Friday, April 03, 2009

Is SMS marketing doomed?

doom the end Well, that’s a question I was asked recently. The marketer who asked me feared that SMS marketing could go the same way as email marketing, which in his opinion, is ruined and he wondered how or even if we could stop that from happening and whether or not any industry initiatives held any weight.

Many would argue that email marketing isn't broken - it makes money, can be useful and is now a well-honed, scientific activity. There are plenty email companies out there doing very nicely thank you. And there are even a few of them who take our privacy and customer experience seriously. Personally, email marketing is broken for me. I’m overwhelmed by email (I always have a backlog of emails to read and I don’t get round to answering them all despite best intentions, there simply aren’t enough hours in the day). And I still get junk email to made up email addresses based on my domain names which I find particularly distasteful. That said, I still sign up to email newsletters and from time to time there are some things I respond to. But it’s all a bit random and I really could do without the volume. The same goes for direct mail and direct marketing. It doesn’t work for me. I’m completely overwhelmed by direct mail, both business and personal, and despite being on the Mailing Preference Service’s 'Do not mail’ list, it still keeps coming. I’m also on the Telephone Preference Service list although, you’d never know as I still get a ton of unwanted marketing calls.

But those direct marketing channels still work as most people are not like me. Or the chap I was talking to about this. Not everyone is overwhelmed with paper or digital communications. Different people have different needs and we are most definitely not all the same. Click through and conversion rates in the very low percentage points are all that’s required for a direct marketing campaign to be successful inasmuch as there’s a return on investment. That fact that 99.9% of your audience didn’t respond is largely irrelevant if the 0.5% responding made you the money. Screwed up, yes, but it still adds up financially.

Coming back to mobile marketing, it is inevitable and unfortunate that mobile advertising and marketing will be and has already been misused. There will always be someone out to make a quick buck, find a loophole and exploit it. Junk SMS does make money too - although the economics and science behind it are more limited than with email due to the cost of sending. But even factoring that in, and factoring in the potential of a fine from Phone Pay Plus, junk SMS persists – I know. I still get the junk SMS messages offering me a hot date, filthy video clips or a dodgy loan. The Mobile Marketing Association initiatives *are* worth supporting and savvy marketers and companies will follow them as the short cuts become less and less appealing.

I co-founded Grumbletext SOSSMS back in 2003 which is a site where you can complain about your junk SMS and it certainly helped raise awareness at the time and is still a place where you can name and shame the offending companies and campaigns. Phone Pay Plus (formerly ICSTIS) is the UK regulator for many issues around junk SMS and does fine companies pretty regularly. However, the fines for some companies are simply a ‘cost of doing business’,but if we didn’t have this, then the landscape would be even worse.

We will never stamp it out completely, there will always be someone who doesn't want to play ball and finds a way around it and who is led by greed and not what customers what, but the industry initiatives are worthwhile supporting because, if nothing else, it raises awareness on a wider scale. There are no easy answers.

I think the real problem around mobile marketing ultimately will be more generic. As we move towards unified messaging (facebook, twitter, SMS, email all coming to the same inbox), we will be overwhelmed by marketing messages yet again so it will be a law of diminishing return as we just switch it all off rather than trying to work out which messages we want.

We actually need less advertising overall not more but in this world where creation of digital media and by association advertising opportunities, is almost infinite and only limited by bandwidth (you can create as many web pages as you like and auto-generate emails, blogs, viral message and in turn, on each page there’s the potential to place an advertisement), that isn't going to happen. Automated filtering might be the way forward. Intelligent systems may help. Some customers may even be prepared to put the effort in to manage all of this to keep it under control. And we might think we’re so clever that by understanding past behaviour we can predict future behaviour (which is a myth by the way - “Past performance is no guarantee of future results” as all financial companies will tell you). Even with all the targeting and relevance in the world it won’t necessarily make our advertising lives any better or easier. Serendipity plays a part too and I’m not clear how much that is or isn’t understood in marcomms circles. I guess that’s one for another post.

We're in a period of fast change, a revolution even, and we do need to keep an eye on the ball as to what the future might hold. We don’t have the answers yet but that shouldn’t stop us from trying to work them out.

