Big brands and high-powered advertising agencies are stampeding to wireless in an effort to snuggle up next to consumers. But they’re finding that effective mobile marketing usually means more than just placing their company name on the display.
Recent weeks have seen a flurry of activity in wireless marketing as established brands rush into the space. Third Screen Media last month launched a software offering designed to streamline ad management and delivery on mobile networks, allowing publishers to create and monitor marketing campaigns on wireless networks. MSN, The Weather Channel and USA Today have already selected the platform, Third Screen said.
Separately, Simon & Schuster subsidiary Scribner recently launched a campaign to support Stephen King’s new novel, “Cell,” in which a pulse sent through cell phones transforms people into rampaging killers. Scribner is sending text messages to 100,000 mobile users and plans to hawk mobile screen savers and ringtones featuring King’s voice.
Nike Inc. is running toward mobile, too. The company is teaming with San Diego-based WiggleWireless to offer a custom training program sent via text message to mobile phones. Users can go online to select a training program and are sent daily texts that include motivational messages and a training regimen.
Such campaigns are beginning to gain traction as wireless attracts the eyes-and the wallets-of more traditional industries, according to Heidi Lehmann, Third Screen’s vice president of content acquisition and strategy.
“In October, we were seeing (mobile marketing) budgets in the $20,000 to $40,000 range,” said Lehmann, noting the company recently notched a $1.6 million deal. “Now, the average is $100,000 to $300,000. … Budgets are just getting bigger. It just shows the agencies are starting to take mobile more seriously.”
And they’re starting to take note of what works and what doesn’t as mobile marketing expands beyond simple text messages to incorporate multimedia content and the wireless Web. Third Screen, which specializes in presenting ads to mobile Web surfers, has found success in interactive marketing that consumers see as valuable.
One campaign targeting young fans of the UPN show “Veronica Mars” allowed viewers to click an online ad and input their phone number to receive a voice message from Kristen Bell, who plays the title character.
“Anything that has an offer, we find, tends to work better than something that’s just brand-oriented,” said Lehmann. “It’s ultimately less intrusive to the customer.”
Others are deploying more practical campaigns. Juice Wireless Inc., a Los Angeles-based firm, is partnering with recipe site epicurious.com to give advertisers a chance to send very specific marketing messages. The site, which features recipes from “Bon Appetit,” “Gourmet” and other magazines, allows users to send recipe results directly to their handset, creating a shopping list.
The information is filtered for key words and matched with corresponding marketing messages. A chicken supplier, for instance, could hone in on a recipe for chicken soup and deliver a coupon or sale information to the phone. The application attracts about 7,000 users over a three-hour period in the afternoon every day, according to Nick Desai, Juice’s chairman.
“Our philosophy on mobile marketing is to build these kinds of sustainable applications that provide value to the consumer and integrate a marketing message in an organized way,” Desai said. “As you increase functionality, you will increase marketing opportunities.”
Such efforts may help advertisers ease their way in front of consumer eyeballs as they assuage carriers’ fears about in-your-face marketing.
Juice last week unveiled its JuiceCaster, which couples mobile marketing with user-generated content. Members can create digital photos or video clips and post them, allowing others to view them free or for a charge. Advertisers can place ads based on the type of content or member profiles, and a network of Web sites from outside companies helps attract new users.
Juice also is working with a shoe manufacturer on a fitness application, and has partnered with a travel company for a travel offering.
Because cell phones are such a personal tool, traditional marketing techniques are likely to fail if advertisers come on too strong. The most successful mobile marketers may be the ones who build the most attractive applications, according to Johan Valentin, general manager for the Americas for mobile device management company SmartTrust.
“What we’ve seen in the marketplace is that somebody goes and sends a whole lot of SMS or MMS updates to devices … but I think we need to look a little bit deeper into what’s going on,” said Valentin. “A good ad probably needs to occur within an application that a user actually goes to voluntarily.”
Wireless advertising is already seeing attention from the nonprofit sector, as well. James Eberhard, who founded Denver-based ringtone provider 9 Squared Inc. before selling out to U.K. content provider Monstermob Group plc, recently launched Mobile Accord, which hopes to use mobile phones to raise money and attention for charities, political associations and other nonprofit groups. The company is working to combine marketing and fundraising by tying celebrities and businesses to charitable causes.
“We want to help these people use a new tool in their efforts to raise money,” said Mike Ricci, Mobile Accord’s vice president of marketing, adding that the company is talking with various nonprofit groups. “So far, the response has been phenomenal.”
The Mobile Marketing Association is scrambling to keep up with the rapid growth in wireless ads. The organization adopted “best practices” guidelines last year, establishing rules for banner ads and other marketing vehicles. The group is also establishing committees to address issues including privacy and content.
Such efforts will be crucial for mobile marketing to achieve its sky-high expectations, Lehmann said. However, the market will succeed only if advertisers heed the standardized guidelines.
“I think right now, it’s still the mobile banner ad that’s really the key” in the early days of wireless advertising, Lehmann said. “If (the consumer experience) is ruined, the marketplace is not going to take off at all.”
