advertisement within the mobile homepage of Facebook. It showed users if their friends had already downloaded the app and had a direct link to the app store. A successful campaign as Target has amassed over 1 million users within its first 3 months of creation (Johnson, 2013).
3. O2 Priority Moments
One of the most successful mobile campaigns ever run. The loyalty program was offered to customers of O2 via mobile apps. There are multiple rewards available and the result has led to millions of people registering to O2 Priority Moments and more than 1 billion offers have been viewed to date, with 5 Priority Moments being redeemed every minute (Charlton, 2013).
The mobile industry is growing, companies need to act quickly in order to continue to satisfy the needs of the consumer, the majority of the large companies have already acted. Don’t get left behind!
Charlton, G. (2013) Six Great Examples of Mobile Marketing Campaigns, E-consultancy. 25 June 2013 [Online] <https://econsultancy.com/blog/62971-six-great-examples-of-mobile-marketing-campaigns/> [Accessed 14 April 2015]
Foresee (2012) Foresee Mobile Satisfaction Index. White Papers & Research: Foresee
Johnson, L. (2013) Top 10 Mobile Ad Campaigns From H1 2013, Mobile Marketer. [Online] <http://www.mobilemarketer.com/cms/news/advertising/15918.html> [Accessed 14 April 2015]
Jones, C. (2013) Ecommerce Is Growing Nicely, While Mcommerce Is On A Tear, Forbes. 02 February 2013 [Online] <http://www.forbes.com/sites/chuckjones/2013/10/02/ecommerce-is-growing-nicely-while-mcommerce-is-on-a-tear/> [Accessed 14 April 2015]
Murtagh, R. (2014) Mobile Now Exceeds PC: The Biggest Shift Since the Internet Began, Search Engine Watch. 08 July 2014 [Online] <http://searchenginewatch.com/sew/opinion/2353616/mobile-now-exceeds-pc-the-biggest-shift-since-the-internet-began> [Accessed 14 April 2015]
Nielson (2014) Living Social: How Second Screens Are Helping TV Make Fans [Online] <http://www.nielsen.com/us/en/insights/news/2014/living-social-how-second-screens-are-helping-tv-make-fans.html> [Accessed 14 April 2015]
Ofcom (2014) Adult’s Media Use and Attitudes Report 2014 [Online] <http://stakeholders.ofcom.org.uk/market-data-research/other/research-publications/adults/adults-media-lit-14/> [Accessed 14 April 2015]
Rowley, N. (2013) Mobile Behavior: Big Game Seating — A Study with SurveyMonkey, iAcquire. 03 April 2013 [Online] <http://www.iacquire.com/blog/mobile-behavior-big-game-seating-a-study-with-surveymonkey> [Accessed 14 April 2015]
60 Second Marketer (2012) 14 Insanely Simple Mobile Marketing Techniques You Can Steal from the Fortune 500 [Online] <http://60secondmarketer.com/blog/2012/09/11/mobile-marketing-case-studies/> [Accessed 14 April 2015]