QR code placement important for marketing campaigns...

QR code placement can make or break a marketing campaign...

By Kayla Hutzler

---

August 29, 2011

Bergdorf Goodman uses QR codes

QR codes are becoming increasingly present in mainstream advertising, allowing consumer brands an opportunity to enhance their traditional advertising strategies.

Despite the growing presence of QR codes, some consumer brands seem hesitant to implement the new technology. However, QR codes can be an effective tool to seamlessly take a print ad, still used by a majority of consumer brands, and incorporate the ad into a multichannel campaign.

QR codes add relevancy and interactivity to traditional media in a way that has never been possible before.

Consumer brands now have the opportunity to engage users with real-time content from an offline ad and increase brand impact by encouraging users to take the brand experience away with them on their mobile device.


Mobile optimized
For consumer brands looking to enter into the realm of QR code marketing, there are some ways to optimize the technology and increase the campaign’s effect.

The placement of QR codes is very important. It is very easy to create a disastrous QR campaign just by selecting the wrong location.

For example, placing QR codes on outdoor signs or posters can be highly effective if consumers can reach or scan the QR code, but less effective on a high billboard.

In addition, consumer brands should monitor the mobile reception of the area in which they plan to place an out-of-home QR code ad.

Using this mind-frame, interior subway ads may be a poor placement for QR codes, but inside and outside ads on buses may work fine.

Also, QR codes should not be implemented until a brand has a mobile-optimized site.

Finally, leading consumers to a non-optimized site can cause frustration and lead to a bad brand experience.


Scanning in
QR code campaigns can be extremely effective for consumer brands since they generally use traditional print media more than other industries.

Indeed, QR codes work well in print magazines, where a majority of consumer brands still take out full-page ads.

In addition, some brands have already begun using QR codes in direct mail pieces and catalogs.

For instance, symphony orchestra New York Philharmonic engaged consumers via direct mail and mobile by embedding QR codes into its mailers.

Additionally, Bergdorf Goodman’s pre-Fall catalog included QR codes that brought consumers to the product page on its mobile site.

Mobile marketing is not something that can be ignored by consumer brands — by 2012 the amount of smartphones are expected to outnumber the amount of desktop computers.

Affluent consumers are most likely using smartphones, and are always looking for innovative campaigns that differentiate one brand from another.

Luxury brand consumers are also increasingly expecting  personalized and beyond-the-norm service, which a QR code campaign can provide.

Luxury brand buyers are looking for unique, high quality and prestigious goods.

Brands can use QR codes as exclusive, insider keys to unlock premium mobile content like videos, photos and contests and extend the brand experience.

New movies drive awareness with mobile QR codes...

Fox Searchlight Pictures drives film awareness via mobile QR codes...

By Lauren Johnson

---

August 29, 2011

Consumers can scan mobile QR codes on outdoor posters for exclusive content

Film production company Fox Searchlight Pictures is drawing promotion for its new “Martha Marcy May Marlene” film via  mobile QR codes.

The mobile QR codes are placed on marketing materials, including both outdoor locations and traditional print marketing materials throughout New York and Los Angeles.

The film hits theaters on Oct. 21.

For the marketer, QR codes are effective because they are able to connect media to other content and they are easy to track.

Fox Searchlight Pictures is a international film company that distributes movies under Twentieth Century Fox.
Exclusive scans
Users can scan the mobile QR codes on the promotional products and be taken to a landing page where they can watch two exclusive trailers for the film.

Consumers can also view additional information about the film via the mobile QR codes.

One of the key parts of a mobile QR code campaign for marketers to understand is knowing where your audience will see the ads and how it will impact how they interact with the ads.

One perspective is that print ads generally have good results because consumers have the most time to engage with them.

However, with advertisements that are on subways and are outdoors, consumers can potentially sign up for email blasts and more information via text messaging.


Movie magic
This campaign is not the first time Fox Searchlight Pictures has embraced mobile QR codes.

In 2009, the film company drove awareness to the movie Notorious with mobile QR codes on promotional materials around New York.

Giving consumers additional content as plugs for movies and entertainment is nothing new, but exclusive content gives consumers an incentive to engage with mobile.

According to Fox Searchlight Pictures, videos  for Martha Marcy May Marlene are exclusive only by scanning the mobile QR codes.

