CHAPTER 9

Mobile Marketing

Learning 0bjeclires
tier roading this chapter, you will be able to
Appreciate the importance of mobile marketing
Lnderstand the different tools of mobile marketing
Discuss and apply the latest technology to engage consumers through nobile marketing
Apply different mobile strategies to cater to different segments in India
Plan and design a mobile marketing campaign and track a mobile campaign
Integrate mobile into the overall marketing plan

KTRODUCTION
Mobile enables you to reach the best friend of 2billion consumers worldwide."
-William Ogle, CM0, Motorola Mobility

Cphone has become a ubiquitous device across the globe. For consumers, it is like their best friend.
other media as personally close to a consumer as his mobile phone. Users today, use this personal
Of aplethora of activities like messaging,
aching and alot more. The platform also offersphotography,
innovative entertainment,
mechanisms likeshopping, navigation,
personalised, bank1ng.
location-based
lreactivity that were carlier not possible on other media platforms. The level of personal cngagement that
cellular platform provides for consumers hasimmense potential tor marketerS. Mobile as a marketing
Mll take yougrowing exponentially and is opening neweravenues for the consumer's engagement. This chapter
through the key conceptsinthis emerging platlorm of mobile marketing.
 276 Digital Marketing

The Mobile Marketing Association (MMA) defines mobile marketing as, The
use of wirel
(primarih cellular phones and PDAs) as an integrated content delivery and. direct response
cross-media marketing programme. vehicle reles wlhmein du g
Mobile marketing involves personaliscd delivery and engagement through
the ubiquity and continuous availability of the mobile devicc in a consumer's ipersonal
nteraction.space.
prov ides asmart definition of mobile nmarketing as, 'Mobile Murketing connects
CUstomers (through their mobile devices) at the right time and the right place with
rqires the customer 's explicit pernnission and active interaction.
businesSeS Lright everagng
and
the euchDushoifnkiiheir
x

marketers shouldmenots aze and

Permission is an important consideration in mobile marketing since
consumer's privacy.
Evolution of Mobile Technology
invade
The first mobile phone call was made as far back as
1973.The first mobile handset
10 hours to recharge. The first mobile phone weighed
were introduced in Finland in 1991, and the first text based in Japan, was set up in 1979. The 1.1 kg and took
network,
The carly nineties saw a messages were sent in 1993. first 2G phone:
widespread popularity multimedia content like ringtones
mobile phones. In the late nineties,
of
and
Later on, with the advent of 3G smartphones started to emerge with the additional feature of
technology, phones
new
content. More and more sophisticated devices with
wallpapers
enabled high-speed data transfers mobile web.
on
enhanced the mobile usage experience. Today, higher-quality display andsound and and multimedia
smartphone users use their devices forsoftware
music. social networking, shopping, c.c.
In India. mobile phone was
later in 2010. Tata DoCoMo launched in 1995. BPL Mobile launched GPRS in February 2002. Few
browsing,capabilities
gaming.
by Airtel in April 2012 (Jha launched 3G Internet; and currently, people are using 4GLTE vear
2016)and soon the users will hear about 5G that was launched
Internet.
Types of Mobile Handsets
Based on features and the
namely basicphones, featureadvancement of technology, mobile handsets can be
handsets. phones, smartphones, and tablets. Figure 9.1 classified into four types.
shows the four types of mobil:

12:45

Basic Phone
Feature Phone
Smartphones
FiGURE 9.1 Types of
Phablets and Tablets

Basic Phone - 1hese

mobilehandsets
were the
They had a long battery life earliest phones that were messages.
features of graphics and because they had simple, low used solely to make calls and send textcontain
sounds which were and basic They did not
any
restricted to
monochromatfunctionality.
ic
display and beep sounds.
 Mobile Marketing 277
Ceature Phone - Ihe feature phones are
ave colour displays and
multimedia sound
comparatively advanced as compared to the basic phones. They
They may or may not have a camera, options. The mobile software runs on the
Y contain a media plaver and GPS. They usually do not haveproprietary platform.
QWERTY keypad for the ease of typing. a touch screen, but
However, Some feature phones are
naking the simpler phones obsolete. equipped with browsers, but the falling cost of smartphones is
Smart Phone -
gradualy
These are relatively larger
fatures including high-resolution display, sized and technologically advanced mobile handsets with rich
OS and Android. touchscreen interface and built-in mobile operating system
They also have web browser,
camera. GPS teatures and the ability to such
the capacity to run applications (apps), high-definition
LTE. access both Wi-Fi and mobile Internet
netwerks such as 3G and 4G
These
Tablets T
areablend ofboth
of the iPad in 2010.
have a bigger
Tablets share themobile
common
and laptop. This product
user interface and
category was revitalised by Apple's launch
screen, making it visibly closer to a operating systems with the
or laptop screen experience. The smartphones,
but
with a touch-screen interface. desktop
Although tablets are not as screen is enabled
sereen size allows for
comfortable reading, movie-viewing,pocket-friendly and portable as
smartphones, their
browsing and gaming experienCe.
9.1 MOBILE USAGE
Let us now examine how many
people use mobile phones and how
marketers can leverage them for marketing.
9.1.1 Mobile Penetration
Figure 9.2 shows the number of
Worldwide
per cent of the world's mobile phone users and its penetration as the
population is using mobile phones in 2017. percentage of population. 64.5
Mobile Phone Users and
billions, % of population, %Penetration
change
Worldwide, 2013-2018
4.6 4.8 4.9
4.2 4.4
4.01

