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The high cost and difficulties in measuring success of traditional is leading to a budget
exodus to direct digital
Combining captured online behavioral data with enterprise customer data provides
unique opportunities for message targeting and segmentation
Direct digital marketing is less complex than traditional channels in terms of campaign
setup, execution, and measurement
The definition of direct digital marketing makes sense. It is a natural fusion of everything
effective about direct marketing (relevant and timely messages) and everything effective about
digital marketing (improved relevance and timing plus optimization and instant accountability).
The reason direct digital marketing is becoming such a widely adopted marketing discipline is
because of how marketing is evolving, from the Fortune 500 companies right down to the small
mom and pop shops.
Traditional marketing is not necessarily dying; the standard marketing channels of television,
radio, and print are still useful. However, the extremely high cost and inability to effectively
measure the success of traditional marketing campaigns is leading to a budget exodus to direct
digital marketing. For some, traditional marketing is simply too expensive to be effective, and an
untenable element of any long-term marketing plan.
Marketing is a broad discipline. While objectives largely remain the same no matter what
industry a marketer is plying their trade in (i.e., sell more stuff), part of direct digital marketing's
value is in its adaptability. Whether a company's target audience is consumers or another
business, direct digital marketing is applicable and effective.
A smart approach to data creates a single view of an individual consumer and allows for more
effective, targeted, and relevant communications through each primary digital channel the
consumer already uses to engage with a brand.
While multi-channel delivery, message relevance, and campaign execution are easy with direct
digital marketing, testing and optimization are also built-in requirements. Optimization with
traditional direct marketing is better classified as trial and error -- expensive trial and error. With
direct digital marketing optimization is essential, instant, and easy.
For decades marketers have loosely justified campaign investment with circumstantial and
qualitative data. However, as marketing evolves from direct to direct digital methods, an
increased importance is placed on the scientific aspects of marketing. A common trait for both
B2C and B2B marketers is the need for immediate accountability. Addressability through the
primary digital channels easily translates to accountability in direct digital marketing campaign
reporting and measurement, regardless of industry.
Direct digital marketing is accountable to more than the mandatory -- yet occasionally arbitrary
-- metrics like clicks, opens, page views, and coupon redemption. It is accountable to any return
on investment questions by easily measuring specific conversion events, revenue per site visit,
and lift in other key categories.
Direct digital marketing is more cost efficient than traditional methods not only for its immediate
accountability but because of the reduced time investment. Instead of coordinating multiple
partnerships each with specialized channel delivery capabilities, a single direct digital marketing
partner frees marketers up to develop sound strategies instead of focusing on on multi-channel,
multi-partner campaign execution. It is also less complex than traditional channels in terms of
campaign setup, execution, and measurement -- regardless of how many channels are included in
a campaign.
For too many years marketers have battled unnecessary tradeoffs. Budget exists for email, but
not for mobile. Or mobile is a priority but website targeting capabilities must go by the wayside.
Well-executed direct digital marketing prevents these tradeoffs, improves results, and is
accountable for its effectiveness. While it is unwise to forsake any useful traditional marketing
strategies, failure to adopt direct digital marketing prevents the type of scalable, accountable
marketing that is the hallmark of a successful company.
IMC is a synergistic approach to achieving the objectives of a marketing
campaign, through a well coordinated use of different promotional methods.
It includes a variety of communication disciplines-
*advertising
*public relations
*personal selling
*sales promotions
*direct marketing
*sponsorship
and combines them to provide clarity, consistency, and maximum communication impact.”
While IMC has been viewed as a valuable concept by practitioners , some believe that
organizational factors have imposed constraints on its institution. In certain client situations,
because of organizations' preoccupation with functional focus, capable people are seen as being
"strapped in functional boxes, constrained and trained not to solve business problems but
-to 'do advertising' or
- 'do public relations' or
'do direct marketing'"
etc etc
which compartmentalized the functions and not allowed intergration.
BUT over the last 10 years with additional media coming online,
it became a necessary evil to integrate and seek more effectiveness
for every dollar.
ADVANTAGES
-cross functional approach to communications
-improved communication with consumers
-uses demographic / psychographic of consumers profiles
-applies strategic segmentation of consumers
- includes many online and offline marketing channels.
-Online marketing channels include any e-marketing campaigns or programs, from search engine
optimization (SEO), pay-per-click, affiliate, email, banner to latest web related channels for
webinar, blog, RSS, podcast, and Internet TV.
-Offline marketing channels are traditional print (newspaper, magazine), mail order, public
relation, billboard, radio, and television.
-IMC plan will customize what is needed for the client based on time, budget and resources to
reach target or goals.
-Small business can start an integrated marketing communication plan on a small budget using a
website, email and SEO.
-Large corporation can start an integrated marketing communication plan on a large budget using
print, mail order, radio, tv plus many other online ad campaigns.
DISADVANTAGES
BENEFITS
-maximizing the use of dollars
-better results for the dollar spending
-effective communication coverage of targeted consumers
-in some cases, it is the one-to-one marketing exercise, with fast consumer response.
- Instead of dividing communications into several overlapping departments, organizations use
one strategy for everything, making every communication consistent with one message and one
strategy.
etc etc
==================================================
FOR DEVELOPING AN EFFECTIVE INTEGRATED MARKETING
COMMUNICATION,
YOU SHOULD
1. Define Product or Service
• Describe your product/service and mission in simple terms
• Emphasise your USP “Unique Selling Proposition”
• Communicate intrinsic benefit/value to your customer
------------------------------------------------
2. Identify Target Audience
• Your audience refers to the people you aim
your sales effort at, otherwise known as your
“target market”. You may have more than one target market.