Mobile QR codes give users added value when they scan something they can’t find elsewhere.

Do men or women opt-in to SMS?...

SMS – Who’s Really Opting In?...

The data from a recent research study show that men are significantly more likely to opt in to SMS campaigns than women — with 57% of male respondents indicating opt-in opposed to just 33% of female respondents.  Opt in by gender and by age group is shown on the Infographic below:

Outdoor Advertisers Benefit From QR codes and SMS...

QR codes, SMS modernize billboard ads...

By Rachel Lamb

---

August 23, 2011

Audi A7

Implementing mobile strategies such as QR codes or SMS calls-to-action in out-of-home luxury branded ads immerses consumers interactively compared to traditional billboards, bus bench posters or telephone booth advertisements.

Additionally, this makes it easier for luxury brands to collect data and conversions to measure the effectiveness of out-of-home ads to a brand’s core customer. Consumers stopping to scan a QR code or text-in to a short code are likely to be true brand loyalists.

Outdoor, like any other traditional media, is great at generating brand awareness and consideration.

However, it typically falls short in engaging the consumer or leading to a conversion.  Mobile provides an immediate tool to move an interested consumer into a more immersive experience and one step closer to purchase.


Bold moves
Mobile can be incorporated in out-of-home ads in many ways.

For instance, some brands use them to offer exclusive videos and content.

Department store chain Bloomingdale’s upped its out-of-home advertising strategy by including QR codes and an MMS call to action on phone booth ads to connect consumers with videos and content about new fashion trends.


Bloomingdale’s mobile incentives on telephone booth ads


The retailer placed ads on telephone booths in New York located near store locations.
Meanwhile, other luxury brands are using QR codes to push new products.

For instance, Audi of America launched its new A7 model with an interactive billboard in Times Square in New York that was supported by mobile elements such as QR codes and SMS.

The campaign used SMS and QR codes to drive billboard viewers to Audi’s online and mobile properties for more details about the locations featured in the programs and an interactive New York City guidebook.  Audi’s billboard brought consumers to a mobile site for more information.

Implementing these tactics have both real-time and long-term effects.

A consumer can look at content when he or she is waiting for the bus or a cab right then, or sign up to receive information at a later time that reinforces the message.

QR codes can launch a number of activities in one click depending on what the brand is trying to achieve. A code can launch an opt-in email for exclusive events, a video demonstration of a vehicle’s features, an option to make a purchase or simply allow a customer to save the business contact information for a later time.

This could be especially relevant when a consumer has time to view the ad and get more content from their device.

Brands can also use mobile to incentivize consumers to go in-store or online for new launches or to receive a free gift with purchase or discount.

Scan and buy
The brand’s mobile message in an out-of-home ad should be the entire point of the ad, rather than just an afterthought.

This strategy makes the ad purposeful and attracts the attention of passers-by.

Brands can collect the data that amasses from scans and texts to find out what works for the brand and its customers and possibly use that information to drive consumers in-store or to an online location.

Taking advantage of location-based services such as foursquare, Gowalla or Facebook places can also incentivize consumers to go in-store or check-in to a retail location.

No matter what, mobile offerings force consumers to interact with the brands and could build brand loyalists.

However, since QR codes and SMS messages are relatively new channels, brands need to be careful about how they use them.

The relevance of the media is really critical when using QR codes on outdoor ads – probably more so than any other vehicle.  Marketers have to think about the placement of the specific ad and whether a code will be practical for the consumer.

Best results thus far have come from commuter placements like bus shelters or train platforms.   Also, t the media should be in an area with strong cell service.

Frustrating the consumer with a bad experience will prevent them from scanning again – whether it be from your brand or others.

Millennial Media Compares 2 Years of Mobile Advertising Trends...

Millennial Media Compares 2 Years of Mobile Advertising Trends In 50th S.M.A.R.T Report...

