Passionland

(warning; it might take some time for you to read this article. I was carried away….. :))

wikipedia says, mobile marketing is First, and relatively new, is meant to describe marketing on or with a mobile device, such as a mobile phone

Some corporate in Indonesia will refer it as SMS broadcast(90% of mobile subscribers in Indonesia have received at least 1 SMS promotional), sending unique number in some product packaging to special number and win a prizes :) (ok… I admit i’ve done it in my previous-previous job… because it was looked like a great idea; having a new revenue stream from corporate by selling the concept of “self funded promotional effort”). In short; like it or not it’s not a preferred extra service desired by a corporate although they know the potential of this new media.

Ok, so what’s exactly mobile potential anyway? These facts may support why marketing need to extend and explore mobile as a new media;

• Indonesia; 4th most populated country in the world has 20-25% of mobile penetration (compare with 8.9% -only- internet penetration) that will grow to 75% in 2015
• Average SMS traffic in Indonesia around ~300 million SMS/day (Telkomsel claim has 419 Million SMS/day in average every subscribers sent at least 10 SMS / day)
• People in big cities change their mobile phone in average once every 3 months; that make 90% of GSM handsets in Indonesia market already support GPRS/MMS unfortunately 95% GPRS/MMS supported handset users are ‘fake users’, meaning they don’t use their phone other than Voice and SMS :(
• SMS, still the sexiest product proposition for mobile carriers in order to increase activation rate targeted to youngsters
• 4 out of 5 people always carried more than 1 always-connected mobile phone (age 18-35)
• 3 out of 5 people sleep near their mobile phone
• 10% Promotion SMS (with interesting offer, e.g quiz with prizes, discount from well known brands) sent to mobile subscribers will get a response (2006)

Based on promising data above; I believe most of you will challenge it by asking “then why no body doing it…???” I’ll answer it by following reasons;

• Mobile marketing activities was started by Content Providers (CP)

(with all the respect to all mobile content providers pioneers that introduce ‘volume-game’ business in Indonesia :) ). Some mobile content business pioneers are already talked and executed mobile marketing by introducing ’self funded promotion’ (SFP) program. SFP was presented as a new way on ‘hard sale’ campaign activities in order to increase number of sales of a product by conducting a mobile contest or SMS quizes; how is it become a self-funded campaign? thanks to premium SMS. All SMS will be charged based on premium rate agreed by CP, mobile carrier, and off course corporate clients. The program is as simple as sending special number to specific short destination number/code (SDC) and will be charge more than regular SMS price (usually it’s Rp. 1000 - 2000 / SMS). Premium SMS revenue will be given to CP for funding the campaign (buy prizes, etc). What about the program promotion? it taken from budgeted promotion that planned to be executed within that budget year.

Depend on the cases and goal of the campaign; but most of the cases, campaign will be loose its own essence because CP will be calculating campaign program based on their nature of business; volume of premium SMS. Because some of the premium SMS revenue will be source of prizes fund.

If the goal is only for short term number of sales increase; I believe this will be the most effective program that can be done. Unfortunately; most of the participants are not brand’s target market. Even, in some of the SMS text program there always be a ‘quiz-prizes’ hunter, that join the program just for the prizes. As a result, there is no post promotion impact to the particular brand/product which wont represent corporate client’s goal. After few periods of programs; quiz prize hunters will find another programs that offer better prizes and programs will be subsidized (by CP, or sometime by client in order to save their image).

So, corporates then start to think it will be more efficient if they do the same program by traditional -send_to_po_box- way; because they can control end-to-end process and for them mobile will be less efficient because there’s no added value beside an ‘automation’ process of ’send PO.BOX’ way and it will only add unpredictable risk caused by low SMS traffic and some other technical problems.

• Stereotyping of mobile marketing and premium SMS by mobile subscribers

End user starts to view the type of ’send_unique_number’ campaign is another form of strategy done by mobile CPs or mobile carrier to increase their phone usage without any transparency related to drawing process, number of senders, and how’s their winning chance. It looks like from customer’s point of view a ‘who spend bigger money’ game. In some cases; it also encourage irresponsible party to ride on the campaign and create random fake notification via SMS about winner announcement.

Unfortunately; in order to get as many SMS volume as they can, some ‘naughty n opportunist’ CPs will make the program as subscription based program that ‘force’ customers to pay unwanted contents on daily basis. This case will cause brand owner will suffer and create unproductive impact to campaign goal.

• Privacy intrussion

This is another impression when I introduce ‘mobile marketing’ terms to corporates (at least some of clients that we’ve approached). Mobile marketing will be referred as SMS broadcast to random numbers about some promotions held by a brand.

Then what should we do?

IMHO, we should ‘juice’ mobile technology by;

• Treat mobile as a media; not source of revenue.
• Maximize its superiority value as a media that very personal, interactive, always connected, payment channel, and always carried
• Create exciting activity programs that align to the campaign goal
• Treat mobile as a complement to other media; don’t push it to be available to all campaign if it doesn’t relevant
• Treat mobile as a tool to create brand engagement, that create ‘we hear you’ impression
• Hear other industry expert about they think about how mobile can help them to ease their pain
• Educate both market and brand owner about above values and how should we do it

So, Octokers…. I challenge you to give me at least one activities that relevant to mobile that you think will be a great campaign model….. you can drop me an email or discuss with me at any chance….. :)

This source might give you clearer picture about mobile as a 7th mass media…

| ViewLet’s differentiate ourselves by juicing mobile values in a right way… let’s be a pioneer…. put some passion on your mobile and be a mobile.juicer… ;)