1) The document provides an overview of various types of mobile marketing including SMS text messaging, mobile websites, apps, QR codes, NFC chips, and location-based advertising. 2) It describes the services offered by the company TextMobi, including a dedicated iPhone/iPod app, mobile website, and free SMS text messaging. 3) An example is given of a taco restaurant owner named Juan who implemented a mobile marketing strategy through TextMobi, including signage promoting his app and SMS list and a Wednesday lunch promotion sent through the app and via text.

1. www.textmobi.net
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2. www.textmobi.net
Mobile Marketing Explained
Table of Contents
Introduction....................................................................2
Types of Mobile Marketing...............................................2
SMS Text Message Service...............................................2
Pricing for SMS................................................................4
Mobile Websites...............................................................4
Apps.................................................................................6
QR Codes..........................................................................7
NFC Chips..........................................................................8
Location Based Advertising...............................................9
A Complete Mobile Marketing System..............................10
Juan's Tacos....................................................................13
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Introduction
Mobile marketing in general is a huge subject that is far beyond the
scope of this paper. Your probably not interested in reading a whole
book on the subject.
Consequently, I will just be giving a broad overview of mobile
marketing and then I will tell you how my company can help if you
decide to add mobile marketing to your advertising mix.
Types of Mobile Marketing
In discussing mobile marketing there are three main types of mobile
systems to talk about. They are:
1. SMS text messaging (viewable by 99% of cellphones)
2. mobile websites(only viewable with a smartphone)
3. marketing apps (only viewable with a smartphone)
SMS Text Message Service
The most common of these three for business use is the SMS text
message service.
With the text message service, the customer opt's-in to a business's
database by typing a “keyword” to a “shortcode” that is a five or six
digit phone number making it much easier to use and remember than
a regular phone number.
The shortcode can be either a “shared shortcode” or one that's
“dedicated” just to the business in question.
The dedicated shortcode can cost anywhere from $15,000. to
$30,000. per year to run and usually takes about two months to set
up.
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Consequently, shared shortcodes are very popular because they're a
lot cheaper to set up than dedicated short codes, in fact, sometimes
they're free and they can be set up almost immediately.
After texting to the shortcode, the customer typically then receives an
automated response back asking him/her if they are sure they want
to opt-in.
This process is called a “double opt-in” and is a necessary safeguard
to make sure that the owner of the phone for sure wants to receive
the marketing messages and won't look on them as spam.
After they reply “yes”, they usually will receive the company's first
special offer.
They then will receive marketing messages on a regular basis, but the
business owner has to be careful not to send out texts too frequently
because even though a lot of people have unlimited texting plans,
there are still a people who don't and each text could cost the
customer more money.
Also, too many offers too often, might seem like spam to the
customer.
One of the really nice things about this setup is that the advertiser
has to type out the message just one time, then the service sends a
copy to everyone who has “opted-in”.
The customers that receive these messages are considered to be very
“targeted” customers because they have essentially asked to receive
commercial messages.
Messages have to be short, 140 to 160 characters including spaces so
abbreviations are often used. Fortunately, there is a book of collected
abbreviations for reference. It's available at
http://www.netlingo.com/acronyms.php .
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This message itself is sometimes referred to as a coupon. There are
usually instructions in the message to show the message in the
business to get the discount or deal.
MMS (multimedia message service) is often mentioned when talking
about SMS because it's really just an extension of the core of SMS.
MMS allows pictures and video to be sent along via SMS.
The only trouble with MMS is, the person receiving the message has
to have a compatible handset. Something that's not always the case
so the MMS messages don't always get delivered.
Pricing For SMS
Pricing for SMS seems to run the gamut from free to the most popular
price point of $99.00 per month which includes 500 subscribers who
get about four messages a month.
Most SMS systems (especially the inexpensive ones) are priced
depending on how many text messages the business sends out and
how many subscribers they have.
If you want to pay a lower fixed monthly fee, then you pay a higher
fee for each message and each subscriber.
Mobile Websites
A mobile website serves the same purpose as a website on the classic
web. It can be informative or it can even take sales, but the format is
definitely different than the classic web.
The customer usually has to have a smartphone to view a mobile
website.
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A lot of business owners think they don't need a separate website for
mobile because regular websites do show up on smartphones.
There are some problems though. The biggest one having to do with
size.
The biggest screen on a smartphone is only about 3x5 inches. A page
from a regular website has to be reduced down to a very small size in
order to be viewed in it's entirety on a cellphone.
Consequently, to read a regular web page on a smartphone, a small
portion of the page needs to be magnified. This takes up the whole
screen on a cellphone which means that the user has to scroll all over
the place in order to read the whole page.
Cell users don't want to do this.
They don't have the time or the desire.
A cellphone user is on the go, out of the house. They're not sitting in
front of their computer sipping a cup of coffee. They're outside the
house. They want the information that they're looking for right away.
Because of the small screen size, where the consumer is and the fact
that most smartphones load websites slower than a desktop would,
mobile websites should be formatted to have much smaller and
simpler pages than what's found on the classic web.
This necessitates the building of a website just for mobile phones.
