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Mobile marketing has been around in India long enough to not be called 'nascent' anymore. Here's how it can break out of its slumber…

Devina Joshi
Last Updated : Sep 02 2013 | 4:06 PM IST
Consider this. India is the world's second largest mobile phone market, with a mobile subscriber base of 870 million (as of May 2013). But it ranks close to bottom when it comes to mobile marketing innovation. What's more startling is that 70 per cent of the people use their mobile phones to compare product prices and 50 per cent of mobile searches lead to purchases; but - here's the clincher - 90 per cent of the companies do not even having a mobile-optimised presence.

The potential of mobile is clearly underutilised. According to GroupM's report, This Year, Next Year, India closed the calendar year 2012 with an ad expenditure growth of 4 per cent compared to CY2011, with a net revenue of about Rs 34,724 crore. Digital is estimated at 5 per cent of the total. That would be Rs 1,736 crore. Mobile advertising is a small 10 per cent of that or a paltry Rs 173.6 crore.

Now see where things are headed in the US. Following explosive entrances by Facebook and Twitter to the marketplace as well as a strong performance from Google, US mobile advertising spending grew 178 per cent in 2012 to $4.11 billion (Rs 22,605 crore; all calculations assuming Rs 55 equals a dollar), according to a new forecast by eMarketer, and spending is expected to rise a further 77.3 per cent to $7.29 billion (Rs 40,095 crore) in 2013.

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That's a fivefold increase in spending since 2011, and includes money spent on display, search and messaging-based formats served to all mobile devices, including tablets. By 2017, eMarketer projects US advertisers will devote $27.13 billion (Rs 1,49,215 crore) to mobile - just under 45 per cent of all digital ad spending and 13.8 per cent of total media ad spending that year.

So what's keeping mobile advertising from taking off? More importantly, what steps do marketers need to take to realise the full potential of the medium?

But first things first. The 'mobile' is a different animal. It needs to be tamed differently. It is a personal device - unlike advertising medium like a magazine or television - that needs personal engagement. It should be used to address the basic necessities of a person - the urge to communicate, the need for entertainment or even the urgency of being updated on what is happening in the world. With this in mind, here's how you can hone your mobile marketing chops.

Rule # 1: From intrusion to permission-based marketing
Spamming on mobile phones via telemarketing and text messages is a decade old problem, which partly got addressed via DND mechanisms and the Telecom Regulatory Authority of India (Trai) recommendations of 2012 (The Telecom Commercial Communications Customer Preference [Tenth Amendment] Regulations, 2012, that aimed to revise the measures taken in 2011 to curb unsolicited commercial communications). That said, India is still a feature phone-dominated market, which means marketers cannot ignore the cold call and SMS route.But the method in which this is done is moving from a model of intrusion to one of 'permission-based marketing'. This allows for users to 'opt-in' for the kind of messages/promotional calls they would like to receive. For instance, if Coca-Cola wishes to promote music content from Coke Studio, it will first send a text alert asking if the user wants to receive, say, the latest fusion mix and then allow for an opt-in requesting users to reply with their consent toll-free.

Similarly, brands may ask consumers if they are interested in content or deal-based offers. 'End of call' notifications, data-led messaging and IVR prompts are methods of practicing permission-based marketing. At the end of say, a year, the marketer (or telecom operator) will have enough consumer behaviour data (demographics, psychographics) to sharpen promotional offerings.

There are drawbacks though: arriving at the correct target database takes time in permission-based marketing. Also, most of the telemarketing service provision is price based - players offering such services often lower their costs so they can recoup them in other areas. This leads to ignoring areas such as training, motivation, supervision and quality assurance that ultimately results in an inferior telemarketing call.

Also, as the mobile is so personal, the level of acceptance or annoyance varies. If you are planning a vacation or buying a car, you will appreciate information on these aspects at the right time, but once the purchases are made, they may seem annoying and you may consider it 'spam'. This is where permission-based marketing and opt-in campaigns play a big role; something India needs to move towards. The key is relevance and timing.

