This document discusses mobile marketing and provides best practices for the industry. It begins with an overview of mobile marketing and how it is rapidly growing. It then covers various mobile marketing tactics like the mobile web, mobile advertising, SMS text messaging, location-based advertising, and social networking. Best practices for mobile marketing emphasize gaining user permission and delivering customized, relevant content. The document also includes examples of successful mobile marketing campaigns and discusses budgeting and measuring effectiveness.

1. Mobile Marketing
A “Marketing in Your Pocket”
Presentation from
Second Wind Desktop Learning
10/15/2009 © Second Wind Ltd. 1

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15. Mobile Marketing Agenda
Background
The Mobile Web, Mobile Advertising,
SMS Text, Location Based Advertising,
Social Networking
Best Practices
Case Studies
Conclusions
10/15/2009 © Second Wind Ltd. 15

16. Mobile
Marketing
Rapidly growing, personal and portable,
but must be permission-based
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17. Mobile Marketing
The third screen
Goes where you go
Highly personal
Ubiquitous
Targeted
Measurable
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18. Mobile Marketing
Mobile is still only a small fraction of total
marketing budgets, at 1.8%
Average mobile marketing budgets will
increase 26% in 2009
10/15/2009 © Second Wind Ltd. 18

19. Early Adopters Are Testing It:
The MMA found that about half of brands
and advertising agencies polled were doing
some type of mobile marketing:
66% running SMS text campaigns
53% have mobile website
33% testing mobile email marketing
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20. Your Clients Like Mobile
Brands are more comfortable with
mobile marketing than agencies.
About half of agencies said they viewed
mobile marketing as still being part of
experimental spending, compared to
36% of brands.
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21. Mobile Marketing Works:
March 2008 Nielsen research:
Half of all US mobile phone subscribers
(58 million people), had seen ads on
their phones in the past 30 days.
About half of those 58 million said they
responded to a mobile ad in some way.
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22. Mobile Usage
 In September 2008, Nielsen Mobile reported that the
typical U.S. mobile subscriber sent and received more
text messages (SMS) than phone calls.
 According to the Kelsey Group, 54.5 million people in
the U.S. have web-capable phones.
 CSS Insight reports one-third of young adults access
Facebook or Twitter via mobile phones.
 In North America, 69% of those using email on mobile
phones use it daily – worldwide that number is only
43%.
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23. Buying Habits of Mobile Users
 A 2008 Nielsen Mobile poll found that only 9.2 million
US mobile subscribers purchased goods or services
with their handsets.
 Consumers are starting to grow comfortable with the
idea of m-commerce.
 According to a poll conducted by Harris Interactive,
71% of US adults felt that it was safe to make a
purchase via mobile phone.
 BUT… An Internet Retailer survey found that only 7%
of online retailers had m-commerce sites in late 2008.
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24. Mobile Marketing
Reaches out to the end user’s most
personal device.
Messages delivered to mobile devices
must have purpose and reason without
being intrusive.
Deliver customized, highly relevant
advertising to users at point of purchase.
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26. Mobile Websites
 Number of websites geared for mobile devices will
likely increase dramatically in the next few years.
 Some top mobile websites include, Google, Twitter,
Flickr, Moviefone, Answers, etc.
 eMarketer reports 26.3% of North American mobile
subscribers regularly use the Mobile Web, and…
 Predicts Mobile Internet penetration will grow to 43%
of phone subscribers by 2013.
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27. Top 10 Brands and Mobile
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28. The Mobile Web
 Mobile web sites are the foundation for mobile
advertising campaigns.
 For example, a mobile ad banner campaign will drive
traffic to a landing page with details of a specific
promotion such as a brand awareness-generating
sweepstakes.
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29. The Mobile Web
 Many leading brands do not have a mobile presence.
 Regular websites are not tailored to mobile
consumers.
 MediaPost Sept. 2009 – Just 1 in 3 brands has a
usable, easily accessible, mobile optimized site.
 Garbled, nonfunctioning menus and poor navigation
equal a bad mobile consumer experience.
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30. Purina Mobile Page
Typical brand mobile page
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31. APP
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32. Toyota Mobile Experience
Customized user experience
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34. SMS Text
 What is SMS? “Short Messaging Service”
 Simplest form of mobile marketing: 160 character
message.
 Useful for entering sweepstakes, receiving sponsored
news, or delivering offers.
 More than 160 million people in the U.S. are on a text
plan.
 Average age of a "texter" is 38.
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35. SMS Text - Shortcodes
 Short codes let mobile subscribers send
SMS to a short and easy-to remember
number.
 Telecommunications and Internet
Association (CTIA) reserved a set of five-
and six-digit numbers that can be assigned
as short codes in mobile advertising
campaigns.
 Text messaging platform is a more efficient, automated
way to hold a sweepstakes.
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36. SMS Text - Shortcodes
 Anheuser-Busch tested a regional
text-based sweepstakes in July
 Text BUD to 839863 to enter the "Gas Up & Go"
sweepstakes
 Winners get free gas for a year
 Campaign boosted Anheuser-Busch awareness, and
(they hope) sold more beer
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37. Is SMS effective?
 16 percent of text messagers nationwide see some
form of text message advertising every month
(Nielsen’s second-quarter 2008 Mobile Advertising Report).
 Teens are the most likely to engage with SMS
advertising —35 percent of teen texters say they see
some form of text message advertising every month.
 African-American and Hispanic mobile subscribers are
also more likely to engage.
 45 percent of those who saw SMS advertising say
they have responded.
(Neilsen White Paper: The Short Code Marketing Opportunity, usshortcodes.com)
10/15/2009 © Second Wind Ltd. 37

