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Parents W/ Children More “Promotionally Active,” Better For Mobile Ads

Harris Interactive has come out with another survey done in collaboration with 1020 Placecast, a geo-based mobile advertising provider.  The survey looked into consumer “receptivity to opt-in mobile marketing and the potential impact for retailers.”

According to the survey, those with children under 6-years old were the most receptive to location-based mobile advertising, with 35% in favor of opt-in alerts that arrived via their mobile phone.  In addition, those interested in opt-in alerts about new products, sales or promotions from their favorite merchants, stores or restaurants also included parents with slightly older children, those aged 6-12.  In that group, 32% showed interest in this type of mobile marketing.

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Time-Strapped Parents Take Lead in Mobile Marketing Interest According to Placecast Survey

The presence of children in their household makes mobile phone owners more likely to be interested in receiving mobile opt-in text alerts from brands, and adults in these households are generally more promotionally active, according to a May online survey conducted by Harris Interactive and commissioned by Placecast. Adults with children under six in their household are most promotionally active.

San Francisco (PRWEB) August 12, 2010

The presence of children in their household makes mobile phone owners more likely to be interested in receiving mobile opt-in text alerts from brands, and adults in these households are generally more promotionally active, according to a May online survey conducted by Harris Interactive and commissioned by Placecast. Over 2000 adults were surveyed.

Those mobile phone owners with young children – under 6 years old – were the most receptive, with 35% being at least somewhat interested in receiving opt-in text alerts about new products, sales or promotions from their favorite merchants, restaurants, or stores. 32% of those with children ages 6-17 in the household showed interest, while only 25% of those without children in the household showed interest in such alerts. (chart 1)

When asked a series of seven questions about promotional activity, adults with children under 6yrs old in their household outpace comparative demographics every time. (chart 2)

The most marked difference is found in the “Signed up to receive coupons online, i.e., from Groupon, DealOn” category, in which adults with young children in their household showed double the interest of those with no children: 36% compared to 18%. (chart 3)

Though many in the mobile industry are tuned into the idea that early-adopter males drive the use of consumer electronics, the Placecast survey shows that families with younger children place more importance on their cell phones than those without children. (chart 4) Women, especially between the ages of 35-54, are rapidly embracing the device and using it to simplify their lives. 28% of women from 35-54 showed interest in mobile marketing messages, compared to 22% of men of the same age.

“This report points to great potential for marketing to people with kids via mobile devices. Mobile Moms and Dads may not have the time to open an app and search for information, but they see the value and ease of receiving text alerts. In today’s economy, more people are seeking money-saving opportunities that savvy mobile marketers can provide,” says Placecast CEO Alistair Goodman.

Kathryn Koegel of Primary Impact Research is a full-time working researcher and mom, and says, “My mobile usage is largely driven by convenience. I want on-the-go information for where to find products. Right now, I’m trying to enjoy my summer but I have the daunting task of back-to-school shopping for both clothes and supplies. I’d like marketers to be able to tell me through my mobile media device what they’ve got in stock and at what price. Kids get really specific lists of what they need to bring and I want to go to one place and get it all – then get back to the beach.”

The survey forms part of a larger body of research work entitled, “The Alert Shopper” (http://blog.placecast.net) which is focused on understanding consumer attitudes towards mobile marketing messages.

For more information about Placecast, visit www.placecast.net.

Methodology

This survey was conducted online within the United States by Harris Interactive on behalf of 1020 INC. 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. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact Rachael Himsel of VSC Consulting on behalf of Placecast PR at Rachael(at)vscconsulting(dot)com

About Harris Interactive

Harris Interactive is one of the world’s leading custom market research firms, leveraging research, technology, and business acumen to transform relevant insight into actionable foresight. Known widely for the Harris Poll and for pioneering innovative research methodologies, Harris offers expertise in a wide range of industries including healthcare, technology, public affairs, energy, telecommunications, financial services, insurance, media, retail, restaurant, and consumer package goods. Serving clients in over 215 countries and territories through our North American, European, and Asian offices and a network of independent market research firms, Harris specializes in delivering research solutions that help us – and our clients – stay ahead of what’s next. For more information, please visit www.harrisinteractive.com.