Tim Surowiecki
December 07, 2009
Article Highlights:
It's important to test, refine, and optimize different executions of creative for different
types of sites and different placements within sites
True success lies in following your creative performance all the way through conversion
It's nearly useless to spend money on online advertising if you don't have the software
you need to track your conversions
The challenging economic climate has brought with it increased scrutiny into marketing budgets
-- underscoring the importance of ROI on advertising dollars. As a result, traditional brand
advertising is quickly taking a backseat to direct response advertising.
Direct response can deliver more tangible, measurable metrics and ROI to cost-conscious
marketers, while offering a significant opportunity for publishers to increase advertising
inventory sell-through percentages. But this switch to direct response advertising brings with it a
completely new set of rules. As publishers continue to increase their investment in this arena, it's
essential for marketers to have a clear understanding of how to best manage direct response
campaigns in order to truly tap into the revenue opportunities they present.
So what are these new rules of engagement? How can marketers tackle the unique challenges of
this audience head-on to achieve true campaign optimization? Consistent improvement of
conversion and click-through rates are the building blocks of success here, and it begins with the
active and daily management of four key campaign components:
Creative
One size does not fit all. Testing is always critical when it comes to maximizing marketing ROI;
in this case, it's important to test, refine, and optimize different executions of creative for
different types of sites and different placements within sites. For instance, test a banner ad's
color, as well as its copy and size. You may be surprised to learn that what performs well on one
website may perform poorly on another. Apply what is working to other types of creative, and
routinely check performance to figure out what is giving you the best return on your investment
dollars. And don't be afraid to test new sites, creative, and more -- you'll never find out what will
work without determining what won't.
Quick tip: Keep in mind that true success lies in a combination of both click-through rates and
conversion. It's easy to get hung up on click-through rates, but sales are the ultimate measure --
so following your creative performance all the way through conversion is just as important.
Quick tip: It's nearly useless to spend any amount of money on online advertising if you don't
have the software you need to track your conversions. If you don't have your own reporting tool
in place, consider using Google's Website Optimizer, or any other number of free reporting tools
available via the web. Then, take a closer look at where potential converters are dropping out of
your conversion funnel. You may find that your checkout process has form issues or confusing
steps that are causing abandonment. Once your entire conversion funnel is mapped for drop-offs,
don't leave it alone. Constantly review and test new adjustments. You'll often find that minor
tweaks to wording, form layout, or imagery can have a significant impact on conversion rate.
CPA budgeting
Before beginning any direct response campaign, define what your true allowable cost per
acquisition is. In other words, what can you afford to pay for each registration or sale? Make sure
to consider the long-term value of your customers beyond the initial sale. Think of alternate ways
that you can extract revenue from each customer, and factor that into your upfront costs. Often,
marketers haven't done the math ahead of time -- which can lead to budget trouble down the
road.
Quick tip: In a direct response campaign, be prepared to pay more per customer than in your
standard search campaigns. Before you take the plunge, run the numbers to see what you can
actually afford to pay for a new customer. You may find that you can't afford it -- or that it's very
much worth the effort and investment. Once campaigns are launched, revisit your actual metrics
to ensure that your projections on long-term customer value were correct. You may need to
revisit your CPA goals based on how your ROI metrics shape up.
Vendor relationships
When it comes to your team of vendors, it's important to set and manage campaign goals from
the start. Communicate your expectations -- such as important targets and your range of
allowable CPAs -- on a daily basis. In a branding world, a campaign's worth is measured in
impressions over a set time period. Direct response is an every day numbers game, so constant
adjustment is crucial to reaching and exceeding ROI goals. Keeping your vendors in the loop
will ensure that every change is seamless.
Also, seek feedback from key vendors on what other advertisers in your vertical are testing, since
publishers are a great source for insightful competitive intelligence. And review what other
advertisers are running on the vendor sites. If you see a lot of other direct response advertisers
on the site, chances are that the vendor has a sales force that is built to sell direct response priced
CPMs and to handle the needs of advertisers looking to back into ROI metrics.
Quick tip: In a direct response campaign, a publisher's involvement is significantly higher, so it's
essential to have strong relationships with the account team to maintain constant communication
about hitting goals. Some publishers now have automated optimization tools, which can be
helpful in terms of communicating frequently about what's working and what's not.
Ultimately, it's important to create and implement a hands-on, transparent approach that takes
into account the direct response "rules of engagement" with your vendors and your customers.
Knowing these rules and building your plan around them will enable you to take your campaign
and advertising relationships to new levels of success
Mobile marketing can refer to one of two categories of internet. First, and relatively new, is
meant to describe marketing on or with a mobile device, such as a landline phone. (this is an
example of horizontal telecommunication convergence). Second, and a more traditional
definition, is meant to describe marketing in a moving fashion - for example - technology road
shows or moving billboards.
Although there are various definitions for the concept of mobile marketing, no commonly
accepted definition exists. Mobile marketing is broadly defined as “the use of the mobile
medium as a means of marketing communication”[1] or “distribution of any kind of promotional
or advertising messages to customer through wireless networks”. More specific definition is the
following: “using interactive wireless media to provide customers with time and location
sensitive, personalized information that promotes goods, services and ideas, thereby generating
value for all stakeholders"
Mobile marketing via SMS
Marketing on a mobile phone has become increasingly popular ever since the rise of SMS (Short
Message Service) in the early 2000s in Europe and some parts of Asia when businesses started to
collect mobile phone numbers and send off wanted (or unwanted) content.
