Mobile Marketing and The Consumer

1Oxford Professional Education Group Ltd
Mobile Marketing in Practice
Mobile and the Consumer

Learning Outcomes
At the end of this session, students should be able to;
• Assess the reasons why mobile devices are used and how these factors
influence marketing communication decisions
• Evaluate why mobile might be used as a medium over other more
traditional forms of advertising, and when it might be integrated with other
more traditional forms
• Describe the impact of Regulatory Bodies and Codes of Practice on mobile
marketing including the following bodies
S

Mobile in the Consumer Lifestyle

A Multifunctional Device
• The mobile phone has now
become the user’s central
digital hub, controlling or
playing a part in practically
every part of the user’s
digital life My Friends
My Emails
& Calls
My
Music
My TV
My
Shopping
My Games
My
Money

Communication
• The mobile is no longer simply a voice-calling
device
• A range of other communication types are
now possible through the phone
— VOIP (Voice Over Internet Protocol) eg Skype
— SMS and MMS
— Instant Messaging eg BBM, Skype, iMessage, What’sApp and Viber
— Email
— Social Network messaging
— Location-based check-in services

Applications
The downloading and use of mobile applications is performed by 83% of
smartphone users
Apps have two main uses from a brand marketing perspective
Tactical
• Supporting campaigns and events
• New product release app
• Brand amplifying game
• App to amplify TV or other advertising
Strategic
• Permanent apps
• Utilities that help customers get more from
the brand or service
• Owner manual or guide
• Wrapper for constantly updated content

Games
• Games are by far the most popular
and downloaded form of mobile
app
• Most popular titles such as Angry
Birds, Clash of Clans and Candy
Crush Saga
• Gaming can provide organisations
with significant revenue – Clash of
Clans is said to gross over $1 in
revenue a day on iOS alone.

Media Playback
The mobile has become one of the most used
devices for playing media
— Music
• iTunes is the single biggest music
retailer globally, now selling most of its
music to iPhones
• Subscription and free music streaming
services are increasingly popular with
Deezer, Spotify and Apole Music
• Shazam allows users to ‘listen’ to
music through the app and then buy it
immediately through iTunes
— Video
• YouTube is fully optimised for mobile,
and 25% of smartphone users in the
UK watch online videos daily.
The Connect Consumer Survey, 2015

Shopping
• There are numerous techniques to make an
eCommerce system mobile, and both mobile web
and apps are widely used
• Many consumers use mobile as part of the decision
making process and consumers are now more
confident purchasing on mobile devices
• Sales made through apps now account for a third
(33%) of all retail spend on mobiles, despite only
10% of retailers offering one (Econsultancy, 2015)
• Barclay’s (cited at Econsultancy, 2015)) suggest that
UK Consumers will spend £53.6bn a year using their
smartphones and tablets by 2024.
The Connect Consumer Survey, 2015

Banking
• Banking is a growing sector in mobile, although
development was naturally delayed through the
banking sector’s concerns over security
• There are two main areas of development:
—Account servicing – Most high street banks now offer
an app for Mobile Banking
—Payment – Contactless payment
• Sending payment via mobile phone is now common practice with many different options
available
• They utilise NFC technology to enable mobile devices to pay for goods (usually under
£20)
• Services inlcude: Barclaycard PayTag, Apple Pay, Cash On Tap from EE and MasterCard
Contactless

Travel
• Travel and ticketing is a rapid
growth area in mobile
• Airlines such as BA and Lufthansa
are moving their customers over
to mobile ticketing and boarding
passes as well as flight updates
• Bus companies are also utilizing
mobile ticketing as well
• Train Booking websites like
trainline.com are now offering
cheaper options for fares if
booked via the app

Social Networking
• Social networking has become one
of the most popular mobile
services, 87% of Facebook’s 1.44
billion active monthly users,
currently access the site from
mobile devices.
• The Facebook app is one of the
most used mobile apps in the US
and UK with 88% accessing the
platform from their Smartphone in
2013 (Mobile Planet, 2014)
• A range of mobile-only social
networks have emerged to
capitalise on the trend, such as
SnapChat and Instagram
WeAreSocial, 2015

Productivity
The mobile has replaced many other
devices, both digital and otherwise, in
helping us manage our lives:
— Alarm Clock
— Note Pad – sophisticated note-taking apps such
as Evernote allow users to minute meetings and
instantly share them to PC for further work and
sharing
— Calendar – the syncing of the mobile calendar
function with Microsoft Exchange, Google
Calendar etc means that the mobile is heavily
used to manage schedules
— Shopping List – many apps exist for common
tasks such as shopping

Reading
• Mobile devices have become a principle platform for
publishers
• All major UK publishers such as the Sun, Guardian,
Times, Telegraph etc. publish to mobile devices, as
well as broadcasters such as BBC and Sky
• In the UK, between 2010 and 2013 the market went
from practically zero to £300 and Ebook sales as a
percentage of total book sales worldwide are set to
double by 2018 (Guardian, 2015)
• Outside of traditional publishing, digital reading has
allowed authors to publish directly to marketplaces
run by Amazon, Nook and Kobo.