---

Millennial Media Compares 2 Years of Mobile Advertising Trends In 50th S.M.A.R.T Report... Posted: 22 Aug 2011 12:43 AM PDT For anyone within the mobile advertising industry, you’ve likely relied on Millennial’s research over the last two and half years to stay up on the ever-changing trends, devices, verticals and more that drive the market. In fact, according to Millennial, its research is used by all 25 of the top mobile agencies, all 20 of the top ad agencies, and 70% of the top 20 Ad Age advertisers. In addition, its research has been referenced more than 5,000 times by press, analysts, customers, etc and has seen more than 20,000 downloads to-date. Now, on to the data.  In terms of general mobile advertising growth, Millennial and Gartner reported total mobile advertising revenue in 2010 totaled $1.627B, and in June of this year, Gartner projected that the worldwide market would more than double by the end of 2011 over 2010 to total an estimated $3.309B.  By 2015, however, Gartner projects total revenue to top $20.6B. Looking at mobile vertical spending in Q2, six specific verticals experienced triple-digit growth including travel,entertainment, automotive, pharmaceuticals, retail/restaurants, and finance — the latter of which seeing an impressive 1,095% growth over Q2 2010.  Retail and restaurants took the top spot for U.S. mobile verticals in Q2 while “portals & directories” took the top spot on an international scale. In terms of mobile campaign engagement methods, “application download” grew 9% quarter-over-quarter and represented 23% of Millennial’s “Campaign Destination Mix” for Q2, while “View Map” grew 28% quarter-over-quarter as a “Post-Click Campaign Action.”  Looking at general campaign destinations, driving traffic-to-site represented 52% of all campaigns, while driving traffic to a custom landing page and driving app downloads rounded out the rest with 25% and 23% respectively.  It’s worth mentioning that, when compared to Millennial’s very first S.M.A.R.T report back in 2009, the “app download” campaign action has grown an impressive 667% — mirroring the massive growth in mobile app usage and smartphones in general. Looking further in how far we’ve come in the last 2.5 years, the top 5 mobile phones in Millennial’s network in March 2009 included (in descending order) the Apple iPhone in the #1 spot, followed by the Samsung Instinct, the Blackberry Curve, the Samsung Messenger and the T-Mobile Sidekick — note two out of 5 were feature phones.  Jump to Q2 2011 and the iPhone remains in the number one spot, followed by the Blackberry Curve, the Motorola Droid, the Samsung Nexus S and the Blackberry Bold 2.  The entire list of the top 20 phones for Q2 were smartphones.

Daily's Cocktails Doles Out Prizes Via QR Codes...

Daily’s Cocktails doles out summer prizes via QR codes...

By Lauren Johnson

---

August 18, 2011

Consumers can play a game to win prizes

Cocktail mixer company Daily’s Cocktails is giving consumers a chance to win prizes via mobile bar codes that are placed on its static magazine ad.

The company is running the advertisements as an extension of a summer campaign that promotes its  line of  mixed drinks. In addition to mobile bar codes, the company is also leveraging social media and getting the word out via  Facebook, Twitter and Pandora.

“Daily’s Cocktails had a successful summer campaign last year that focused on making the most of consumers’ summers with Daily’s products, including entertaining and recipe examples,” said Michael Chadwick, partner at CCM Marketing Communications, New York.

“This year, we wanted to use print as another way to get people involved with the campaign, but still wanted it to be simple and easy for users so we decided to use QR codes,” he said.

CCM Marketing Communications is a marketing agency that works with Daily’s Cocktails.

Spin to win
Once consumers snap the mobile bar code via their QR code reader, they are taken to a mobile-optimized page where they can play a game to win various weekly prizes.

To play, consumers click a spinning bar of Daily’s Cocktails products to create a cocktail.

Each week, there is a winning pattern and users who guess the right combination are randomly selected to win prizes, such as blenders and coolers.

The sweepstakes began Memorial Weekend and is planned to run through summer.

“The mobile game is an extension of a more elaborate game that is on the company’s Web site,” Mr. Chadwick said.

Recipe swap
In addition to playing a game, consumers can view a list of 20 curated recipes that use four Daily’s mixes.

“Recipes are one thing that drives drink mixers because there’s always a new and relevant way for consumers to use the products,” Mr. Chadwick said.

“No one is going to buy the product on its own, so recipes are natural sources of content for the brand,” he said.

In addition to using the QR codes to promote the brand, Mr. Chadwick said the company was able to gain valuable insight about how consumers interact with print.

For example, five to six versions of the code were placed in various magazines.

According to Mr. Chadwick, the magazine that has generated the most engagement was Hearst’s Cosmopolitan, which shows that the publication’s readers are looking for sources of additional, relevant content.