For instance, pictures should be kept to a minimum in number. Text
should kept to a minimum and should be larger and/or bold so it's
more readable.
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A lot of people don't believe this. They think that if they have a
website on the classic web, they're covered, but it just isn't so!
One statistic that bears this out is that 84% of the people asked said
that if a business has a regular website, they thought it should also
have a mobile website.
Interestingly, a site built for mobile can be viewed just fine on the
classic web. It will have a lot of white space. It might even look
bizarre, but in most cases it will still be readable.
If a website runs on Wordpress, there is a plug-in that can be used to
automatically switch the viewer over to a mobile version of a site if
the visitor is viewing from a phone.
I've read that conventional websites can also be made to
automatically switch to mobile sites, but I wasn't able to find any
information on how to do it so perhaps it takes a professional
programer.
Apps
App is actually short for software application. The software application
is actually a program that is made to run on a smartphone.
Apps are broadly categorized into two main types, native and non-
native apps.
I have to admit that I'm not an expert on the subject of native and
non-native apps, but I did find a little information on the subject.
It seems that a native app is one that is made in a particular
programing language that is compatible with one particular brand of
phone.
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For instance, the operating system that Apple uses is made to be
compatible with the Objective-C programing language.
Of course, non-native apps are written in a programing language that
may not be compatible with a certain device, but they are then
changed by a sort of translation program so that their programing is
compatible with the device.
These translation programs must not be perfect because everything I
read said that native apps work best.
Apps used by businesses are called marketing apps because they can
advertise a business's products or services.
A marketing app will have a page that is usually called the “Alert”
page. This is where a business will display its marketing messages.
Just like the shortcode, an app can be either shared of dedicated.
An example of a shared app would be a business app where several
different businesses have gotten together to buy an app, then each
business gets to put one coupon on the app.
With a dedicated app, one business owns the app and uses the app
pages to feature only it's products and/or services.
QR Codes
As recently as 2010 a lot of people thought that QR codes were going
to be the wave of the future, but now they're not so sure.
QR stands for Quick Response and the codes are used to transfer
information to smartphones.
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This can be information like a point-of-sale coupon, price or just
product information.
To transfer the information a reader has to be installed on the
smartphone. The customer then takes a picture of the QR code and
then the reader tells him what it says.
They also can be configured to take payment information, but they
need an app to do that.
The codes look like the example below:
Starbucks is already letting customers pay with QR codes. So far,
Starbucks has taken three million payments with them.
Everyone says that these are great because they allow retailers to
communicate with their customers, but I foresee that customers will
soon see these messages as just more advertising and may stop
reading QR codes altogether unless they are being used as part of a
payment plan.
NFC Chips
NFC stands for Near Field Communication. This is the technology that
may replace QR codes.
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A lot of people say this because Apple is working on a chip that it
plans to introduce next year and Google is working on integrating its
operating system with a chip by next fall.
NFC chips can be used for a variety of tasks. The most important of
which is that it would make your smartphone act like a credit card,
but without the necessity of having the appropriate app.
There are problems however, QR codes are standardized, while the
NFC market is very fragmented with every phone manufacturer
coming out with their own chip.
Location Based Advertising
This is the type of mobile advertising that everyone is talking about
and indeed it does sound like a great advertising concept.
Location based advertising works off the GPS feature that is in every
smartphone.
An example of it's use would be a shopper who is walking by a coffee
shop in a mall. It's 98 degrees outside so the last thing the shopper is
going to think of is a nice hot cup of coffee.
The shopper's smartphone suddenly rings and it's a coupon for 20%
off on a cup of iced tea. Perfect timing thinks the shopper.
Perfect way for the coffee shop to get some business too!
There is a concern with this concept however.
Let's say the shopper is walking by a series of businesses in the mall
that all use location based advertising.
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The shopper's cellphone would be constantly ringing with coupons and
special deals.
So much so that the offers would be annoying and looked at as spam.
An offshoot of the location based advertising trend is the practice of
“checking in” with certain social networking sites.
A couple of the most popular sites are Foursquare and Gowalla,
however, there are also many others.
Incentives for “checking in” include discounts or special deals at the
store you're at.
The trouble with this business model is that your “check in” is public
since you are “checking in” to a social network site.
Since your “check in” is public, it can be viewed by burglars who know
exactly where you are and they would be happy to empty out your
house while you are gone.
Quite a few people have fallen victim to this scenario and as a
consequence several lawsuits against the social networks are working
their way through the courts.
As a matter of fact, I just read that California is considering a law that
would ban location based marketing because of the privacy issues.
Google and Facebook are fighting the proposal vigorously because
they figure that if California bans location based marketing, then
other states may follow suit.
It may or may not be for these reasons, but “checking in” doesn't
appear to be wildly popular yet because according to the research
company Comscore, only 7.1% of cellphone users “check in”.
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Location based advertising has tremendous potential, but until it's
problems are worked out it may be best to take a wait and see
attitude.
A Complete Mobile Marketing System
Here at TextMobi, we've put together a complete mobile marketing
system for our customers.
