I was recently asked to comment on what I think mobile marketers in the US could learn from their Asian counterparts. While doing my research on the subject, it was interesting to see how, up until a few years ago, mobile marketers in the US were in awe of the vibrant nature of the mobile market in Asia. Although a lot of progress has been made in the US post the launch of the iPhone, there is still a lot that they could learn from the innovations coming out of the East.
With the staggering mobile penetration rates in the region and the rapid adoption of smarter technology, mobile marketers in Asia jumped head-first to explore the branding opportunities provided by the medium. The initial approach was simplistic and lacked direction as marketers attempted to learn through trial and error. However, as these marketers learned more about their customers and got more comfortable with the technology, the industry banded together to adopt a more focused approach that helped facilitate innovation while safeguarding consumer rights. Marketers of the East have therefore been there and done that and are now seasoned professionals spearheading mobile innovation.
In key Asian markets, mobile isn’t just a primary mode of marketing communication, it’s the mode of communication to reach consumers. Millions more Indian consumers are reachable through mobile than through TV. In countries like Japan, there’s a whole class of people living in mobile and they don’t ever touch a desktop. By next year, APAC marketers are expected to spend $7.7 billion on mobile marketing.
In comparison, according to Forrester Research, US marketers only spent approximately $400 million on mobile advertising—just a fraction of marketers’ overall $25 billion digital ad spend in 2009. In US, digital marketing innovation was initially mostly limited to the Internet. However, with a growing consumer segment that is now turning to their mobile phones for Internet access, the market is showing its potential.
Up until a few years ago, marketers in the US struggled to explain to companies the need for them to reach their audiences via mobile. Now, companies are keen to reach out via texting and the iPhone app enquiries have gone through the roof. However, although there has been great progress in a short period of time, US marketers still see mobile as a disruptive medium for one-off marketing efforts that can’t necessarily be integrated into the overall marketing strategy on a sustainable basis.
In comparison, Asian marketers have been successful in recognizing and selling mobile as an important and indispensible extension of the current marketing efforts of brands. They have been able to show how mobile can not only be an effective marketing medium in itself but can also complement other branding efforts and marketing strategies. Print and electronic ads direct consumers to text for more information or to visit a mobile website. All marketing efforts now have a mobile plug.
In the United States, mobile channels such as SMS and MMS are not being totally explored for marketing needs. However, in Eastern markets, SMS has been recognized as the lowest common denominator in mobile communications and many marketers are successfully running creative text-based campaigns.
In Japan, marketers make great use of mobile’s interactive capabilities with quick-response (QR) codes. These two-dimensional bar codes that consumers can scan with their mobile phone cameras have led to the mobile activation of everything. Most mobile phones in Japan now come with code-scanning capabilities pre-installed.
Another key learning for US marketers would be the realization of the importance of industry guidelines and best practices. Issues like spamming and spurious contests have plagued the industry and consumers alike. Recently, the Malaysian government announced that it was considering banning SMS contests in the country after receiving several complaints from consumers claiming they had been cheated. The government said it viewed such contests as a form of gambling.
However, with several dedicated mobile value-added services (VAS) and technology companies enriching the competitive landscape of the industry, there is now a better understanding of how companies can engage their customers through mobile. Regional success stories have provided examples of campaigns that are beneficial to and easily understood by customers as well as respectful of their privacy.
Last but not the least, any successful marketing effort is based on the understanding of customer behavior. Consumers connect with messages that are relevant and that they see value in. The key is to know their likes and dislikes, the best mobile platforms to reach them and ensuring that the content is simple and relevant. Ensure non-intrusive, engaging and interactive communications that provide value (a benefit or a reward) to guarantee the consumer’s continued interaction and engagement. The technicalities of the campaigns should be easy for the customers to follow in order to keep them engaged and to ensure a positive, consistent consumer experience.