On top of the previously discussed mobile internet advertising tools, mobile marketing offers other powerful marketing tools mentioned in this section.

Text (SMS) and picture messaging (MMS)

SMS is currently the most commonly used format for mobile marketing, accounting for 72% of spend in 2005 across Western Europe2. Whilst it can create a very personal experience between advertisers and consumers, the creative and character limitations mean that its use is likely to decline as other formats like MMS and mobile internet take off. By the end of the decade, MMS will be the most prevalent format, taking 48% of the market, whilst the share devoted to SMS will decline to just 23%2.

Like email marketing, SMS and MMS advertising is hindered by the need for users to opt-in to receive communications. Mobile users often see push advertising as an intrusion; network operators and advertisers need to be careful not to alienate consumers. However, once advertisers have built an opt-in database, they can communicate with consumers using MMS in a highly targeted manner.

Shortcode and Bluetooth

Shortcode can be used to solicit interest from consumers across other media. The 5 digit numbers can be included in TV, press and outdoor campaigns, encouraging consumers to text for further information. This can either be delivered directly, in the form of an SMS or MMS, or they can be sent a link to a mobile website.

Bluetooth has become a popular way for consumers to transfer content face to face, between handsets. Bluetooth hotspots can be used to deliver video-clip style content on behalf of advertisers. Price and execution issues have made it a complicated addition to media plans, but as prices fall and permanent networks of Bluetooth hotspots are established, it should become far more effective.

Example – HSBC using Bluetooth marketing
HSBC, one of the world’s largest banks, has been trialing a new kind of location based advertising in London recently.

If you are walking down Regent Street and you pass an HSBC branch office, you may receive a video ad directly onto your phone, promoting some of their banking products. The ad provides some brief information about the products, and then invites you to either send a SMS to get a call-back, or to simply walk into the branch.

The bank has installed Bluetooth transmitters at two of its busiest branches, Canary Wharf and Regents Street. As people walk by on the street outside, the box scans to see if Bluetooth is activated on their phone. If so, it sends an un-solicited message asking if you would like to receive a free download from the bank. If they accept, they receive a small video file over Bluetooth.

If the passerby refuses, then no video file is sent. And the system is smart enough to keep track of which phone numbers it has sent messages to, so the same person doesn’t receive the invitation more than once. (source: MobiAdNews.com 2007)

Mobile TV

As well as video and TV on demand delivered through the internet on a mobile phone, some mobiles – particularly in other countries like the US and Japan – allow for a TV signal to be received.

This is a standard TV signal and television programming with the regular advertising attached. In the UK this technology hasn’t taken off yet, but it potentially could be launched in the near future.

It’s worth bearing in mind because consumers could be watching mobile video using a number of different methods, all of which are entirely separate from one another.

Mobile commerce

A major potential use for mobile phones is as an electronic wallet to pay for goods and services. A number of methods of doing this are beginning to emerge such as using visual barcodes on the screen of the mobile to be scanned in shops, through to paying by text with the cost being added to your phone bill.

Another new technology is called PayForIt. It is a method of linking websites to your mobile phone allowing to pay for items such as train tickets, music and ringtones (maximum of £10) on mobile commerce sites at a click. There is no need to use credit cards because everything is done through the phone bill. It has strong levels of security to ensure consumers are completely protected. “Payforit allows the same click-tobuy user experience offered on-portal but from any WAP page.” MobileIndustry.biz.