Liane Dietrich, MD of LinkShare UK, explores how marketers can take advantage of the new wave of growth in the mobile channel
Since their launch in the 1980s, mobile phones have become one of the most important developments in modern communication. People from each and every demographic own mobile phones; from teenagers to the elderly and from new employees to CEOS and MDs. They are used more frequently than any other form of technology. The launch of the iPhone in 2007 created a fundamental shift in the way consumers interact with mobile phones and the web. Now with smartphones and tablets flooding the space, marketers from all sectors need to adapt their own communication strategies to embrace the mobile trend.
While at present consumers use their computers more than their mobile phones both to shop and to conduct research, it is important to recognise the increasing growth of the mobile channel. According to Yahoo! and The Nielsen Company, many smartphone users want to transfer part or all of traditional PC tasks such as browsing and purchasing to mobile. This desire is most pronounced in sectors including shopping, entertainment, dining and financial services. In the US, consumers are already checking their email more on their mobile than on their PC, and the UK and Europe are set to follow suit. The infrastructure for m-commerce already exists, as does the consumer demand, so m-commerce will continue to expand exponentially.
Digital marketing experts the Bio Agency found that one in five smartphone owners now use mobile apps to shop. With industry giants such as Google, Orange, Samsung and Barclays launching mobile payment strategies, and businesses introducing fully optimised mobile sites, the profitability of this sector is set to sky-rocket. Bearing these facts and figures in mind, mobile is clearly becoming an indispensible way to communicate with potential customers and drive sales.
The Internet Advertising Bureau (IAB) recently reported that mobile ad spend increased by 116 per cent in 2010. This is supported by our own research carried out at the Technology for Marketing and Advertising tradeshow, where we found that mobile and apps will be a key area of investment for just under half (45 per cent) of those surveyed. Mobile is not the only form of digital marketing on the rise, a third of those we spoke to are planning to continue investments in affiliate marketing (33 per cent), adverts on personal social networks (31 per cent) and online video content (30 per cent). Mobile marketing strategies that offer measurable ways of tracking and influencing consumer behaviour are the key to profiting from this trend, and affiliate marketing has a significant role to play in supporting this growth.
The benefits of m-commerce
The benefits of incentivising m-commerce are multi-layered. Mobile vouchers have a much higher redemption rate than printable vouchers, as they can be targeted to be more relevant to the consumer. Mobile is arguably the most direct way to communicate with consumers, but it is important to note that most mobile users actually feel that mobile is non-intrusive. All mobile marketing is 100 per cent opt-in, so consumers do not feel that marketers are pushing communications to them.
With the recent media attention around the privacy implications of the EU Cookie Directive, marketers must take precautions both to stay within the new regulations and to reassure the consumer that it is they who has ultimate control of the communications they receive. That said, mobile web communication is still trackable; all mobile offers can be monitored by marketers in the same way as online offers. This ensures that businesses have evidence of the most popular incentives, as well as information on promotions that have not worked. New developments in technology are also increasing the option for mobile marketers. Using advanced GPS technology marketers can target customers by location as well as by browsing habits. The high street and online shopping habits are continuing to evolve, and with multi-channel retailers showing the highest success and growth rates, location-based offers will have a key role to play in the future of commerce.
Affiliate marketing and the mobile future
Brands and advertisers are both set to benefit from investing in mobile affiliate marketing. One advantage is being able to partner with a wide range of affiliates and experiment with varying tactics to discover those which yield the most positive results. This process also offers both parties a valuable insight into the most up to date consumer behaviour, allowing mobile marketing programmes to be adapted and fully optimised quickly.
LinkShare is working to encourage both publishers and marketers to test and develop mobile sites. As the mobile channel continues to grow; ever more powerful smartphones mean that the mobile web is becoming both easy to use and convenient. In 2010 LinkShare tested, validated and ensured its tracking technology works across multiple mobile devices and platforms. All that remains now is for marketers to utilise the technology on offer to them. Taking the strength of the online and mobile market into account, we have identified three major areas in the affiliate marketing space which digital marketers developing their mobile strategies should consider.
• Geo-targeting: marketers can make use of the fact that many people no longer leave the house without their phone by using location-based services, i.e. determining where a website visitor is currently based and delivering different offers and content to that visitor based on their location.
• Real time offers: marketers can offer short-term deals lasting anything from a few hours to a day to users’ mobile phones. These can be delivered directly, using geo-targeting technology, or linked to social networks, such as Foursquare or Facebook Places.
• Personalisation: mobile tracking technologies that comply with the new EU privacy regulations help markets accurately measure the consumption habits of mobile users. This data can be used to deliver personalised content and ads to consumers’ devices, which will be based on a user's interests and history. This will mean a higher level of engagement and ultimately click-throughs and sales.
We do not yet know the full effects the mobile revolution will have in the digital world, but one thing is certain, it is not going to go away. As technology evolves, mobile will become increasingly pervasive and marketers looking for revenue must evolve along with it. For businesses looking to maintain their competitive edge, affiliate programmes should be high on the agenda. Affiliate marketing provides an excellent opportunity for those who want to adopt new mobile technologies, and is also a tried and tested way to implement effective marketing campaigns by enabling marketers to monitor and tailor every pound spent.
Liane Dietrich, MD of LinkShare UK