57% 59% 63%

61% 65% 66%
5.40% 4.80% 4% |3.60%
6.90% 3.30%
2013 2014 2015 2016 2017 2018
OMobile Phone Users % of Population
%Change
FiGURE 9.2 Mobile phone users and penetration worldwide'
Table 9. 1 shows the number of mobile phone
users lor
second regarding the number of mobile phones users but lagsdillerent
in
countrics in Asia-Pacific. India ranks
penetration
as the percentage of population.
Source: eMarketer., used with permission.
 278 DigitslMareting
Asia-Pacitic tbry Countr
Table 9.1 Mobile Phone Users and Penetration in
Mobille phon ers (millos)
2015 2016 2017
2014
195600 1.07100)
China
63%
644 731
India
149 161 173
Indoneéa 137
166 4 194
164
59 6 6
Hong Kg
6.1
Singapre 4 6 47 42 4.9

Moe phne wer penetration (%fpopulation)

Jagan 235 B4) B4.5
49
Singapere 828 83.2 83.8
84.1
226 83 834

74 75.9 77.3 78
T85
indnesia S4 5%.3 62.5 66.5
70
4 51 54 57 598

9.12 Smartphone Penetration Worldwide

We iroe in a wirdin whch almost half of the mobile phone users are on smartphones. India has surpasset
se beumne the sed-largest smartphone market, with over 200 millionsmartphones'. Table 92shoe:
sartp USCT ase in millioms across countries.

Tatie 9.2 Smergone User Base,2016-2018

ea 2016 2017 2018
S633 599.3 640.5
204.1 243.8 279.2
1985 211.5 220
65.2 74.9 83.5

By 21 sTariçhues will represent over half of the mobile phone users,, asshownin Figure'93.

Sene eet kgai 1 , unfaned and

tepublsshhed, July 2015, usedwith permssion,
 Mobile Marketing 219

Smartphone Users and Penetration Worldwide,

2013-2018
billions, l% of Mobile phone users, %change
Smartphone Users %of Mobile Phone
Users--% Change
2.7
25
2.3
2.1
1.9
16

17% 12% 10% 8% 7%

25%

38% 42% 45% 48% 50% 53%

2013 2014 2015 2016 2017 2018

FuGURE 9.3 Smartphone users and þenetration worldwide. 2013-2018"

MOBILE ADVERTISING
aadvertising:spectrum ranges
from short message service (SMS) text to interactive advertisements.
mobile
Internet advertising is expected to grow manifold over the next
inFigure 9.4, the size of mobile
shoun
4s

Mobile Internet Ad Spending in lndia (in millions)

+(in milions)
943

589

347

173
79 2015\
26 1(6
Estima
0 te
1(d
P7)
r o j e2
ct0e(d
1
P)r
8 ojected)

2016
(E

FIGURE I.4 Mobile Internet ad spending (in millions USD)'

321 Mobile Advertising Models

afe two mobile advertisingmodels, namely) on-device advertising, and (i) of-device advertising,
ShioWn nFigure 9.5. These models are briefly explained as follows:

Source: cMarketer. used with

Source
eMarketer, 2015, usedpermissionl.
with permission.
 280 Digital Marketing

1. On-DeviceAdvertising
their mobile devicee
marketers can engage consumers on
Through on-device marketing.
namely network based and off-network advertis1ng. networks like
through two routes.
a. Network-Bascd Advertising- It cntails the use of the mobile Airtel
or
sending SMS and through the WAP(
through the telecommunication services of voice-calling, Vodafong
t0 access specific data services like stock market tracking,
WAP is an inbuilt portal
ApplicationProtocol) provided by telecom service providers. horoscope,
news, sports (Wirelesctc.
for consumers
WAP mobile ads are pay-per-click ads that appear onthe user 's mobile screens ony
content on their WAP portals.
whenheadltheyinesaccess
,
b. Off-N -Network Advertising - With the growing use of smartphones, mobile web, 30G
connectivity on mobile handscts, consumers have the opportunity to directly engage with and Wi-Fi
activities that are being offered by the Internet, despite the telecom network. It
includes Content
and
with mobile applications (apps) and use of social media on mobile. Consumers
apps on their mobiles which have inbuilt display ads. Many brands also develop
interactions
download and run
branded apps
directly keep consumers engaged. that
Network based advertising

