SPECIALREPORT

STILLCHARGING

MOBILE MARKETING

STILLCHARGING

MOBILE MARKETING

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INSIDE

SPECIAL REPORT1

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4 56

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MOBILEMARKETING

Beginning this issue, TheBrand Reporter has lined upa series of special reports.Each report will analysecategories in media,advertising and marketing.Next up: Sports Marketing

The cellular phone has, today,become an accessory that isdifficult to live without. It is,in fact, an indispensablelifeline to friends, family andcolleagues. Marketers andadvertisers in India havespotted this and are pullingout all the stops to wooconsumers. Presenting ananalysis of the mobilemarketing phenomenon thatis on the rise.

By Natesa Iyer

Issue 1 I June 1-15, 2008

Focus on There are 267 million cellphone users,but only 23 per cent of the 1.1 billionpopulationowns a cellphone

SMS (P2P)

2007

1,480CRBT/RINGTONE 1,297SMS (A2P & P2A) 555VOICE, DATA,GAMES, E-MAIL

370

TOTAL 3,700

Four telcos account for 74 per centof the mobile market

The mobile marketing ecosystem ismade up of...

•Products and services (brands, contentowners and marketing agencies)

•Applications (Mobile ASPs)•Connections (aggregators and wirelessoperators)

•Retail (brick andmortar as well asvirtual stores)

•Media

82 per cent of mobile users in India use textmessaging or SMS on their phone

54 per cent of mobile users in India are awareabout the instant messenger (IM) facility on phones

What a brand can do. Presenting case studies ofCitibank, Horlicks, Neo Sports, Teacher’s50, KalHo Naa Ho, eBay, Domino’s, Fair & Lovely, TheEconomist and the Indian Association forPromotion of Adoption and Child Welfare.

The Brand Reporter does some crystal-ballgazing to predict how the future of mobilemarketing in India will pan out - and the trendsthat may develop in the next few years.

39 per cent of mobile users in India send andreceive text messages on their phones everyday

Source: TNS Global TelecomInsight, 2008

11 per cent of mobileusers in India use IM ontheir mobile phones

...to explode?Ready...

Operators market

Understanding it

The market’s waiting

LEADThe Growing Blipon SmallScreens IV

MOBILEADVERTISINGThe Howand Why X

CASE STUDIESSetting anExample

XVIII

OUTLOOKWhat The ScreenWill LookLike XXII

MOBILE MARKETINGIt Makes GreatBusinessSense VI

STAKEHOLDERSPutting TheJigsawTogether XIV

Figures in Rs crore

74%

Cover Illustration: GOGOL

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The soft tap of thumbs on mobilephone number pads are getting louderfor Rajiv Hiranandani, co-founder,Mobile2Win, a digital and mobileentertainment company. “Clicks in thismedium are 5-8 per cent andoutperform clicks in the internet,” hesays. He is talking about the shortmessage service (SMS), the mostwidely-used messaging vehicle inmobile marketing.

Mobile2win provides informationand entertainment ranging from news,jokes and horoscopes to sports scores,stock info and mobile games through

the ubiquitous handphone. Hiranandani is notthe only one who can hear opportunity knocking.Telecom service providers too are hungrilylooking at a market that can only explode - just 23per cent of India’s 1.1 billion-population owns acell phone. Marketers and advertisers are equallyexcited. So are media companies. But whatexactly is mobile marketing?

Button-happy

As a generally-accepted definition, mobilemarketing is the process of sending spam-

free, personalised, permission-based marketingmessages to receptive consumers through theircell phones.

Mobile marketing can be either push-basedwhich refers to communication such as SMS andalerts sent to mobile phones. But to send push-based messages, firms should have theconsumer’s permission. The pull-type refers toinformation a user requests from a serviceprovider or advertiser. While mobile marketingtoday is almost totally SMS-based, the increase inthe number of large-screen phones and MMS-enabled phones will shape the industry soon.

Mobile technology is witnessing newapplications and services. This combined withthe rapid integration of the internet, mobility andcommunications at the device, service andtransport levels has created a new set of businessopportunities.

For consumers, mobile phones have becomemuch more than entertainment handsets.Already experiencing a high-end electronicsexperience from state-of-the-art digital cameras,camcorders and game consoles, they arebeginning to expect the same on their mobilephones - a broad range of compelling, interactivecontent. Therein lay the opportunity formarketers and advertisers.

As a medium, the mobile phone screen hasthe potential to support brand building andstrengthen consumer relationships. Andmarketers have been quick to cash in.

One of the early selling points was thepossibility of generating immediate responsesfrom consumers at any time and from anylocation. But marketers and advertisers haveproceeded with caution because nothing puts aconsumer off than indiscriminate spam.

Two-way communication

Operators are increasingly looking forapplications that attract users to avail of the

services offered. Value added services (VAS) havebegun to add significantly to the bottomline ofmost telecom operators. Almost 10 per cent of an

MOBILE MARKETING

IV

THE GROWING BLIPON SMALL SCREENSIt is just about takingoff in India, but mobilemarketing is getting alot of attention.A special report onhow marketers areplanning to invadeyour mobile phones -and why.

Playgames

HOW SUBSCRIBERSARE USINGTHEIR HANDSETS

Have mobile, will use it.And not just for talking topeople. Here is what atypical cell phone userdoes.

THE BIGDRIVERS

Value-added services -like caller ringback tones(CRBT) - will drive mobilemarketing.

2006

SMS (P2P) 70%

SMS (A2P and P2A) 9.6%

CRBT/Ringtone 13.2%

Voice, data, games, 7.2%e-mail and others

operator’s revenues come from VAS services andthis figure is all set to grow. Business generatedfrom VAS rose from Rs 2,851 crore in 2006 to Rs 3,700 crore in 2007 - up by 30 per cent.

