Mobile Marketing Alerts Show 1/3 Conversion Rate

Written on Monday, July 12, 2010

The following piece just shows how much ROI you can get from Mobile Marketing, when it's done right. For most print marketing campaigns response rates in the area of 10% are extraordinary. And that's why when you see a mobile marketing campaign bring a third of customers in-store, you should stop having second thoughts, and go with the trend. 

According to a May 2010 online survey conducted by Harris Interactive and commissioned by Placecast, consumer receptivity to opt-in mobile marketing is growing as is intent to visit stores. One-third of Americans who currently have signed up for mobile marketing alerts indicate that such services impact their decision to go into stores and 27% report that such programs have impacted their decision to buy products in physical retail locations.

Since the first survey on location-based mobile marketing and advertising in the Summer of 2009, overall consumer interest in such programs increased with 'somewhat interested' consumers growing by 2 percent to 28% of all cell phone owners. As in the first survey, interest is most pronounced among the youngest cell phone owners: 42% of those ages18 - 34 are at least somewhat interested. Interest grew 6 points to 40% among women ages 18 - 34 from the survey conducted in 2009. Interest levels between men and women are now about equal overall.

Food dominates demand overall; interest categories vary for men and women

Groceries (68%), national restaurant chains (64%) and fast food items (50%) took three of the top four most popular segments for those who are at least somewhat receptive to overall opt-in mobile marketing. Women skewed higher than men when it came to interest in offers/promotions for groceries and apparel, while men skewed higher in interest for electronics and sporting goods products.

Texting significantly more valued than app-based services

One data point across all cell phone owners is the importance of texting; considering texting more important than other activities on their mobile phones. An average of 40% of all cell phone owners say that texting is "extremely" or "very important" to them. Even with the buzz of services like Foursquare and Gowalla, only 7% of men showed the same level of interest in these types of social networks, and only 3% of women.

The survey also delved into consumer attitudes about using the location of their phones to trigger opt-in marketing messages. Thirty-seven percent of those who have opted to receive text alerts thought location-based texts could be useful, 29% thought they would be interesting and an equal percentage (24%) thought they could be more relevant and innovative.

"Our findings demonstrate that if done correctly and on an opt-in basis, location-based mobile marketing is resonating with consumers," says Placecast CEO Alistair Goodman. "I think now that more data is becoming available to retailers, more exciting and valuable programs will be created now that the technology and market receptivity is there."

Methodology

This survey was conducted online within the United States by Harris Interactive from May 17-19, 2010 among 2,046 U.S. adults ages 18+ of whom 1,710 own a cell phone and/or a Smartphone.

Posted in mobile marketing, mobile services, sms marketing |