Voice
SMS
Off network advertising
WAP Portal
ghter

In App AdsSocial Media

Video Ads

Heavier
FiGURE 9.5 Mobile advertising models
2. Off-device advertising
The
their above-discussed
mobile device. Thereadvertising models are on-device i.e., the brand directly
is another type of mobile engages with the users ot
mobile device. butthe brand first advertising
reaches the consumers through otherthat involves consumer
engagement la un
have interactive traditional media.
sending an SMS orcall-to-acion
missed
messages where brands urge
call to a toll-free number.
Such
consumers to participate in contestsadvertiseiets
or offers bv
The actúvities in
SMS PINs foroff-device advertising can include the
following calls to action:
unique numberredemplion
- In this,
to avail rew ard loyalty program members can send an SMS to a brand-owned
stores like Shoppers Stop points. For example, credit card companies like Citibank orXXXNretail
(last four digits of your adverlise about their reward
" Barcodes/QR codes credit card number)to scheme 'Send an SMS REWARDS
52484 avail reward
to
Game/Application downloads points:
Ringtone downloads
Image downloads
" Missed calls to a given number
 Mobile Marketing 281

Advantages of Mobile Advertising

of:
are. someadvantages advertising through mobile phones. They are as follows:
here
Lower
Cost and Efficiency - Mobile advertising is less expensive as
compared to other traditional
mediachannels like TV, print, etc.
Relevantand Accurate Data for Powerful Analytics and Targeting- Since the mobile is a personal
device,the marketers will be able to track the response of the consumer at apersonal| level, leading to
higher
accuracy which is not possible intraditional mass media which is consumed at a group level.
Better Engagement -Connecting with consumers on their personalised device, in a personalised
e manner helps to build cxcitement and engagement.
and Profile - Since mobile devices are always in the proximity of consumers, it allows
U'se Context
marketersto communicate to consumers in different contexts and locations, thereby tailoring
the
message to suit the
context.
Dedicated Mindshare -The mobile is a handheld device that is actively used by the consumer and
dedicated mindshare as the
is consumed alone, by choice. Any engagement on the mobile willhave a
sser will not be distracted by other activities.
potential for this media.
, High Reach -The sheer volume of mobile penetration provides huge reach allows access to
Localised and Targeted Communication -The presence of GPS in mobile phones
neighbouring audiences with sharp
a consumner's physIcal location and local businesses can cater to
targeting.
-Unlike traditional media, mobile allows for
Real Time Engagement and Two-Way Interactivity
two-way interaction in real time through voice, chatting, gaming, etc. parts of rural
universal reach; even in the remotest
" Media Dark Communication - Mobile has a
media like TV and print.
India which does not have much access to other traditional
a personalised communication on every phone,
. Personalised Communication Mobile allows for
communication to an unwanted audience. Different markets
thereby not having tospill over the same shown
individuals within the same market can also be
can be shown different ads, and different
different ads. for the use of different formats
The mobile platform allows
" The Versatility of Message Formats - interactive formats.
and other
Iiketext, images, voice, video

9.3 MOBILE MARKETING TOLKIT devices. These

offers a broad range of tools to reach and engage consumers on their mobile marketing.
Mobile marketing
earned by the brand. It is reterred to as the POE framework of mobile
media can be paid, owned or
as shown in Figure 9.6.

