In times of crisis, whether it was Haiti after its earthquake or recently Japan in the aftermath of its own earthquake and tsunami and nuclear reactor abnormalities, people around the world selflessly lend a helping hand to those who are affected by such devastation. Tons of food, water, clothing, are donated as well as monetary donations pour in. Last year, the Red Cross offered a solution: text the word “Haiti” to 90999. The Red Cross is now offering their service of “Text2Help” by texting “REDCROSS” to 90999 to help the victims in Japan. A donation can be made from any place you get a signal and you don’t have to enter in a lot of information to give a quick and meaningful gift. By accepting donations through the mobile sphere, the Red Cross can reach a wider audience during times of disaster when support is needed immediately. Supporters are not limited to writing a check and putting their gift in the mail nor having immediate computer access and entering in credit card information the donation can be made instantly from a mobile phone. This is when it became clear to most of those in the realm of business that text-messaging could work for them too.
A company named Zoove has been available to AT&T and Verizon users since last summer but intend to extend their services soon to both Sprint and T-Mobile cellular systems as well. Zoove has developed a system called StarStar (**) which allows a string of 2 to 12 letters that can identify companies or their products. As opposed to texting a message, the customer dials ** followed by the companies registry and will receive a voice or text message in return. For example, if a customer is looking for girl scout cookies they can type **GSCOOKIES which advises the caller to download a map of where girl scout cookies can be purchased. Joseph Gillespie, president and CEO of Zoove, states, “We now work on 95 percent of all U.S. mobile phones.” The StarStar systems also aids in data mining for companies. This includes data collected on location mainly. A user who dial **TAXI could receive a text with the three closest companies or advertisers could tailor their promotions to the designated region. The amount of data mined from the dials that people make would be invaluable to marketers. Zoove promotes it technology based on its simplicity, Mr. Gillespie says, “Our thesis is that simplicity wins.”
According to recent surveys, we are given a notion that smartphones will surpass computers in 2012 and that by 2013 cell phones will be the most common device accessing the web. This makes it so understandable that marketers are investing in mobile advertising; it will be the best way to reach consumers. Contrary to most belief, Search is the most common activity by mobile web users followed closely by social networking. Further, a recent study by Harris Interactive shows that nearly half of mobile app users click on ads accidentally. Also mobile apps do not have a generation gap, they are popular amongst all ages. The study showed that 2/3 of mobile app users selected ads that had coupons or deals as their preferred in-app mobile ad type. This has many important implications for marketers, mainly that they should look into in-app advertising seriously. Dunkin Donuts and Burger King have both successfully implemented this type of in-app advertising deals or discounts. When Dunkin Donuts advertised a free deal, most users saw this and drove over.
As a personal user of a smartphone I can see this type of advertising becoming essential to any companies marketing strategy. With the more and more time I spend on my phone, whether it be for work or for personal use, seeing a coupon for Starbucks or Dunkin Donuts could never hurt. It would actually make me want to take initiative and go use it. With such strong growth in the smartphone market and the increasing sales of the iPad and tablets, mobile advertising will soon become an essential part of companies marketing plan.
Works Cited
Taub, Eric A. "Zoove, a Mobile Start-Up, Aims to Upstage Text-Messaging - NYTimes.com." A Guide to the Media Industry - Media Decoder Blog - NYTimes.com. 13 Mar. 2011. Web. 16 Mar. 2011.
"Technologies in Market Research: Mobile Research." Web log post. Luminosity Marketing. 07 Jan. 2010. Web. 16 Mar. 2011.
"Text2Help Faqs." American Red Cross. Web. 16 Mar. 2011.
"What Matters Now: Mobile Advertising." Luminosity Marketing. 23 Feb. 2011. Web. 16 Mar. 2011.
It is so interesting to see all of the uses of mobile technology. When I see the Red Cross advertisements I always think about donating some money to the cause they are supporting. It is so easy and convenient for people to donate their money. However, it is almost too easy for people to donate this way. For instance, my 12 year-old sister unknowingly donated money to the Red Cross without informing my parents. Although it was for a good cause, my sister could have unknowingly bought something else. I also find that mobile advertisements to be extremely effective. I am constantly getting different advertisements on my phone. I also think that data mining on mobile devices is a great marketing plan for companies. If I were to get a coupon on my phone while I was out and it was for a place that I was interested in, I would definitely stop in and attempt to use that coupon. I am amazed at the advancements in mobile technology. It is expanding markets such as charitable giving, in ways I never imagined it would.
ReplyDeleteThe fact that you can make donations through texting just goes to show you how much we rely on our phones these days. Aside from targeting customers/donators through social networking sites or advertisements, companies have found a very personable channel to reach their customer base. For the Red Cross, by making a donation through sending a text message available, people are probably a lot more likely to help. You don't connect the idea of spending money to sending the text message...that is until you get your phone bill. As for other companies sending coupons and deals through text messages this is a very strategic move. As a customer, you would feel like you're getting an inside deal on the product, so naturally you would want to take advantage of it. Furthermore, the fact that we have become a society that is glued to their cellphones/smart phones, is ideal for companies. Like Lisa and Dilshan pointed out, if they received a coupon on their phone, they would probably use it. I would have to agree. Coupons and deals through cell phones are very convenient and effective marketing strategies. With our fast paced lifestyles and technologically advancing world, it is no wonder that companies are capitalizing on this opportunity.
ReplyDeleteI think that it is great that people have the ability to make donations to charities through the mobile sphere, but I personally would never do it. I am sure that there are companies out there that are legitimate, but I do not believe that is secure enough for me to believe that what I say I want to donate will actually be what is donated. I do, however, see the importance of companies using mobile advertising to data mine and conduct research. The fact that more people will be using smartphones than personal computers by 2012 says enough to support the importance. I personally do not have a smartphone, but after seeing all of the amazing apps that have emerged over the past couple years I will be converting soon and I know that I will be one of the millions if not billions that will be marketed too. I think that next to social media websites, mobile advertising and research will become the best way to collect information on customers and improve marketing mixes.
ReplyDeleteI do agree with Lisa in the fact we should see a little caution in how "easy" it is to donate this way. I never considered the fact that it might be too easy. There could be times where we could be attracting hidden fees and/or like Nick said, donating to an organization that may or may not be legit. I feel that right now as we continue to develop this type of advertising, the security aspect will continue to improve as well. Its a great place to start, as Carolyn said, we do rely on our phones so much now and I feel that it will become the standard to have these smartphones very soon. It is a changing world and its interesting to see how the non-profit part is keeping pace.
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