Home arrow News arrow Flytxt in the News 2005 arrow Appliance of science
Appliance of science
Thursday, 10 February 2005

Incentive Today - Mobile phones and other new technology are enabling promoters to engage with consumers in a way that has never been possible before. New technology in promotions? Great idea, but for it really to be an option, it would require consumers to voluntarily carry around sophisticated personal electronic devices which would allow marketers to send tailored offers and incentives.  That’s hardly a realistic proposition, is it? John Porter looks to the future.

In unrelated news, the telecoms industry reports that by the end of last year, there were more than 1.5bn mobile phone users worldwide, compared with just 1.2bn fixed-line customers.  The ubiquity of mobile phones, and their ability to link to other technology channels, from the web to retail EPoS systems, means promotional marketing in entering a new era.

“The technology required to deliver new media promotions is no longer the main obstacle to new media promotions,” asserts Jeremy Wright, co-founder of mobile media marketing specialist Enpocket.  “The challenge now is for marketing agencies to understand just what the technology is capable of.”

Wright believes that the large sales of next-generation phones in the run up to Christmas 2004, with colour screens, sophisticated graphics capability and increased interactive capability as standard, means that a watershed has now been passed in the UK.  Since it is now cost-effective to develop mobile promotions, understanding the creative potential of the phone’s technology, such as MMS messaging and Java, the medium is the hurdle that needs to be jumped.

Like Enpocket, many in the industry see 2005 as the year in which mobile marketing goes mass-market, but they recognise the need for a coordinated approach and support in what has been, until now, seen by many as bandit country.

Recognising the growth in importance of the media, and aiming to promote the benefits of mobile marketing, the Direct Marketing Association has formed a mobile marketing strategy group.

Charles Ping, DMA chairman and head of customer-relationship management for the Guardian, says: “The rate of charge within the mobile marketplace over the next 12 months means that this key area of marketing needs to have a voice within the direct marketing industry to ensure that it remains an effective marketing tool, utilised correctly to ensure maximum benefits for industry while providing consumer protection against disreputable companies.”

New applications are emerging all the time.  Convenience store group Jacksons, newly acquired by Sainsbury’s was the first retailer to trail m-bar-go, a solution developed by technology company Light to send coupons to mobile phones that are redeemable at point of sale.  The trail at Jacksons’ Anlaby Park store in Hull invited customers to join the save@ Jacksons club to receive exclusive offers form more than 50 brands.

Marc Lewis, Light chief executive and founder, says: “The Jacksons of Anlaby Park trail has exceeded all out expectations.  We knew that we had an intelligent business model and robust technology, but it was important for us to learn whether the product would work in stores and that existing systems would not need extensive alteration.  With the ease of installation and training, this proved to be the case.”

Digital display specialist Remote Media has partnered with leading technology company Hypertag to add hypertags Remote Media’s digital posters.  This enables users to point their phone at an ad to receive mobile content such as vouchers, branded mobile games, ringtones and competitions.

With barely a hint of irony, Pamir Gelenbe, co-founder of Flytxt, says he believes that mobile content will become the 21st-century promotional equivalent of plastic toys in cereal boxes.  He says: “The move from black-and-white to colour handsets certainly marks a new era for mobile as a medium.  To date, mobile has primarily been synonymous with ‘txt ‘n’ win’ and we believe this mechanic will witness simple but interesting developments this year.  For instance, you may be able to win a game for your mobile or be directed to a WAP site that holds more information on a promotion.  In fact we believe within 18 to 36 months most brands will have their own WAP site.”


Most desired services

Research by Flytxt among 3,000 mobile users found that, overwhelmingly, consumers want to use as a facilitator.  The most-desired service is money-off offers from retailers, restaurants or cinema, as well as gift vouchers.  “We see mobile couponing as another important area for us over the next 12 months”, says Gelenbe.

Wireless Brand Channel’s system works by printing out a paper bar code when it scans a phone’s screen displaying a special code.  Andrew Wood, chief executive of Wireless Brand Channel, says: “Mobile vouchering has been around for a while now but from our perspective it’s only now that it’s really presenting a credible proposition.  While the technical solution is well proven and tested, the real problem has been in overcoming key consumer and retailer experience issues as well as problems with the trackability and security of vouchering solutions.

“The most important thing that a retailer or brand needs to think about is the user experience.  If consumers can’t receive or redeem their vouchers easily then at best the promotion will be unsuccessful and at worst consumers will be annoyed and brand damaged will ensue.”

Tony Ragan, marketing and content director at Eposs-the mobile commerce division of First Data International also sees mobile marketing working closely with other new technology media.  He says: “Ringtone offers can be used to drive customers to a special website, or to the website for the brand being promoted, so that consumers can claim their free ringtone by registering and keying in a special PIN.j22

“One major advantage offering mobile content as an incentive is that, apart from small set-up fee, the promoter only has to pay each time an item of content-such as a tone, game, graphic or sound effect-is actually downloaded.  This means they can be assured that they are paying for measurable results.”

And, at the end of the day, measurable results are what will drive the direction of new technology.  The ball is now very much in the creative court of the marketers.

 


© Copyright Flytxt Ltd 2006. Unauthorized use of any content constitutes a material breach.
 
< Prev   Next >
© Flytxt 2008. All rights reserved.