“QR codes are a perfect shortcut for going straight from the branded message in the print ad to the more interactive brand experience,” Mr. Chadwick said.

“As the technology and the software become more universal, food and beverage marketers will expand on ways to target the perfect consumer for their products in settings where those consumers can benefit from the information,” he said.

“QR codes gives brands an opportunity to make the case for a consumer decision on a situation basis.”

Victoria's Secret New SMS Program...

Victoria’s Secret offers incentives via SMS program for Pink line...

by Rimma Kats

---

August 10, 2011

Victoria’s Secret is giving special offers and exclusive event information via an SMS program that builds the company’s database and its relationship with consumers.
The lingerie retailer is no stranger to mobile. In addition to SMS, Victoria’s Secret also uses mobile applications and mobile ads as a way to communicate with shoppers.

“SMS gives brands like Victoria’s Secret reach to run campaigns that are accessible by all mobile users,” said Jeff Hasen, chief marketing officer of Hipcricket, Kirkland, WA.

“SMS provides a springboard to richer brand experiences – of course, Victoria’s Secret is known for its fashion and its models,” he said.

“Video and pictures can be used in embedded links that take the mobile user to the excitement and glamour that is Victoria’s Secret.”

Mr. Hasen is not affiliated with Victoria’s Secret. He commented based on his expertise on the subject.
Victoria’s Secret did not respond to press inquiries.


Message incentives
Consumers are encouraged to opt-in to the company’s SMS program by texting keyword to a short code.

Once users opt-in, they are sent a text message with a link that takes them to a mobile-optimized page where they can sign-up.

Consumers can enter information such as their name, email address and phone number.

“Provided the call to action is clear and compelling, SMS is effective in driving new customers to an offer or to information,” Mr. Hasen said. “This often leads to an invitation to a mobile loyalty club where consumers choose to interact with brands they know and trust.

“Hipcricket research says that more than one-third are interested in joining a mobile loyalty club,” he said. “Further, the study tells us that consumers are still waiting for brands to ask them to engage.”


Word of mouth
Victoria’s Secret is getting the word out about its SMS program through a variety of ways including direct mail.

A 12-page direct mailer sent to consumers last week is headlined “Pink” and promotes bras, panties, bikinis, T-shirts, flare pants and a hoodie.

In that mailer, the Heartbreaker product page has a QR code as well as the HEART keyword meant to be texted to a short code.

“SMS produces near immediate action since 97 percent of texts are opened within four minutes,” Mr. Hasen said.

“Deals via SMS break through the clutter – contrast that with the offers delivered to me via email that I will never see.”

QR Codes Resonating With Mobile Users...

QR Codes Finally Resonating with US Mobile Phone Users...

Posted on 12 August 2011

According to the latest research from comScore, Inc., in June 2011, 14 million mobile users in the U.S. (6.2 percent of the total mobile audience) scanned a QR or bar code on their mobile device.

A QR (Quick Response) code is a specific matrix bar code (or two-dimensional code) that is readable by smartphones.

The statistics were gleaned from a study on mobile QR and bar code scanning which came from the firm’s comScore MobiLens service.

More than half of all QR code scanners were between the ages of 18-34 (53.4 percent).

Additionally, the study found that a mobile user that scanned a QR or bar code during the month was more likely to be male (60.5 percent of code scanning audience), skew toward ages 18-34 (53.4 percent) and have a household income of $100k or above (36.1 percent).

ComScore also analyzed “the source and location” of QR or bar code scanning and discovered that users are most likely to scan codes found in newspapers or magazines and on product packaging and do so while at home or in a store.

“QR codes demonstrate just one of the ways in which mobile marketing can effectively be integrated into existing media and marketing campaigns to help reach desired consumer segments,” says Mark Donovan, comScore senior vice president of mobile.

“For marketers, understanding which consumer segments scan QR codes, the source and location of these scans, and the resulting information delivered, is crucial in developing and deploying campaigns that successfully utilize QR codes to further brand engagement.”

QR code readers...

• Blog
• How to read a QR-Code
• QR-Code Consulting
• QR-Code Generator

How to read a QR-Code...

