Group buying deals are taking off. Spreets sold for $40 million to Yahoo in January this year; and marketers and businesspeople alike understood that group buying websites were only starting to make their impact.
Look at Groupon, for example. Between the 10th – 25th of May 2011, Groupon are offering customers a $10 voucher when they buy a deal using the Groupon app. So what does this teach us about mobile marketing?
Mobile Marketing Lesson 1: Uses for apps are growing (and growing)
Desktop Web access is predicted to be overtaken by mobile Web access within the next few years (if not sooner). Apps can leverage this trend, to become Web-connected ‘programs’ for the ‘micro-computers’ that mobile phones have become. This can monetise mobile marketing in ways that haven’t been done before.
Apps are incredibly popular. Currently, there are over 350,000 apps in the iPhone store alone! Unfortunately, they can also be the most expensive and labour-intensive form of mobile marketing; so they are often outside budget for SMEs. What are some mobile marketing lessons for everyone?
Mobile Marketing Lesson 2: Timing is everything
It’s getting unruly in the competition between group buying websites. Eventually their market will reach saturation, and the survivors will be those ahead of the competition. Oh, hold on. Does that sound like every market?
When a new idea shows up (like apps being used for mobile marketing), there is only a short window of opportunity to implement it before everyone else. If Groupon’s app is more popular than, say, an app for Spreets or Scoopon, their mobile marketing promotion will have successfully secured their role as industry leaders. As an emergent technology itself, mobile marketing is great for expanding limits and making everyone else catch up.
Mobile Marketing Lesson 3: Mobilise your offer
A $10 voucher won’t change anyone’s life. But this mobile marketing promotion is going to cost Groupon quite a bit. Why is it worth it? Because unlike print coupons, people actually seek to use mobile marketing coupons.
Print coupon redemption rates are usually around 2%. Fair enough, because they can’t have an especially targeted distribution. But maybe the real problem is this: carrying a little scrap of paper in your wallet everywhere just isn’t practical. By contrast, mobile marketing coupons achieved a 72% redemption rate for the 2010 Brisbane Boat Show in Australia (To view that case study, go to the Australian database of mobile marketing case studies. For inspiration from New Zealand campaign, check out our New Zealand mobile marketing case study database). We know why mobile marketing coupons are popular: targeted distribution, accessible at all times, and no paper scraps.
Overall, Groupon’s mobile marketing campaign will be a success because it is accessible, attractive, and timely. How will this affect the group buying deals market? I wonder if Scoopon and LivingSocial will invest in mobile marketing soon.
This article was written by Emma Rose Smith of TXT2GET, a leading mobile marketing company. TXT2GET supply affordable SMS keywords to advertising that typically increase ad response by 2-3x. SMS keywords also bring measurability & accountability to advertising, because you can see the exact time and date that responses come in.
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