Steve Madden’s Plan to Enter the Mobile World

Optimistic predictions about mobile advertising are not new at all. You can find a whole bunch of experts claiming that the mobile phone will become the most sought-after advertising platform in the future. However, when something that validates these claims happens, it surely is exciting.

Steve Madden, a San Francisco based retail shoe brand, has been bitten by the mobile bug and is considering shifting its focus on mobile phone advertising. Jared Horowitz, who is in charge of the business development section of Steve Madden, has stated that it has become an integral part of their digital business.

As of now, only 0.5% of Steve Madden’s revenue is generated by mobile users. The company, however, is hopeful that the revenue will increase significantly in the coming years if they develop a mobile optimized site and drive traffic to it by running innovative mobile advertising campaigns. So, to prepare themselves for the mobile juggernaut, they have come up with a long list of plans. They include

• Developing a mobile optimized WAP site which is easy to navigate.

• Adding lots of interactive features to the site like click-to-call functionality (to help people get in touch with sales persons directly) and mobile social networking functionality (to help people share their favorite stuff with their friends via email, Twitter, or Facebook).

• Adding a Store Locator feature to help people find the nearest Steve Madden store.

• Developing an application for the iPhone and iPod Touch to make it easier for iPhone users to reach the site.

• Setting up multiple revenue streams with mobile web display ads, mobile search ads, and in-app display ads.

• Introducing SMS offers and mobile coupons to engage potential customers.

• Devising innovative mobile marketing strategies to target potential customers.

According to the numbers revealed by the company, the non-optimized site of Steve Madden got more than 55,000 visitors via mobile devices in the month of February. There were more than 300,000 page views and 450 purchases. If they go ahead with the plan and implement the ideas they have come up with, they will be able to get a lot more visitors in a short span of time. More traffic, needless to add, will result in more revenue, which is always good news for any company. It should be interesting to see where Steve Madden goes from here.

Categories: Cell Phone Advertising.

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Working Mothers - The Target Customer Base for Mobile Advertisers

Here’s a quick question for you – whom do you think is the most important target customer segment for mobile advertising? I bet most of you would not hesitate to say that teens and young adults are the target customer base for mobile advertisers. Well; guess what? You are in for a surprise. Let me tell you why.

Working moms, according to a recent report, are more likely to spend money on mobile content than most other people. The latest report from Scarborough says that married women who have at least one child and a steady job are more likely to download mobile content and respond to mobile advertising campaigns than most other people.

The report says that the mobile bill of a working mother is nearly 20% more than the mobile bill of the average mobile user in the country. This is a significant difference and it just goes to show that married women with jobs do not mind spending a lot on their wireless bills. The report also says that a working mother is 40% more likely to download multimedia content to her mobile phone than the average mobile user. These are important data and they make us look at the mobile user demographic in a slightly different manner.

It is not hard to understand why working moms spend more money than most people on their mobile phones. A married woman who has a full time job and a kid is likely to make important decisions for her family. She gets to choose a lot of things for her husband, kids, and herself. So, when she comes across an offer which is good and could save her some money, she is likely to make a decision immediately. So, when mobile marketers send her targeted ads, she is likely to respond. This is why the working mother demographic is considered important by many.

If you remember, I already talked about people in the 30-50 age bracket who are likely to spend money on mobile related stuff here. Now, with this report, it becomes very clear. People with a considerable amount of disposable income are certainly an important target for mobile advertisers. They have money, they are used to taking quick decisions, and they do not think twice before responding to what they consider good offers. So, it is a good idea for mobile advertisers to widen their approach and target different customer segments to get better results.

Categories: Cell Phone Advertising.

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Customer-centric Mobile Advertising in 2020?

A recent report from OgilvyOne and Acision predicts an interesting scenario for mobile advertising in 2020.

The report says that in about a decade from now, in 2020, mobile phone advertising will be a lot more people-centric. Mobile advertisers, instead of spamming the inbox of the end user with random ads, will start delivering personalized ads which will be customized according to the end user’s preferences and tastes. In other words, the end user will determine what comes into his mobile phone. Since the content will be personalized and useful, a lot of people will be glad to opt into mobile advertising campaigns.

The report also says that the proliferation of 3G and 4G networks will fuel mobile advertising’s growth significantly. It will make services like mobile web, mobile social networking, and mobile TV, which are currently used only by a small percentage of mobile users, a lot more accessible for a large number of mobile users.

