The prophetic book by CEO Michael J. Saylor, The Mobile Wave, exploits the overwhelming and inescapable mobile power that will influence the future of our industry. Single-purpose machines are lining up on their way out the door. Desktop and lap top computers, GPS devices, cameras, game consoles and televisions have already been reinvented and virtually replaced with slender phones the size of this paragraph.
Over 5.3 billion people, about 75% of the world’s population, have a cell phone today. According to Saylor, global studies show that there will be one mobile device per capita by 2015 and Smartphone users will use 16 times the amount of data annually then they did in 2010.
Now, let’s profit.
If you’re not already on the mobile advertising bandwagon, take a second to consider that there is a projected 61.9% increase in mobile payment transactions between 2011 and 2012. Yet another research article predicts mobile payment transactions to quadruple over the next 5 years. Not a single advertiser can afford to miss out on those $171.5 billion consumer dollars per year.
Scenario #1 – Direct Response
Susan walks into a store by Shoe Company A, and her phone’s GPS indicates that she is there. Later she waits for the bus, searches for the pair of shoes she wants to buy and finds them at a better price from Shoe Company B. Shoe Company A sends her a “Thank you for visiting Shoe Company A, here is a coupon for your next purchase” text. Susan buys shoes from Shoe Company A. Retargeting combines a plethora of smartphone features to “hijack” retail customers from competition.
Scenario #2 – Direct Response
Earl strolls into the dairy isle at the local grocer. Maybe he wants ice cream, maybe it’s not on the list, but his cell phone vibrates with recommendations for new flavors and discounts from Ice Cream Company A. Precise geo targeting based on mobile positioning allows for real time ‘calls-to-action.’
Scenario #3 – Branding
Lady Gaga is performing at Sports Authority Field in Denver. Concert goer Neal receives a push notification to vote for the encore song that she will sing to close the show. Sonic Technology allowed Lady Gaga to develop her brand with the audience through sound. An imperceptible sound bite can be integrated into an in-store radio, television show, live concert or PA announcement triggering content sent through mobile apps.
Michael Saylor would close by saying that an advertiser can either choose to ignore the transformation of physical space into cyberspace, or they can choose to profit from it.