Mobile Marketing: Definition, How It Works, and Examples (2024)

What Is Mobile Marketing?

Mobile marketing is any advertising activity that promotes products and services via mobile devices, such as tablets and smartphones. It makes use of features of modern mobile technology, including location services, to tailor marketing campaigns based on an individual's location.

How Mobile Marketing Works

Mobile marketing may include promotions sent through SMS text messaging, MMS multimedia messaging, downloaded apps using push notifications, in-app or in-game marketing, mobile websites, or using a mobile device to scan QR codes. Proximity systems and location-based services can alert users based on geographic location or proximity to a service provider. Mobile advertising targets audiences not so much by demographics but by behaviors; for instance, mobile advertisers may target certain users of one app in hopes their interest may translate to similar products or other applications.

One notable behavior in the mobile marketing space is "snacking," when mobile device users check in to media or messaging for brief periods. Seeking instant gratification equates to more points of contact for marketers.

In mobile marketing, the device makes a difference; users of smartphones and iPad tablets may react differently to mobile marketing. For instance, consider how a higher resolution device with a larger screen may be more useful for high-end visual advertising compared to a smaller device.

Mobile Marketing vs. Traditional Marketing

Unlike traditional marketing efforts, mobile marketing takes advantage of the fact that many users of mobile devices carry them around wherever they go. As a result, location-based services can collect customer data and then offer coupons, deals, or promotions based on their proximity to a store or a place frequently visited by the consumer.

These marketing campaigns can be more targeted and specific to the individual user, and should, therefore, be more effective for the company doing the marketing. One example may be a marketing campaign that sends food-related coupons to a customer any time they come within half a mile of a specific supermarket.

SEO and Mobile Marketing Optimization

Mobile SEO involves ensuring that a website is accessible, user-friendly, and relevant for mobile users. A key technique is creating a responsive web design that adapts to various screen sizes and orientations. For example, a retail website should make sure that its product pages display correctly on both smartphones and tablets, regardless of operating system.

Another technique for improving mobile search rankings is optimizing page speed. Tools like Google’s PageSpeed Insights can help identify issues that slow down a site, such as uncompressed images, excessive JavaScript, and server response times. Implementing Accelerated Mobile Pages (AMP) is another strategy that is an open-source framework that allows for the creation of fast-loading mobile pages. Though page speed is technically not a factor Google ranks on, faster and more effective load times may drive greater customer satisfaction and greater future traffic.

Last, many mobile searches have local intent such as finding nearby restaurants or stores. A business has to make sure its information is accurate and consistent across online directories. For example, a local coffee shop should have updated contact information, operating hours, menus, and customer reviews on its Google My Business profile to improve its visibility in local search results.

Advantages and Disadvantages of Mobile Marketing

Advantages

In regards to online related advertising, mobile marketing is much easier to access. You don't need high-level technology or significant technical experience to get started. It's also easier to measure the success of mobile marketing campaigns.

Mobile marketing can be extremely cost-effective. There are a variety of options to choose from for any budget and the impact it can have when compared to the cost is significant. In a common comparison, social media ads are much cheaper than purchasing ad space for radio or television.

Customers can also be reached in real-time with mobile marketing no matter where they are. Radio or television marketing only works when a customer is in front of the television or has the radio on.

Disadvantages

There are privacy issues concerning how the data collected by mobile devices are used and whether or not companies have the right to collect such data without explicit consent. Such data can be used for identity theft or to send spam if it falls into the wrong hands due to data theft or poor security of the information. Also, the tracking of an individual's locations and movements may be considered crossing the line by some.

A particular drawback of mobile marketing is that it has the potential of increasing costs for the user. For example, if a campaign directs a user to a video that requires a significant amount of data and the user does not have an unlimited data plan, it may eat into their monthly data allowance or result in charges if they go over their allotment.

Mobile marketing also needs to be perfect from the start. As users have smaller attention spans and a variety of companies competing for their attention, a poor mobile marketing plan will fail to grasp a user's attention and possibly lose their interest forever. For this reason, a mobile marketing plan does not have room to be less than perfect.

