What is 'Mobile Marketing'

Mobile marketing utilizes multiple distribution channels to promote products and services via mobile devices, such as tablets and smartphones. It makes use of features of modern mobile technology, such as location services, to tailor marketing campaigns based on an individual's location. Mobile marketing is a way in which technology can be used to create personalized promotion of goods or services to a user who is constantly connected to a network. Mobile advertising is a subset of mobile marketing.

Breaking Down 'Mobile Marketing'

Mobile marketing may include promotions sent through SMS text messaging, MMS multimedia messaging, through downloaded apps using push notifications, through in-app or in-game marketing, through mobile web sites, or by using a mobile device to scan QR codes. Proximity systems and location based services can alert users based on geographic location or proximity to a service provider.

Mobile marketing an indispensable tool for companies large and small as mobile devices become ubiquitous. The key players in the space are the brands (and companies that they represent through advertising), and service providers that enable mobile advertising. Mobile advertising targets audiences not so much by demographics but by behaviors (though demography plays a part, such as the fact that iPad users tend to be older and wealthier). One notable behavior in the mobile marketing space known as "snacking," which is when mobile device users check in to media or messaging for brief periods. Such seeking of instant gratification equates to more points of contact for marketers.

In mobile marketing, the device (especially screen size) does make a difference — users of smartphones and iPad tablets react differently to mobile marketing. For example, smartphone users tend to find informative content to be the most relevant, yet iPad users tend to be captivated by interactive advertising that features rich media presentations with eye-catching imagery (the message of the content is a secondary concern).

Mobile Marketing vs. Traditional Marketing

Unlike traditional marketing efforts, mobile marketing takes advantage of the fact that many users of mobile devices carry them around with them wherever they go. As a result, location-based services can collect customer data and then offer coupons, deals or promotions based on their proximity to a store or a place frequently visited by the consumer. These marketing campaigns can be more targeted and specific to the individual user, and should therefore be more effective for the company doing the marketing. One example may be a marketing campaign that sends food-related coupons to a customer any time they come within half a mile of a specific supermarket.

Mobile Marketing Concerns

There are privacy issues concerning how the data collected by mobile devices is used and whether or not companies have the right to collect such data without explicit consent. Such data can be used for identity theft or to send spam if it falls into the wrong hands due to data theft or poor security of the information. Also, the tracking of individual's locations and movements may be considered crossing the line by some.

RELATED TERMS
  1. Mobile Commerce

    Mobile commerce is the use of wireless handheld devices, such ...
  2. Mobile Trading

    Mobile trading refers to the use of wireless technology in securities ...
  3. Second Screen Advertising

    Second screen advertising drives customers to their second screens ...
  4. Occupational Labor Mobility

    Occupational labor mobility is a measure of the opportunities ...
  5. Tailored Advertising

    Tailored advertising places an emphasis on the needs and wants ...
  6. Social Data

    Social data is information shared publicly by social media users, ...
Related Articles
  1. Small Business

    Mobile Ad Competitors: Facebook Vs. Google

    Facebook and Google are locked in a heated battle in the mobile advertising sweepstakes. Who will win?
  2. Tech

    China Mobile: Just How Big is It? (CHL, CHU, CHA)

    The story behind China Mobile, the biggest company you might never have heard of.
  3. Tech

    Mobile Payments Could Replace Cash By 2016

    Could paper money be replaced by mobile payments in the near future?
  4. Investing

    Capitalizing on Mobile Advertising: Twitter Vs. Facebook Vs. Google

    Learn how Twitter, Facebook and Google are faring in the race to dominate mobile advertising, and discover the differing successes the three companies are having.
  5. Investing

    Cisco: Mobile Data Traffic Up Sevenfold by 2021

    Finding: More of the planet will have mobile phones than running water in five years' time.
  6. Investing

    China Mobile Endures Downgrades (CHL, CBSH)

    While investors like Commerce Bank sells shares, China Mobile retains footing in 4G space, anticipates expansion.
  7. Investing

    Google's New Mobile Index to Bolster Search (GOOG)

    The company's move further reinforces the primacy of mobile in its ecosystem.
  8. Personal Finance

    Top 5 Biggest Mobile E-retailers

    Online shopping has never been easier, thanks to the proliferation of mobile shopping apps.
  9. Investing

    Top 10 Biggest Mobile Apps of 2016

    These 10 useful mobile applications allow users to perform business- and personal-related tasks from anywhere at any time
  10. IPF - Broker

    Best Stock Broker Mobile App

    Investopedia's Best for Mobile Trading is here! Find out which broker is best suited for trading on the go.
RELATED FAQS
  1. 3 Tips to Refinance a Mobile Home Loan

    Refinancing a mobile home loan is possible if the borrower meets certain criteria. Here are a handful of useful tips on refinancing ... Read Answer >>
  2. How do Internet companies profit if they give away their services for free?

    Learn how companies in the Internet sector make a profit when service, content and user applications are offered at no cost ... Read Answer >>
  3. How does Facebook make money?

    Facebook has gone from losses to a money spinner in a short span of time. Where do its profits come from? Read Answer >>
  4. Is Apple Pay safe and free?

    Learn more about Apple Pay, one of Apple's newest and most metamorphic programs that is changing the way consumers purchase ... Read Answer >>
  5. Who are Apple's main competitors in tech?

    Explore Apple's competitive position in the many industries in which it operates. Learn about the different products and ... Read Answer >>
Trading Center