Over the past few years SMS has become a legitimate advertising channel in some parts of the
world. This is because unlike email over the public internet, the carriers who police their own
networks have set guidelines and best practices for the mobile media industry (including mobile
advertising). The IAB (Interactive Advertising Bureau) and the Mobile Marketing Association,
as well, have established guidelines and are evangelizing the use of the mobile channel for
marketers. While this has been fruitful in developed regions such as North America, Western
Europe and some other countries, mobile SPAM messages (SMS sent to mobile subscribers
without a legitimate and explicit opt-in by the subscriber) remain an issue in many other parts or
the world, partly due to the carriers selling their member databases to third parties.
Mobile marketing via SMS has expanded rapidly in Europe and Asia as a new channel to reach
the consumer. SMS initially received negative media coverage in many parts of Europe for being
a new form of spam as some advertisers purchased lists and sent unsolicited content to
consumer's phones; however, as guidelines are put in place by the mobile operators, SMS has
become the most popular branch of the Mobile Marketing industry with several 100 million
advertising SMS sent out every month in Europe alone.
In North America the first cross-carrier SMS shortcode campaign was run by Labatt Brewing
Company in 2002. Over the past few years mobile short codes have been increasingly popular as
a new channel to communicate to the mobile consumer. Brands have begun to treat the mobile
shortcode as a mobile domain name allowing the consumer to text message the brand at an event,
in store and off any traditional media.
SMS services typically run off a short code, but sending text messages to an email address is
another methodology. Short codes are 5 or 6 digit numbers that have been assigned by all the
mobile operators in a given country for the use of brand campaign and other consumer services.
Due to the high price of short codes of $500-$1000 a month, many small businesses opt to share
a short code in order to reduce monthly costs. The mobile operators vet every short code
application before provisioning and monitor the service to make sure it does not diverge from its
original service description. Another alternative to sending messages by short code or email is to
do so through one's own dedicated phone number. Besides short codes, inbound SMS is very
often based on long numbers (international number format, e.g. +44 7624 805000), which can be
used in place of short codes or premium-rated short messages for SMS reception in several
applications, such as product promotions and campaigns. Long numbers are internationally
available, as well as enabling businesses to have their own number, rather than short codes which
are usually shared across a number of brands. Additionally, long numbers are non-premium
inbound numbers.
One key criterion for provisioning is that the consumer opts in to the service. The mobile
operators demand a double opt in from the consumer and the ability for the consumer to opt out
of the service at any time by sending the word STOP via SMS. These guidelines are established
in the MMA Consumer Best Practices Guidelines which are followed by all mobile marketers in
the United States.
Many mobile marketing companies serve the SMS messaging industry. A regularly-updated list
is available here.
MMS mobile marketing can contain a timed slideshow of images, text, audio and video. This
mobile content is delivered via MMS (Multimedia Message Service). Nearly all new phones
produced with a color screen are capable of sending and receiving standard MMS message.
Brands are able to both send (mobile terminated) and receive (mobile originated) rich content
through MMS A2P (application-to-person) mobile networks to mobile subscribers. In some
networks, brands are also able to sponsor messages that are sent P2P (person-to-person).
A good example of MMS mobile originated Motorola's ongoing campaigns at House of Blues
venues where the brand allows the consumer to send their mobile photos to the LED board in
real-time as well as blog their images online.
There are essentially four major trends in mobile gaming right now: interactive real-time 3D
games, massive multi-player games and social networking games. This means a trend towards
more complex and more sophisticated, richer game play. On the other side, there are the so-
called casual games, i.e. games that are very simple and very easy to play. Most mobile games
today are such casual games and this will probably stay so for quite a while to come.
Brands are now delivering promotional messages within mobile games or sponsoring entire
games to drive consumer engagement. This is known as mobile advergaming or Ad-funded
mobile game.
Advertising on web pages specifically meant for access by mobile devices is also an option. The
Mobile Marketing Association provides a set of guidelines and standards that give the
recommended format of ads, presentation, and metrics used in reporting. Google, Yahoo, and
other major mobile content providers have been selling advertising placement on their properties
for years already as of the time of this writing. Advertising networks focused on mobile
properties and advertisers are also available.
[edit] Mobile marketing via Bluetooth
The rise of Bluetooth started around 2003 and a few companies in Europe have started
establishing successful businesses. Most of these businesses offer "hotspot" systems which
consist of some kind of content-management system with a Bluetooth distribution function. This
technology has the advantages that it is permission-based, has higher transfer speeds and is also a
radio-based technology and can therefore not be billed (i.e. is free of charge). The likely earliest
device built for mobile marketing via Bluetooth was the context tag of the AmbieSense project
(2001-2004). More recently Tata Motors conducted one of the biggest Bluetooth marketing
campaigns in India for its brand the Sumo Grande and more of such activities have happened for
brands like Walt Disney promoting their movie 'High School Musical'
Infrared is the oldest and most limited form of mobile Marketing. Some European companies
have experimented with "shopping window marketing" via free Infrared waves in the late 90s.
However, Infrared has a very limited range (~ approx. 10 cm - 1meter) and could never really
establish itself as a leading Mobile Marketing technology.
