Archive for April, 2009
When it comes to mobile marketing, there are a lot of possibilities,
butwhen it comes down to what is most effective, it’s the ubiquitous and simple text message that works best.
Over 24% of mobile phone users have responded to a mobile marketing offer, said the DMA study.
Lots of Mobile Customers Haven’t Received an Offer
Of those who had not responded to a mobile marketing offer in the past, 33% said they had not responded simply because they had never received a mobile marketing offer. This indicates just how new mobile marketing is when nearly a third of the country has never received an offer.
Demographics of Mobile Marketing Respondent
People with data plans tend to be more mobile savvy and most likely to respond to a mobile marketing offer. 71% of people who respond to mobile marketing offers also have data plans on their cell phones.
And, they respond often. 21% say they respond to 3 or more mobile marketing offers per month.
Users of AT&T and T-Mobile service said they were more interested in mobile marketing offers than Verizon customers were. Singles were more likely than married people to respond to mobile marketing offers. High income respondents ($60k+/year) were most likely to respond to mobile marketing offers.
What Mobile Marketing Offers are Consumers Responding To
What categories of products are consumers responding best to:
- Entertainment and music — 44%
- Food and beverages — 21%
- Telecom — 21%
- Beauty and personal care — 15%
- Auto and transportation — 12%
- Business services — 12%
- Consumer electronics — 12%
- Financial services — 12%
- Vacation and travel — 12%
- Healthcare — 7%
- Real estate — 7%
The potential opportunity that lies in mobile marketing is unsurpassed in media today.
Clearly, email is so yesterday.
(Source — DMA; April, 2008)
Information from this article is not to be taken as legal advice. This article is provided to give you a general overview of the legal issues surrounding text message sweepstakes. It is not intended to provide legal advice. You should obtain your own legal advice from your own counsel prior to running a text message sweepstakes promotion.
Perhaps the best way to build a large opt-in database is to provide a text message sweepstakes or text-to-win promotion. People love to win things and will participate if given the chance. Then, with their opt-in permission, you can market to this database of potential consumers via broadcast text messages.
Text message sweepstakes are a great way to build an opt-in database, but you should be aware of the legal issues surrounding a mobile marketing contest.
The first thing to understand is what a “game of skill” is versus a “game of chance.” A game of skill, if structured properly, is legal in all states if the ultimate winner is selected based on his or her skill rather than chance.
In contrast, a game of chance is considered an illegal lottery in all states unless one of the following elements is removed:
In most cases, the obvious element to remove is “consideration.” Consideration is the payment of some fee to enter a text message sweepstakes. Providing an alternate form of entry that does not require the entrant to make a payment or sign up to receive goods or services effectively eliminates the consideration element from a sweepstakes promotion.
If you are offering a non-cash prize, state promotion regulations require that the cash equivalent of any such prize also be offered. You must also maintain a list of winners and make such a list available upon request to any who ask for this list.
Those who offer text message sweepstakes should refrain from using the word “free” in their advertising. In addition, using the words “winner” or “guaranteed winner” can get you into trouble and comment regulatory procedings against your company.
Some states have specific requirements for games of chance. In Florida and New York, for example, you must file the list of winners with the state. In Rhode Island, the list of winners must be provided upon request. Florida and New York also require that your sweepstakes be bonded and registered. Therefore, many promoters disallow residents of these states to participate.
Please note that this is only a brief overview of the many regulations surrounding the provision of text message sweepstakes. You should obtain legal guidance from a professional with experience in this category prior to launching a mobile marketing game of chance or text message sweepstakes. Again, this is not intended to provide legal advice.
Information for this article was taken from Feedfront Magazine (April, 2009). Please note that the author is not an attorney and the purpose of this article is to just provide an overview of the legal landscape and is not intended to provide legal advice. Mobile marketing promoters should consult their own attorneys for legal advice.
Mobile advertising growth is booming, according to a recent study by eMarketer. Mobile advertising is projected to rise from $648 million in 2008 to $3.3 billion in 2013.
eMarketer suggests that part of the growth in mobile advertising is from the prominence of SmartPhones, most specifically Apple’s iPhone which was launched in 2007.
US MOBILE ADVERTISING SPENDING
2008 — $648 million
2009 — $760 million
2010 — $995 million
2011 — $1.41 billion
2012 — $2.39 billion
2013 — $3.30 billion