READY?. Visit from your cellphone browser application any of the following websites:

• Kaywa reader, Kaywa / 3GVision - http://reader.kaywa.com
• I-nigma, I-nigma - http://www.i-nigma.com
• QuickMark - http://www.quickmark.com.tw/En/basic/index.asp

SET?. When detecting your cellphone model will ask permission to download the reader application. Accept, download and isntall.

GO!. You are now ready toread QR-Codes or Datamatrix from your phone.

QR code integration...

Crate and Barrel increases mobile giveaway entries via QR code integration...

Posted By Rimma Kats 

Crate and Barrel is offering consumers a chance to win a $500 gift card via a QR code featured on its fall catalog.

The company is running the mobile bar code on the back of its catalog.

In addition to signing up for a chance to win the $500 gift card, consumers can also sign up for the company’s email news and stay on top of their products when they come out.

“The incorporation of a mobile bar code into campaigns means that consumers can experience the brand instantly in a more meaningful way by being connected – whenever and wherever they are – to richer content,” said Laura Marriott, British Columbia-based CEO of NeoMedia Technologies.

“This interactive communication helps the consumer feel more attuned to their brand and the brand, more connected to the consumer,” she said.

“Mobile bar codes have been taking the place of 1-800 numbers and URLs in advertisements and are already helping to connect the consumer to higher value content on store shelves, on pack, and many other implementations.

Ms. Marriott is not affiliated with Crate and Barrel. She commented based on her expertise on the subject Crate and Barrel did not respond to press inquiries.

Mobile giveaway
Consumers can scan the QR code with their mobile device.
One lucky winner will get a $500 shopping trip to any of Crate and Barrel’s locations, online or purchases made through the company’s catalogue.
The mobile sweepstakes is taking place beginning Aug. 1 to Sept. 30.
Using a QR code for the mobile sweepstakes and to build the company’s email database is smart.
Mobile bar codes are emerging and more companies are beginning to see a trend and taking advantage of it to further their mobile strategy.
“The analytics that are available to a brand as part of a mobile bar code management platform are absolutely invaluable in helping them to measure and define campaign success, helping them understand who is engaging with them and when,” Ms. Marriott said.
“This data also allows brands to tailor communications even further to the consumer based on analytics including time, date and location of any scan, as well as valuable user information including gender and age,” she said. “These attribute make bar codes a must for all marketers.

Sign me up
When consumers scan the QR code they are redirected to a mobile landing page where they can sign up to enter and receive email news, as well as participate in the giveaway.
Additionally, while there, consumers can shop the latest products, check out their favorite pieces and use the search functionality if they are looking for something specific.
Users can also visit the company’s other sites including CB2 and Land of Nod.
“We see barcodes emerging as a dominant mobile media element and we will continue to see brand owners of all sizes leverage barcodes in their campaigns,” Ms. Marriott said. “The market is only starting to develop and we are on the front end of the hockey stick.”
“We expect the continued explosive growth of smartphone users making mobile barcodes all the more accessible to consumers,” she said.
“This will be backed by an increased penetration of pre-loaded mobile bar code readers by handset manufacturers worldwide, making scanning capability more convenient and instantaneous as well as the continued proliferation of barcode scanners in the app stores.”

Mobile Coupon Issues...

5 obstacles to mobile coupon adoption...

By Jonathan Treibar

August 12, 2011

Jonathan Treiber is cofounder/CEO of RevTrax

Consumers are increasingly embracing digital deals, discounts and promotions, and with the proliferation of smartphones, a growing number are redeeming offers at the point-of-sale using only their mobile device.

Historically, marketers did not care much about mobile coupons due to minimal consumer smartphone penetration. Today, the question for marketers is not whether to deploy a mobile promotion, but instead how, when and where to execute it.


Fast clip

Although consumers are demanding coupons and deals on their phones in increasing numbers – Borrell Associates sees mobile coupons growing at a cumulative annualized growth rate of 84 percent per year – marketers may not be ready operationally to handle this deluge of consumer appetite for their promotions.

The realities of retail IT systems and hardware, when combined with the need for significant training of store personnel and customers, often make mobile coupons much more attractive for marketers than for wireless carriers.