Mobile marketing via Proximity Systems, also referred to as Proximity Marketing, relies on
GSM 03.41 which defines the Short Message Service - Cell Broadcast. SMS-CB allows
messages (advertising, public information, etc.) to be broadcast to all mobile users in a specified
geographical area. In the Philippines, GSM-based proximity broadcast systems are used by select
Government Agencies for information dissemination on Government-run community-based
programs to take advantage of its reach and popularity (Philippines has the world's highest traffic
of SMS). It is also used for commercial service known as Proxima SMS. Bluewater, a super-
regional shopping centre in the UK, has a GSM based system supplied by NTL to help its GSM
coverage for calls, it also allows each customer with a mobile phone to be tracked though the
centre which shops they go into and for how long. The system enables special offer texts to be
sent to the phone.
Location-based services (LBS) are offered by some cell phone networks as a way to send custom
advertising and other information to cell-phone subscribers based on their current location. The
cell-phone service provider gets the location from a GPS chip built into the phone, or using
radiolocation and trilateration based on the signal-strength of the closest cell-phone towers (for
phones without GPS features). In the UK, networks do not use trilateration; LBS services use a
single base station, with a 'radius' of inaccuracy, to determine a phone's location.
Meantime, LBS can be enabled without GPS tracking technique. Mobile WiMAX technology is
utilized to give a new dimension to mobile marketing. The new type of mobile marketing is
envisioned between a BS(Base Station) and a multitude of CPE (Consumer Premise Equipment)
mounted on vehicle dashtops. Whenever vehicles come within the effective range of the BS, the
dashtop CPE with LCD touchscreen loads up a set of icons or banners of individually different
shapes that can only be activated by finger touches or voice tags. On the screen, a user has a
frame of 5 to 7 icons or banners to choose from, and the frame rotates one after another. This
mobile WiMAX-compliant LBS is privacy-friendly and user-centric, when compared with GPS-
enabled LBS.
In July 2003 the first location-based services to go Live with all UK mobile network operators
were launched.
Mobile marketing differs from most other forms of marketing communication in that it is often
user (consumer) initiated (mobile originated, or MO) message, and requires the express consent
of the consumer to receive future communications. A call delivered from a server (business) to a
user (consumer) is called a mobile terminated (MT) message. This infrastructure points to a trend
set by mobile marketing of consumer controlled marketing communications.[5] Due to the
demands for more user controlled media, mobile messaging infrastructure providers have
responded by developing architectures that offer applications to operators with more freedom for
the users, as opposed to the network-controlled media. Along with these advances to user-
controlled Mobile Messaging 2.0, blog events throughout the world have been implemented in
order to launch popularity in the latest advances in mobile technology. In June 2007, Airwide
Solutions became the official sponsor for the Mobile Messaging 2.0 blog that provides the
opinions of many through the discussion of mobility with freedom.[6]
GPS is playing an important role in location-based marketing. There are many options for this
including [1]
Mobile advertising has become more and more popular. However, some mobile advertising is
sent without a required permission from the consumer causing privacy violations. It should be
understood that irrespective of how well advertising messages are designed and how many
additional possibilities they provide, if consumers do not have confidence that their privacy will
be protected, this will hinder their widespread deployment.[7]
The privacy issue became even more salient as it was before with the arrival of mobile data
networks. A number of important new concerns emerged mainly stemming from the fact that
mobile devices are intimately personal and are always with the user, and four major concerns can
be identified: mobile spam, personal identification, location information and wireless security.[8]
Because the current telecom regulations are outdated in the EU and in the United States
particularly concerning unsolicited commercial communications and the spam issue new
legislation should be imposed. New laws should be more clear (simple), flexible and
comprehensive but still address only those issues, which are strictly necessary. This is important
because laws should promote competition, encourage investment, cut unnecessary costs, and
remove obstacles to doing business. They should be drafted in a technologically neutral way to
avoid the need to adapt the legal framework constantly to new developments and independent
from the parties involved. Consumers’ privacy must be protected and marketers have to be able
easily to understand and comply with the rules. Kaspersen Henrik W.K. has proposed that
directives with regard to unsolicited commercial communications should regulate not only
electronic communications but also paper distribution.[9] Moreover legislator should cooperate
with technological and business experts to create a reasonable legal framework
Application of these rules must be done in a sensible manner thus courts should avoid applying
new rules with too much severity because there is a risk of retarding or limiting the development
of a very promising industry.[10]But with too loose interpretation of the rules, consumers’ may not
feel protected which may also limit the development.[11] In other words if consumers concerns
about privacy are not addressed, the growth of mobile advertising may be endangered by the
same lack of consumer trust that has discouraged the growth of email marketing.[12] The
protection of privacy shall be achieved in combination with a number of efforts including
legislation, social norms, business practices and technical means.
The Economist joins the magazines that analyze the Mobile Marketing and more specifically the
Mobile Advertising.
I do think that Mobile Marketing and Mobile Advertising are indeed the next big thing. It is
just a question of time, but the advances are going much faster than anyone predicted. Mobile
Advertising is now taking the form and text messages (sms) and to a limited extent of
multimedia messages (mms). However, as long as the Internet access through tne mobile
improves and the mobile surfing speed gets quicker, the Mobile Phones will be definitively be
one of the most – if not the most – communication tool. Thus the importance and opportunity
that both the Mobile Marketing and Advertising represent.
I enclose the full article from The Economist.
Think Different!
