The Background
As of 2017 there are 2.32 billion smartphone users worldwide and this is predicted to rise to 2.87 billion by 2020 highlighting the market mass available to digital marketers (Statista, 2017a). In 2007 apple released the iPhone which dramatically changed the way in which users interact with their phone, whilst improving engagement levels thanks to an easy to use interface and a library of applications. Smartphone users now spend 86% of their time on their mobile device when compared to other computer devices and 79% of smartphone users say they use their apps every day (Schauer, 2017).
It’s worth noting that 90% of smartphone users say they mainly use their device to browse, research and price compare, highlighting the deficit in conversion rates when compared to desktops or laptops. This is described by Watson, McCarthy and Rowley (2013) as a resistance to the encroachment carried out by organisations, as smartphone users categorise their device as personal, and for personal use only. Therefore, they feel uncomfortable being marketed to through their device. Watson, McCarthy and Rowley (2013) also highlight the need for more acceptance from consumers and state that this is far more likely if marketers focus on building trust through permission marketing providing the consumer with more control over their content.
Persaud and Azhar (2012) adds to this, stating that whilst trust is an important dimension, the individual consumers shopping style is an area that influences conversion rates more frequently, further perpetuated by perceived value. In other words, consumers who’s shopping styles are more compatible with mobile marketing are more likely to participate in mobile marketing as they perceive more added value from the experience when compared to desktop engagement.
Mobile friendly sites rank higher than non-mobile friendly sites and mobile e-commerce (m-commerce) is on the rise, currently accounting for 50% of all online expenditure compared to 0.4% in 2010, indicating its importance (Statista, 2017b). Shankar (2016) estimated that mobile marketing accounts for around 25% of most marketing budgets and with mobile advertising expenditure predicted to reach 195bn by 2019 (^186%), now is the time to maximise your mobile marketing potential.
But how can you do this?
More mobiles mean more potential consumer data to measure and analyse, allowing for more efficient targeting. Persaud and Azhar (2012) highlight that only through accurate targeting can brands ensure they continue to add value to customers using specific marketing techniques that are applicable to their audience.
Geolocation Marketing
Mobile data or more specific, location tracking allows for an added dimension as it can accurately estimate, analyse and predict a customer’s geolocation which introduces a tactic called location based marketing. This tactic enables geofencing which is when GPS allows an organisation to market specific products or services to consumers based on their geolocation. It also has the capability to drive e-commerce traffic towards physical stores and promotional events (Pitta, 2011).
A successful example of this is Apple who recently incorporated geolocation marketing to target consumers in New York, offering promotional deals to consumers according to their location. This was used to increase sales in stores that were under performing when compared to its other branches, converting sales data into a heat map, and spreading sales across the city (Tso, 2017).
A risk associated with this type of marketing includes the security and consequential ethical concerns associated with the use of this data. Storing or sharing sensitive information such as one’s location or patterns of movement opens up potential security risks and unethical consequences for anyone who has their data leaked. And as many people find this type of information sensitive it is vitally important to encrypt and securely store such information, as well as obtain consent from the consumer (Hopkins and Turner, 2012).
Mobile Friendly Email
Email marketing has become even more successful due to increased accessibility to email because of smart phones. At the end of 2016 it was estimated that there were 4.6bn email accounts and 48% of all emails were opened using a smartphone which was an increase of 180% in three years. As discussed previously users are spending more time on their phones, opening a window of opportunity for marketers to target customers using mobile driven data and email promotions (Schauer, 2017). However mobile users behave differently to users of desktops or laptops as their accessibility often hinders their attentiveness. For example, mobile users often use their phone whilst on the move or in-between tedious tasks. This means that the content of emails must shortened and mobile friendly.
Nike do a great job of this, sending welcome emails and promotional deals to anyone who downloads their NIKE+ application. The emails are scaled down to 50% when being viewed, Using smaller subject lines and large, clear call to action buttons so that users are readily aware of what they are being offered. There are further information links with personalised messages addressing each customer by their first name to improve engagement and conversion rates described by Ellis-Chadwick & Doherty (2012).
Risks include the damage a brand can inflict on itself by over marketing to consumers. Morrison (2012) highlights this as an issues that can in fact lower a brands reputation and hinder consumer engagement.
References
Ellis-Chadwick, F., & Doherty, N. F. (2012). Web advertising: The role of e-mail marketing. Journal of Business Research, 65(6), 843-848.
Hopkins, J. and Turner, J. (2012). Go mobile. 1st ed. Hoboken, N.J.: Wiley. (Hopkins and Turner, 2012).
Morrison, M. (2012) “Consumers balance on verge of ‘offer anarchy’; Email marketing is a cost-effective tool, but as marketers overdo it they risk long-term brand damage”, Advertising Age, vol. 83, no. 7, pp. 24. Available at: http://web.b.ebscohost.com.ezproxy.brighton.ac.uk/ehost/detail/detail?sid=36390fee-bad4-423d-8187-016edf749a62%40sessionmgr102&vid=0&hid=124&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=71840237&db=buh [Accessed 6 April. 2017]. (Morrison, 2012)
Pitta, D. (2011). Location-based social networking and marketing. Journal of Consumer Marketing, [online] 28(2). Available at: http://www.emeraldinsight.com.ezproxy.brighton.ac.uk/doi/full/10.1108/jcm.2011.07728bag.001 [Accessed 6 Apr. 2017]. (Pitta, 2011).
Persaud, A. and Azhar, I. (2012). Innovative mobile marketing via smartphones. Marketing Intelligence & Planning, [online] 30(4), pp.418-443. Available at: http://www.emeraldinsight.com.ezproxy.brighton.ac.uk/doi/full/10.1108/02634501211231883 [Accessed 3 Apr. 2017]. (Persaud and Azhar, 2012)
Shankar, V. (2016). Mobile Marketing: The Way Forward. Journal of Interactive Marketing, [online] 34, pp.1-2. Available at: http://www.sciencedirect.com.ezproxy.brighton.ac.uk/science/article/pii/S1094996816300056 [Accessed 4 Apr. 2017]. (Shankar, 2016)
Schauer, P. (2017). The Importance of Mobile Marketing in 2015 [Infographic]. [online] Social Media Today. Available at: http://www.socialmediatoday.com/marketing/peteschauer/2015-08-09/importance-mobile-marketing-2015-infographic [Accessed 4 Apr. 2017]. (Schauer, 2017).
Statista. (2017a). Number of smartphone users worldwide 2014-2020 | Statista. [online] Available at: https://www.statista.com/statistics/330695/number-of-smartphone-users-worldwide/ [Accessed 3 Apr. 2017].
Statista. (2017b). Topic: E-commerce in the United Kingdom (UK). [online] Available at: https://www.statista.com/topics/2333/e-commerce-in-the-united-kingdom/ [Accessed 4 Apr. 2017].
Tso, R. (2017). Retail’s Next Big Bet: iBeacon and the Promise of Geolocation Technologies. [online] Wired.com. Available at: https://www.wired.com/insights/2014/05/retails-next-big-bet-ibeacon-promise-geolocation-technologies/ [Accessed 4 Apr. 2017]. (Tso, 2017)
Watson, C., McCarthy, J. and Rowley, J. (2013). Consumer attitudes towards mobile marketing in the smart phone era. International Journal of Information Management, [online] 33(5), pp.840-849. Available at: http://www.sciencedirect.com.ezproxy.brighton.ac.uk/science/article/pii/S0268401213000868 [Accessed 3 Apr. 2017]. (Watson, McCarthy and Rowley, 2013)