The report also goes on to add that the market will not be controlled by a handful of mobile operators in 2020. It is likely to become segmented and a lot of operators might consider offering ad-funded services. This could very well lead to a cohesive, symbiotic environment where both mobile operators and service providers complement each other and offer a lot of value for the end user.

Basically, the report pretty much sums up what I have been trying to say for a while now. If you need a little primer, you can check out this post. The future of mobile advertising, despite the objection of privacy champions, looks bright. In fact, it looks so bright that you can’t even look at it directly unless you are wearing shades.

Categories: Cell Phone Advertising.

4 comments.

IAB Releases Mobile Buyer’s Guide at Mobile Conference

The IAB (Interactive Advertising Bureau) released a first-of-its-kind Mobile Buyer’s Guide for mobile marketing agencies at the IAB Marketplace: Mobile Conference on Monday.

The guide explains the medium of mobile advertising in detail and offers valuable information for mobile marketers to help them create and run mobile marketing campaigns successfully. The guide contains everything you need to know about mobile advertising – key terms and definitions, an overview of the U.S. market, a look at the key demographics, tips to create and run mobile marketing campaigns, and a number of examples to illustrate the intricacies involved in such campaigns.

You can take a look at the guide here.

Personally, I think this is a great initiative by the IAB. Though a lot of experts predict a big future for mobile advertising, it is still in its nascent stage and an unbelievably huge number of people are completely unaware of its potential. This kind of a detailed guide will definitely help people understand the value of advertising on mobile phones.

Mobile Marketer, AdMob, Mindshare, ESPN, HBO, NBC Universal, Nestle, AIG, Deutsch, IKEA, CNN Digital, Verizon Wireless, Microsoft, Pandora, Citi, and Nokia Interactive Advertising were some of the names involved in the conference. The future of mobile marketing was discussed in detail and the general feeling among both business owners and marketers was that mobile marketing as a medium is poised for huge growth.

Some of the important points raised at the conference include

• The click through rates of mobile display ads are five to ten times more than the click through rates of banner ads on websites.

• Online advertising has reached a point where almost every other website is filled with ads and people have started ignoring a majority of those ads. Advertising on mobile phones, on the other hand, is still in its nascent stage and a lot of consumers show interest in it.

• Microsoft, which has been trying really hard to dominate both the online and the mobile space, has had very good success with mobile ads so far. Compared to their online ads, mobile ads have performed exceptionally well so far. As a result, Microsoft is planning to invest a lot of money in mobile advertising.

• At the time of recession, mobile phone advertising can help businesses irrespective of their size. Mobile advertising campaigns are easy to create, easy to manage, and give excellent results. The response rates of these campaigns are usually way higher than the response rates of traditional advertising methods.

• A lot of companies have yet to try mobile coupons, location based advertising, and other types of mobile marketing which give very good results. However, experts believe that the situation will change slowly as more and more people are becoming aware of the potential of advertising on mobile phones.

Based on what I have seen and heard so far, I am of the opinion that mobile advertising, as a medium, will break through to the mainstream in a few years from now. What do you guys think?

Categories: Cell Phone Advertising.

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Mobile Advertising to Go Mainstream?

A recent report from Limbo-GfK on mobile advertising has some encouraging news. It says that mobile advertising, as an advertising medium, is slowly becoming a mainstream phenomenon around the world. Here are some snippets from the report.

1. According to the report, nearly 35% of the mobile users in the U.S. got ads on their mobile phone during the fourth quarter of 2008. The number was particularly high with iPhone users – 42% of iPhone users in the country got mobile ads.

2. One third of mobile users who got ads responded to them in some way. Women, as expected, are more likely to respond than men.

3. 18-24 year-olds are most likely to respond to mobile ads.

4. In the UK, the mobile advertising market is growing bigger by the month. A lot of analysts have predicted a huge growth for the advertising medium which has made business owners, both small and large, take notice. As a result, a lot of marketers have decided to spend more on mobile advertising. The report claims that more than 50% of marketers in the UK have decided to increase their mobile advertising budgets in the coming months.

5. Already, more than 50% of advertising agencies in the UK have tried their hands on mobile advertising campaigns and have had relatively good success. So, it is likely to become an important part of the mainstream marketing plans both in the UK.

The way I see it, there are two important reasons why most marketers have decided to give mobile advertising a try. One is the huge success of companies like Blyk and AdMob. The other one, as we all know, is the global economic crisis which has made companies turn toward mobile advertising. At this credit-crunched time, it is obviously a wise move to spend on mobile advertising campaigns which are likely to give you better results than traditional advertising campaigns. Don’t you think?

Categories: Cell Phone Advertising, All things mobile phones.

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