Image courtesy of sirmikester used under Creative Commons Licence.

Update 3pm 3 April 09: Paul Berney from the MMA has written a post about how to harness CRM using mobile marketing and says,

"...the customer experience and the ensuing results for the brand will only be good if the channel is not abused in the same way as email has been in the past. For any mobile marketing message to really resonate with a consumer, they need to have confidence that what they receive is something of interest and use to them. Anything else on this highly personal medium is unacceptable.

Current internet marketing and privacy standards do not adequately address the specific challenges faced by marketers when marketing through the mobile channel. Strong mobile industry privacy principles must protect the mobile channel from abuses by unethical marketers, to limit consumer backlash and additional regulatory scrutiny."

Check out the full article and the links to the relevant MMA guidelines.

Thursday, April 02, 2009

48 Hours in Denmark

48hours-banner01 I’m fortunate enough to have friends across the globe thanks to the power of the internet and I met Anders and the Seismonaut team a couple of years back when Anders invited me to speak at a conference he was organising looking at the future of music. I have to say it was one of the best conferences I’ve ever been to and made many friends and contacts there, including Anders and we’ve stayed in touch ever since – most recently with me speaking at one of his Wake Up and Smell the Coffee Sessions talking about what’s happening in the world of mobile media.

Anyway, the Seismonaut team advises companies on strategic innovation and as part of one of their projects, they’re running the 48 hours in Denmark campaign.

The goal is to reach the so-called 'first-movers,' who already use digital media when researching their travel and holiday plans. This way they hope to learn how to cater for the the tourist of the future by looking at early adopter behaviour now. And this behaviour includes the search and discovery element of planning your trip but also the content creation and distribution of others whose advice you might follow.

So what do you have to do? Well, you have to create a short video about why you think you should get a free 48 hours, all-expenses paid holiday in Aarhus in Denmark. Put your effort up on YouTube and then tell the campaign team that your video is up so they can include your entry. They’ve also set up a twitter account (although I think they probably would be wise to work a bit harder to find the right people to chat to and engage directly in conversation – time-consuming though that is) and there’s a facebook group too. So if the internet, social media, blogging, twittering or facebooking is your thing, then why not enter? The closing date is 20th April and the prize is well worth having – Aarhus is a great city, a friendly atmosphere, good restaurants, fresh sea air and a ton of culture to boot.

Update: Deadline extended to 27th April 2009

Bluetooth Marketing doesn’t have to be contentious, controversial or annoying

bluetooth-Vista_256 No, seriously, it doesn’t have to be this way. Regular readers of my blog will know that I’m not the biggest fan of bluetooth proximity marketing and that’s because implementation to date, has usually been a bit cack-handed with little thought to customers, their privacy and what they might actually want.

But there is light at the end of the tunnel with Troy Norcross’s latest report entitled Proximity Marketing with Bluetooth. The report is available to buy for $295 – I’ve seen it and it is a comprehensive best practice guide for marketing via bluetooth to ensure it doesn’t become bluespam. In addition, there are some key findings from the research the authors conducted, including

  • Consumers are 50% more likely to accept Bluetooth marketing if you have a poster describing the activity than without
  • Bluetooth Marketing is able to target an audience with pinpoint accuracy, based on location
  • While it is legal to broadcast Bluetooth messages to anybody, without permission, the Direct Marketing Association recommends more strict guidelines for this sort of communication
  • The public's understanding of Bluetooth technology has improved greatly in the last two years
  • Big media agencies are still wary of the technology, and traditional media buyers are yet to routinely include it in their media planning
  • When best practice is followed, there is little chance of users considering the communication as spam
  • The area in which you use Bluetooth is very important, it should never be a public space, only commercial
  • The cost of implementing a Bluetooth campaign is always more predictable and usually lower than SMS campaigns

If this is an area of interest for you, then you could do worse than buy the report or at least check out the teaser.

Credit crunch thoughts

This one’s going to be a bit off-topic and a bit philosophical and possibly a bit rambling so feel free to stop reading at any point. I won’t be offended. This is just my way of gathering my thoughts together.