"Brands like Coca-Cola, Axe and Ponds are actively experimenting with innovative apps in the West, while the same brands rely on text and voice calls in India. And it is only fair, considering the number of feature phones sold last year was 172.2 million, while smartphones were at 11.2 million," says Vijay Shekhar Sharma, founder and CEO at mobile internet company, One 97 Communications.

Rule # 2: Adopt a strong app strategy
Going by predictions, 85 billion mobile apps will be downloaded by 2015 and mobile data network spending would have exceeded fixed data network spending for the first time. Apps, besides aiding communication, can be used by brands to provide entertainment, shopping options, deals and a host of other things. Marico even launched an app for its investors, giving them access to relevant news regarding the company's finances, quarterly results etc. But how should marketers do it right?

According to Urban Airship, apps following 'good' push notification practices can more than double the retention rate over a six-month period after download. Good push notifications drive 67 per cent of app usage the first month after download, 74 per cent of usage two months after download and 81 per cent of usage three months after download. When done correctly, push notifications help in the sales of various apps and products. Push notifiers should understand the user's needs and base notifications on that and not what the app developer wants.

To cite an international example, Burton Snowboards, a Burlington, Vermont-based snowboard manufacturer, found a way to engage users by offering to push 'fresh snowfall' alerts to customers. Customers were thus pulled into buying snowboards through this informative campaign.

In 2011, Debenhams used an app to launch UK's first set of virtual pop-up stores at different locations. People were encouraged to visit famous landmarks in London and look at the location using their iPad or iPhone. If the user was not in the right location, the app's view button displayed a map.

To be sure, apps allow for mobile banner ads, which not just help publishers to earn but also offer low clutter unlike websites. Users visiting the apps, interact with the ad if they choose to - non-intrusive, to say the least.

On the content front, lifestyle magazines are being replaced by apps on mobile devices like tablets. It is only a matter of time before the same phenomenon gets replicated in India. Globally, car brands like Ford have launched systems through which their mobile apps can control the in-car systems and functions. Brands can thus find their own such 'moments of truth' on mobile.

“Think mobile-first“

“What are the advantages mobile can offer marketers, which traditional media doesn’t?
With the level of immediacy and personalised interactions that mobile offers, I cannot think of a more powerful platform and channel. For marketers, we have seen mobile positively impact ROI and increase the value of every dollar spent within media budgets.

A deeper understanding of the role of mobile seems to be setting in, and new techniques like attribution modelling may help with that process. Rather than looking at the consumer’s last action, attribution modelling takes a more holistic approach, tracking and assigning value to all the different steps that contribute to the purchase decision.

What are the lessons India can learn from the West in terms of mobile marketing innovations?
a) Think mobile first: The most successful campaigns are developed with a mobile-first mentality. Consider mobile the connective tissue to all media as it supports and strengthens all channels.

b) Leverage multi-screen usage patterns in mobile: Smartphone and tablet users often juggle multiple devices and work across screens. For example, someone watching ESPN on TV may also be using an ESPN app to keep track of the scores.

c) Utilise the full spectrum of mobile tools and applications: Mobile isn’t just about a mobile website or a mobile display campaign or a mobile app. It’s about a mobile website and a mobile display campaign and a mobile app and much more.

d) Leverage every phase of the sales funnel: One of the unique aspects of mobile marketing is that mobile visitors use it for search and discovery as well as for purchase and connecting with the brand.

e) Test your way to success: Mobile is digital in nature, which makes it a perfect tool to measure the effectiveness of your campaign. But that’s only half the battle. The second half is to sift through those insights and make adjustments to improve the performance of future campaigns. By testing your way into success, you’ll be in a position to continuously improve the ROI of your mobile marketing programmes.

