Mobile Marketing Strategies Yield Greater ROMI than Traditional Media

For the best-in-class companies that have taken the leap into mobile marketing, 65% are satisfied with their average Return on Marketing Investment (ROMI) compared to 40% satisfaction with ROMI for traditional media (TV, radio and print), according to Aberdeen’s August 2009 Mobile Marketing study.

Companies that have invested in mobile strategies also report impressive results for increased customer acquisition and customer profitability. As many as 76% of best-in-class organizations are satisfied with their customer profitability and 57% are happy with their customer acquisition rates.


Several external factors are giving a boost to the effectiveness of mobile marketing. Those include:

  • Increasing functionality and usability of mobile devices
  • Increasing mobility of target audience
  • Decreasing effectiveness of traditional marketing channels
  • Increasing customer expectations
  • Changing demographics of target audience
  • Economic recession creating marketing cost restraints

The largest percentage (73%) of survey respondents cite improved functionality of mobile devices as the leading catalyst for mobile marketing. Large-screen smart phones and 3G wireless service are two of the improvements that are lifting the mobile marketing surge.

Best-Practice Examples
A selection of retail and consumer goods companies have met the challenge of mobile marketing with recent implementations:

Best Buy introduced an iPhone application called Best Buy’s Weekly Deals, giving iPhone users access to special offers and discounts. The world’s largest consumer electronics retailer also introduced Best Buy Gamers Club, which provides gaming enthusiasts with a vehicle to save items to a shopping list and share them with friends.

Coca-Cola uses mobile devices as a key component of its My Coke Rewards program, which gives consumers the opportunity to text in codes at the point of purchase, along with other features. Coke also uses event-based marketing to mobile phone users. During a summertime Indianapolis Motor Speedway event, the soft drink marketer promoted Coke Zero by encouraging mobile phone users to join My Coke Rewards. The program enjoyed a 5.2% mobile ad click-through rate.

The Steps to Implementation
For the companies that are now recognizing the need to implement mobile strategies but don’t know where to begin, Aberdeen recommends that companies start with the following steps:

  1. Adopt best practices for mobile marketing campaign development and execution;
  2. Hire resources that have mobile marketing as part of their job description
  3. Define performance metrics for measuring mobile marketing effectiveness;
  4. Streamline the process for allowing consumers to opt-in/opt-out of mobile marketing campaigns.

Once the first four steps are in place, then companies can move on to more advanced strategies including:

  • Using a digital dashboard for mobile marketing performance measurement to get a true read on the extent to which a given channel or marketing program is contributing to overall revenues and profits.
  • Exploring location-based or proximity techniques to drive precision marketing effectiveness to deliver consumer-initiated, contest-sensitive marketing messages and offers based on geographic location.
  • Integrating social media into mobile marketing campaigns to leverage word-of-mouth as a way to raise brand awareness, drive marketing improvement and ultimately increase shareholder value.

To complete the study, Aberdeen researched more than 200 enterprises with current mobile marketing initiatives or plans for future deployment.

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