How mobile marketers can tap into the new penny-pinching behavior

May 12, 2009

Raghu Kakarala is vice president of strategy at Engauge Digital

By Raghu Kakarala

Marketers typically retrench and cut spending during recessions, but this downturn should be the time to take advantage of opportunities from emerging media, particularly since mobile marketing is bound to benefit.

As consumers look for ways to reduce their phone bills, smart marketers can tap into the next logical extension of this penny-pinching behavior.

Sure, we can give them more ads, since mobile users are more willing to receive marketing messages that subsidize the cost of their phone usage.

But mobile messages can be more relevant and potent if they are GPS-targeted coupons that retailers send to consumers' phones when they are in the vicinity of their store or actually shopping inside.

Value-seeking consumers have ditched satellite radio, pedicures and sports utility vehicles, yet mobile phones remain the devices that are as necessary as oxygen.

Besides car keys and wallets, the mobile phone is the one item that people still take everywhere. The only difference is more mobile phone users are signing up with cheaper prepaid plans rather than expensive two-year contracts.

MetroPCS Communications, Inc., a new prepaid wireless provider in New York and Boston, recently reported a 51 percent jump in subscriptions, while Cricket, a fledgling wireless entry in Chicago, is also growing rapidly by selling cheap prepaid service.

Consequently, mobile marketing must be among the go-to tactics that smart brand and advertising managers include in their marketing mix.

The value-seeking mobile phone user is open to advertising. Consider that nearly two-thirds of mobile users said they would view ads on their mobile phone in return for a discount on their monthly bill, according to a November survey commissioned by software firm Transverse and telecoms consultant iGR.

Almost half the respondents to that survey said a 25 percent to 50 percent discount on their monthly bill would be enough incentive to allow access to their usage patterns for voice, email, texting and browsing.

Telecoms providers and their brand partners are able to grab even more relevancy with value-seeking mobile users by offering free phone upgrades, free minutes, texting, data services and other content in exchange for watching advertising on their phones.

Do not underestimate the lure of content with the value consumer. Data-plan subscription fees are declining in price, so mobile data consumption growth is inevitable.

Content delivery is improving the mobile experience as developers are becoming better at designing apps and customizing online videos for wireless devices.

Also, GPS phones are increasing the ability of advertisers to communicate with local telephone users through position-based campaigns.

Mobile marketing is getting smarter, and marketers who can weave relevancy into the growing population of value-seeking mobile phone users will be riding the rising tide on the medium that offers a high degree of audience targeting.

Raghu Kakarala is vice president of strategy at Engauge Digital, Atlanta. Reach him at .