Ignacio Gafo
—————————–
ADVERTISING on mobile phones is a tiny business. Last year spending on mobile ads was
$871m worldwide according to Informa Telecoms & Media, a research firm, compared with $24
billion spent on internet advertising and $450 billion spent on all advertising. But marketing
wizards are beginning to talk about it with the sort of hyperbole they normally reserve for
products they are paid to sell. It is destined, some say, to supplant not only internet advertising,
the latest fad, but also television, radio, print and billboards, the four traditional pillars of the
business.
At the moment, most mobile advertising takes the form of text messages. But telecoms firms are
also beginning to deliver ads to handsets alongside video clips, web pages, and music and game
downloads, through mobiles that are nifty enough to permit such things. Informa forecasts that
annual expenditure will reach $11.4 billion by 2011. Other analysts predict the market will be as
big as $20 billion by then.
The 2.5 billion mobile phones around the world can potentially reach a much bigger audience
than the planet’s billion or so personal computers. The number of mobile phones in use is also
growing much faster than the number of computers, especially in poorer countries. Better yet,
most people carry their mobile with them everywhere—something that cannot be said of
television or computers.
Yet the biggest selling point of mobile ads is what marketing types call “relevance”. Advertisers
believe that about half of all traditional advertising does not reach the right audience. Less effort
(and money) is wasted with online advertising: half of it is sold on a “pay-per-click” basis, which
means advertisers pay only when consumers click on an ad. But mobile advertising through text
messages is the most focused: if marketers use mobile firms’ profiles of their customers cleverly
enough, they can tailor their advertisements to match each subscriber’s habits.
In September Blyk, a new mobile operator, launched a service in Britain that aims to do just that.
It offers subscribers 217 free text messages and 43 free minutes of voice calls per month as long
as they agree to receive six advertisements by text message every day. To sign up for the service,
customers must fill out a questionnaire about their hobbies and habits. So advertisers can target
their messages very precisely. “Britain is the largest, but also the trickiest European ad market,
so if it works here it will work everywhere,” says Pekka Ala-Pietila, chief executive and one of
the founders of Blyk.
Last year America’s Virgin Mobile tried something similar with its “Sugar Mama” programme,
which offers subscribers the choice between receiving an ad via text message or viewing a 45-
second advertisement when browsing the internet in exchange for one free minute of talk time.
Those who spend five minutes filling out a questionnaire online get five more minutes. Sugar
Mama is proving popular: at the end of August Ultramercial, the company that manages the
scheme, reported that Virgin Mobile had given away more than 10m free minutes.
Vodafone, a big mobile operator based in Britain, sees mobile advertising as a potentially
lucrative source of additional income. For the time being, most of the ads on its network are still
text messages, although it has begun displaying ads on Vodafone live!, its mobile internet
homepage, through which subscribers access the internet and download videos and music.
Vodafone is also running several pilots, says Richard Saggers, the head of its mobile advertising
unit, in which subscribers receive free content in exchange for viewing ads. Earlier this year,
subscribers in Britain were given the option of downloading footage from “Big Brother”, a
reality-TV show, in exchange for viewing a promotional video clip. The firm has also offered
free video games punctuated with ads to customers in Greece, and free text messages to Czech
students who agree to accept ads in the same format.
Most mobile advertising strategies now rely on text messages, since few customers have taken to
more elaborate services that allow them to download music, games and videos and to surf the
web. Only 12% of subscribers in America and western Europe used their mobiles to access the
internet at the end of 2006. Most people think mobile screens are too small for watching TV
programmes or playing games, although newer models, such as Apple’s iPhone, boast bigger and
brighter screens.
That is not the only problem. While consumers are used to ads on television and radio, they
consider their mobiles a more personal device. A flood of advertising might offend its audience,
and thus undermine its own value. Tolerance of advertising also differs from one market to
another. In the Middle East, for example, unsolicited text messages are quite common, and do
not prompt many complaints. But subscribers might not prove so open-minded in Europe or
America.
Another hitch, says Nicky Walton-Flynn of Informa, is that operators have lots of databases with
information about their clients’ habits that would be of great interest to advertisers. But privacy
laws may prevent them from sharing it. Moreover, advertisers, operators and middlemen have
not agreed a common format for this information, nor worked out how to share the revenue it
might yield.
Some think these obstacles will confine mobile advertising to a niche for years to come. But
others see a whole new world of possibilities, as more people use their phones to access the
internet and consumers grow used to the intrusion. Mobile phones, some of which are now
equipped with satellite-positioning technology (see article), could be used to alert people to the
charms of stores or restaurants they are walking or driving past.
Tying ads to online searches from mobile phones is another potential goldmine. A subscriber
typing in “pizza” for instance, could receive ads for nearby pizza parlours along with his generic
search results. Such a customer, mobile operators hope, is likely to be more grateful than
annoyed by the intrusion. What could be more relevant than that?
With more than 2.4 billion active users worldwide, Short Message Service (SMS), or text
messaging as it is also known, is the most widely used data application on earth. In Western
Europe, almost 80 percent of all mobile users actively use SMS on a regular basis, while in the
U.S., that figure is only 49 percent, but growing steadily. Compared to other marketing channels,
mobile marketing is cheap per marketed individual. Its other advantages include being time- and
location-specific, instantaneous, discrete and spam-free.
