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Rob Petersen

16 Case Studies Prove ROI of Mobile Marketing

Tuesday, Feb 19, 2013

Are you paying attention to your mobile marketing yet? After years of being the next big thing, mobile might finally be the current big thing. But there is a big problem–most people don’t know how to prove it. A joint study by the ANA (Association of National Advertisers) and MediaVest shows marketers are excited about opportunities for mobile marketing but frustrated about the ability to prove return on investment (ROI). Are you one of them?

Consider these highlights:
  • 96% of marketers currently use or are planning to incorporate mobile marketing into their marketing mix
  • 85% report an intent to raise their mobile budgets in the near future
  • 84% use mobile websites; 78% mobile search; 76% mobile apps and 75% mobile display ads
  • 42% are concerned about having proper mobile metrics in place
  • 42% report an ability to prove ROI
  • Only 21% state they have been successful in mobile – a decrease from 2010
To help alleviate the frustration, here are case studies. They cover opportunities from mobile optimized websites, mobile apps, mobile search, mobile ads, MMS, SMS, QR Codes to social media. They also prove ROI is more often achieved when marketers pursue mobile with a specific business purpose rather than mobile for mobile’s sake.

Here are 16 case studies that prove ROI of mobile marketing
  1. BMW: Began using MMS (Multimedia Message Service) to send images, video, sound files and text messages for customized snow tire offers. They increased conversion +30%
  2. CARITAS HOME CARE: Boston-based home healthcare agency used mobile health devices to enhance communications and data collection with its 150 mobile clinicians. Caritas documented how the mobile devices were able to save 19,200 hours or 98 hours per clinicians per year. Although Caritas didn’t release salaries of clinicians, if we estimated $50/hour, which would be conservative, Caritas saved $960,000. If the devices were $100 each for 150 clinicians at $15,000, which would also be conservative, the ROI would be 64-to-1.
  3. DUNKIN DONUTS: Used SMS (short message service) or text messaging to increase store traffic and drive sales. The SMS campaign offering mobile coupons. It increased store traffic +21%.
  4. HAIR CLUB: North America's leading provider of hair restoration solutions for men and women created a mobile website with one purpose, to get mobile phone users to "click-to-call" for more information. Their "click-to-call" button goes to a live sales person within seconds. Once a call is made, their close rate goes up exponentially. ROI for the mobile website was 30-to-1.
  5. HARLEY-DAVIDSON: Wanted to maintain visibility with current customers and add new customers and revenue through a holiday promotion. They sold HD related merchandise through a Route 66's mobile club. Communications of the 12 Days of Christmas campaign were promoted through a mobile social media campaign. Sales increased 250% on helmets; 16% on leather jackets and there were significant increases in holiday dealer traffic which was also an objective.
  6. HOTEL TONIGHT: Sought to acquire new customers who would download its last-minute hotel booking app and ultimately use it to book room nights. To acquire new users of its app (available in the App Store and Google Play), Hotel Tonight used Facebook'granular targeting and two key products: the mobile app install ad and Facebook Offers. For three months between October 2012 and HotelTonight ran app install ads that: 1) Drove people to the App Store, 2) Targeted people based on demographic information and likes and interests such as "travelers," "parents" and "golf" and 3) placed on mobile news feeds targeted to iOS users. Hotel Tonight receive 10X higher click-to-install rate from the mobile app install ads and 80% higher return on ad spend from Facebook Offers than average mobile advertising spend
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About the Author:
Rob Petersen is President of BarnRaisers, an online marketing solutions company using social media, the power of community and the proven principles of relationship marketing. Rob was EVP/Chief Strategy Officer for Omnicom and has held leadership positions at FCB, Euro RSCG and Saatchi & Saatchi.

Rob has been recognized by the American Marketing Association for building billion dollar businesses multiple times. He has developed game changing consumer relationship platforms that have propelled brands from Abbott, Coca-Cola, Johnson & Johnson, MasterCard and Pfizer to market leadership.
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