Marketers, agencies and media companies,especially mobile telephone service providers arefacing a new environment. The mix of mediachannel has shifted from the one-way broadcastchannel to two-way communication.Consumers, today, not only want to talk back tomarketers and interact with marketing messages,they also want to share this message amongstlike-minded communities.

This shift brings in more direct dialoguebetween marketers and consumers and is beingfacilitated by telecom companies. In the past,marketers could never get real-time feedbackfrom end-users. Firms are developing powerfulbranding in the mobile arena. They are workingout ways to clearly state how their business isrelevant to the mobile world and how they canreach their customers, partners and suppliers,whether through clever messages or advertising.

So far, most of the advertising on cell phoneshas been from phone companies themselves.That is changing. Car-makers, movie studios,financial service providers, FMCG companiesand others are testing the waters vigorously.Research firms estimate the mobile advertisingmarket at Rs 35 crore (not including revenues ofmedia companies from SMS contests and thelike) for 2007 and grow at 40 per cent over the

next few years. That revenue is going to have tocome from more areas other than the highly-popular SMS, ringtones or wallpapers.

Switching it on

For now, mobile marketing - everything fromads to text-message voting campaigns seen on

shows such as Indian Idol - remains limited in itsappeal to advertisers. Mobile marketing is thebest option for brands which wish to connect tothe youth. “But currently all the majoradvertisers just allocate, say, 1 per cent of theirmarketing budgets to mobile marketing becauseof the limited options within the medium,” saysViren Popli, senior vice president, STAR India.But he thinks it will get better.

“As a medium, mobile is powerful. I can reachyou wherever you are because the mobile is withyou all the time,” says Chaitanya Nallan, CEO,Gingersoft Media. The company owns mGinger,a service that provides advertisements on mobilephones. These are targeted at consumers whohave opted for the service.

When it comes to communicating withconsumers on the move, the mobile phone is themost ubiquitous outlet. The different ways thatmobile marketing can be used includes directresponse, media interactivity, content downloads,sales promotions and coupons, advertising,customer service, and customer relationshipmanagement. So, what works best in a countrylike India?

V

So far, most ofthe advertisingon cell phoneshas been fromphone companiesthemselves. Thatis changing. Car-makers, moviestudios, financialservice providers,FMCG companiesand others aretesting the watersvigorously.

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Downloadringtones

Read newsheadlines

Surf the internet

Access informationfrom banks, airlines

and railways

Check examination results

Participate incontests

HOW THE MONEY CAME

VAS REVENUES (RS CRORE), 2006

P2P SMS

RINGTONE DOWNLOAD

P2P AND A2P

GAMES AND DATA

OTHERS

1,140

1,026

428

171

86

Source: IMRB

2007

SMS (A2P and P2A) 15%

SMS (P2P) 40%

CRBT/Ringtone 35%

Voice, data, games, 10%e-mail and others

NOTE

P2P - peer to peer

A2P - application to person

P2A - person to application

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This dynamic platform has pavedthe way for the new credo: from mass-media push to mass-customization pull- pull in anyone, anytime, anywhere.

Therefore, it has the potential togrow rapidly, providing brands,agencies and marketers the opportunityto connect with consumers beyondtraditional and digital media. On-ground reality could bedifferent. And manyquestions arise. What are themobile media channels orformats available to advertisers?How does a marketer optimise the

effectiveness of a campaign and strengthenconsumer satisfaction?

Making the connection, cautiously

There are many sectors which are using theadvantages a mobile phone offers, to good

effect. The financial sector is one. Says VishalGupta, associate director, marketing, Aviva LifeInsurance: “We have a database of policyholdersto whom we send SMSes to remind them of duedates, initiatives and offerings.”

Just recently, makaan.com, the PeopleGroup’s online property site announced thelaunch of Makaan Mobile. According to thecompany, it is the country’s first pure SMS-basedreal estate mobile application. Developed byMauj Mobile, the application is aimed atenhancing the overall consumer experience forproperty sellers who currently need to log on tothe internet either to list their property or to viewresponses from interested buyers. Now, they cando it on their hand phones.

Events like the IPL cricket series are heaven-sent opportunities for players in this arena.Indiatimes, one of the oldest in the field, used its

short-code and asked people to predict thewinner of the day by calling 58888 or sending anSMS on 58888 for the chance to win Rs 58,888everyday. Indiatimes has in its portfolio,multimedia messaging, dating, chatting andemail - all on mobile. Others are getting into themood. Take Pizza Hut.

For the first time, the pizza maker launched amobile campaign in Delhi, Mumbai, Bangalore,Chennai, Hyderabad and Pune. Executed bymobile2win, the campaign includes promotionson both SMS and the mobile web (works on setswhich are GPRS-enabled). The objective was toget people to register for the VIP Club, a virtualclub, either on their mobiles or its WAP site. Itentitles members to free coupons and a chance towin prizes and discounts.

There are legal issues connected with SMSmarketing. Only a few marketers follow theconcept of permission-based messaging, whereby

THE POTENTIAL

VI

IT MAKES GREAT BUSINESS SENSEIndia has 267 millionmobile phones. And themarket is growing atthe rate of five millionphones per month. As a result, companiesare quite busyleveraging themedium. Print media

Internet Email

Mobile Devices

Cable TV

Television Radio Direct ma

FORMAT

IMPACT

N

I

ONE-TO-ONE

UBIQUITOUS

the customers registerthemselves with theadvertiser pointing outtheir areas of interests.

The TelecomRegulatory Authority ofIndia (TRAI) has issuedstringent norms ontele- and SMS-marketing to avoidcompanies fromspamming consumers indiscriminately. It has setup a national level registry where customers whodo not want to be disturbed can register theirnumbers. All marketers need to adhere to thisrequest. But if a mobile user is not registered onTRAI’s Do-not-disturb list, s/he is likely to bebombarded on the phone. The danger? It couldput them off any kind of message from anymarketer or brand.