38. Mobile Advertising
 Subscribers with web-capable phones can receive
highly targeted banner ads; i.e., ads on mobile content
sites such as Weather.com; redirected to mobile
websites
 Mobile advertising is a tiny segment of overall
advertising spending.
 eMarketer Sept. 2009: Mobile marketing ad spending
will reach 416 million by year-end; could top 1.56
billion by 2013
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39. Wiley Publishing Case Study
Publisher of "For Dummies" books used
mobile banners over 3 months
Delivered more than 1.3 million
impressions at 1.4% CTR
FOUR TIMES that of traditional internet
banner ads
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40. Mobile Ads must be:
Useful
Timely
Functional
Entertaining
Interactive…
…To the User!
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41. Effectiveness of Mobile Ads
 Measurement based on click-through rate (CTR).
 Mobile ads drive more consumers to click on ads than on
the wired Internet.
 A $10,000 media buy at a $10 CPM = approx. 1 million
impressions.
 Based on the average CTR for online ads (as reported by
comScore), 0.01 percent of consumers will click on an
Internet ad for a total of 1,000 engaged consumers.
 For the same 1 million impressions in mobile, at a CTR of
.05 percent, you engage with 5,000 consumers.
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42. Location Based Advertising
 Allows marketers to reach a specific target
audience based on users’ geographic
locations
 Gives advertisers better opportunities to
target and engage
 Offers compelling calls-to-action, and a
new way for brands to engage customers
that is only possible on mobile
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43. Location-based Advertising
 Retailers say 96% of customers come to the store
with mobile phones in hand. In future, phones
could flash a retailer’s daily offers
 Ability to improve local directory assistance or
localize the contents of an old format such as the
Sunday circular
 Twitter-based directories are launching, including
Twellow.com (Twitter-based local yellow pages)
and LocalTweeps (local directory service now in
beta, keyed to cities and zip codes)
10/15/2009 © Second Wind Ltd. 43

44. Example:
 Naked Pizza of New Orleans - Healthful pizza shop
 Tested a Twitter-fueled campaign for generating local
traffic in April 2009.
 Targeting people within a 3-mile store radius, they
tweeted offers and updates, then tracked every call to
see where their orders came from.
 Their exclusive-to-Twitter promo brought in 15% of a
single day's business.
 Now put their Twitter address (@NAKEDpizza) on
billboards and signage, and are working with Twitter to
beta-test new business applications.
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45. Example
Berry Chill - Chicago-based yogurt chain
“Sweet Tweets" promo offers go out to
store's registered followers
Campaign gained 700 followers in one
month
People standing in line at store attracts
more new customers
10/15/2009 © Second Wind Ltd. 45

