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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A Detailed Look at Google’s Acquisition of AdMob

So, Google has acquired AdMob. Is it a big deal? Yes, it is. Will it have a big impact on mobile advertising industry? Yes, it will. Is it surprising? No, it is not. Let me tell you why.

Regular readers of this blog know a thing or two about AdMob. It is one of the few mobile advertising companies that I’ve written a lot about on this blog. Anyone who has seen the growth chart of AdMob will hardly find it surprising that a giant like Google has acquired the company. After all, the company has served billions of mobile ads and its clientele include big names like Yahoo.

AdMob specializes in web display ads and application display ads. When mobile users surf the net or play a mobile video game, they will be served targeted ads. Google, as you know, specializes in search ads. When mobile users search for something on the internet, the results page they get will contain targeted ads. Now, combine these two technologies and you have a killer mobile marketing strategy.

Google has spent an astronomical $750 million on this acquisition. Some people think it has spent a lot of money to acquire what many perceive a small business. I do not think so. Google, as we all know, has been trying to make its presence felt in mobile advertising market for quite some time now. While it is certainly seen as a force to be reckoned with, its success on the mobile market is nowhere near its success on the internet. So, acquiring a company like AdMob can help Google establish itself on the mobile phone advertising market.

Moreover, this acquisition will give Google a chance to understand the dynamics of the mobile advertising market. It now has access to a huge amount of data which includes the usage data of various mobile applications. It now knows what kind of mobile apps are preferred by mobile users and what kind of ads have the best conversion rate. With this knowledge, Google can fine tune its advertising strategies and get even better results. So, in my opinion, this acquisition can only be good for Google in the long run.

If you think about it, what Google has done is not surprising at all. You are a new entrant to the market. You see that a number of players are already going strong. You can grab a big share of the market by either competing with them or by buying them out. When you have enough money to buy half of your competition, the latter sounds like a much better option, don’t you think? Something tells me that we’ll see more such acquisitions in the recent future.

Categories: Cell Phone Advertising, Google.

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Entertainment Sector Tops Mobile Ad Spending

A recent metrics report from Millennial Media has the details about the recent trends in mobile ad spending. According to the report, entertainment is the sector which tops the list as far as mobile ad spending is concerned.

The report also says that 2/3rd of the money spent on entertainment was spent by movie studios for promoting their movies. Major movie studios in Hollywood have been spending a considerable amount of money on mobile ads of late. If you have a high end cell phone like the iPhone or any other web enabled phone for that matter, you could have seen ads for movies like Star Trek, Transformers: Revenge of the Fallen, and Fast & Furious 4. Since the response for such mobile campaigns is usually good, movie studios these days do not think twice to spend money on mobile advertising.

For the regular readers of this blog, this news might not be surprising, as we have already discussed this issue here, here, and here.

Apart from movies, a considerable amount has been spent on games (16% of the total spending), TV (9% of the total spending), music (4% of the total spending), and other things (7% of the total spending) that people are interested in.

One of the things to be noted here is that there has been a considerable change in the way mobile advertising is perceived by large companies in the entertainment industry lately. Earlier, the amount spent on mobile marketing campaigns was very little and it was usually for ringtones and stuff like that. Now, movie studios and television studios are coming up with mobile marketing campaigns to promote their movies, sitcoms, and reality TV shows. This just goes to show that a lot of people are slowly beginning to understand that mobile ad campaigns, when done the right way, can give very good results.

Apart from this, a lot of brands are turning their attention towards mobile ads to drive traffic to their mobile sites and enhance their presence in the mobile world. In my opinion, this is a good sign of things to come in the future. A lot of companies have developed mobile sites to help their readers access the websites they want right from their mobile phone. Since mobile web is becoming increasingly popular and the number of high end mobile users is growing fast, it is a good idea for big companies and popular brands to have their own mobile sites. This issue, as some of you might remember, has been already discussed in this blog.

The report also says that Apple iPhone and iPod Touch continue to dominate the mobile ad market by getting the lion’s share of ad impressions. However, it should be noted that other mobile phones like Samsung Instinct are giving a tough competition to Apple in terms of ad impressions.

Categories: Cell Phone Advertising, All things mobile phones.

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UGotItFirst - A unique approach to mobile marketing campaigns

Ever heard of on-the-spot mobile marketing campaigns? Well; you are about to. UGotItFirst is a new entrant in the field of mobile marketing which claims it can come up with mobile marketing campaigns in a matter of minutes.

The company’s marketing process works on an opt-in basis and people who wish to become its members should sign up, give their preferences, and request to get information on those preferred products or services. So, when a member gets an ad on his mobile phone, it will be a relevant advert about his preferred product/service which he can make use of. So, the question of intrusive, spam mobile ads and invasion of privacy does not arise in this situation.

Now, what about the on-the-spot mobile marketing campaign? Let’s say, you are a coffee shop owner. It’s been a dull day and you want to do something to boost your sales instantly by offering a 5% discount on all lattes. You can go to UGotItFirst, choose the number of discount coupons you want to send, and specify your target customer segment. In a matter of minutes, UGotItFirst will send those coupons to people in that location who had indicated their wish to get such deals. The campaign is targeted – the coupon only goes to someone who wishes to get it and he/she is nearby your coffee shop, thereby making it even easier to get a sale.

Apart from this, the company has also got mobile based offers upon completing which mobile users will be paid for. You may have to take part in a survey and complete a poll and you’ll be paid for that. While the amount may not be big, you can always do with a little bit of cash, right?

Despite being a new entrant, there is a lot of buzz about this company in the market. Launched on March 13th, UGotItFirst already boasts of 2000 registered users. Good times, I tell you.

Categories: Cell Phone Advertising, All things mobile phones.

2 comments.

Mobile advertising in Vietnam

According to a recent report from VNPT (Vietnam Post and Telecommunications Group), mobile marketing is slowly becoming popular in Vietnam.

Vietnam has over 30 million mobile users and ever since VNPT started to collaborate with a number of national level businesses to come up with mobile advertising services in 2006, the popularity of mobile marketing has gone up a quite a few notches.

Interestingly, a lot of Vietnamese say that mobile marketing gives them a sense of ‘democracy’ – something which they love. True to this fact, the most famous form of mobile marketing in Vietnam is the SMS poll in interactive shows where people can vote for something/someone through text messages.

But the important thing to be noted here is – though the number of mobile users is steadily increasing over the past few years, mobile advertisers say that Vietnam is not yet ready for a full fledged mobile advertising campaign. The reason is ignorance. A lot of mobile users are of the opinion that mobile advertising is all about sending spam messages to users. So, understandably, it will take some time to make them understand what mobile advertising actually is.

Categories: Cell Phone Advertising, All things mobile phones.

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