Many firms are coming around and are takingcare not to alienate consumer as they realise thevalue of the mobile as a direct medium.Especially because it is well-suited for a vital rolein fully integrated cross-media campaign plans,including TV, print, radio, outdoor, cinema,online and direct mail.

Thumbs rule, for now

One reason why the effectiveness of mobilemarketing is pegged so high is because of its

ability to reach the target demographicsthroughout the day instead of a particular time orwhen they are engaged in a specific activity - likewatching TV. The other reason is that mobilemarketing can leverage other media such asincluding a SMS short code on any other type ofcampaign (for instance, a TV ad could say, ‘SMS12345 to get free information’).

SMS has proved to be a boon to telecomoperators since they get to take away a chunk inthe revenue sharing. The deluge of responses - orvoting, as the industry calls it - from viewers toshows such as Voice of India or STAR ParivaarAward are proof. “But I am afraid that if newershows or new formats have to work, they have toput in more energy or think of innovativemethods to seek higher consumer engagement,”cautions Popli of STAR because the excitement orbuzz around the SMS voting is sure to die down.

The biggest reason for this mobile marketing

VII

The promotional mix is movingfrom mass communication tomore direct and highly-targetedpromotional activity, usingdirect marketing and other suchone-to-one tools. Mobilemarketing is far more effectivebecause of its interactive formof communication and due toits targeted reach and one-to-one interactivity.

HOMING IN ON THETARGETS

Gupta: keeping thecustomer updated

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ail Outdoor media

BROADCAST

PASSIVE

NARROWCAST

INTERACTIVE

THE POTENTIALPERSUASIVE: WHAT MARKETERS TEMPT USERS WITH

CLICK TO CALLUsers place an outgoing callto the content provider oradvertiser.

CLICK TO LOCATEUsers find, for example, thenearest car dealer or movietheatre, enabled by location-based services.

CLICK TO ORDER Users receive marketingmaterial by supplying theirpostal addresses - specialwrite-ins.

CLICK TO RECEIVEUsers receive an electroniccoupon on their mobilephone that can be redeemedat a participating merchant.

CLICK TO BUYUsers pay other bills withcredit card, which gets addedto their monthly mobile bill(mCheck, paymate).

CLICK TO DOWNLOADUsers download content,including logos, wallpapersor ring tones, onto theirmobile phones.

CLICK TO FORWARDUsers forward relevantcontent to friends, creating aviral campaign effect.

CLICK TO VIDEOUsers click a banner to viewa commercial for a productor service.

CLICK TO VOTEUsers reply to poll andprovide marketers withvaluable research insights forthe marketer.

push is that it is cost effective - the messagereaches the audience directly. However, despitethe growth potential, most brands don’t have aspecific marketing strategy for mobile - it is yet,to be considered a serious supplement toconventional media plans.

The most effective forms of messaging will bethose that revolve around activities that buildrelationships with customers and deliversomething of value to them, based on theirinterests and demographics. The marketingtechniques in this scenario will depend on thesoftware and device infrastructure, definition ofthe customer profile, data acquisition andcustomer segmentation.

There are formats like WAP (wirelessapplication protocol) - by which the user canaccess the internet – developing with theavailability of new-age phones. But the biggestimpediment is that the advertiser has to partnerwith mobile operators to deliver the message.

THE OPTIONS

SMSEntertainmentSMS, ringtones/CRBT, customisedwallpapers,animations, quizzesand jokes

Alerts & NewsCricket/match, alerts, news,astrology, Vaastu,Fengshui, personality tests,banking info/alerts,travel alerts

CommerceMobile banking,ticketing, travel andholiday bookings

Social VASLocation, infotainment search,advertising

Enterprise VASShort Code forcontests, voting,information, push foradvertising, enterpriseinstant mssage, groupmessaging

IVRSEntertainmentReligious chants,music on demand

Alerts & NewsAstrology, Vaastu,Fengshui, personality test

CommerceMobile banking,ticketing

Social VASAstrology services,Voice SMS

Enterprise VASIVR-based contactcenters, self-helpcenters, voice portals

EntertainmentVideo clips, mobilegames, mobilethemes, mobileradio

WAP PORTALSAlerts & NewsMovie-related info,stock portfoliomanagers, newstickers/alerts

CommerceMobile banking,ticketing, travel andholiday bookings

Social VASMail, mobile-greetings, dating,chatting, blogging, infotainment

Enterprise VASLocation-basedinformation, internetmobile e-mail, mobilecalendar, push e-mailover handheld devices(BlackBerry), wirelesse-mail

The short messaging route is just the beginning of a mobile marketer’sdream. Interactive voice response systems (IVRS) and WAP are other fail-safe measures to get the message across. Mobile phone technology hasimproved enough for them to seriously consider options beyond SMSes.Here’s what they are doing.

Poocho

India

Poocho! Ask m is the smart new service that goes

everywhere you go.

SMS <your question> to 5 7 5 7 5 1So, what do you want to know?

? Ask Anything Movies Stocks

Weather HoroscopeSports

Simply ask a question and get the answer right on your phone within moments.Its that easy!

For further information please visit: www.mpulse.in

* 3 Rs. per SMS

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MOBILE ADVERTISING

X

The universe of mobile phonesubscribers is the newest mass mediaplatform. But techniques whichsucceed on television or the internetcan’t simply be transferred to thephone. On TV as well as the internet,advertising grew alongside - and with -the genre. In this case, the marketer hasto hit the ground running.

The budding channel carriesoutsized expectations. “There will bemore event and community specificcampaign initiation,” says HarishBijoor, a brand consultant. “There willbe more direct targeting of the

consumer through various channels – age,demographics, individual statistics andpreferences,” he adds.