46. Mobile Social Networking
 In January 2009 alone, comScore reported more than
27 million people accessed a social networking site
from their mobile phones.
 A third of young adults are regularly accessing
Facebook and Twitter from their mobile phones.
 By creating a branded Facebook page, agencies can
help clients connect with consumers, giving them a
chance to engage with brands they care about as well
as other “fans,” all through mobile.
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47. Mobile Marketing
Best Practices
6 Cs of Mobile Marketing
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48. Mobile Marketing Best Practices
 Choice. Consumers must “opt-in” to a mobile
marketing program and have a right to privacy, with
a clear “opt-out.”
 Control. Consumers should have control of when and
how they receive marketing messages on mobile
phones – Pull, not push messaging.
 Customization. Marketing should be tailored to the
interests of consumers. Restrict messages to those
categories specifically requested.
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49. Mobile Marketing Best Practices
 Consideration. Consumers must receive or be
offered something of perceived value in return for
receiving the communication (product and service
enhancements, entry into competitions, etc.).
 Constraint. Marketers must effectively manage and
limit mobile messaging programs to a reasonable
number of programs.
 Confidentiality. Commitment to not share consumer
information with non-affiliated third-parties.
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50. Mobile Marketing Best Practices
 Gaining a customer’s permission to send
ads/promotions from brands unlocks the largest,
most interactive marketing/advertising channel
 Delivering ads based on a customer’s preference
creates relevance that drives increased response
rates and customer satisfaction
 Marketers and operators have a responsibility to
ensure that mobile advertising does not morph into
another “spam machine” like email
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51. Mobile Budgeting
 Analyze current consumer tactics
 Does your client already have a mobile web site? If
not, include cost in your mobile budget.
 How are you going to drive traffic to your mobile
campaign? May include mobile advertising, traditional
media, your website, signage, etc.
 Your first mobile effort will cost more. Once you have
consumers opted into your mobile list, the cost of
subsequent programs goes down.
10/15/2009 © Second Wind Ltd. 51

