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Mobile: A branding or direct marketing medium?

By Chris Arens

I am often asked that headline question and my response is simple: "It depends."

There is never a tried-and-true answer and those who claim to have one are kidding themselves.

There is no doubt that mobile possesses power as a branding medium. InsightExpress, a digital marketing research organization, having looked at early averages in its Mobile AdInsight studies, claims that the mobile medium outperforms the online medium across major awareness, association and purchase intent measures.

Indeed, some of the metrics in those areas show as high as 18.8 percentage points of difference between mobile and online performance.

And it makes a lot of sense that mobile might work better than other media for branding.

Look, for example, at mobile Web banner advertising, or even SMS-based advertising. Both possess two factors that help mobile as a branding phenomenon.

First, the environment is uncluttered. Next, there is relatively little content versus the wired Internet.

Consequently, users are more likely to investigate any advertising presented.

Mobile clearly presents an opportunity for brands to send their message with little competition for users' attention, thus creating a greater communication impact.

DM clicks
However, other features such as click-to-call capability also make mobile a powerful direct marketing medium.

There is consistent talk about the number of people who click on an advertisement online (otherwise known as click-through-rate, or CTR). I would be the first to say that touting CTR is not a true measure of effective advertising.

But the fact is that mobile advertising is garnering CTRs that outperform the Internet by as much as 10 times. CTRs are currently a bonus of advertising in the medium.

One reality to consider is that without a full keyboard on most phones, it is easier for users to click on banners than to try and type URLs from advertising into their phone's Web browser.

So while we expect CTRs to plummet, perhaps they will sustain longer than they did on the Internet.

But measures that go beyond the click also show the effectiveness of mobile as a direct marketing vehicle.

Hotelier Embassy Suites recently reported revenue of more than $3.2 million from its mobile campaign targeting active business travelers (who by their very nature are more likely to be mobile Internet users because of their need to always be connected).

Embassy is not alone.

Hampton Inn, another hotel franchise, has also seen revenue spikes in the mobile space because of its successful efforts to build a fully functional mobile Internet booking engine that essentially allows users to reserve a room right from their phone.

Two-way call
Mobile can obviously work for both branding and direct response. So what then does its use as an advertising medium really depend on?

Quite simply, on campaign objectives, the marketplace and how well an advertiser is set-up to react to response.

For example, a retail brand that is currently the No. 3 player in its industry is trying to compete in an environment where it is being outspent by competitors.

Relatively new, Brand No. 3 needs to let its defined target know that its product is superior. Its objective is to build awareness efficiently, and drive potential customers to a retail store.

Assuming that the brand's ad agency has identified the targets' media choices to include mobile, why would it not use an uncluttered medium (one it can compete in), leverage current high click-through rates and guide users interested in the product to a map application that identifies the closest retail store based on the target's current location?

What medium can efficiently and effectively do all three?

It's true that not every campaign can be appropriate, but in doing so, our hypothetical Brand No. 3 has effectively leveled the playing field. It has built awareness around the benefits of the product, and it has driven consumers to a retail store to buy.

What any marketer is trying to achieve can be aided by mobile as long as campaign objectives stay top of mind.

The mobile medium should never be pigeon-holed into an either/or statement or mentality.

If enough time, care and know-how are instituted into the set-up of a campaign, an advertiser can achieve the success of either branded metrics or direct response metrics. And in some cases both.

Chris Arens is vice president and director of digital strategy at Draftfcb San Francisco. Reach him at .