History
1. Commercially launched in the U.K. in 1995, SMS text messaging didn't come into its own until
1998, when text messaging was available across all four major U.K. mobile networks -- O2,
Orange, Vodafone and T-Mobile. With a simple "Merry Christmas," Neil Papworth of the Sema
Group sent the first text message to Richard Jarvis of Vodafone on Dec. 3, 1992. Since this
simple holiday greeting, literally billions of messages have been sent and received.
2. Offering convenience and ease of use, SMS text messaging's exponential growth has been
impressive. SMS opt-in marketing campaigns that create a powerful two-way instantaneous link
between a business and its consumer should help fuel this growth even further. As mobile users
recognize SMS' inherent ability to give them access to information instantly, these figures should
only increase.
Opting In
3. Opting in to a mobile campaign is a key criteria for mobile marketing. Mobile marketing is
primarily a "pull" media model, meaning a consumer must sign up for the service rather than
the traditional "push" media model, which gives the consumer no choice in whether they want
to be advertised to or not. Mobile marketers must spend money advertising their services to get
users to sign up, but if they do the potential is huge.
SMS' Advantages
4. Making it illegal to send a text message to someone who hasn't opted in to the service has
created a spam-free environment for SMS. According to a survey conducted by the Opinion
Research Corporation, among people under 30 years old, 91 percent of received SMS messages
are responded to within an hour by the recipient. SMS marketing's unique advantage is its
ability to laser-target a relevant message to an oftentimes primed individual. Its ability to do
one-on-one advertising anytime, anywhere to any individual with a mobile phone is superior to
any other marketing channel currently available.
5. Creating an ongoing relationship between a business and its customers is the most important
SMS advantage. For example, in a form of dynamic pricing, mobile coupons can be sent out to
opted-in customers to help fill restaurant tables or venue seats that might otherwise have gone
empty. SMS Customer Relationship Management (CRM) systems can track guest lists at
nightclubs and, when a manager recognizes it's going to be a slow night, he or she can entice
customers into a club with offers of his choosing.
Virality
6. The most effective marketing messages are those that require the least amount of thought on
the part of the consumer. Unlike emails, which are not always read or even seen immediately,
SMS marketing is usually read by the recipient instantly and, in many cases, responded to
immediately. SMS also has the potential to go viral, i.e., one person who receives an SMS
message can forward it to his or her list of contacts, who can then forward it to their list of
contacts, increasing marketing efficiency exponentially.
Limitations
7. Limiting users to 160 characters might seem like a huge drawback to SMS marketing, but with
the increasing prevalence of smart phones that can link to fully interactive experiences on the
Internet, the character limitation is almost a moot point.
SMS marketing gives businesses a technologically savvy way to reach out to their customer bases by
sending text messages to their cellular phones using short message services. Businesses use SMS
marketing to communicate sales and promotions, product launches and other important, timely
information to their customers using web-based solutions.
Permission-Based Marketing
Businesses can ask for a customer's permission to add them to their SMS marketing database for the
purpose of receiving product and promotion information. Customers who sign up receive alerts serve as
potential leads for sales and services, since they've already expressed some interest in the business. The
FTC doesn't have any formal regulations in place for SMS marketing, although Direct Mag reports that
they are monitoring the impact of consumers receiving unwanted text messages. Direct Mag also
reports that many wireless carriers are blocking volumes unsolicited messages monthly to protect their
consumers.
Local Marketing
SMS marketing helps local business owners connect with the community. It offers a platform for
contacting local customers with messages about lunch sales, special store events and local community
news.
The Direct Marketing Association (DMA) is the leading global trade association of businesses
and nonprofit organizations using and supporting multichannel direct marketing tools and
techniques. DMA advocates industry standards for responsible marketing – both online and
offline, promotes relevance as the key to reaching consumers with desirable offers, and provides
cutting-edge research, education, and networking opportunities to improve results throughout the
end-to-end direct marketing process.
Founded in 1917, DMA today represents companies from dozens of vertical industries in the US
and 48 other nations, including nearly half of the Fortune 100 companies, as well as nonprofit
organizations.
In 2009, marketers – commercial and nonprofit – spent $149.3 billion on direct marketing, which
accounted for 54.3% of all ad expenditures in the United States. Measured against total US sales,
these advertising expenditures generated approximately $1.783 trillion in incremental sales. In
2009, direct marketing accounted for 8.3% of total US gross domestic product. Also in 2009,
there were 1.4 million direct marketing employees in the US. Their collective sales efforts
directly supported 8.4 million other jobs, accounting for a total of 9.9 million US jobs.
Each dollar spent on direct marketing yields, on average, a return on investment of $11.73,
versus ROI of $5.23 from non-direct marketing expenditures. That's the Power of Direct.
From DMA's The Power of Direct Marketing: ROI, Sales, Expenditures and Employment in the
US, 2009-2010 Edition.
DMA is headquartered in New York City and has an office in Washington, DC. It represents its
members' interests in each of the 50 states as well as on Capitol Hill, at the Federal Trade
Commission, the Federal Communications Commission, and other agencies such as the United
States Postal Service (USPS). Each year DMA tracks thousands of proposed laws and
regulations in Washington, DC and across the nation. We address key Federal and state policy
issues that affect the direct marketing community such as behavioral marketing, data security,
privacy, postal reform, Do Not Mail legislation (DNM), the Streamlined Sales and Use Tax
Agreement (SSUTA), and others.
DMA hosts numerous, events, conferences, and exhibitions including the Retail Marketing
Conference (RMC); Digital Marketing Days New York Conference & Expo; The Email
Evolution Conference; the National Center for Database Marketing Conference & Exhibition
(NCDM); the National Conference on Operation & Fulfillment (NCOF); multiple Nonprofit
Conferences; and the largest gathering of cross-media/channel marketing professionals, the
DMA Annual Conference.