One of the big boys in this space is mKhoj. Itcalls itself a ‘mobile advertising marketplace’ thatgives advertisers a targeted way to reach out toconsumers directly on their cell phones aroundthe globe. It also claims to give mobile publishersa way to monetise their traffic. Advertisers canuse this precise medium to create a strong brand

and generate leads. Publishers use mKhoj to getcontextual ads for its customers.

But, what are the options available tomarketers currently?

Messaging

Nothing reflects the impact of the SMS-voting frenzy more startlingly than Indian

Idol, the show that went on Sony EntertainmentTelevision in October 2004. Between November2004 and March 2005, it saw more than 55million votes via SMS, each message cost thevoter Rs 3. It was boom time for the mobileoperator followed by the channel.

A close cousin to SMS is MMS or multimediamessaging service. MMS supports graphics,pictures, audio and video. As a result, it providesmobile marketers with additional tools on thisformat. “But the biggest limitation is the MMS-enabled handsets used by mobile-phone users,”feels Raj Singh, co-founder and executivedirector, ActiveMedia Technologies. Thisperhaps is the reason for the popularity of SMS,which is simpler to use and can be sent in theregional languages too. “Also,” says Gupta ofAviva Life Insurance, “Since all SMS replies aretrack-able, evaluating effectiveness is muchbetter this way.”

� The benefits1. Extending marketing communications

beyond traditional media2. Complementing traditional media in order

to increase awareness3. Allowing companies to target specific

audiences

THE HOW ANDTHE WHY Advertising has cometo the ultra-smallscreen at a point whenthe mobile is alreadymature, both as acommunication mediumand an integral andpersonal part ofpeople’s lives.

CONTENT is a key factor in creatinga mobile service that attracts the users

and makes them come back. The goldenrule - content is the king - is also valid inmobile marketing and advertising.Marketers need to understand thecritical elements - time sensitiveness,

personalisation and locationawareness - underlying a good

mobile ad campaign.

CROSS-MEDIA MARKETING refersto the idea that mobile advertising is nota lonely island in a sea of different media.Mobile media does not work alone. Itneeds traditional media in order to thrive.For instance, mobile advertisers can usethe other media to explain their

services, and then use mobilemedia to remind people to use it

or to point out new andbetter features.

CAMPAIGN MANAGEMENT refersto mobile marketing technology, whichenables campaign execution and analysis.There are two components. The first isdirect connections to network operators,allowing for message delivery andreceipt. The other is a technology

platform that creates campaignmechanics like point collection,

mobile-coupons and aprogress report.

4. Encouraging the audience to take action assoon as it sees an ad or promo, rather thanwaiting until later.

5. Providing opportunities to generaterevenues every time users interact withmessaging.

WAP and Mobile Web

Wireless Application Protocol (WAP) is atechnology platform used to create websites

that can be easily accessed from mobile handsets,especially those with a small screen and limitedprocessing power.

Today, WAP 2.0 is standard supported by mostmid-level models. Moreover, WAP allows mobilephone users to access a wide range of content andservices, including streaming audio and video.Considering that WAP supports banneradvertising, traditional marketers see it as theclosest clone to internet.

Says Hiranandani of mobile2win: “With newsand information being the two most widely-accessed features by WAP-users, marketers need tolook at producing content focused to go with thisgenre.” Even so, wallpapers, games andapplications are the most widely-used mobilecontent that is delivered using WAP-push.

“The trick with WAP-enabled services is to keepthe number of steps taken to achieve the end-resultto the minimum,” says Singh. Even assuming thatmobile internet access is becoming easier, the costof accessing WAP still does not justify reasons forcell phone users to opt for these. Once costs ofservices fall further, this one has the potential to sweep in the internet users from PCs to phones.

XI

Content, cross-mediamarketing, campaignmanagement, customerdatabase and carriercooperation are vital for thesuccess of mobile advertisingefforts. Though, at the momentmobile advertising value chainis fragmented. For mobilemarketing to succeed, businessmodels that can capture thesynergy of two existingindustries, advertising andtelecommunications must beconceived. In any futuresustainable business model, allplayers will have to reach aconsensus on the structure ofthe value chain and on theimportance of each player inthat value chain.

THE 5C IMPACT FOR SUCCESSFULMOBILEADVERTISING

WAYS AND MEANSIn the mobile environment, a campaign cango on mobile websites, downloadableapplications, mobile messaging and mobilevideo, all of which can be integrated into theinteractive campaigns previously described.Each campaign type can be linked toadditional mobile content or channels, aswell as to complementing traditional media.

MOBILE WEBDescriptionThe Mobile Web offers users the ability to dosuch things as play games and trivia, searchfor information, look up telephone numbersand addresses and do their banking andshopping on their wireless phone.Advertising OpportunitiesBanner ads on mobile websites, text ads,branded mobile websites.Good for: Driving users to a mobile websitelead generation, direct sales and branding.

DOWNLOADABLE APPLICATIONSDescriptionSoftware or content that consumers downloadto their mobile phone which then resides onthe phone. Examples include applicationssuch as games and lifestyle tools. Downloadsare accessible to consumers with appropriatemobile phones and data plans.Advertising OpportunitiesAd placement within applications (forexample, banners, “splash” pages),branded applications.Good for: Branding/CRM, driving users to amobile website.

MOBILE MESSAGINGDescriptionThis category includes SMS and MultimediaMessaging Service (MMS). SMS is availableto virtually all mobile phone users and doesnot typically require a data plan or MobileWeb access, making it ideal for reachingmost mobile users.Advertising OpportunitiesText ads (SMS, MMS), Branding/CRM (SMS,MMS) Banner ads, splash pages (MMS)Animated images (MMS) Good for: Driving users to a Mobile Website, Click to call, Branding/CRM, Interactivedialogue (for example, voting or polling).

