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. The mobile operators vet every application before provisioning and monitor the service to make sure it does not diverge from its original service description.
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.
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.
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 MMA (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.
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.
According to Pousttchi and Wiedemann (2007), mobile viral marketing is a concept for distribution or communication that relies on consumers to transmit content via mobile communication techniques and mobile devices to other potential consumers in their social sphere and to animate these contacts to also transmit the content. We define such content as mobile viral content; it comprises mobile services or ads. Typically, seeding is used to build volume of initial contacts (i.e., the first generation of “infected” people) by providing the content on high-traffic connection points on the stationary or mobile Internet or by mobile marketing push campaigns. Individuals transmitting mobile viral content are termed communicators whereas individuals receiving such content are termed recipients.
Through specially designed programmes users can send recommendations for mobile content they like to their contact lists. Passa Parola, the Italian version of Meyou, has reached a total of 800000 registered users by the use of viral marketing alone. In 2007 in Europe-South Korea -Japan A Viral mobile straight to the end-user mobile integrated campaign for the Delivery of product sales instant from Mobile hand-held devices was Co-Directed By early pioneer Leveious Rolando inconjuction with top Mobile providers with music artists -Djs and Mobile youth street teams that not only drove instant purchases of event tickets sales but also drove the sales of purchase of three different viable youth products to over 200,00 thousand end-users in 8 days. This will be in up-coming 2008 BBC Documentary on the Global mobile market/trends. Leveious Rolando says, In fact, the growth in mobile products such as ringtones, games, and graphics will displace spending on many traditional youth products such as music, clothing, and movies. Radically changes the dynamics of all visual- entertainment and product-services distribution world wide so you can target the end-user diverse youth mind set. Since youth market has historically shown a rapid viral point view which will gain acceptance in the mass market. While emerging markets are proving to be the ideal solution for sustaining revenues in the face of falling average price per unit, analysts said the rapid commercialization of 3G-WiFi services is likely to open up new opportunities in developed markets.
The youth market is at the forefront of technology adoption in the global hand-held devices market. This market segment is leading the way for the adoption of premium content and applications.
What will and already has given mobile marketing's attraction are: the ability to reach a specific target audience; information about how the user responded to a marketing message; and proof that a message has been received by the user's handset.
Mobile 3G & 3GPP:
According to the MMA "Mobile Marketing Association", the third generation wireless service promises to provide high data speeds, always-on data access and greater voice capacity. The high data speeds enable full motion video, high-speed internet access and video-conferencing, and are measured in Mbit/s. 3G technology standards include UMTS, based on WCDMA technology (quite often the two terms are used interchangeably) and CDMA2000, which is the evolution of the earlier CDMA 2G technology. UMTS standard is generally preferred by countries that use GSM network. The data transmission rates range from 144kbit/s to more than 2 Mbit/s.
Also 3GPP, the scope of 3GPP is to standardize the WCDMA based members of the IMT-2000 family. 3GPP is a grouping of international standards bodies, operators and vendors. 3GPP are based on evolved GSM specifications.