About Placecast

Placecast is the first location-based platform specifically designed to use digital marketing on mobile to drive consumers into physical environments.

Placecast’s ShopAlerts service has transformed the location-based industry, taking home the top prize for innovation given by the National Retail Federation knows as the 2010 RACie award, and demonstrating that mainstream brands like the North Face, Sonic, and American Eagle are embracing location-based mobile marketing. Placecast recently launched MatchAPI, a tool that enables providers and developers to refer to a location in any number of ways and validate that those references resolve to one true location on the planet. The company recently raised $8 million in Series B funding from Quatrex Capital and existing investors ONSET Ventures and Voyager Capital.

Survey results and methodology are available upon request.

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Top 20 Mobile Content Categories Reach Among Active Users (Browsing, Apps, SMS), April 2010, US

From: Mobilens – Three month average ending March 2010

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How to re-engage mobile users

Author: Gib Bassett

Following is a three-step scenario illustrating how an agency can work with clients to transform mobile marketing from a single project focus, to a perpetual activity that continually drives sales for the client and offers the agency a chance to materially contribute to the client’s business strategy.

1. Text Messaging as Call to Action:
A client wishes to employ an SMS text message sweepstakes as a compelling means of driving interest in their products during a slow selling period across all its locations. Afterwards, the client measures an improvement in sales versus the prior period, and correlates contest participants to particular locations by using unique text message keywords for each. This has the added benefit of tying respondents to sweepstakes advertisements on billboards, local newspapers and radio.

Result:
Value proven, but many agency clients stop there. Instead, imagine taking additional steps.

2. Segment/Re-Target:
Agency strategists analyze information captured during the promotion and discover distinct segments of customers. Entry into the contest required customers to provide basic demographic and preference information such as gender, marital status, and product affinity. The agency’s client is constantly striving to increase same store sales by creating offers and promotions that align with their targeted customers. In the past, these efforts have been very broad brush, which often took the form of unmeasureable mass media efforts. This time will be different.

Agency strategists pitch the idea to re-target the identifiable segments with a “buy one/get one free” offer aligned with preferences insights from the datamart. Client wonders how redemption will happen at the point of sale, and how value will be tracked. Unable to currently capture these offer codes at the point of sale due to technical and operational limitations, the agency prescribes a novel solution – simply inform store managers to expect the offers to be presented at the point of sale, and instruct cashiers to honor them. Post promotion, month over month sales per location can be assessed. In this way, a very strong correlation between the promotion and sales are established.

Result:
Value indirectly proven yet the client must certainly be happy having taken a data driven approach to marketing as opposed to a “pray and spray” mass media method. The client also now has a good sense for its most engaged customers. Having seen the power of mobile marketing, the client decides next to implement a loyalty rewards program designed to increase purchase frequency.

3. From Offers to Cultivating Loyalty:
The client, now on board with the value of mobile marketing, calls the agency team to create a loyalty program that initially targets customers by zip code where sales increased the most during the “buy one/get one free” promotion. These customers are invited to join via SMS text message or email, and do so by visiting an online web form on the client’s website where more details about their preferences and interests are captured. These transactions in turn trigger unique initial offers designed to drive more frequent visits and greater market basket value, based on business rules (e.g. mother with two children is offered product X, single man age 25 is offered product Y).

Results:
By now the client has upgraded its POS systems and the field operations team is no longer averse to extending the checkout process with mobile offer code redemption. Now, redemption by these very loyal customers can be tracked directly.

The client advertises membership in the club on its website for anyone to join for a nominal fee. The free offer was only extended to those who participated in the earlier promotion – those deemed most engaged with the client’s brand.

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Clinique print advertising exposes mobile program to critical mass

Cosmetics giant Clinique used mobile to activate its print campaign within Bon-Ton Stores Inc.-owned Bergner’s weekly circular.