Pull advertising is attached to content orservices that users request or “pull” tothemselves. For instance, when a customerrequests a stock or news update.

Push advertising is one that is “pushed” tothe users’ devices. It may be unsolicited -like promotions delivered by SMS - orsolicited, where users agree to receivenews of services or promotions.

PUSH ADS VS PULL ADS

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CUSTOMER DATABASE Mobilemarketing has to be permission-based

now. The TRAI guideline on Do-not-calldirectory means that the end users mustgive prior permission before being sentunsolicited messages via electroniccommunications for purposes of

marketing. So brands and theirmarketers have to build up a

legal database to avoidtrouble.

CARRIER COOPERATION refers tothe idea that carriers or network

operators have expertise and knowledgeof mobile service delivery. They control thedistribution channel and location-basedservices by allowing for message deliveryand receipt. Mobile advertisingcompanies should partner network

operators to deliver effectiveadvertising to customers.

MOBILE ADVERTISING

� The benefits1. Mobile WAP can be a fairly cost-effective

way to extend mobile and onlinemarketing efforts.

2. It can support consumer’s needs to browseand pre-select key content on the desktopfor access later on

3. WAP banner advertisement is now aviable way to reach consumers

4. A WAP page can be pushed to aconsumer’s phone, making the sitediscovery process easy.

Downloadable Content

Downloadable content is often used to enticeconsumers to participate in a mobile

marketing campaign. For instance, the downloadmay be a song, a ringtone, theme or wallpaper,video, game or any other application. “Technologyto support this format is still inaccessible to thecritical mass, but it is encouraging to note thenumber of people using GPRS,” says ManojDawane, CEO, Mauj Telecom. GPRS (GeneralPacket Radio Service) is a technology necessary forWAP to function on phones.

“When using mobile campaigns brands need toeducate consumers about how to participate insuch events to get the best results,” feels JagdeepKapoor, CMD, Samsika Marketing. This brings inits share of complications. For instance, it demandsdownload instructions that are easy to understand.

Downloadable content has been the next mostsuccessful tactic for mobile marketing, afterSMS. But there are technology issues whichforce a tie-up between mobile providers andmarketers. There are adaptability problems whenit comes to handsets. Says Gupta: “Sometimes, itis effective to tie up with an operator or a thirdparty service provider who will manage the

campaign across telecom service providers that issupported across handsets.” But, experts agreethat simplicity in mobile is the key to effectivemobile marketing. That’s the one lesson that canbe learnt from SMS-driven VAS.

� The benefits1. Relatively inexpensive for certain type of

content, especially when you have a webcampaign ready.

2. As a mobile phone with cutting-edge iship, the brand reaching this class isperceived to have a higher recall.

3. Easiest to supplement an existing webcampaign.

Though the above are the most widely-useddelivery mechanisms to reach consumers,technology helps the latter receive and managesome of the content via Bluetooth and infrareddelivery mechanisms. Two years ago, Lee becamethe first brand in India to use Bluecasting –marketing through Bluetooth technology – topromote its new catalogue.

Bluetooth devices were installed in Lee’s storesin Mumbai and Bangalore. Walking by, thecustomer’s phone beeped a simple quiz in whichthey were offered discount coupons. Lee claimedto have a click-through of 27 per cent.Makemytrip, Bookmyshow and STAR Plus are afew who have done Bluetooth marketing.

Technology-enablers help manage mobilephone content on a laptop or desktop. Thechallenge here is to make the consumer aware ofthese technologies. Considering that a mobile adcan reach the consumer at a fraction of the cost ofa billboard, marketers need to do the needful and,at the same time, make sure that they don’t alienateconsumers.

MOBILE ADVERTISING

Singh: keep the stepsto a minimum

SUSH

IL K

UMAR

New Media Marketing

Real World Solutions

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On the face of it, it would seem thatthere are two different and quitedistinct components making up themobile marketing industry -marketing-advertising and telecom.But it is actually the mobile marketingfirms and technology providers whohave driven the emergence of thismedium.

All-important?

Mobile marketing was born of theinternet revolution. Today, there

are more mobile phone subscribers in

India than there are landlines or even TV sets.“With the mobile phone becoming a primarymeans of communication, not only for voice butalso for digital services, email, digital photos andnavigation, it is an important medium formarketing,” says Singh of ActiveMedia.

While traditional advertising andtelecommunications are well-established andhave their own revenue models, mobilemarketing and advertising has failed to integratethese two different industries. To analyse themobile marketing medium, it is necessary tounderstand who the key players are.

According to the MMA Global (an industrytrade association for companies involved inmobile marketing), the mobile marketingecosystem comprises four interconnectingstrategic spheres - product & services (brands,content owners and marketing agencies),applications (discrete application providers andmobile (ASPs) Active Server Pages technology),connection (aggregators and wireless operators)and media and retail (media properties, “brick ‘n’mortar” and virtual retail stores).

“However,” says Devangshu Dutta, chief

THE STAKEHOLDERS

XIV

PUTTING THE JIGSAW TOGETHERTraditional advertisingplayers such as ad andmedia agencies havenot been the first-movers in this category.So, who is involved?

STAKEHOLDERContent/ Application OwnerDEFINITIONDevelops or owns originalcopyright content andapplicationsWHAT HE OFFERSCopyright of songs,entertainment news, movies, TVlistings, movie trailers, movieclips, games, show times,animated cartoons andpromotional media content

STAKEHOLDERAggregatorDEFINITIONAggregates content andapplications from owners orsmaller boutiques anddistributes it to suit customerneeds. Also manages IVR,quality control and accountingof the aggregated contentWHAT HE OFFERSAggregation of games,wallpapers, ringtones, news,matrimonial content and more.