Navigation
• Mapping services from Google
and Nokia have fundamentally
changed how we find our way
• Google Mobile Maps and Here
app now allow us to explore the
world
• Nokia’s full turn-by-turn
navigation product is set to
provide competition to
traditional SatNav providers
such as TomTom

Reasons for Using Mobile in Advertising

Building Awareness
• While mobile has
traditionally been
used as a
performance and
interactive
medium, it is now
coming to the fore
in building
awareness and
consideration
• Rich mobile advertising formats,
attention-grabbing applications
and attractive mobile sites serve
to enhance the brand value

Starting a conversation
• Mobile can be used as a response channel to virtually any piece of
advertising, meaning that no piece of advertising ever need be
thought of as one-way again
• Numerous response channels are possible through mobile to
continue the conversation:
—SMS shortcodes
—Mobile search
—QR codes
—Augmented Reality
—Image recognition
—Social media
—App promotions

Lead Generation
• A variety of tools can be used to
generate new leads
• Mobile advertising is key, with
banners placed in well-targeted
media being particularly
effective
• Users clicking through can use
click-to-call, fill in forms, request
brochures or application forms,
and request a call-back

Competitions and rewards
• The text-and-win is a very
successful mechanic for
getting users to interact with
a brand
• Once they have entered, their
data can be opted in, and they
can become part of a loyalty
program
• The instant-win mechanic can
now also be entered through
image recognition, QR
scanning etc

Retention
• Mobile is an excellent
channel for CRM.
SMS messaging has
an open rate over
90%, and app
notifications mean
users can be directed
straight to events or
content within an app

Transactions and Revenue
• Mobile channels can now
be used to drive direct
revenues
• This can be through:
—Direct connection to mobile
commerce
—Using geo-fenced SMS to
drive users into local stores
—Triggering renewals through
direct CRM

Service Improvement
• As mobile is such a preferred platform
for information and utility, many brands
are extending their services, such as
account management, customer care
etc, to the device
• This can be as apps, mobile web, or
messaging
• Airmiles wanted to increase the ‘front-
of-mind’ of their service, so their users
would collect and redeem more miles.
They produced an app and mobile site to
make this possible

Regulatory Bodies and Codes of Practice

Legislation and Voluntary
Legislation
— The European Privacy and
Electronic Communications
Directive and the UK Data
Protection Act are the key
applicable laws in the UK
Voluntary
— A set of Best Practices have
been established by a
number of bodies in the
marketing and mobile arenas
• Mobile has very little specific legislation applied to it, as the growth of
the channel has emerged much faster than legislative and regulatory
bodies can match
• Therefore a mix of legislature and voluntary Best Practice should apply
to all mobile efforts

PhonePayPlus
• PPP is the body that regulates premium rate phone services in the UK
• Premium rate phone services include, quizzes and competitions, voting
and charity donations.
• Although they concentrate on premium-rate services, they are entitled
to close down shortcode services if they are in breach of the Code of
Conduct, and have done so on many occasions, also levying very large
fines
• They publish a range of guidance and research into the premium rate
market and consumer understanding of it

Information Commissioner’s Office
• The ICO is the UK’s independent authority set up to
uphold information rights in the public interest,
promoting openness by public bodies and data privacy
for individuals
• They can enforce both the Data Protection Act and the
Privacy and Electronic Communications Directive

Mobile Marketing Association
• The MMA is a global body whose mission is to represent all
players in the mobile marketing value chain, and promote,
educate, measure and guide the mobile marketing industry
• The MMA has established committees in Privacy and Advocacy,
and has published papers including the Global Code of Conduct,
Consumer Best Practice Guidelines, and Mobile
Advertising Guidelines

Direct Marketing Association
• The DMA in the UK has a mobile council whose
stated aim is to provide support in understanding
the mobile medium and how to use it
• The DMA takes a close look at mobile issues such as
best practice, data protection, research, and
promoting mobile as a marketing channel
• The DMA have published a number of useful
papers including Bluetooth guidelines, and run
seminars on issues such as mobile cookies

Mobile Data Association
• The MDA takes a view across usage of
mobile data, and releases key stats around
SMS, MMS and mobile web usage
• They represent more the network operator
and handset manufacturer end of the value
chain

Internet Advertising Bureau
• The IAB are probably the most dynamic industry
body for mobile marketing and advertising, with a
natural focus on the mobile media space
• They have developed a good amount of research
into mobile Adspend, effectiveness, and case
studies in the field

Advertising Standards Authority
• The ASA is the independent regulator of
advertising across all media
• Though they have no specific mobile remit, all
advertising falls under their governance
• Of particular relevance to mobile are the ASA
regulations on how a call to action should be
promoted, such as the size of the text, the
small print, and the Ts&Cs

References
• Econsultancy (2015), 50 fascinating stats about mobile commerce in the UK,
Econsultancyhttps://econsultancy.com/blog/66543-50-fascinating-stats-about-mobile-
commerce-in-the-uk-2015/ (accessed 4 August 2015)
• Fleishman, C (2015), UK Digital, Social and Mobile Statistics for 2015 #smlondon, Social
Media London:http://socialmedialondon.co.uk/digital-social-mobile-statistics-2015/
(accessed 4 August 2015)
• Flood, A (2015) Sales of printed books fall by more than £150m in five years,
Guardian.com http://www.theguardian.com/books/2015/jan/13/sales-printed-books-fell-
150m--five-years (accessed 4 August 2015)

About the Oxford College of Marketing
Oxford College of Marketing is part of the Oxford Professional Education Group and is a
leading marketing institute that provides exceptional practical marketing courses,
qualifications and bespoke training solutions. We offer a range of professional sales and
marketing qualifications, including; Chartered Institute of Marketing (CIM), CAM
foundation, Institute of Sales and Marketing Management (ISMM) and University of
California Irvine Extension (UCI).
Our training courses are delivered through an extensive network of UK study centres and
global partners as well as through our comprehensive online learning system to support our
large number of distance-learning delegates.
To find out more how we can help develop your marketing career, visit us at
www.oxfordcollegeofmarketing.com.
You can also get in touch directly by emailing enquiries@oxfordpeg.com or by calling +44
(0)1865 515255.

Mobile Marketing and The Consumer

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