Cellular Marketing What Exactly Is All This Stuff About And Can You Make Money

How will mobile phones fit into the marketing and media mix? Do you know the hurdles? Where is the biggest creative potential? What should marketers do now to get ready for the future of mobile-phone marketing?

This industry right now is really new that you have very few metrics which exist. The industry, from a technical standpoint, only has been enabled for mobile phone marketing since last fall, so we’re in “month six” of the industry even being able to technically happen.

For that reason, we can’t for see such things as reaction rates. If we now have the databases, and motivate everyone in the database to sign up, we don’t know what percentage of them might respond. In the event that we place an invitation to join up to opt-in over a Television ad, we don’t know exactly what the response percentage will be. We don’t fully understand preservation percentage rates or corrosion rates. We don’t know how much that subscriber may be worth.

We’re still just learning the basic economics. Will consumers pay premium rates for rich content and, if so, how many of them and how long will they stay? All those basic metrics that the direct mail industry has nailed down to a fair-thee-well — we don’t even have the vaguest idea when it comes to mobile phones. This is all highly proprietary information. It will vary by category, and to a certain degree will vary by brand franchise, depending upon the strength of the brand and whether it has that information in the existing database.

These are all things marketers have to learn about. They need to begin testing and developing programs now to start to build this database, to generate the metrics. These metrics are competitive leverage because when this industry breaks wide open, which it will — and I’m guessing it will 12 to 15 months from now — the marketers who have taken the time to test, who understand what the response rates are, who know how much a program will cost, what the responses will be and what the return on investment will be — those are the marketers who will have a significant advantage.

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