STAKEHOLDERSoftware DeveloperDEFINITIONDevelops or manages theentire or a majority of softwaredevelopment, including qualitychecks. Can also work withthird party developers for partsof a processWHAT HE OFFERSDevelopment of securityapplications, middlewaresolutions, paymentapplications, games.

ExampleSaReGaMa, Rajshri, Sony,

Mauj, YashRaj Films

ExampleMauj, Airtel Mobile VAS,

Hungama Mobile

ExampleOne97, mChek, Webaroo,

flynxt, air2web

executive, Third Eyesight, aGurgaon-based marketingconsulting company, “The mainplayers in the value chain are theadvertisers, the mobile marketingcompanies, the media owners, thetraditional ad agencies, the networkoperators/carriers, the technologyproviders and the customers.”

The mobile operator has a unique place in themobile marketing value chain. Never before hasone player had such a big influence on thedevelopment of a new marketing channel. “It is asif the print shop would rule the world of printadvertising,” comments Singh of ActiveMedia. Tounderstand mobile marketing better, it is pertinentto consider three segments that drive it – themarketing, connection and the enabling clusters.“Integration across these helps get a clear sense onhow each fits into the value chain,” says Dutta.

The Marketing Cluster

The players in the marketing cluster focus on,well, marketing. Their activities include

customer identification, managing the brand,

promoting a product or service,creating the content that isdisseminated to the end-users,developing the applications used tostage, launches and report on mobilemarketing campaigns.• Campaign sponsors own the brandand benefit from the promotion anddelivery of their products/services

through the mobile channel.• Content providers create content such asadvertising, trivia questions, ringtones, messagesor promotions, which are delivered through themobile channel.• Marketing agencies help to develop and tomanage the campaign, and employ the traditionalchannels to encourage people to opt-in for themobile campaign.

The Connection Cluster

This cluster consists of application providers,network aggregators and telecom operators

who create the ‘medium’ used to connect anddeliver mobile marketing content to the end-user. “This cluster manages the network

infrastructure, therebyconnecting the marketer withthe customer, and enables theone-to-one relationshipwhich is the hallmark ofmobile marketing,” sums upDutta.• Application providersstraddle both the marketingand the connection spheres.While they are primarily tech-focused, a few players extendacross multiple steps in thevalue chain. In this highlytechnical aspect of the valuechain, application providersare the interface between themarketing cluster and theconnection cluster • Network aggregators likemedia buying agencies hidethe complexity of the networkby developing technicalexpertise that shields theapplication provider andmarketing cluster players

THE STAKEHOLDERS

XV

Hiranandani: uniformservices deliver

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STAKEHOLDERTechnology EnablerDEFINITIONActs like a bridge betweenaggregators and telcos.Manages and maintains theplatform as per standards andhandles integration of diverseapplications, reconciliation ofaccounts and billingWHAT HE OFFERSPlatforms for ringtonedownloads, games, streamingaudio and video downloads.

STAKEHOLDERTelcos DEFINITIONCarriers or mobile phoneoperators who own the mobilemediaWHAT THEY OFFERServices to reach the enduser/consumer

STAKEHOLDEREnd User DEFINITIONThe target, who receives themobile marketingcommunicationWHAT SHE DOESResponds, reacts andinteralises the content

ExampleOnMobile, Reliance

Communication VAS, telesoft,cellnext

ExampleAirtel, Vodaphone, Idea,

Reliance

ExampleAny cellpone service user

The main players in the chain that makes up thestakeholders includeadvertisers, mobile marketingcompanies, network operatorsor carriers, technology providersand customers. And all of themcan be categorised intointerconnecting strategicspheres. Sometimes, the rolestend to overlap.

LINKS IN THE CHAIN

FOTO

CORP

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from the challenges of delivering mobilemarketing content through different wirelessoperator networks. “It is rare, or will becomeincreasingly rare, that a firm that wants to domarketing will interact directly with the telecomcarrier,” explains Hiranandani. That is perhapsthe reason why the role of the networkaggregator is the key to the whole value chain.• Mobile operators manage the network andprovide wireless voice and data services to end-user. With the average revenue per user (ARPU)falling, it is important for operators to generatenew revenue streams and they seemobile channel as a critical sourceof these new revenues.

Enabling cluster

This spans both marketing andconnection clusters, and

consists of players such as regulatorybodies, handset makers, mobileoperators and agencies.• Regulators address issues specificto each cluster. TRAI, the primaryregulator considers unsolicitedmessages and calls as illegal.

• Industry Associations such as the COAI(Cellular Operators Association of India) andeven handset makers help develop the standardsand create a framework around the industry. Infact, a critical role for these associations is tocreate an effective bridge between regulators andthe industry.• Infrastructure and intermediate players are toomany. They consist of all the companies thatcreate and maintain the technologies used toenable mobile marketing, including the switches,cellular towers, mobile phones, screens, softwareand even billing systems.

Overall, the role of the telecom operator is themost important one. For instance, as enabler, themobile operator needs to demonstrate his reachfor advertisers to be interested in the media. Inorder to make this happen it is very importantthat telecom operators strive to set commoncommercial and technical standards, not justnurturing their own revenues.

In the initial phase, the value-added servicesfrom mobile operators were restricting. Theywere on offer only to those on their networks.“The services are now uniform across operators,with some customisation, but the look and feel isuniform,” says Hiranandani. For the serviceprovider to grow, standards and formats have toco-exist for the development of the industry.

As advertisers, with access to a wide customerbase, mobile operators have demonstrated theireffectiveness. “From simple billing plans topushing new VAS, they have demonstrated it allfor marketers to be convinced of the advertisingsuccess,” says Dutta. After all, if the mobileoperators themselves aren’t using mobilemarketing, who else would?

It is dawning on mobile operatorsthat there might be a new revenuestream in mobile advertising. Theirportals will have to provide the bestreach and detailed segmentationinformation for advertisers to makethe latter interested.