We've done this because we feel that to be successful as possible, our
customers should be integrating as much of mobile as they can into
their advertising mix and mobile technology is moving so fast that it's
best to have the latest types of mobile.
Our systems come complete with:
• iPhone and iPod Touch app exclusive to your business ( dedicated)-You'll
experience “persistent exposure” because your icon will always be on the
homepage of your customers iPhones and iPods.
• your own mobile website- The pages of your app can be viewed as a mobile
website by any smartphone that is connected to the web which saves you the
expense of creating an app for every brand of smartphone.
• FREE SMS text messaging-Text messages can be received by virtually any
cellphone that your customer may have (both smartphones and so-called “feature
phones”) and if you are located in the USA, we can provide this service free for
you. This is an incredible deal since many mobile marketing systems from other
companies have SMS only and charge up to $99./mo..
In addition, each of our systems comes with a complete do-it-yourself
“back office” which is used to manage all aspects of your system and
is so easy to use that even a novice can use it to build a marketing
app. a mobile website and send out the text messages.
In the “back office” you can compose your “alerts” and text
messages as easily as if you were writing out emails.
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You can write product descriptions or service descriptions on your app
and mobile website pages, once again, as easily as you could write an
email.
Pictures for your app and mobile website are a little harder to handle,
especially if you don't have very much computer experience.
If this the case for you and you have any employees, find out if
anyone has Photoshop and knows how to use it.
If not, find out if anyone likes using the computer because we have
tutorials that will show anybody that can use a computer how to
manuipulate any image with software that is free on the web.
All of the above is only $1.00 for the first month. Then, if you decide
to keep the service, it's only $75.00 for each additional month.
That's less then most of our competitors charge for SMS text
messaging alone!
We're not advocating increasing your advertising spending by $75.00
per month. We're sure that if you go mobile, your ad spending will be
more efficient and you can cut out the advertising that is really kind
of quetionable.
To see the potential of mobile marketing, let's look at an example of
what can be done.
We're going to look at the mobile marketing efforts of Juan's Tacos.
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Juan's Tacos
Juan has a mobile marketing system from TextMobi so the first thing
he did after he got it was to put signage in his establishment that told
customers where to get his iPhone app and how to opt-in to his text
messaging list.
He put the same instructions on his website and in all his print
advertising.
His in-store signage looked like this:
In addition to this sign, he also posted the sign that's on the next
page.
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After a month, he had quite a few downloads of his app and a lot of
customers had opted-in to his text list.
Juan noticed that Wednesday was extremely slow so he decided to do
something about it.
On a Wednesday morning at 11:00AM he put out an “Alert” on his
iPhone app and his mobile website.
It looked like this:
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Yes it' simple, but it's important that it is.
Juan sent out the same message to his text list.
Larry got the text at 11:00AM. He was already thinking about lunch
so he looked at the “Alert” page on his iPhone app.
The picture of the tacos really made his stomach growl.
Larry invited Bill to go with him so they could take advantage of
Juan's offer.
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Bill liked the food so he opted-in and downloaded the app to his
iPhone.
The next week, Juan changed the offer to a FREE soda for you and a
friend.
Larry went back, but he had to take John because Bill was taking Bob.
After a few weeks, Wednesday was Juan's busiest day.
If you're reading this paper it's probably because you've heard of
mobile marketing and wondered what all the fuss was about.
I'll tell you some of the reasons for all the fuss:
• Five billion people on the planet own a cellphone...
• 85% of Americans own a cellphone...
• 70% of cellphone owners use text messaging...
• 96% of 18 to 29 year olds own a cellphone...
• 90 to 97% of text messages get opened (as opposed to 10% for
emails because of all the spam)...
• Text messaging and marketing apps bring you targeted
customers...(who could be more targeted than someone that has
asked to receive your messages)
• You can contact your best customers more often...
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• Smartphone penetration was 35% of the cellphone market by
the end of 2010 and projected to be 50% by the end of 2011...
• Mobile marketing brings immediate results...
Whatever you decide to do about mobile marketing, here's a line from
Advertising Age magazine that sums up the current situation:
“It's clear that retailers who don't embrace mobile phone
technology in the coming year will be left behind much as
those retailers who sat on the sidelines during the early days
of digital or social media and are playing catchup”.
Don't be left behind, visit our website today to order your complete
mobile marketing system or get more information about mobile
marketing.
Our site includes a complete FAQs section.
There is also a demo app and a demo “back office”.
The site address is: http://www.textmobi.net
If you would like to see what a mobile website looks like that we
created, please visit this site on a smartphone:
http://www.textmobi.net/m/?a=1210
If you want to check out this site from your computer, go to:
http://textmobi.net/w/home.php?advid=1210
If you don't find the information you're looking for, you can call us at
(503)702-6712.
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Or you can email us at: textmobi@gmail.com
Well, I hope the above overview answered your questions about
mobile marketing.
From everything I've read, I'm convinced that mobile marketing is the
future of advertising.
Everyone has a mobile phone and soon almost everyone will have a
smartphone. Take advantage of that fact.
Get your advertising message on those phones!
Warm Regards,
Craig Stanford
iPhone and iPod touch are trademarks of Apple Inc.
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