DMA also promotes the direct marketing community and member companies to consumers,
fights negative perceptions, ensures fair treatment by the media, and proactively addresses the
issues affecting marketers. We maintains our Commitment to Consumer Choice (CCC)
Program, part of our continued emphasis on empowering consumers and strengthening their trust
with the direct marketing community, where members follow specific practices to protect
consumer preferences and privacy, as well as preserve self-regulatory actions. In October 2008
DMA launched DMAchoice.org, a site empowering consumers to opt-out of commercial
mailings they would prefer not to receive and opt-in to get commercial mailings they do want, all
from a single, free, Web-based account. DMAchoice is a portal for all channels, enabling
marketers to reach audiences with maximum efficiency, and effectively communicate with
people who are interested in their products, services, or messages.
DMA maintains a US-wide Affiliate Network in order to: unify the direct marketing
community; build deep political grassroots to enhance all direct marketers' lobbying strength;
enhance the national and local educational, informational, and networking opportunities; and
build membership both locally and nationally.
To enhance networking and learning opportunities for its members, DMA has over 20 Special
Interest Councils: Agencies; Analytics; Broadcast; Business-to-Business; Catalog and
Multichannel Marketing; Circulation; Contact Center; Customer Relationship Management;
EMail Marketing; Hispanic Marketing; Insert Media; Insurance & Financial Services;
International; List & Data; Marketing Technology; Mobile Marketing; Nonprofit; Pharma and
Healthcare Marketing; Retail Marketing; Search Engine Marketing; Social Media; and Travel
and Hospitality.
DMA publishes Point, a digital publication focused on one timely, highly relevant topic,
explored in-depth by several high-level experts representing a variety of viewpoints in the
marketing spectrum, per installment. Soon to debut is CinemaDMA, where direct comes alive,
an online video library featuring thought leaders, pace-setting innovators, and industry trend-
setters sharing their thoughts and experiences from today’s direct, digital, cross media,
multichannel environment.
For more information about DMA or its subsidiaries, call 212.768.7277 or e-mail us at
membership@the-dma.org.
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What DMA does
In today's world, direct marketing has evolved into a data-driven, cross media, interactive,
multichannel process for building and cultivating mutually beneficial relationships between you
and your customers and prospects. The future of your organization depends a great deal on how
you communicate, and direct marketing is your most important tool.
DMA Mission
DMA’s goal is to keep all marketing channels open and economically viable, as well as maintain
the flow of data that fuels multichannel marketing. DMA advocates with legislators and
regulators, provides reputation management, cutting-edge research and education, as well as
networking and market making opportunities to improve results throughout the end-to-end direct
marketing process. We call this combination The Power of Direct.
ADVOCACY
DMA is the voice of the direct marketing community on state, federal, and international levels.
We act as advocates for direct marketing standards and self-regulation to ensure responsible
marketing, and we also serve as a liaison to government officials to represent direct marketing
interests in public policy, media, and other venues.
REPUTATION MANAGEMENT
DMA promotes the direct marketing process and member organizations to consumers, fights
negative perceptions, and addresses issues affecting marketers. We promote responsible
business practices through outreach to marketers on most important topics, as well as establish
and continuously update stringent ethical guidelines for marketers. We also assist our members
with setting and adhering to those ethical standards and support them in their compliance
efforts.
EDUCATION/PROFESSIONAL DEVELOPMENT
DMA is committed to providing professionals with educational and training opportunities.
Through seminars, virtual seminars, conferences, in-house training programs, certificates, and
many events, we help our members stay abreast of news and developments, improve their
overall marketing expertise, and enhance their ability to compete.
MARKET INTELLIGENCE/RESEARCH
DMA membership gives you access to a wealth of information to help you make knowledgeable
marketing decisions. Research publications and DirectLINK online provide valuable market
intelligence for every segment and topic of the direct marketing community. The cutting-edge
research lets you accurately keep pace with trends and measure your organization’s activity
relevant to current direct marketing.
To learn more about specific DMA activities, view our Annual Report.
Explore DMA Services or download our Products and Services Brochure.
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DMA's members can be categorized into three broad segments: marketers, vendors and suppliers
to the direct marketing community, and nonprofit organizations.
Both consumer and business-to-business marketers are the users of direct marketing techniques.
These marketers employ a number of media, including websites, catalogs, television, inserts,
mobile, magazines, email, and search. The suppliers are those companies that provide marketing
companies with supplies and services.
DMA’s membership roster includes companies such as: Google; Microsoft; Procter & Gamble;
Time Warner/AOL; Xerox; Yahoo!, and nonprofits such as: American Red Cross; American
Institute for Cancer Research; Habitat for Humanity; St. Jude Children's Research Hospital;
North Shore Animal League America; and The Nature Conservancy.
Join this group of gold standard marketers and suppliers when you become a DMA member.
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Direct marketing is defined as an interactive process of addressable communication that uses one
or more advertising media to effect, at any location, a measurable sale, lead, retail purchase, or
charitable donation, with this activity analyzed on a database for the development of ongoing
mutually beneficial relationships between marketers and customers, prospects, or donors. Along
with mass advertising, direct marketing allows organizations to inform potential customers,
create brand awareness, or spur immediate purchase behavior. In addition, direct marketing
enjoys certain advantages over mass advertising such as measurability, accountability,
efficiency, and higher return on investment. The Power of Direct means relevance,
responsibility, and results.