The mobile operators’contribution is necessary to continueto drive mobile marketing andadvertising forward. But to reach fullpotential, they must not only get theabove three roles working internallybut must also work together.

Dutta: integrationmakes sense

XVI

THE STAKEHOLDERS

The revenue shares betweenvarious stakeholders vary - the value chains earn while theend-user (A) pays for thecontent. The network operator(B) gets to keep 60-70 percent of the revenue. Theaggregator (C) gets 20-25 percent and the application ownerends up with the rest.

WHO MAKESTHE MONEY?

A

C

D

B

SUSH

IL K

UMAR

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CASE STUDIES

XVIII

Mobile marketing may be in itsready-to-take-off stage, but thereare some brands that have triedadvertising and reaching out toconsumers with satisfying results. The Brand Reporter presents 10brand case studies - ranging fromfinancial products to FMCGs to socialcauses - that have set an example.

1Citibank is a leader in banking andpersonal loans services. Withassociations in several countries, it

prides itself in being one of the largestfull-services banks in the world.

Business ObjectiveCitibank India was looking for a reliable andcost-effective solution to launch an SMS-based

promotion as part of astrategy to generate leads forits Personal Loans Service.

Partner: Hungama Mobile Driven by the fact that

cellular users in India were in sync withCitibank’s target audience, Hungama Mobileconcluded that the cellular platform was the idealinteractive real-time medium to promoteCitibank Personal Loans. The activity devised was a ‘pull-based’ onereaching Mumbai-Pune circles and ran for 30days. The audiences were engaged throughvarious on-ground activities, newspapers inserts,banners, flyers. The consumer had to SMS thekeyword CPL to 54646 and these users wouldthen be contacted by the Citibank customer carerepresentatives immediately generating valuableleads in a short time.

2Horlicks was launching a new variantHorlicks Shake. The brand wanted to getconsumers to see the variant as a means to

create a tasty milk-based drink. Using mobile

interactivityas anintegralpart of

thecreative for

the regional TV campaign helped achieve this.

Business ObjectiveBuild the Horlicks Shake brand, reinforce thepositioning of Horlicks Shake and its taste factor.Give consumers a convenient and instantmedium to interact with the brand

Partner: ActiveMedia An SMS-based contest element was added to thetelevision campaign creative. Consumers wereasked to simply SMS SHAKE to the short code3636 to find out how to add more taste in theirmilk and also enter the contest.

3Neo Sports, holds the rights for exclusivebroadcast of all international cricket to beplayed in India till 2010 which amounts to

almost 70 per cent share of the total cricket daysin this period.

Business ObjectiveTo strengthen the new brand's engagement withviewers.

Partner: Buongiorno Buongiorno facilitated the acquisition of theshort code 58990 by Neo Sports and manage allSMS-based services forthe channel. Thecomplete technologyback-end for the NeoSports' mobile initiativeon SMS was set up by Buongiorno. It helpedempower SMS activities on the unique shortcode from telecom operators. Buongiorno notonly managed the SMS traffic to the short codeservice but also helped support other mobilemarketing promotions of Neo Sports.

SETTING AN EXAMPLEPresenting case studiesof some marketers andorganisations that havetried - and successfullytoo - to get consumersinvolved with theirbrands.

CASE STUDIES

4Teacher’s a 178-year-old brand known for itssingle malt whisky wanted to popularise itsofferings in India.

Business ObjectiveDevelop a WAP-based model for promotingTeacher’s.

Partner: Hungama MobileAs WAP technology is a pull media, Hungama’sbrief was to execute it effectively. The entireactivity was driven by pub-crawl. In Mumbai, forinstance Churchill bar at Regent, Geoffrey's andJewel of India were identified as the ideal spots.Hungama people were at the bar WAPping awaywith the crowd. There were on-the-spot prizesfor people who took part in the interactive thatfacilitated unique brand experience.

5Kal Ho Naa Ho was one of the blockbustersof 2003. Produced by Karan Johar anddirected by Nikhil Advani, the producer

wanted a mass media connect for the movie,

starring ShahRukh Khan, SaifAli Khan andPreity Zinta.

BusinessObjectiveTo promote themovie throughCDMA-based Reliance phones' Showtimechannel.

Partner: Hungama and Reliance MobileCreated a multimedia platform on RelianceWorld, enabled users to download film clips,songs and wallpapers. A parallel contest ran withthe winners getting to meet the three lead stars ofthe film.

6Founded in 1995, eBay is the world’s largestonline auction and shopping site wherepeople can buy and sell goods. Ebay.com has

a turnover in excess of $5 billion and has more

CASE STUDIES

than 12,000 employees across theworld. It also has a shopping sitewhere people buy and sell goods.This one was its India initiative.

Business ObjectiveAs most people are not online 24X7, eBay wantedthe buyers and sellers to be informed instantlyabout any auction taking place online. Secondly,eBay also wanted a solution which has analternative means of verifying the user to preventany possible frauds in trading.

Partner: ValueFirst (VFirst) After carefully analysing the needs of eBay,ValueFirst proposed a solution based on PaceAPIs (application programming interface).ValueFirst Pace APIs interfaced with the eBayapplication layer and integration was done in lessthan two days. Both buyers and sellers wereinformed about auctions, increasing volume andfulfilling client objective.

7One of the two big pizza chains in India.Famed for its 30-minute delivery guarantee,Domino’s is one of the more tech-friendly

marketers. In an interactive initiative, itlaunched a mobile WAP contest, where

consumers could win a mobile discountcoupon after answering a quiz.

Business ObjectiveTo increase consumption of Domino’s

Pizza by strategic targeting of consumerswho would eat the pizza. Plus, the cost of the

CRM had to be negligible.

