Monday, April 12, 2010

Can Mobile Marketing Replace Direct Mail?

If you have a smartphone and are used to being connected wherever you are, you would probably answer “yes” as a consumer. 

According to the Director of Research at Nielsen Mobile, “People look at every text message they get”, and 97% of them do so within 15 minutes.”   I don’t believe there is any other medium offering these kinds of results to marketers or businesses. 

Of course, as a business owner you may be worried about the intrusive nature of sending out promotional text messages.  However a  new survey from indicates smartphone owners are very receptive to mobile coupons.  The survey, also found that usage during commutes to work and while watching TV were the highest by far.   The survey asked consumers how interested they are in receiving  various types of mobile advertising:  
·      * 36% were interested in receiving grocery coupons -  (perhaps a sign of the economy).
·      * 29% want to receive scanable barcodes
·      * 26% want offers that they can save and pursue later
·      * 26% want movie offers
·      * 21% want SMS promotion/coupon Ads when they pass a retailer.

As a business, you should be considering mobile marketing because it is highly targetable and very cost-effective with an exceptional ROI.  Typical results range from 7-15% ROI compared to the traditional method of direct mail at 2-3%.    

There are many mobile marketing firms that offer very cost effective programs starting from $25 a month.  So, can mobile marketing replace direct mail?  I think based on cost and ROI, it is already replacing traditional direct mail especially in Europe.  

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