Vertis Communications is responsible for the effort. With the large reach that the circular has among Bergner’s customers, Clinique was able to build a sizeable mobile database for future marketing efforts. “Integrating mobile into existing direct marketing print programs is highly effective and print, in many ways, becomes the enabler or the trigger to a mobile campaign,” said Oscar Padilla, director of interactive services at Vertis, Washington.

The Bon-Ton Stores Inc. is a regional department store company based in York, PA, chiefly operating 280 department stores and 10 furniture galleries in 23 states throughout the United States. Chains operated by Bon-Ton include Bergner’s, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger’s, Parisian and Younkers. As part of its Free Seven-Piece Gift Set giveaway, Clinique added a mobile call to action that asked consumers to text the keyword GIFT to short code 266866 to sign up to receive exclusive text alerts for upcoming gift offers.

Here is a screen grab of the ad in the circular and the SMS component is circled in black:

Here is a close-up of the SMS component in the print advertisement:

Why mobile?
Vertis’ strategy for proposing that Clinique add an SMS component to its traditional marketing has to do with the channel’s prominent role in consumers’ lives today. According to the CTIA, consumers exchanged more than 5 billion text messages per day, as of March 2010.

Text messaging is starting to play an even more important role than voice. According to Nielsen Mobile, the average consumer sends 584 messages versus using less than 200 voice minutes. Additionally, 95 percent of existing mobile contracts have SMS built into the agreement and more than 90 percent of text messages are opened and read compared to less than 40 percent of all email solicitations.

“Generally speaking, within the retail space I think that there is immediacy that retailers that are starting to take advantage of,” Mr. Padilla said. “SMS has been around for a while but retailers have been slow to adopt it. “The great thing about it is that brands are able to leverage their existing print assets such as store signage, POS material, circulars and such, and add a new dimension to it by exposing a call to action for mobile,” he said.

With the Clinique program specifically, the CPG company was able to reach a critical mass through an existing, more traditional method of marketing – the circular – but made it a two-way conversation by letting consumers chime in by texting-in. The mobile database that was built (as opposed to bought) is gold, since consumers actually confirmed they are interested in hearing from Clinique in the future. Future programs have high potential redemption, since consumers have opted-in.

“We basically added an interactive component to their overall print strategy and increased their footprint of distribution,” Mr. Padilla said. “We would not be able to get the distribution without the print component. “Really the key to what we are doing is that we leverage all media,” he said.

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What Brand Fans Are Worth

From emarketer

Can a single number capture the value of social followers? Many social media marketers are eager to tie a hard number to the value of their efforts. To that end, firms have attempted to analyze the worth of fans and followers on social networking sites like Facebook.

Digital consulting firm Syncapse and research companyHotspex have come up with an empirical formula that puts an average value of $136.38 on the Facebook fans of the site’s 20 biggest corporate brands. Most of that value comes from how much the fans will spend on the brand’s products, with additional dollars coming from customer loyalty, recommendations and earned media.

The study found that people spent significantly more on products they were fans of, compared with consumers who were not fans. In the case of many of Facebook’s most popular food and beverage marketers, fan spending was more than double that of non-fans.

The pattern of increased fan spending held across all of the top 20 brands on Facebook, with differences ranging from 51% for Oreo fans to 168% for fans of Nokia.

Other studies have shown social followers are more likely to buy a brand’s products, but have focused on whether such consumers are brand-loyal rather than how much they actually spend.

Social media management company Vitrue also attempted to put a dollar figure on Facebook followings. That study examined impressions in the Facebook newsfeed and their earned-media value to arrive at a figure of $3.60.

Syncapse and Hotspex calculated the earned-media component of a fan’s value nearly twice as highly, at $6.79. Their report did not outline the methodology used to arrive at that figure, however. It did note that overall, fans vary widely in how valuable they are for brands.

“Some fans are intensely active while others are totally inactive,” the report said.

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