Partner: Mobile2winMobile2win’s responsibility included

conceptualisation of the promotion, detailed flowand methodology of the promotion, designingother promotional media to promote thecampaign. Mobile2win also created a WAPapplication, maintained the database ofparticipants and generated reports to analyse dataand responses for the contest. Winner generationand customer relations management were alsotaken care of by mobile2win. The campaign waspromoted on the Vodafone and Airtel’s WAPportal.

8The Fair & Lovely (aHindustan Unileverbrand) Scholarships

are awarded annually todeserving young girls whointend to pursue highereducation in India leading to graduation, post-graduation and Ph. D. Awarded by the Fair &Lovely Foundation, the $2,500 scholarship ismeant for women ‘with an aptitude and theambition to achieve their goals’.

Business ObjectiveTo provide visibility and synergy to the Fair &Lovely campaign. Reliance Communications’ RWorld platform was thought to be the bestmedium for advertising the scholarshipprogramme for women as it gave a high reach inthe desired target group.

Partner: Reliance MobileIn terms of media fit and the campaign objective,Reliance Communications’ CDMA network ofhandsets was a unique platform, R World. It hasthe capability of featuring substantial amountcontent in terms of text, visual and audio, madethe platform highly interactive.

CASE STUDIES

9The Economist needs nointroduction. But for five years,the magazine had not invested

in brand advertising in Asia and inthese years there were staggeringchanges. So this initiative.

Business ObjectiveMake the business person in Asia understandwith complete clarity that The Economist sharedthe same aspirations, ambitions and energy and,at the same time, make use of innovativetechnology to get subscriptions.

Partner: OgilvyOne WorldwideAt the time, Sudoku was the hottest game going.This campaign included a Sudoku mobile game(versions for all popular phone models). Anonline banner lets one directly download thegame to the phone. A WAP site allowed usersdownload the game and subscribe to TheEconomist.

10The Indian Association for Promotion ofAdoption and Child Welfare (IAPA),established to promote social awareness

on adoption, believes that every child has a rightto a family and that adoption is the bestalternative for young children whose ownfamilies are unable to raise them.

ObjectiveThe social attitudes towardschild adoption favouredreceptiveness to a child fromtheir own family. Changingthis attitude itself became theprimary objective.

Partner: Neo@OgilvyTV - and hence video - was the main source ofinformation about adoption issues. With airtimebeing expensive, Ogilvy had to come up with acampaign, relevant to the audience. Also, it hadto take care that spends didn’t go overboard.

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Last year will be remembered as theyear the balance tipped, with the Asia-Pacific and Asia taking the global lead insome key aspects of the digital marketingmix. With the region boasting the largestnumber of mobile phone connection,surpassing the US and Europe the shiftin mobile marketing is nowin Asia.

According to InternetWorld Stats, 36 per cent ofthe world’s onlinepopulation lives in Asia.Mobile penetration in Asia

remains higher than anywhere else inthe world with Hong Kong, Australiaand Taiwan being the world’s top threemarkets in terms of penetration. Andfor the first time the number of Asianusers accessing the internet over theirmobile phones exceeded the entire PCor laptop internet-connectedpopulation of the US.

Analysts estimate that global mobileadvertising spends will reach $1.3billion this year. And by 2013, JuniperResearch expects this to jump to $7.6billion. And the fastest-growingmarkets? China and India.

The ubiquity of the mobile phoneand the growing sophistication witheach handset launch allows consumersto do what comes naturally to them onother channels such as the desktop-based internet. Marketers too will wantto do what comes naturally to them:reach out to mobile users with relevantoffers, ads and content.

The Brand Reporter, based oninterviews conducted with executivesin mobile and interactive marketing,

believes the following could be some of the trendsto look out for in the coming years.• Education is the key to driving mobile marketingacceptance. Marketers shouldn’t just promote, theyneed to convince with fact and reality.• Local search will find its calling on mobile. Thiscategory has the potential to explode. YahooonSearch, Google (testing) and Microsoft are keyplayers in this space.• Location-based services category will take off.Everyone wants GPS (global positioning system,that helps the user know where he is) on theirphone.• Mobile banking will gain more customers assecurity issues are addressed. ICICI Bank andHDFC Bank are trendsetters in this area• Social networks will flourish on mobile withsome of the key players - Facebook, Flickr,

MySpace and Linkedin - branching outto the mobile Web• Entertainment options on mobile willproliferate. • Content providers, particularly mediaowners, will develop stripped-downversions of their websites for mobile.(Cosmopolitan, NDTV and a few moreare already doing this)• The Internet Big Four - Google,Yahoo, Microsoft and Apple - will taketheir turf battles to mobile.• Almost all interactive marketers willhave mobile strategies. • Targeting and marketing services tomobile users will increase. But care hasto be taken not to tread on or abuse theconsumer’s trust and permission• Mobile commerce may notexperience a surge in mass-marketacceptance, but expect more VAS (valueadded services, especially music,wallpapers and video sales to go up).The trick is to move sales from one-offringtones or songs to an album or amovie • Wireless carriers Airtel, RelianceCommunications, Vodafone and othershave the keys to the mobile gate. Andthey have no intention of handing themover. But they’ll struggle to justify theirproprietary portals - as more consumersaccess the regular Web on their mobilephones.

OUTLOOK

XXII

Asia - India and Chinain particular - is theplace to be for mobilemarketers. The BrandReporter closes in onsome trends for thefuture.

WHAT THE SCREENWILL LOOK LIKE

Since India is a cash-and-cheque country, WAP - andeCommerce - will take along time to be adopted

SMS has come to stay. Butadvertisers will have to beconvinced to support thismode of communication.

IVR is expensive. Lack ofrefined digitised locallanguage content is aconcern.

Mobile marketerswill have tocreate trust withthe consumer. Itwill take time butmarketers whodon’t havemobile in their2008 mediaplans will have toplay catch-upwith a constantlymoving goalpost.

Worm Chart

Scorecard

Summary