MIS553: Mobile Marketing Strategies
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Transcript of MIS553: Mobile Marketing Strategies
WIRELESS/MOBILE MARKETING MODELS
Course Faculty: Mrs Yasmin Malik
Venue: IBA City Campus, Karachi
Course Start Date: Spring 2012 (Feb 1)
MIS553: Mobile Marketing Strategies
The Rise of Data Services
In the mobile marketing Value Chain (more on this later on in the course), the MNOs are often seen as both the enablers and the drivers (in some markets) of mobile marketing
However, MNOs are exhibiting a shift from the “tightly integrated, closed messaging systems” supported via SMS that were established in the past
External factors such as the impact of smartphones, app stores (Apple, Ovi) and social networks have accelerated mobile data usage and are impacting MNO revenues
This has resulted in subscribers accessing mobile Internet applications that are outside the control of the MNO
In short: market dynamics have changed and heralded the age of data-dominated mobile eco-systems which involve mobile portals/sites, mobile applications and mobile banner ads etc.
As a result, mobile marketing strategies have had to shift to incorporate this mobile Internet/data driven “Mobile Advertisement Model”
MNOs are trying to retain their market position by getting customers to access the mobile Internet via their own designated mobile portals
Examples of Mobile Portals
Vodafone Live! Portal Ufone Portal (old)O2 WAP Portal
Note further: one way to increase revenue is to place banner ads on their portalsfor click-through by subscribers
Note: in order to earn revenue from subscribers, the MNO wants them to access the mobile Internetvia its own mobile portal – the MNO will often lock the settings for Internet access via its portal
into the phone used for access making the portal a virtual “gateway” to the Internet
THE “OPERATOR” MODEL
Within this model, the Operator controls billing, transport, manages the service, ensuresreliability and provides security
GGSN: GPRS node/gateway which gives access to the mobile Internet via the Operator’s networkUsually the Operator Mobile Portal or “WAP Deck”
SMSC: Short Message Service Centre whichroutesand regulatesall the SMS traffic on the Operator’s network
Source: Informa Telecoms & Media, www.informa.com
Source: Informa Telecoms & Media, www.informa.com
THE “ADVERTISEMENT DRIVEN” MODELIn this model, the MNO combats the third-party “free” modelby offering reduced rates to subscribers, incentivizing themto continue to use e.g. MNO-based messaging services
In return, subscribers agree to receive advertising from 3rd parties. The MNO receives revenues from the third parties to offset the drop in subscriber revenues
This model requires the MNO to focus its efforts on marketing programs and campaigns for subscribers or outsource this portion of the business to a third-party, marketingspecialist
With access to subscriber details, the operator is in a good position to facilitate subscriber profiling, which can lead to well-targeted, successful mobile marketing campaigns
The Importance of Mobile Portals and associated Advertising
The Mobile Ad driven model incorporates SMS but also places greater emphasis on mobile Internet and hence mobile portals
It shows how mobile ads can be placed on the Operator’s own mobile portal which is known as “On-deck” mobile advertising
The same “Ad Gateway” can be used to place mobile ads “Off-deck” i.e. on any other mobile portal that is not controlled by the Operator
Many of the documented case studies in mobile marketing are based on advertising that is done in the Category of “Mobile Portals”
BMW, Lufhansa, Virgin case studies are all examples of highly successful Off-deck advertising