Mobile Marketing Metrics

Here's a broad list of metrics that marketing advertisers may be interested in tracking:

• Click-Through Rate (CTR): CTR measures the percentage of users who click on a mobile ad or link compared to the number of users who view it. A higher CTR indicates that your ad is engaging and relevant to your target audience. For instance, if an ad is displayed 1,000 times and receives 50 clicks, the CTR would be 5%.
• Conversion Rate: Conversion rate is the percentage of users who complete a desired action, such as making a purchase or signing up for a newsletter, after clicking on a mobile ad or link. For example, if 200 users click on an ad and 10 of them make a purchase, the conversion rate would be 5%.
• Cost Per Acquisition (CPA): CPA measures the average cost incurred to acquire a new customer through a mobile marketing campaign. It is calculated by dividing the total campaign cost by the number of conversions. For instance, if a campaign costs $1,000 and generates 50 conversions, the CPA would be $20.
• Engagement Rate: The engagement rate measures the level of interaction users have with the mobile content. For example, a social media post with 1,000 views, 100 likes, 20 shares, and 30 comments has a high engagement rate. It's usually up to the company to determine what "high" means in this case.
• Bounce Rate: Bounce rate is the percentage of users who visit a mobile site or app but leave without interacting further. A high bounce rate may indicate issues with site usability, content relevance, or loading times. For example, if 1,000 users visit a landing page and 700 leave immediately, the bounce rate would be 70%.
• Average Session Duration: Average session duration measures the average time users spend on the mobile site or app during a single visit. Longer sessions typically indicate higher user engagement and interest in your content. For example, if users spend an average of 3 minutes on your site, it suggests they find your content more engaging which may mean a higher likelihood of clinching a sale.
• Install Rate: Install rate is the percentage of users who install your mobile app after clicking on an ad or visiting your app store page. If 1,000 users visit your app store page and 100 install the app, the install rate would be 10%. Similarly, you can track uninstall rates; for example, if 1,000 users install your app and 200 uninstall it within a week, the uninstall rate would be 20%.
  

How Do You Start a Mobile Marketing Business?

Set up a Mobile Website

People use their smartphones for almost everything these days and so it's important that your website is formatted correctly for viewing on a smartphone. If you have an existing website, many companies offer automated systems that convert your existing website for viewing on a mobile platform. WordPress and GoDaddy are two great examples of companies that do this.

Other companies also create a completely new version of your website just for viewing on a mobile device, commonly known as plug-and-play platforms. Another alternative if you are comfortable with writing computer code is adding a line of code on your website that is able to determine the screen size of the device being used and adjusts the site accordingly.

Set up Your Business on Location-Based Platforms

Setting up your business on the various location-based platforms, such as Foursquare, Gowalla, and Facebook Places is a good way to make your business available to a wider range of people and to start running mobile ad campaigns. Foursquare has been a pioneer in this respect, where companies can run various promotions, such as offering discounts for meeting a certain number of visits or "check-ins" on the app.

Dive Deeper

To get a real feel and understanding of mobile ad marketing you need to fully immerse yourself in the experience. Start using location-based platforms wherever you go, check-in, use the various apps available for paying in restaurants or grocers, check out ads, perform various voice searches, all to get a feel of how people might use their mobile devices for consumer transactions. This can help you to design your mobile ad campaigns more efficiently.

Start a Mobile Ad Campaign

Once your website is set up for mobile device viewing and you've understood how the mobile ad marketing world works, it's time to set one up for your business. Mobil ad campaigns are a crucial element for businesses to get viewership. If you have a skateboard shop in the neighborhood and someone searches "best skateboard shops near me" you want to make sure that your business pops up in their search.

There are a variety of ways that mobile ad marketing campaigns can be paid for. These include flat fees for running an ad for a certain period of time, or on a cost-per-click basis, a cost-per-thousand basis, or a cost-per-acquisition basis. Facebook, Google, Apple, Instagram, and other social platforms all offer the ability to start your own mobile marketing campaign.

Utilize QR Codes

QR codes, which are square bar codes containing information, can be placed in a variety of locations, and once scanned by a phone's camera, direct a user to a website that can show a business's website, promotions, or other important information. They're a simple and easy way to make your business known.

Examples of Mobile Marketing

Samsung

For the release of its Galaxy S6 phone, Samsung worked with Indian tech company InMobi to develop interactive ads. These ads created a personalized real-time battery identification mobile ad unit that displayed the product and service to a user with a demo on their phone when their battery levels were low. The mobile ad highlighted the new phone's "super fast charging capability" right when their battery was low, enticing them to upgrade to the new phone.

Pond's

Pond's is another company that partnered with InMobi. Pond's created an ad for one of their acne products that was interactive in that when a person looked at their phone, the camera would capture their features and highlight acne-prone areas. The ad didn't require any software to be downloaded or for the user to visit any other site.

Ruffles

Ruffles witnessed declining sales in Brazil and decided to target teenagers with interactive ads. It created a mobile reality game called AmiGo. The user saw what the game showed them while their friends saw what the user's camera showed them. Friends would see Ruffle chips surrounding the user and they could send voice commands to their friend on where they can grab the chips. The more chips collected the more points the user would receive. Ruffles ranked the highest-scoring users on its social media accounts.

The Bottom Line

Mobile marketing is an affordable way to reach your target audience via smartphones, tablets, or other digital devices, where people spend the majority of their time in today's world. Mobile marketing is low-cost and can be targeted based on a variety of inputs from the company.