Rohit Dadwal
Managing Director, Mobile Marketing Association, Asia Pacific
Rule # 3: Leverage the power of LBS
Location-based services (LBS) is a growing sector in India with the Internet & Mobile Association of India (IAMAI) expecting the revenue to cross $500 million (Rs 2750 crore) by 2014. LBS uses information on the geographical position of the mobile device (through GPS etc) and this is especially easy to do in the case of smartphones and tablets with built-in GPS capabilities. LBS will further grow when it is perceived to offer high user value and drive loyalty. Its high user value is the result of its ability to meet a range of needs from productivity and goal fulfillment to social networking and entertainment. With smartphones and tablets being 'location aware' on their own, it is incumbent on the marketer to consider whether location is a necessary targeting criterion and if so, seek out and gain end-user permission (via clear notice and opt-in/opt-out choices) to use this.

LBS offers the advantage of proximity: knowing that the customer is nearby/within the store or ready to make a purchase gives a marketer the opportunity to deliver hyperlocal and relevant messaging or offers. The other way that marketers can step up their location targeting strategies is by leveraging users' location history. For example, Samsung Smart TV recently worked with JiWire to target mobile ads at users who frequently visit/had recently visited electronics stores, when they were nearby a participating Best Buy store in the US. The campaign drove a 1.03 per cent click-through rate. As location-based targeting gets more sophisticated, more marketers are likely to jump on board.

For LBS to reach critical mass in emerging markets, the only real way is to integrate with telecom networks to deliver an experience consistent to all consumers. This will also help marketers overcome the challenge of using the service with all type of mobile phones (feature/smart). These services have to be more engaging, going beyond location, integrating social and commercial aspect for consumers. Similarly, mobile phone companies also need to make their systems more intelligent. "At Micromax, we have created a unique software that gives us instant updates on our every device that gets activated anywhere in the country. This helps us keep a track for our business for better targeting," says Shubhodip Pal, chief marketing officer, Micromax India.

Rule # 4: Making rich media content work for you
According to a sonyliv.com report, 53 per cent of viewers watch videos on their mobile phones, 32 per cent view them online and 15 per cent, on tablets. In a word, this spells 'potential'. Mobile also draws parallels with most traditional advertising mechanisms - mobile video globally has mGRP for measuring TV spot style placements, for instance. There is tremendous scope for display ads and integrated content considering all this.

There was a time when value added services (VAS) was the only format of content on mobile phones. While VAS is still around, the format in which it is offered needs to evolve. The same set of services - astro or cricket alerts for instance - can only do so much. VAS needs to become primarily content-driven to succeed, be it information, entertainment, branded or other content. It has to be packaged and positioned correctly.

The onus for this lies with branded content providers. Concepts like augmented reality on mobile phones and scanning QR codes or images through phone cameras will level the playing field: these are techniques agnostic to languages, education levels etc. "These will penetrate much lower in the value chain once adopted," says Rohit Dadwal, managing director, Mobile Marketing Association, Asia Pacific. For instance, a brand like Wheel (detergent) could place a QR code on its packaging and on scanning it through a camera phone, the brand can educate people about the product, a contest, or even get people to download relevant content. This need not be only marketing-based content; the challenge here is to ensure the right kind of content. "This can percolate down to all levels of society," Dadwal adds.

Globally, IBM was the first organisation to develop an augmented reality mobile application with live data streaming. It created an app called Seer for its VIP business leads to use at Wimbledon that combined augmented reality with real data, allowing people at events to use their mobile to see more and obtain useful statistics about the game. Also, there are concepts like audio tagging which can be used by brands. Audio tagging is similar to QR code functionality, but it uses aural cues - sounds your phone can hear - instead of a physical barcode your phone can read visually.

Rich content also allows convergence with traditional media, for a more holistic approach. For instance, a print ad can lead a consumer to activate a QR code which takes her to a website that lets her download a mobile game that might in turn influence her decision to purchase something. Chevrolet was able to generate 39 million views by integrating its Chevy Game Time App into the Super Bowl TV campaign that was running concurrently in the US. "Mobile campaigns shouldn't be produced in a silo. Mobile isn't just about smartphones or tablets. The most successful mobile marketing campaigns are developed with an understanding of the environment," says Dadwal. For example, tablet users are often at the top of the sales funnel and do in-depth initial research while smartphone users are often at the bottom of the sales funnel and are ready to make a purchase. This brings us to the last point.