The credit crunch is often on my mind as I’m sure it has been on yours. Not least because I’m in the midst of organising the next Mobile Monday London event which is about how to finance your business in a credit crunch on 20th April (– do come! /plug). Clients, colleagues and friends often ask me if the credit crunch is affecting me personally and the answer is probably yes and no. The good news is that my mortgage has come down dramatically and my mortgage company is actively encouraging me to overpay my mortgage so I can pay it off early. I’m lucky. I bought my house some years ago so the fall in price I know is cyclical and it will come back. Of course,  different story if you need to sell and need to move. And on the work front, I am (happily) very busy and feel pretty upbeat about opportunities. However, a few people I know are struggling a bit when a year or two ago, they probably wouldn’t have – or at least not as much. And certainly if you’re a business trying to raise money, it isn’t pretty as your valuation is probably rock bottom or at least you’re being pressurised on your valuation (there’s still money around btw and VCs are pretty busy at the moment looking for bargains as far as I can tell). And the whole pension thing is simply terrifying.

I’m also interested in what’s happening over at G20. A couple of my friends, Vikki Chowney and Lloyd Davis are amongst the 50 chosen bloggers who are covering the Summit for the G20 Voices campaign and I’m very interested to see their coverage of it. The riots yesterday, the death of a protestor, the bad pennies who always turn up at these things was, for me, very upsetting and seems so unnecessary. Roo Reynolds did a very good birds-eye view write-up and photo blog of the demonstration.

But that’s kind of the point isn’t it. The greed and obsession with *making more money* feels kind of unnecessary to me (I’m no hippy, but I don’t buy into the Gordon Gekko ethos of ‘Greed is Good’ either). But there seems to be little alternative if you want to be successful in the system, be able to provide returns on investment, shareholder value and the like. I don’t want to live in a little cottage in Wales off-grid and growing all my own food. Nor do I have ambitions of owning a fancy schmancy penthouse apartment in Manhattan. Innovation isn’t just needed in technology, it’s needed to reinvent what we man by value.

Even on a consumer level, we’re still encouraged to buy more not less with the proliferation of Pound Stores, Primark and Peacocks. And that’s what’s been fuelling growth globally from Rio to Beijing. I admit I shop at all of these stores from time to time but they do still encourage you to buy what you don’t need just because it’s cheap and available. And because of the volumes we’re global coolbuying in there, it means they can keep the prices low but let’s not forget this is at the expense of having more stuff in landfill, more waste that can’t go anywhere and pressure on the suppliers to find ever more ways to produce more cheaply – sometimes meaning illegal labour or illegal means of production and waste management. So all that ‘ooh, isn’t that jacket really good value’ is very superficial when the real costs to our psyche and society are factored in. I balance my Primark bargains with making good use of eBay and charity shops (thrift stores for my US readers). And organisations like Global Cool are doing a great job raising awareness of this particular area of waste in our lives and have some very simple ideas of what to do about it. And I’m not even going to go into the climate change thing – not enough time here.

What I’d like to see come out of this revolution, for I think it is a revolution we’re in right now, is for people to find stability and for us (the world, that is) to find a collective way forward to managed our global economy. But also, I hope it’s a time when people take stock of their own values and what they want for their businesses, their colleagues, their families and their own lives.  This probably means redefining ‘success’ and rethinking what ‘money’ means as a concept and the values we attach to it. And what that means in a business or corporate environment, which is much harder to work out. Maybe shareholders will be happy to make ‘enough' money rather than ‘loadsamoney’. Maybe we’ll be able to find ways of not having to be in a race in order to compete. Maybe we’ll find inner peace and in finding an inner peace we’ll find global peace. After, what, 6000 years of civilisation, we should be able to work something out by now, right?

Anyway, I’m rambling now and this isn’t quite the post I had planned in my head, but I’m going to put it out there anyway. Feel free to comment, or not. But do check out Vikki and Lloyd’s G20 Voice stuff and let’s hope that as I write this, in the middle of the G20 proceedings, we will see some change for the greater good and not just the financial good.

Here endeth my ramble.

Wednesday, April 01, 2009

Links ‘n stuff cos it’s Wednesday

As usual I have too many browser tabs and emails open so it’s time to close them down by documenting them here. Forgive them being a bit random but hopefully there’s a few things here that might catch your eye to take a further look.

