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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The Impact of Text Message Marketing in India

A recent report says that SMS (short message service) usage in India, particularly in the urban areas, has grown significantly in the past few years. Given below are some of the interesting points made in the report.

• According to TRAI (Telecom Regulatory Authority of India), an average Indian sends 29 text messages a month.

• Text messages in India are not just used for personal communication. People check their bank balances, book tickets for movies, check air ticket and train ticket status, pay their bills, and do lots more.

• The response rate for text message marketing in India is very impressive. One in every three urban Indians has responded to such marketing campaigns either by forwarding the messages to his friends or by calling the sender to get more details.

• A large number of people opt for SMS based value added services. The most popular value added services include business/finance news, stock market tips, astrological advice, spiritual quotes, news alerts, job alerts, and sports updates.

• More than 40% of urban Indians have received promotional offers via SMS. Nearly 12% of people who got such text messages have made a purchase based on the information given in the message.

• 30 to 45 year olds – people with a significant disposable income – are more likely to respond to text message marketing and make a purchase.

• Nearly 30% of urban Indians have participated in some kind of SMS based contests. As you can guess, males are more likely to take part in such contests than females.

While this report does not have any groundbreaking information, it does confirm the fact that mobile advertising, as an advertising medium, has a bright future in India. There are a few important reasons why I think so.

1. Data plans in India are quite cheap. Most operators charge only a very small amount for text messages. Incoming messages are never charged. So, it allows people to respond to promotional offers and other such stuff without worrying about a huge mobile bill at the end of the month.

2. In the past ten years or so, Indian economy has improved considerably and the purchasing power of the middle class – comprising nearly 300 million Indians - has increased as well. Hundreds of millions of people with disposable income – now that’s a dream for any marketer.

3. A number of mobile operators in India are beginning to focus on not just the urban areas, but the rural areas as well. This will increase the number of mobile users in India by an unbelievably huge extent. In other words, in a few years from now, there will be close to 700 million mobile users in India. It is going to be the dreamland of every mobile marketer in the world.

What do you think? I’m interested to hear your viewpoints.

For further reading, check out these posts.

Indian Mobile Advertising Market on a Roll

Is India the Fastest Growing Market for Mobile Advertising?

Mobile Advertising in India - A Closer Look

Categories: Cell Phone Advertising.

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Indian Mobile Advertising Market on a Roll

We have seen a lot of reports about India being a very dominant player in the mobile advertising market, right? Here is one more report to add to that long list. Limbo, a California based mobile social networking company, and GfK Technology, a Germany based market research company, have come up with a joint report which brings up some important points about mobile advertising in India.

The report says that eight in ten mobile phone users in India get ads on their mobile phone which is unprecedented to say the least. The numbers we are talking are huge – there are 300 million mobile users in India now and, on an average, there are 100 million new mobile connections added every year. In this scenario, mobile ads could have a tremendous reach in both urban and rural areas.

The report also says that text messaging or SMS (short messaging service) is the most sought after format of mobile advertising. Around 75% of the ads delivered in India are text based.

Mobile internet or mobile web is not as popular as one would imagine in India as data plans are quite costly. But the report predicts that the rates will come down significantly due to three reasons.

1. A lot of youngsters are interested in mobile web. Considering the fact that more than 500 million people in India are yet to celebrate their 20th birthday, this is a huge market.

2. The quality of mobile web browsing has increased tremendously thanks to high end phones like Apple iPhone. So, the number of people who use the feature will go up steadily.

3. Most importantly, mobile web, as predicted by experts around the world, is the future of mobile advertising. So, mobile advertisers will find a way to reach their target customers through mobile web. What this means to the end user is that he could get a lot of free, ad sponsored multimedia content.

At the end of the day, all this data leaves us with a question – is the future of mobile phone advertising heading east?

Categories: Cell Phone Advertising.

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Verizon Wireless to charge companies for text messages

Verizon Wireless has announced that it will charge its partners 3 cents per text message sent to its subscribers, a move that has surprised a lot of people. For nearly five years, Verizon has not charged its partner companies that regularly send plenty of text messages, most of which are promotional in manner, to its millions of subscribers. Come November 1st, it will all change.

From now on, companies that have partnered with Verizon have to pay 3 cents for each text message they send through Verizon’s network. Companies offering text message alerts, interactive SMS polls, and SMS search will have to pay this amount from the first of November. However, Verizon has made it clear that this charge applies only to standard and premium programs and not to the free-to-end-user kind of programs.

While 3 cents per text message might not look that big an amount now, it could form a significant source of income for Verizon in the long run. This is the first time the company has reassessed its charges ever since it started partnering with other companies in 2003.

Now the important question is – will other carriers follow suit? After all, if a network carrier wants to charge for the text messages sent through its network, there is not much its partners can do. Especially, with SMS advertising becoming more popular than ever, they cannot afford to lose a highly targeted advertising medium. So, the companies will most probably try to come to terms with these changes in the industry. It will be interesting to see the reaction of other carriers in the coming days.

Categories: All things mobile phones.

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AT&T’s mobile TV - Deal or no deal?

Mobile TV has gained a lot of attraction in the recent times. Mobile advertisers are looking to go beyond the traditional means of advertising on mobile phones like text messaging (SMS), MMS, and banner ads and mobile TV could be the ideal choice for them. There are two reasons for this. First, people are used to ads on TV. So, watching ads during a TV show, even if it’s on their mobile phone, won’t sound too odd to them. Second, you can offer a huge variety of content via mobile TV which can attract plenty of people, making it more lucrative than SMS ads or banner ads.

However, not everyone is painting a rosy picture about mobile TV. For example, the latest offer from AT&T – AT&T Mobile TV – has raised a debate among experts.

AT&T has launched its mobile TV service in 58 markets and uses the same Qualcomm MediaFlo service used by its counterpart Verizon. If you remember, Verizon launched its V Cast Mobile TV a few weeks back. AT&T offers 10 channels at a rate of $15 per month. However, experts say this might not go down too well with everyone.

They seem to come up with two reasons. First, not everyone will be enthusiastic about paying $15 a month for mobile TV. Second, only two handsets can support this mobile TV service - LG Vu which costs $300 and Samsung Access which costs $200.

My take on this issue is simple. Both Verizon and AT&T offer mobile TV services from MediaFlo which are far superior in quality than watching a downloaded video clip on your mobile phone. Market research shows that there is a considerable audience, if not large, for mobile video and this could work in favor of mobile TV. However, the downside, as I already mentioned in my article earlier, is that only two or three handsets can support this service. You cannot expect everyone to buy a $300 mobile phone. So, if they could make it available on more handsets, handsets that are affordable, I think they could attract a good number of users.

Categories: Cell Phone Advertising, All things mobile phones, Mobile TV.

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