I've struggled with smartphone versus desktop Internet for a while, but now I'm seeing some great uses of mobile that truly address customer needs. My new favorite is a simple SMS txt service - CooCoo (266266) - offered by Metro North. You txt where you're going (for example, Grand Central or GCT to Larchmont), and it gives you the next four trains to that station (departure and arrival). When you're in New York and on the run, its a lot better than fiddling with a paper schedule. They now offer cross-street information through the same service. Now wouldn't it be cool to offer plane and Amtrak information in the same way? How about movie times (for example, Clearview Cinema, Mamaroneck and back comes the next two showings of each movie. Or do it by movie through Fandango by just inputting the movie).
Another good one is "Skip the Line", a trivia game created by Ask.com in conjunction with Six Flags (http://bit.ly/imaQAy). Game does just what you'd expect - you answer some trivia questions successfully, and you get to move up the line at a Six Flags ride. Great use of geolocation to solve a customer pain point. Of course, you have to have an iphone and download the app to play.
These two, plus seeing my daughter's friends obsessively "check in" via Foursquare to get local coupons and freebies, have made me a lot more bullish on mobile.
Showing posts with label mobile. Show all posts
Showing posts with label mobile. Show all posts
Monday, July 18, 2011
Tuesday, April 29, 2008
Mobile Advertising - Truth or Dare
Mobile advertising. People will have coupons downloaded to their phone and run to Target to make a purchase. Or, using GPS technology, Starbucks will send an ad for an extra shot of expresso just as you pass the local storefront. Maybe people will even watch superbowl commercials over again (or for the first time) on their way home from where they watched the game. It all sounds great, and I've heard it before. We were discussing mobile banking back in 2000 at Citigroup. Guess what - it hasn't really taken off. Turns out people are just fine with sitting at their computer to pay bills and transfer balances. So is mobile advertising truth?
Well, what we do know about mobile is people will buy content, mostly ringtones and games so far. In fact, NBC makes more from selling shows over mobile phones than from the Internet (where many shows are now free on Hulu.com). Just think, on the Web someone pays $.99 for a song, but via their cell phone because the bill is at the end of the month, they think nothing of downloading part of that same song for $2.95! Yes, paid for content on mobile phones is a success and will continue to be as long as it is just added to their monthly bill.
People also like Internet access on their phone, and the ability to text. And overseas, some of the applications I described above are happening. So, will mobile advertising take off? I'm not so sure. One of the great myths of couponing is that companies want people to use them. For the most part, that's really not true. Companies want customers, ideally full paying ones. To get new ones (or to get old ones to buy more), they issue coupons. But the dirty little secret of couponing (which I learned almost 20 years ago at Colgate-Palmolive) is that less than half a percent of coupons distributed are actually used. So the couponing budget is relatively modest. Now if you give some a coupon at point of sale, like on his/her mobile phone, and they use it 80% of the time, that can get expensive. And if, God forbid, they were planning on going into the store anyway, well then you've really hurt your margins.
And what about a mobile device as Good Old advertising? Well, given the screen size it will have to be creative. My view - there will be some smart agencies and advertisers that will come up with some great success stories, probably by figuring out how to integrate communications such as messaging into the "advertisement", but overall I "Dare" anyone to get rich from Mobile Advertising.
Well, what we do know about mobile is people will buy content, mostly ringtones and games so far. In fact, NBC makes more from selling shows over mobile phones than from the Internet (where many shows are now free on Hulu.com). Just think, on the Web someone pays $.99 for a song, but via their cell phone because the bill is at the end of the month, they think nothing of downloading part of that same song for $2.95! Yes, paid for content on mobile phones is a success and will continue to be as long as it is just added to their monthly bill.
People also like Internet access on their phone, and the ability to text. And overseas, some of the applications I described above are happening. So, will mobile advertising take off? I'm not so sure. One of the great myths of couponing is that companies want people to use them. For the most part, that's really not true. Companies want customers, ideally full paying ones. To get new ones (or to get old ones to buy more), they issue coupons. But the dirty little secret of couponing (which I learned almost 20 years ago at Colgate-Palmolive) is that less than half a percent of coupons distributed are actually used. So the couponing budget is relatively modest. Now if you give some a coupon at point of sale, like on his/her mobile phone, and they use it 80% of the time, that can get expensive. And if, God forbid, they were planning on going into the store anyway, well then you've really hurt your margins.
And what about a mobile device as Good Old advertising? Well, given the screen size it will have to be creative. My view - there will be some smart agencies and advertisers that will come up with some great success stories, probably by figuring out how to integrate communications such as messaging into the "advertisement", but overall I "Dare" anyone to get rich from Mobile Advertising.
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