The top five reasons why retailers, restaurants and consumer packaged goods manufacturers may need to think twice before pulling the mobile coupon trigger are:
1) Issues with point-of-sale scanning of mobile-based coupons and offers
2) Line hold-ups caused by redemption of sequential mobile-based coupon offers
3) Redemption policies that conflict with manufacturers’ coupons
4) Outdated retail systems that lack coupon functionality
5) Lackluster consumer experience viewing coupons on mobile screens
The question becomes how best to overcome these obstacles in the most reasonable time frame and cost.


Issues with point-of-sale scanning of mobile-based coupons and offers
Scanning bar codes from a mobile device involves two distinct problems.
First, point-of-sale scanners must recognize the newer types of bar codes such as Datamatrix that are best used for mobile couponing.
Second, scanning devices, which are typically laser-based scanners, often require an upgrade to the more expensive optical imagers, ideally 2D.
The first problem can be overcome with some custom software development.
The second, depending on the number of checkouts requiring new scanning devices, might break the bank.
An average grocery store, for example, might need 20 new scanners at $500 apiece for the 20 check-out lanes in a single store.
Multiply that across a chain and one can begin to understand why major retailers need to be big believers in mobile to justify that investment.
The good news is that Target and Starbucks have already taken the leap, and others are going to follow. For most others, cashiers are manually entering in the digits of the coupon into POS.

Line hold-ups caused by redemption of sequential mobile-based coupon offers
Assuming scanners and software are good to go, operations personnel still face issues with mobile coupons when a consumer seeks to redeem multiple coupons at time of purchase.
For example, consider a long checkout line where the consumer at the front of the line is completing a purchase. This person retrieves the first mobile coupon and hands her mobile device to the cashier to scan. The cashier scans the mobile coupon and returns the mobile device to the consumer to retrieve a second coupon.
This process then repeats itself until all coupons are redeemed.
For retailers looking to drive frequency of spend and speed at checkout, this is clearly a losing proposition.
Innovations are in the works to enable redemptions of multiple coupons simultaneously with one single scan at checkout.
One-scan checkouts are already a reality with the load-to-card coupons at many grocery stores, but not in most other categories.

Redemption policies that conflict with manufacturers’ coupons
Many CPG brands want to get in the mobile couponing game but do not quite know how, given that retailers must submit a physical coupon back to the manufacturer for reimbursement of that coupon value.
To solve these scanning and redemption issues, many brands are bypassing mobile devices as coupon redemption vehicles, instead using them as an engagement tool to entice consumers to load coupons onto a loyalty card or sign up and opt-in to receive future communications – email, primarily – to receive printable coupons.
With the mobile device acting as the engagement tool, CPG brands are experimenting with QR codes and SMS opt-ins in stores and on shelves, as well as in advertisements both digital and print.
Consumers with smartphones now have many options to engage with the coupon content, even if the coupon does not physically get scanned off the phone.

Outdated retail systems that lack coupon functionality
Local businesses are often immune from these headaches but face other challenges.
Often lacking advanced systems or scanners, a local merchant’s mobile couponing is much more fundamental.
Consumers flash their phone with an SMS message and some generic coupon copy sent by the merchant, and the local merchant honors it – or not.

Lackluster consumer experience viewing coupons on mobile screens
Consumer experience with mobile coupons covers two topics.
First, basic SMS text message coupons lack the sizzle and aesthetics of images and rich media.
Second, mobile Web content, including mobile coupons with graphics and rich media, are still not formatted properly for many mobile devices, leading to a choppy visual experience.
Quite simply, mobile coupon experiences are not very sexy at this time. A better mobile Web experience for consumers – and ability to scan bar codes off a phone – will create a shift away from text messaging towards stickier forms of mobile engagement.
None of this is to say that mobile couponing is not happening currently. It is, in a big way. Merchants are finding different ways to cope with their own idiosyncratic limitations and adapt with the rapidly-changing consumer.
Fast forward even 18 months and you will find a drastically more advanced mobile consumer.
Marketers will make the investments in IT systems over time to overcome many of the challenges surrounding mobile coupons today, giving way to a more mature and sustainable environment for mobile coupons.

Small Business Mobile Marketing On The Rise...

80% of Small and Medium Sized Businesses Will Invest in Mobile Marketing This year...

By the end of 2011, approximately eight in ten small and medium-sized businesses in the United States will pony up and invest in some form of mobile marketing.
As the findings of a new survey conducted by Borrell Associates reveals, 83% of respondents either plan to invest or already have invested a portion of their yearly marketing budget into the mobile channel.
A majority of respondents admit that mobile marketing now captures at least 20% of their total marketing budget for the year.

