Mobile is challenging traditional media, and could be the most pervasive media channel in the world in a few years. Over one billion mobile devices are sold annually, and all of them are capable of interactive communication. Always on and always connected – even more than the TV and web – the mobile channel provides brands with the unique ability to connect with their consumer like never before, building a meaningful dialogue of engagement between the brand and the consumer.
The revolution in enhanced mobile experiences delivered by smart phones, and the army of mobile application developers they have spawned is unprecedented. While the mobile frenzy shows no signs of abatement, the ability to understand the ROI of investments in mobile has lagged. Witness how Apple’s iPhone might be turning into a worldwide loss leader, according to a report from Danish market researcher Strand Consult. According to Information Week Strand said in an August 2009 report that it could find no global carrier that increased profits by offering the iPhone.[1]
Conversely, some marketers have already begun to claim significant ROI from their forays into the mobile channel. In December 2008 Planet Funk, an apparel retailer with stores in California, Texas and Colorado, was facing the daunting task of bolstering its sales through what many had said would be the worst holiday shopping season in decades. Roughly 2,000 coupons were generated, with a redemption rate at an impressive 91%. Even more impressive was the fact that Planet Funk realized an ROI at a staggering 377% based on the relatively low-cost of the campaign. Furthermore, 15% of those that redeemed the coupon opted-in to receive future mobile campaigns, which helped build Planet Funk’s mobile database. [2]
As the mobisphere expands, winners and losers will emerge. One things seems likely – the winners will attend their mobile investments with the power of analytics.
[1] http://www.informationweek.com/news/personal_tech/iphone/showArticle.jhtml?articleID=219400287
Interesting read Scott. Short and to the point. Not a lot of boring facts and figures. Liked it a lot. Keep blogging and I’ll keep reading.
Hi Diana:
thanks for reading and stay tuned!
I read it and liked it, very informative. I look forward to more