Mobile advertising 2.0
Expert Take

There is a need to reconsider how mobile advertising has been practiced and discover the game changing possibilities of the next wave, that will allow brands to focus, reach and engage with the right target audience instead of just buying mobile inventory. Advertisers must take cognizance of the following pillars:

Targeting: Finding the needle in the audience haystack
The ground rule of mobile advertising is segmenting your audience. A mix of subscriber information along with usage information allows advertisers to hyper target their communication and offers to consumers and help marketers connect to audiences at a personal level.

Context & content: The two peas of the mobile advertising pod
While making mobile messages more contextually-aware for your audience, they also have to create a substantial amount of content to segment particular groups of users. A wrong message leveraging the contextual power of the mobile phone is a fruitless exercise.

Choosing the right ad formats
Brands need to get the right media mix to successfully deliver their campaign objectives. Rich media formats such as HTML5 infused with the plethora of touch devices can truly revolutionise the way mobile advertising is being practiced. From just movement or multiple clicks, brand engagement can come alive through numerous intuitive engagement methods such as touch, click, scratch, pinch functionalities, enabling consumers to experience the brand in a much more relevant way than ever before.

Getting granular with tech-enabled tracking
Advertisers can get more granular in measuring the engagement with each and every creative by deducing effectiveness through metrics such as the number of people who enlarged an image, viewed a video, liked the brand’s Facebook page or tweeted about their experience. Technology-enabled tracking is at the heart of mobile advertising, with it being the only media that offers close to 100 per cent audience measurement.

Narayan Murthy Ivaturi
General Manager, global sales and strategy, Vserv.mobi
Rule # 5: Do it for the right reasons with the right TG-device fit
One of the primary structural hurdles to mobile marketing is the device fragmentation we see in the mobile market. The experience of viewing a marketing plan on various devices is different. Additionally, because of industry fragmentation pertaining to vendors, operating systems and telecom operators, the consumer experience gets affected. "A marketer is never sure if the app or banner will even be displayed properly on all handsets," says Rajiv Hiranandani, executive director, Altruist Mobile2win.

This can be partly solved by the advent of a better 3G network, which will help enable rich content on m-sites (mobile-optimised sites), effortless video streaming on platforms like YouTube, rich content-enabled banner ads etc, across devices. Until now, a typical mobile strategy has comprised repackaging content that is already created for different screens be it television or the personal computer. Content makers need to realise how to best create content for smaller screens.

The social media too needs to be leveraged with the right target group. Facebook recently launched an advertising option giving users ad engagements in their news feeds - marketers today can buy 'Like' ads, sponsored stories or app install ads too.

Soon, Facebook will launch video advertising on its platform and this will be available on mobile as well. As more and more consumers take up mobile internet - there are already 87 million active users as per IMRB and IAMAI and over 140 million data connections as per Trai - targeting consumers on mobile is only set to grow. The fact that the kind of mobile device a person owns tells a lot about her purchasing power, is a given. Marketers can use this knowledge for sharp segmentation on mobile: if a brand wishes to show its ad/mobile property only to iPhone users, it can do so.

To sum up, the top goal for marketers trying their hand at mobile advertising is to increase awareness and improve branding (as demonstrated by an Ovum study). This may not be the ideal goal for mobile marketing, considering that the medium is on-the-go and the immediacy of the benefit has to come through quickly. Mobile advertising is also not to be looked upon as push mechanism, but a combination of push and pull which a consumer wants to see on his mobile device.

Without tried and tested solutions, any brand venturing into mobile is going to have to be a pioneer and blaze its own trail, developing its strategies as it goes along.

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First Published: Sep 02 2013 | 12:20 AM IST

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