“It’s fascinating the way this is evolving, and that small businesses are getting on board so quickly with mobile,” Kip Cassino, author of the report, tells Click Z “Historically the small guys wait until the technology gets cheaper and the roadmap is a little more clear; that’s how it was with online. These guys aren’t waiting. They’re plunging in, and for the most part they’re doing so without many metrics.”
The emergent popularity of “daily deals” is seen as a powerful if not primary source of inspiration behind the small business community’s escalating investment into mobile marketing and its myriad tools.

Over 91 million people to use mobile device at least monthly

Generations Divide over Mobile Devices

AUGUST 10, 2011

Boomers, Gen X and millennials display differing mobile device preferences

eMarketer estimates that more than 91 million US consumers will use the internet through a mobile device at least monthly by the end of this year, up from 77.8 million in 2010. While US consumers as a whole may be increasing their mobile internet activities, the devices with which they prefer to do so tend to vary by generation.

According to a study by Affinity Research, generations are dividing in terms of mobile device preferences, with older consumers favoring tablets and ereaders and younger users adopting smartphones at rapid rates.


Although Affinity estimates that Generation X is 16% more likely than the average consumer to own a tablet, a study by GfK MRI indicates that when adding ereaders into the mix, the rate might be even higher. GfK MRI indicates that a Gen Xer is 25% more likely than the average US adult to own a tablet or ereader. Income may play a large part in this age group’s strong adoption of tablet computers. Wealthier Gen X consumers are more likely to own the “latest and greatest” gadgets—according to Affinity, Gen Xers with household incomes of more than $100,000 are 63% more likely to own a tablet PC than other Gen Xers. Tablet adoption also skews toward Gen X males.


Both GfK MRI and Affinity reference the strong inclination among boomers to own ereader devices. According to GfK MRI, baby boomers own more Kindles than both millennials and Gen Xers. And Affinity Research states that boomers are 19% more likely than the average consumer to have an ereader. Strong growth of ereader ownership among the boomer demographic may be due in part to the intuitive and uncomplicated nature of ereader platforms. Device ownership skews slightly toward female consumers.

While millennials are less likely than both Gen X and boomers to own either an ereader or a tablet, the younger demographic surpasses both age groups in terms of smartphone adoption. Labeled as “digital natives” in the technology and mobile device market, millennials are 28% more likely than the average consumer to own a smartphone; 46.5 million millennials already have one.

According to the Pew Internet & American Life Project, millennials and the younger end of Gen X own more smartphones than those older than age 35. Additionally, Affinity reports that more than 24 million millennials plan to purchase a smartphone in the next six months.


eMarketer estimates US advertisers will spend $1.1 billion on mobile this year. By taking demographics and usage preferences into account, mobile marketers can ensure their dollars are wisely spent.

One Third of Adults Own a Smartphone

Third of adults 'use smartphone' says Ofcom report

COMMENTS (169)

More smartphone time is spent on Facebook than any other service according to Ofcom

Continue reading the main story

Related Stories

• Broadband use 'lower in Scotland'
• Britons 'multi-task' with media

One in three adults in the UK now uses a smartphone, according to a report by the telecoms regulator Ofcom.

Apple's iPhone was said to be the most popular brand. However, teenagers appeared to favour RIM's Blackberry devices.

The report notes that the increased uptake of smartphones has led to a dramatic rise in mobile internet use.

Facebook was the most visited website on handheld devices, with 43 million hours spent on it in December 2010.

Ofcom's annual Communications Market Report combines the regulator's own research with work carried out by other industry analysts.

The 341-page document provides a comprehensive snapshot of the UK's TV, radio, internet and telecommunications consumption.

On mobiles, it said that 58% of adult males owned a smartphone compared to 42% of females.

Among teenagers the trend was reversed with 52% of girls using smartphones against 48% of boys.

Although Apple's iPhone was a favourite device for 32% of adults, among teens its popularity was dwarfed by the Blackberry, which 37% of young people identified as their preferred brand.

Many of those taking part in Ofcom's survey confessed to being obsessed with their smartphone. 37% of adults and 60% of teenagers described themselves as "addicted".

