Case History of Mobile Marketing

Obama for President 2008: “Celling of the President”

After three election cycles in which the Internet was expected to play a significant role in the campaign process but ultimately was a marginal factor, 2008 was the breakthrough year. In particular, the role of mobile communications in the Barack Obama campaign has prompted some to describe it as the “Celling of the President.”

The Pew Internet Project found that a record-breaking 46% of Americans used the Internet, cell phone text messaging or e-mail to obtain information about the campaign. In some categories Internet usage was triple the levels of the 2004 campaigns. For example, about 6% of Americans made political contributions online, compared to 2% who did so in 2004.

Mobile communications played a major role in the efforts, particularly in the tech- heavy activities of the Obama campaign. Text messaging was a fundamental component of the plan, used on an opt-in basis. This established relationships with supporters, especially young voters. For example, the Obama campaign blasted text messages at key moments of their campaign, notably the announcement of Joe Biden as the vice presidential running mate. An estimated 2.9 million people received that text message early on the Saturday morning (August 23, 2008) just before the Democratic National Convention began. The Obama campaign has not officially released the number of supporters who signed up to receive mobile text messages and other online communications.

For the mobile campaign, the Obama team set up a dedicated mobile Web site: http://obamamobile.mobi. Supporters who logged in to the campaign’s primary Web site, with an M (for mobile) prefix—http://m.barackobama.com—were automatically redirected to the .mobi site. The mobile site invited visitors to “Get involved: Sign up for mobile alerts”—basically to register to the short code 62262 (the keypad numbers corresponding to the letters O, B, A, M, A). This opt-in procedure enabled the campaign to identify its contacts.

From the Obama mobile server, supporters could download ringtones, wallpapers and campaign videos. Users could also get candidate information—such as campaign stops and schedules, as well as news reports and social networking opportunities (e.g. the link to “ask a friend to join”). Most significantly, the mobile site—like other Obama online components—permitted individuals to make financial contributions. The mobile site also enabled supporters to request white papers and other documents, which were automatically sent via e-mail to their desktop or portable devices.

In addition to the text alert for the Biden selection, the Obama campaign dispatched messages before local appearances, prior to the debates, as well as on the eve of primary and general Election Days. There was also a “thank you” message after the November 4 victory.

Supporters who signed up for the service paid an average of 10 cents per message, although that figure varies widely. It is assumed that many in the young, tech-savvy Obama cadre subscribe to their wireless carriers’ “bulk text messaging” packages. Casual and occasional users pay about 20 cents per message.

Each text message blast generated a cost for both sides (the Obama transmission and the individual reception), whether it was a per-use fee or a click on the bulk bundled subscription fee). One analysis of the Biden message blast concluded that the total expense for that event could have ranged from about $1.2 million to $1.8 million, depending on the fees for each individual message (in the range of 3 cents to 10 cents per message). If there were 5 million participants, the range rises to $1.95 million to $3 million.

One objective of a political campaign is to build a contact list of supporters, contributors, volunteer workers and other citizens. The Obama campaign gathered e-mail addresses, phone numbers and other data about supporters, securing relationships that can be used in future political efforts by Obama and other political allies.

Strategically, the use of SMS—and online messages as well—represented an integrated marketing plan. Among its attributes: it bypassed traditional media as a way to communicate with and energize a large and widely dispersed audience. The interactive features enabled financial contributions and viral social media connections, which the Obama campaign exploited.

The Obama campaign’s activities have been widely hailed as a prototype for the digital era. Advertising Age declared Obama as the “Marketer of the Year,” citing the digital campaign and especially its mobile marketing component. In the polling of marketing industry executives, the Obama campaign (36.1%) scored ahead of familiar brands such as Apple (27.3%), Nike (9.4%), online shoe seller Zappos (14.1%) and Coors Brewery (8.7%). The John McCain campaign (4.5%) was far behind.

The McCain campaign also used mobile marketing, but far less aggressively. It was difficult to find the SMS sign-up information on the primary McCain campaign Web site, www.JohnMcCain.com. There appeared to be few efforts to dispatch text messages consistently during the campaign. One significant promotion for the McCain SMS capability came during the Republican Party’s convention: an SMS appeal to donate funds to the American Red Cross for victims of the hurricanes that were hitting the southern U.S. during that period. (The Obama campaign also urged $5 text donations to the Red Cross during that period.)

To read more about how to setup your own SMS campaign, visit MODI$club.

Source: Simba Information

Mobile Users Ready for Location-Based Text Marketing

JULY 6, 2010

Mobile marketing is not just for smartphones

Though smartphone shipments are rising and expected to surpass shipments of feature phones in 2011, according to Morgan Stanley, feature phones are still the devices in the hands of most mobile users. An April 2010 ExactTarget study found 58% of all US internet users ages 15 and older had one, compared with 31% who had a smartphone.

That means a large swathe of mobile users cannot be reached by more sophisticated mobile marketing efforts like sponsored apps, in-app ads or campaigns on the mobile web. According to location-based advertising network 1020 Placecast, opt-in text alerts are the smart way to target a fuller mobile audience.

A May 2010 survey conducted for Placecast by Harris Interactive found that while most mobile users still have not signed up for any text alerts, there was a small rise in interest since a similar poll in 2009: 28% were at least somewhat interested in the alerts, up 2 percentage points, and 8% were extremely or very interested, up 3 percentage points. For under-35s, interest was significantly higher.

Those who wanted the alerts were most interested in coupons and promotions from grocery stores and restaurants. Respondents who had signed up for text alerts said it made them more likely to visit the company’s website (34%), visit the store (33%) and purchase the product being promoted, either in online (28%) or in the store (27%).

Many agreed that making those text alerts location-based, so that recipients would get the right offer at the right time, could make the channel more useful or interesting.

While awareness of location-based text alerts is still building, there is the potential to reach a broader audience than with check-in apps such as foursquare or Gowalla, which are designed with smartphone owners in mind. And despite negative attitudes of many mobile users toward SMS marketing, Placecast reports low opt-out rates among recipients.

SMS alerts in marketing is viewed by the brand faithful as a service, not just marketing or an intrusion, according to Placecast. To learn more about SMS marketing, please contact MODI$club.

Source: eMarketer