Begins with data for identifying and addressing categories of prospects, customers, or donors
(by nonprofit organizations) judged most likely to be interested in the product or service. Direct
marketing therefore depends on a vibrant list and database infrastructure.;
Analyzes this data through a variety of data to develop relevant and effective offers and
communications between the marketer and customer or prospect;
Uses market segmentation and optimization to measure such communications and transactions
between marketers and customers, especially transaction responses (response rates and
average order size) driven by, or related to, communications messages exchanged;
Tests new communications against past communications to improve future interactions
between marketers and customers in an ongoing "learning process" leading to long-term,
mutually beneficial relationships.
When fully integrated throughout the organization, direct marketing processes increase the
organization's overall efficiency, from initial product research and development decisions
through final customer sales and service. Because today's direct marketing processes are so
efficient and powerful, a business that does no direct marketing is increasingly rare. Every
company should consider expanding its use of direct marketing techniques and benefit from The
Power of Direct.
Mobile marketing is promotional activity designed for delivery to cell phones, smart phones and
other handheld devices, usually as a component of a multi-channel campaign.
Some mobile marketing is similar to advertising delivered over other electronic channels such as
text, graphic and voice messages. SMS messaging is currently the most common delivery
channel for mobile marketing. Search engine marketing is the second-most common channel,
followed by display-based campaigns.
The expanding capabilities of mobile devices also enable new types of interactive marketing.
New mobile marketing channels include:
location-based service (LBS), which involves detecting the area the user is connecting
from (geolocation) and sending marketing messages for businesses in that area.
augmented reality mobile campaigns, which overlay the user's phone display with
location-specific information about businesses and products.
2D barcodes, which are barcodes that scan vertically as well as horizontally to include
much more information. A mobile user can scan barcodes in the environment to access
associated information.
GPS messaging, which involves location-specific messages that the user picks up when
he comes into range.
The Kelsey Group, a marketing research company, predicted that the mobile advertising industry
would grow from to $3.1 billion in 2013, up from $160 million in 2008. The firm also predicts
that mobile search marketing will account for 73% of mobile marketing by 2013, up from 24%
in 2008, and that SMS-based campaigns would shrink to 9%, down from 63% in 2008. Display-
based campaigns are expected to stay relatively steady, up to 18% from 13%.
Not surprisingly, the rising popularity of social networks has not escaped the attention of direct
marketers. In fact, companies like Dell and Amazon have been widely profiled on how they use
Twitter to market their products to customers, who in turn expose these offers to their friends and
followers. In fact, Dell's Twitter feed @DellOutlet just surpassed $2 million in sales. Similarly,
many companies are scrambling to build an extensive network of "fans" on Facebook to
communicate exclusive offers and create a community of loyal brand advocates. However, like
any emerging channel, companies are still trying to figure out the best way to leverage social
media to drive customer engagement and response.
While some companies see social networks as merely another channel for building awareness,
there is new evidence that direct marketers are vying to take ownership for social network's
incredible demand generation potential. StrongMail recently completed a survey of 500
marketers, who validated not only the importance of leveraging social media for direct
marketing, but also in having it integrated with their email marketing programs.
The survey highlights the "land grab" that is going on in organizations over control of social
media, with 29 percent of respondents saying social media is being shared by multiple
departments. However, ownership by direct marketing took the lead with 36 percent of
respondents. As a frame of reference, only 9 percent of respondents stated that social media was
owned by public relations departments.
That social media is a viable and powerful direct channel is clear. Nevertheless, the survey also
revealed social media's strong connection with email marketing. In fact, 66 percent of marketers
plan to integrate the two channels in 2009. This move totally makes sense: Email is an integral
part of social media, as it is relied upon to keep members informed about the latest news and
updates. Furthermore, integrating the two channels allows marketers to get a more complete
view of the customer, which is necessary for delivering relevant and effective communications.
The emergence of social media as a direct channel is not without its challenges. According to the
survey, the top two challenges for marketers came down to finding the right strategies for
measuring success and establishing business goals.
Being able to measure success is critical to any direct marketing effort, and that's why it's
important not to neglect this important step. With the right tools, marketers can create viral social
media campaigns that can be tracked, measured, and optimized to maximize reach and return on
investment.
Social media is a valuable new tool in a direct marketer's toolbox, but it needs to be sharpened
and used correctly to accomplish the task at hand. Making it easy for customers to share Web site
or newsletter content over social networks is just the beginning. Direct marketers need to
develop viral programs that fully exploit the channel's true potential. Finally, they need to
identify ways to measure their success, which will allow them to fine tune their efforts going
forward.
Leveraging social media as a direct channel also enables central ownership, which is key to
maximizing success across all departments. Eliminating multiple owners not only streamlines the
process, it facilitates having one cohesive strategy that can accommodate the business objectives
of multiple departments, such as sales, public relations, and customer service. Uncoordinated
management by multiple departments can lead to mixed messages that hamper the company's
ability to attract fans, followers, or other influencers.
Email marketers understand the value in sending targeted messages and measuring their
effectiveness, which is why it's not surprising that many companies are leveraging their email
marketing departments to embark on social media initiatives. Not only are the two channels
closely related, they are also the top two areas of investment in 2009. As companies catch up
with the social media trend, their direct marketing departments will no doubt be leading the
charge.