9.3.1 Paid
involves the buying of mobile nedia avenues, which includes text
Ihe paid form of mobile marketing
services, call services,
audio real-estate available in the waiting lines of
provided by telecom WAP portals, mobile websites, etc. The paid mobile
messaging
inbound and outbound calls made by consumers, namely( (i) text, (ii) voice, (ii) displav, and (iv) video.
four formats,
be divided into
marketing Content can
as shown in Figure 9.7.
282 Digital Marketing

Paid

Text Ads Voice Display

Video

Owned

Brand Mobile
Sites Content Applications
Campaign Property
Earned

Interactions Advocacy
Conversations " Loyalty Program Users
" Referrals

FiGURE 9.6 POE framework of mobile marketing

Text Voice Display Video

Push SMS OBD WAP

CRBT In-App Video Pre-rolls
Tag Footers
USSD String AdRBT Rich Media Adas Content
Mobile Radio Native Ads
Railway Enquiry

FiGURE 9.7 Paid forms of mobile marketing

1. Text
The text format involves the use of Short Message Service
(SMS) which is an exchange of l60-charatik
textual content from one mobile device to another. The option is available on every mobile device, including
the basic and feature phones, making it easy to reach a wider audience. Although it would be helptul only it
the target audience is literate. the text facility is now available in local languages as well. Thelocal languae
helns connect even with the non-English
reading/speaking
Messages can be sent from a PC or server application audience
to multiple India as shown
recipients
in
in Figure
at once, which9.5.makesit a
highly scalable tool for mobile advertising. 1Texting is tWice as popular as connpared to other mobileactivities
likebrowsing orapp usage. 1tence, the ubiquity of lext usage makes it
relevant for mobile marketing
 Mobile Marketing 283

Text messaging serves a key role in marketing goals like deal

alerts,event reminders, andpersistent CRM to develop relationships.
It is effective when integrated with other traditional media like
Tex! Mossage In-store, out-of-home, TV and radio.
a. SMS Push SMS push involves sending an entire advertising
message to the consumer via a160-character SMS ad, as shown in
rigure 9.9, There is noprimary non-advertising content in the SMS.
It usually contains a short call to action or an announcement ol an
SMSin alocal language offer. It is compatible with all phone types and the low clutter in
FiGURE 9.8 the message leads to high read-rates.
Although SMS ads are ideal for announcements, reminders and
instantreachto build up, marketers can make them more engaging,
cspeciallyamong consumers with the web-enabled smartphones, by
addngthe following elements in the SMS ads:
Toxt Mossage
12 33
Text content, such as product information, informative tips, From: TD-61045
polls or trivia questions 3G Limited Period Offert
Recharge with STv90 and get
Links going to a mobile website 1GB 3G data for 30 days. Extra
bonofit will bo credited within 48
Links to maps, such as for store locators hours of recharge. Hurryt!
e Click-to-call links, leading consumers to retail stores or call
centres FIGURE 9.9 SMS Ad
Multimedia, such as images, videos or ringtones

Case
Election Campaign
Medium- SMS campaign.
group SMS was effectively used by Scott Brown in his election
The power of
Please vote for me in the GOP Primary today and bring supporters to polls.
Text message 1-
GOP Primary
Result - Scott Brown won the on the radio. Callnow (617)
254.1030
(Scott Brown's opponent)is
Text Message 2 - Martha Coakley supporters.
callers were Scott Brown's
Result - 90per cent of the Worcester at Mechanics Hall (321 Main Street) at 3:00 p.m.
3-The people's rallyis
in
Text Message Worcester People's Rally tilling the halls and the street.
showed upto the
Result - 4000 people in 30 minutes.
Can you call fellow supporters that you know to remind
Polls close
Test Message 4
them to vote?
wins theelection
Result- Scott Brown
with permission.
Courtesy: Tatango, used
shorter ads (between 20 60 characters) that are appended at the end of
are
b. Tag Footers Tag footers
received by the consumer, as shownin Figure 9.10. This ad space is bough
non-advertising SMS provider.
service
primary paaying the telecom
by the brand by
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a
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o the m
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in
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onon with
for the and to the the can adcan or Ad
a
 Mobile Marketing 287

320x480 300x250

728x90
32050

300x250

FiGURE 9.14 Dimensions and placement of display ads

What can be delivered? Videos Anímations 3D

Native Features of the Phone Camera Calendar Maps

Gyroscope
User Actions Touch Swipe Tilt Shake

FIGURE 9.15 Avenues for rich media on mobile

Case
Coca-Cola Chok Chok Campaign in Hong kong
Obiective - Coca-Cola was launching a new TV commercial, and the objective was to get everv teen in
the town to see it and buzz about it.
whole new level?
Challenge - How to get one ad spot to excite the teens to a
Solution-Chok'meaning rapidmotion was the latest slang word used by Hong Kong teens. Coca-Cola
caps trom the Tv ad to win instonr.
created an iPhone app where teens could catch the tumbling bottle
Drizes Peonle had to download the app and wait tor the ad to air at l0:00p.m. everv night. They had
straight trom
to 'chok' or swing the phone to catCh instant prizes such as discouNts, games, collectibles
converted
the TV ad into a T\ game. The ad also ran in cinemas, outdoor
the screen. The campaign
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