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Is mobile a brand champion or direct response hero?

The success stories in mobile continue to multiply as marketers embrace the technology to enhance engagement and drive in-store traffic. But while one marketer may expound on mobile?s ability to provide consumers with thrilling experiences, another will talk up mobile?s strength at delivering relevant, timely offers.

Which raises the question, what is mobile?s most important role for marketers -- is it to build brands or to drive a response to a call-to-action? Or, is it something in between?

?Until recently, branded advertisers looked at mobile as a performance medium,? said Harry Kargman, founder/CEO of Kargo, New York. ?The past six months there has been a complete change in the marketplace where brands like P&G are starting to spend significant dollars because they recognize the value of the medium.

?Eventually, there will be two completely different practices,? he said. ?You will have the direct response folks and at the same agency or a different one and there will be a practice group focused on brand.?

The perfect response medium
A lot of businesses both big and small jumped on mobile as a direct response channel early on, recognizing its potential as a device that is with consumers all the time. 

Mobile lets these marketers tailor search campaigns aimed at driving on-the-go consumers to a location or to digital content. They can also text message to send special offers designed to drive recipients into the stores.

?From a direct response perspective, one could argue that the mobile device is the perfect medium,? said Gareth Ellen, executive vice president and director of digital at OgilvyAction, New York. ?The ability for marketers to understand the demand for immediate response then servicing that need in an efficient manner can deliver strong direct response results.?

For example, Caesars Palace Las Vegas used mobile search to promote visits over the July 4th holiday weekend, buying all Las Vegas and competitor terms which resulted in significant incremental bookings, ticket sales and restaurant reservations, per Mr. Ellen.

What Caesars and other marketers have learned is that while mobile may not presently provide the reach of other direct response channels, it can provide meaningful responses to a well-thought out call-to-action. 

New ways to interact
However, with the growing penetration of smart devices, marketers are also increasingly looking to mobile to develop ongoing relationships that can help build a brand using mobile applications, streaming videos, games and other content.

Mobile?s ability to let brands stay in touch with consumers on the go and engage them via content can be powerful for brands.

?Mobile is an enabler that provides technology to our target helping them interact with brands and each other in ways not possible before,? Mr. Ellen said.

When using smartphones for brand-building, marketers also need to be aware of how many in the target audience are using smart devices and how many engage in mobile search, apps, games or whatever activity is being used in the campaign.

Major media companies such as Gannett and Condé Nast are creating mobile sites and apps for their brands, with brand advertisers increasingly seeing an opportunity to advertise in these venues.

?Having that association with that very high-gloss media brand site is really important ? it sort of lifts your brand and makes you look cool because you?re in a new channel that is seen as leading the way,? Kargo?s Mr. Kargman said.

One important thing to remember when using mobile to deliver content is to make sure the content is relevant and useful otherwise recipients may be turned off to the app and, by extension, the brand.

Using mobile to deliver content puts pressure on marketers to make sure they are providing relevant, useful information to users or else risk turning them off to the app and, by extension, the brand.

?We?re seeing people building apps for branding and then realizing that they can actually create a conversation through their apps that drives direct response,? said Scott Kveton, CEO of Urban Airship, Portland, OR.

?If you?re going to interrupt a user, you better have a great reason for doing it,? he said. ?The flip side is that if the notification or ad is sufficiently relevant then it?s not an interruption at all.?

The reality is that mobile is still a young marketing strategy, which is why marketers are testing and looking for the best ways to harness its potential.

?My sense is that marketers still need to work out the most effective way to leverage the opportunity,? Mr. Ellen said.

Final Take
Chantal Tode is associate editor on Mobile Marketer, New York