Guest comment: Tapping in to mobile social networks

Tapping into social media has become an integral part of marketing campaigns for a growing number of brands, and with good reason. There is huge value to be gained from reaching these users due to the personal nature of the information exchanged on the various sites and services, allowing marketers to execute relevant, targeted campaigns. While this has become a mainstream approach among brands online, it is still maturing on mobile. However, this is beginning to change as marketers continue to recognise the value of reaching this potentially lucrative audience.

The sheer size of the mobile audience is compelling, particularly in a global context. Penetration of mobile phones in many developed markets is well over 100% and the number of users accessing the internet through their handsets is also rising. The spread of smartphones has played a role in this, yet we also see an increase in mobile internet access from more conventional phones with browsers. In western countries these users tend to be blue collar workers in industries where it is more convenient to access the web from a phone than a PC.

For those in emerging markets mobile phones can represent the primary, and often only, method of accessing the internet for many. For example, there are 400 million mobile phones in India compared to 50 million PCs, and more people in South Africa use Google from a phone browser than from a fixed-line connection. These ‘unwired’ users, in developed and emerging markets, represent a significant proportion of the global population that are not exposed to PC-based online marketing activity.

It is important to recognise that due to simplified price plans and flat-rate data charges, more mobile internet users now see their devices as way to access online content. The type of content users of our mobile social network, myGamma, consistently engage with relates to communication and collaboration with friends. Members interact with each other through personal profiles, games, chatrooms, blogs and various other tools. It is almost all user-generated content, which is significant because it demonstrates a willingness to engage with the community. And this is precisely the attitude advertisers need to adopt.

There are a number of ways businesses can contribute to the user experience on mobile social networks whilst establishing brand presence, interaction with their target audience and effective ways for users to purchase their products. These techniques, which are specific to mobile social networks, can be implemented alongside more traditional banner ad campaigns. This is largely due to users’ acceptance of the ad-funded model of mobile social networks and their receptiveness to these advertisements. We have identified four tactics that can be successfully employed in conjunction with banner campaigns on myGamma. These are virtual items, targeting, building dialogue and m-commerce.

Virtual items such as casual games, gifts, avatars and their associated accessories are major revenue generators on the web, and our user surveys suggest demand is also high from mobile users. For example, a fifth of myGamma users want to be able to purchase items for use in online games. There is certainly scope for businesses to enhance this experience by creating various brand-related virtual items. While this may directly generate revenue through sales, the real value lies in users’ interaction with, and exposure to, the brand and its messages.

In terms of targeting consumers, companies can use mobile social networks in two distinct ways. The first requires brands to register as a user on the network, set up a profile page, and become actively involved in the community. This allows them to identify certain interest groups, topics or themes relevant to their products or services. And because these users have clearly affiliated themselves with a particular subject, it provides an excellent opportunity for brands to examine, engage or contact a group of relevant consumers. The second method of targeting involves utilizing the data users provide when they register with a social networking site, such as age, gender and location. This enables marketers to run ad campaigns that will be only be viewed by users who meet specified criteria.

Social networking sites can also help reinforce brand loyalty and attract new customers by engaging in open dialogue with an organisation’s customers. One approach is to create a brand profile that allows users to submit messages, suggestions and queries through the network. It is important to highlight that in order for this to be an effective tool, brands must be willing to respond openly, honestly, and in a timely manner. This can also act as a platform to announce new products and share information with users who have opted-in to the brand’s network. Additionally, valuable data can be extracted from these interactions, including consumer tastes, trends, product or campaign feedback as well as real-time indications of drivers and trends.

Marketers can also take advantage of the expanding mobile payments industry, which Gartner predicts will rise from 32.9 million mobile transactions in 2008 to 103.9 million in 2011. As this area grows, so do the opportunities for brands to attract previously inaccessible ‘unwired’ customers. For example, when mobile payments are combined with ad-based content, users are able to view an advert and pay for the product or service all from their mobile. This has been available for mobile-specific items such as ringtones and screen wallpapers for some time but users are beginning to pay for more expensive, non-mobile products.

In addition, the ubiquitous nature of mobile phones and the ability to purchase directly from a handset has created multi-faceted marketplaces on social networks. There are numerous channels to distribute and promote a wide range of products and services, which are continually increasing and evolving. Because of this, there is considerable scope for brands to innovate and find new opportunities to stand out. Another advantage of combining m-commerce and social networks is that people are encouraged to become brand advocates by reviewing purchases and sharing them with a network of friends.

As briefly outlined before, users are receptive to advertising on these networks and the sites they propagate through user-generated content all carry banner advertisements. This provides substantial inventory and reach for advertisers. For example, myGamma is an integral part of the BuzzCity mobile advertising network, enabling us to connect brands to third-party publisher sites and those on the myGamma network. This is an area that we, and others in the industry, are continuing to see grow, despite the current economic conditions.  This is largely due to mobile advertising rates continuing to fall in line with other advertising methods, as well as a wider appreciation of the value of mobile advertising in general.

Banner advertising via mobile internet in particular is set to increase, with its opt-in and non-intrusive nature making it both a targeted medium and one that does not violate consumers’ privacy (contrary perhaps to push marketing via SMS). Responses can be tracked back to specific campaigns, for example, it is possible to accurately measure click-through rates and provide detailed analytics of pages browsed. We expect these distinct advantages to continue to encourage both big brands and smaller businesses to adopt mobile advertising as a core part of their marketing mix.

The considerable size of the ‘unwired’ global consumer base means that a substantial audience is currently unexposed to traditional online marketing activity. Mobile internet offers an ideal channel to reach these consumers and to interact with them through social networks. A combination of social media tactics such as creating virtual items, targeting and creating open dialogue with users, can be effectively implemented alongside mobile advertising campaigns. In addition, the ability for consumers to purchase goods directly through their handsets presents a powerful medium to execute highly relevant and engaging campaigns.

BuzzCity sees the mobile social network industry steadily expanding around the world as more users begin to use their handsets for online content. This presents an increasingly attractive proposition to marketers who have an ever-expanding network of consumers with whom to engage and target with both content and advertising.

By KF Lai

CEO

BuzzCity

www.buzzcity.com