Mobile traffic generation - the new black art?

Edited by the Marketingservicestalk editorial team Aug 17, 2007

Mobile marketing strategies are becoming increasingly important as organisations look to extend online presence to the burgeoning mobile market, argues Advertising2Mobile.
Few brands and publishers have developed successful mobile strategies - deterred in part by network operator strategies that have added significant cost to the traffic generation process.
It is no longer a case of "build it and they will come".
In today's highly controlled mobile market, traffic generation is becoming a complex and challenging skill.
Despite the clear commercial opportunities and pent-up user demand, many organisations still lack a coherent mobile strategy and are struggling to attain value for money from investment in mobile advertising.
However, there are notable exceptions.
Those companies that have embraced an integrated mobile marketing solution that combines site creation with strong billing mechanisms and real-time traffic generation are achieving excellent returns.
So just what is the key to mobile marketing success asks Adam Brogden, Managing Director, Advertising2Mobile.
Mobile phone users are increasingly opting to use their handsets rather than a PC to access the internet.
Indeed, the UK mobile data market alone is estimated to be worth GBP1billion by 2009, according to the Mobile Data Association.
This increase in data use is being driven by a larger installed base of internet-capable mobile phones, better user experiences, user education and new consumer-friendly price points as operators reduce data charges.
Clearly it is now time for organisations to leverage their online presence and extend the brand to a mobile audience.
Yet to date few organisations have made that move.
Many candidly admit a lack of understanding of the challenges surrounding the mobile marketplace.
And most companies are also aware of the expensive mistakes already made by some organisations in a bid to build a mobile presence.
According to figures from analyst Informa Telecoms and Media, by the end of 2007, out of 797.6 million mobile phone subscriptions worldwide roughly 25 per cent will include web browsing.
The opportunity is fantastic.
So why are more organisations not proactively embracing this potentially lucrative marketplace? Most companies have already dabbled with mobile technologies, using product printed SMS codes for example to get customers to register for prizes or competitions.
Now it is time to extend that activity and maximise the opportunities provided by widespread adoption of mobile internet browsing to create a truly interactive customer relationship.
There are several key issues to address: the user experience, the quality of transaction, efficient billing mechanisms and, critically, the traffic generation.
The latter is a newly required skill that has been driven by a rapid change in network operator attitudes.
Whilst for early adopters of mobile marketing, keen users managed to find their way to sites via simple search techniques, these days the network operators have a tight control over user activity.
It is increasingly tough to generate network traffic and the majority of routes demand a financial premium.
As a result achieving a successful mobile presence is not simply a case of extending the existing internet, print and TV brand to the mobile; it is far more complicated.
With up to a dozen different paid-for options for generating traffic, and as many free alternatives, choosing the best approach requires detailed market understanding.
Yet simply setting up these accounts is complex: each has different pricing models and management interfaces.
Understanding which channel is most suitable for each demographic or product type is very important to get a campaign off to a strong start.
But strategies cannot be set in stone.
Costs for each channel vary, often minute by minute.
Some channels set traffic price on a daily basis; others vary it dynamically reflecting the peaks and troughs in user activity.
Every channel is different and maximising traffic to a site is a complex process that requires market understanding and insight into the vagaries of each operator's system.
Those companies that are not aware of the complexities of mobile generation can spend a lot of money without delivering a return.
It is therefore essential to monitor spend in real time.
But the investment also needs to be monitored against profitability - not volume of traffic generated.
While mobile users demonstrate little or no loyalty they are not adventurous and will typically use the same search options time after time.
Therefore there is a clear tipping point in the mobile model - increasing the spend in a successful channel may initially boost profitability but will then start to remarket to the same user base, limiting additional sales opportunities and resulting in a rapid drop in value for money.
Real-time management is, therefore, essential to ensure mobile media spend is maximised.
But this is not a cost effective process for organisations to manage internally - a fact which may currently be deterring many from plunging wholeheartedly into this fast growing market.
Yet there is no reason to eschew this lucrative marketplace.
Using a mobile media buyer, organisations can outsource the complex traffic generation issue to a company with staff dedicated to monitoring traffic generation options in real time, looking at price, volumes and revenue generated to maximise client returns.
And this approach is highly profitable, delivering on average a 20 per cent return week on week.
With daily and weekly reports, organisations can monitor performance and plan on going spend, as well as gaining significant insight into the best options for forthcoming campaigns.
Critically, the burden of day to day management is removed, enabling an organisation to focus on its core operations and refine the mobile strategy without the distraction of complex and time consuming traffic generation processes.
For once, user demand is ahead of the curve, with mobile users embracing the technology faster than the major brands.
There is a high demand for mobile internet, as recognised by the network operators.
Complexity may be deterring some organisations, but by combining a robust real-time mobile media buying solution with proven site development, content reformatting and billing mechanisms, organisations can now very rapidly attain a mobile strategy, and critically, achieve a tangible return from day one.

http://bluespotmedia.ning.com/