Trending online

Ofcom's study also looked at how people use the internet via home fixed line connections.

Its analysis was based on a survey of 2,481 adults who have access to broadband.

Among those who took part, the most popular task was sending and receiving email (89%).

ADVERTISEMENT

BBC Breakfast discusses why we are addicted to smartphones

More people turned to their computer to do online banking (61%) than used it to watch television (45%).

Online privacy was a concern for the minority of people surveyed, with worries appearing to grow as people got older.

Among 16 to 24-year-olds, 6% said they had concerns about their privacy on the internet. That figure rose to 13% of 55 to 64-year-olds.

Winners and losers

The report also examines the type of websites or online services that people are spending their time on, based on research carried out by UKOM/Neilsen.

The biggest growth area, between April 2010 and April 2011, was games, which increased by 23%.

News websites took a 33% dive on the previous year, as did adult sites whose use fell by 13%.

Away from the internet, there were also noteworthy changes around the use of broadcasting technology.

UK radio fared well, racking-up more than one billion listening hours per week

Time-shifted TV viewing, using digital video recorders, made up 14% of all viewing time in 2010, 1% lower than the previous year.

Sales of 3D capable televisions appeared to be relatively sluggish, with 125,000 sets sold in 2010, compared to 1 million internet-enabled TVs.

Radio fared well, according to Ofcom, as total listener hours hit 1.04bn per week, up 2.1% on 2009.

By the beginning of 2011, a quarter of radio listening was done on a digital platform, said the regulator.

Brand Marketers Opt for SMS...

10 best-practice SMS tips for luxury brand marketers...

By Rachel Lamb

August 3, 2011

You've got a Jaguar message

Rather than developing a costly mobile application or optimized site, some luxury brands are opting for SMS or MMS messaging that delivers relevant and real-time information to opted-in consumers.

Luxury brands such as Kiehl’s, Jaguar Land Rover, Cartier, BMW and Hennessy have begun to realize the affect that SMS messaging has on their customers. It is likely that this sort of messaging is one of the most personal ways to communicate with consumers via mobile.

“SMS is the means to an opted-in database where individual preferences can be learned and mobile messages can be personal and relevant,” said Jeff Hasen, chief marketing officer of Hipcricket.

“Those benefits are especially important when your customer is affluent and accustomed to high-touch service,” he said.


Medium is the message


As an expert in the SMS field, Mr. Hasen has compiled a list of 10 tips for luxury brands considering SMS messaging. Here they are:

1. Use SMS as a customer relationship marketing tool, not just a means to provide one-time offers.
2. Use past experiences with the customer to offer luxury customers what they actually want.
3. Do not assume all luxury customers have smartphones – SMS needs to do a lot of the heavy lifting.
4. Use SMS for time-sensitive offers and information. Ninety-seven percent of text messages are read within four minutes of delivery.
5. Consider location to boost relevance.
6. Make sure SMS campaigns fit into the brand’s overall marketing strategy.
7. Use SMS as a means to connect to richer brand experiences. For example, link back to the brand’s mobile Web site or app.
8. For this audience, over-deliver on customer service – it is more of an expectation.
9. Use SMS to drive customers to the store.
10. Exclusivity is important as it makes customers feel like VIPs, so reward the brand’s best customers with something special.


Jaguar roars

Depending on what the brand wants to accomplish, SMS can be used for many different purposes.
Some brands use SMS to call attention to new products.

For instance, LVMH’s Hennessy is promoting its collaboration with the artist Kaws for a limited-edition bottle that can be previewed by scanning 2D bar codes and SMS calls-to-action.


Hennessy SMS call-to-action

Meanwhile, other brands such as Kiehl’s skincare are implementing location-based SMS messaging to offer news and sales at local store locations to drive in-store purchase...
Automakers are also making use of the real-time messaging service.
German automaker BMW personalized MMS messages to alert customers to buy snow tires during winter months while Jaguar integrated SMS calls-to-action with its television ads...

Jaguar SMS brings customers to an optimized site

Since SMS messaging is opt-in, it is a fool-proof system to deliver information to a brand’s most loyal customers.

“A permission-based SMS program creates a dialogue with consumers, giving mobile subscribers the ability to ask for and receive exactly what they want,” Mr. Hasen said.