52. Case Study
 Consumers text to join IKEA Mobile.
 Program advertised in-store, FSI, radio, email blasts and
store web page.
 Members of IKEA Mobile are sent Member-Exclusive
secure SMS offers up to twice monthly.
 Secure codes sent via plain-text SMS, so there is near-
100% coverage on mobile phones. Over 1 trillion codes
per offer, in effect delivering “bar codes” to mobile phones
without using bar codes.
 Customers are driven by attractive offers to visit the store
to redeem and make purchases.
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53. Case Study
 In store, customers input their code at touch-screen
interactive kiosks, select the desired offer and print a paper
coupon to use at Check-Out
 Kiosks are located in prominent in-store locations: main
entrance area, IKEA Restaurant
 Scan and redemption data are person-specific, location-
specific and offer-specific, and accessible in real-time
online
 Examples: 20% off special products, or class of products,
restaurant food offers, $X off certain purchase size, etc.
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54. Case Study
 Mobile coupon campaigns are changing behavior; i.e.,
actually driving consumers into the store and increasing
revenues.
 Touch-screen interactions provide a timely opportunity to
up-sell and cross-sell customers on relevant, personally-
profiled additional offers
 Customers that used mobile coupons spend 50%-150%
more on average than customers that have not scanned
 Over 23,000 members joined IKEA Mobile at the Seattle
location alone
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55. Case Study
 J. C. Penney Co. Inc. testing brand new 2D bar code
coupon program
 Customers download and carry coupons on their
mobile phones that can be scanned directly from the
phone's display screen at the point of sale
 Cellfire is managing the initiative; claims it is a first-of-
its-kind program for a U.S. retailer.
 Cellfire is a mobile coupon and discount offer service
that lets consumers access deals from brand-name
merchants nationwide via their mobile phones
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56. QR codes vs. Bar Codes:
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57. Case Study
 2D mobile coupons are a convenient way for
consumers to receive and redeem coupons at point of
purchase
 Mobile coupons are immediate and put the consumer
in control
 New imaging scanners from Motorola capable of
reading 2D bar-code coupons have been deployed at
point-of-sale registers in 16 JCPenney stores in the
Houston metro area
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58. Case Study
 JCPenney makes coupons available in newspaper
circulars, postcard mailers to consumers in its
database, email communication and now mobile
 Consumers don’t have to cut out a coupon or
download it and print it
 Purchase can become more spontaneous
 JCPenney’s digital efforts primarily target women 25-
39, extending to consumers in their mid-40s
 JCPenney is in the process of integrating 2D bar
codes into its JCP Rewards loyalty program
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59. Case Study
 Consumers who download the Cellfire/JCPenney
application have access to the same coupons on their
mobile phones as they would receive from JCPenney
by mail.
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60. Case Study
 Burger King sponsoring CBS College Sports’ on-air
polls and quizzes urging viewers to text in to engage
with the network
 CBS hired Txtstation to power on-air SMS voting
platform, currently running during all CBS-televised
NCAA football games.
 Questions come on screen two or three times per
game. Fans choose between responses, each of
which has a dedicated short code, and text in their
preferred response to the short code 55333.
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61. Case Study
 Burger King’s logo appears on-screen with the SMS
poll graphic
 As fans text in to the on-air short code, Txtstation
updates results in real time while the BK poll graphic
is on-screen, giving viewers live results to the poll
 Provides instant gratification, engagement and brand
awareness
 Keeps viewers “in seats,” unlike TV ads when they
may leave the room, talk or otherwise ignore ads
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62. Case Study
 Jiffy Lube, Los Angeles, launched a geotargeted mobile ad
campaign offering coupons for oil changes in March 2009
 Mobile ad initiative was part of a larger multichannel
campaign and achieved a 0.2 percent response rate,
outperforming its Web counterpart
 Twenty-eight percent of respondents texted in their ZIP
code for a list of oil-change stores closest to them
 More than 200 coupons were redeemed at Los Angeles
stores, equating to around 10 percent of original
respondents
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63. Mobile Marketing: What’s Next
 Text a code to get more content. Example: Sports
Illustrated Swimsuit Issue might offer a text short
code for more pictures sent to your phone
 Subscribers will be able to make purchases and put
the bill on their monthly tab, moving beyond
purchases of ringtones, wallpaper and game
applications
 Mobile coupons that can be scanned in stores,
directly from your phone
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64. Conclusions
 Mobile is still in its experimental stage – ripe
for innovation
 Users want a customized mobile experience,
not exactly what the “desktop web” offers
 Mobile connects to users in a different context
(place, time, network speed, interface,
mindset); behavior and response will be
different, too
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65. Conclusions
 Mobile can offer smarter, simpler and more
cost-effective digital advertising solutions
 Integrated strategies cover multiple screens,
platforms and devices
 Marketers’ goals should be to provide their
audiences with empowering, engaging and
entertaining mobile experiences on-the-go
10/15/2009 © Second Wind Ltd. 65

66. Conclusions
 Mobile advertising helps agencies and their clients
target customers and prospects more directly through
an entirely new channel
 Mobile advertising is another sign of the shift of ad
budgets from traditional marketing media, such as TV
and radio, to more direct formats, such as direct mail,
email and the Internet
 Agencies and their clients can take mobile marketing
as far as the technology will allow
 Being at the front of mobile with ideas that work for
your clients is just another way your agency can
strengthen your strategic partnerships and client
relationships
10/15/2009 © Second Wind Ltd. 66

67. Resources
Mobile Marketing Association
Mobile Marketer
Mobile Marketer – Classic Guide to
Mobile Advertising
10/15/2009 © Second Wind Ltd. 67

68. Thank you for joining
Second Wind for
“Marketing in Your Pocket:
Mobile Marketing”
Please join us next week for
“Mobile Apps”
Oct. 22 at 2:00 pm
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69. For more information about Second Wind
seminars, desktop learning, publications,
DVDs and services, or to learn about
Second Wind membership, please visit:
www.secondwindonline.com
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