T-Mobile is using bluetooth to attract customers into store with special offers. I’ve written about bluetooth marketing bluespam before. On private property, I have no problem with it but when it’s catching random people in the street, because they happen to have their bluetooth switched on it makes me feel uncomfortable. Anyway, it seems T-Mobile doesn’t feel uncomfortable with it (or uncufderbull as my 8 year old neighbour once wrote to me describing his boarding school bed).

BMW spend $30k on an engaging MMS campaign and sell $45 million of accessories to existing customers… now that’s pretty cool.

connected Young people who embrace technology can feel overconnected (well, I would add, that you don’t need to be a teenager to feel this – I’m definitely in that number… I’m frequently overwhelmed by information and communication coming in at me from all directions).

The latest Pew Internet Report is out. Essential reading for all folks working or interested in digital and mobile.

The economic downturn bodes well for mobile couponing companies according to RCR Wireless. I suspect few of the services on offer are really delivering on the mobile couponing promise – I know a thing or two about mobile coupons and there are a lot of skittles to get in a row before it succeeds. That said, Planet Funk sees 377% ROI on their mobile couponing promotion so when you get it right, it can be very powerful.

Orange UK also announces key findings from their mobile marketing research:

• 81% of mobile media users access mobile media once a week with strong usage in the home, as well as on public transport and around town
• Mobile media users are very much open to mobile marketing with 70% of participants attracted by interactive marketing formats
• The most popular forms of mobile marketing currently are click-through advertisements and voucher redemption codes
• Mobile is viewed as the most innovative and personal media channel compared to all other traditional and digital channels

Other key findings on mobile media usage included:

  • The average age for mobile media users is 36, and 81% use mobile media more than once a week with 46% using it daily
  • Men generally use mobile media more, although women are much more likely to use picture messaging
  • The mobile internet pages viewed most often are search engines, email, news, music and film although, interestingly, a high proportion (55%) of people browse the mobile internet with no specific agenda, providing an opportunity for marketers to attract their attention

The research also confirms that customers are after value and relevance. No big surprise there then. Marketers take note.

Tuesday, March 31, 2009

Vodafone Mobile Clicks Competition now open to the UK with a prize fund of €150, 000

momolondon-largeVF_STK_RGBVodafone UK and Mobile Monday London today announce Vodafone Mobile Clicks 2009, a competition to inspire start-up businesses and individual developers to create and deliver a new mobile site or service – all creative ideas are welcome.

Mobile Clicks 2009 is run jointly with Vodafone Netherlands. If you wish to enter, please visit www.vodafonemobileclicks.com. The final will be held in Amsterdam in September and will feature three finalists from each country. The first three winners will be awarded a total sum of €150,000.

Last years’ Mobile Clicks’ winners included Nulaz, a location-based social networking service merging Google Maps and Facebook to allow people to see where their friends are, share locations and view local information, Tipspot a new online city guide service and Map the Gap, an idea-sharing application for mobile phones.

The competition consists of three selection rounds, running from April to September 2009. The panel of judges will include mobile internet experts from Vodafone as well as other industry leaders. The winner will be announced in Amsterdam in September this year.

The rules are pretty simple:

  • Vodafone Mobile Clicks 2009 is open to any individual residing in the Netherlands or the UK from the age of 18 years and to Dutch and UK-based start-up companies, businesses, institutions and all other organisations.
  • Participants must be or must have the intention to become a start-up enterprise/business in the field of mobile internet products or services. Start-up means that the enterprise/business cannot be older than three years since its inception.
  • Each participant may submit only one entry.
  • (Previous Dutch) Entries from Vodafone Mobile Clicks 2008 are allowed to participate again in Vodafone Mobile Clicks 2009
Registration for this contest is now open. Registration for the Netherlands will close at April 30th, 2009 and registration for the UK will close on May 14th, 2009.

We’ll have more details about the competition up on the Mobile Monday London website as and when they happen and we’ll have some Vodafone people on hand at our upcoming events too. In the meantime, head over to Vodafone Mobile Clicks 2009 and see how you can get your hands on some of that €150, 000 prize fund to kick start your business and get your service to market. The closing date for UK entries is 14th May 2009 so get your thinking caps on. Good luck!