Mobile Phone Marketing
Near field communications
This is when NFC chips embedded in mobile devices make conducting a variety of e-commerce transactions, from making payments to mobile ticketing, as easy as waving a phone through the air.
Many direct marketing researchers today believe that the cell phone will become much more than a wallet. It will contain coupons, loyalty cards and enable you to download information on products to smartphones.”
Google is the player
and they have been trying to jump-start the NFC market. The search giant embedded radio chips in its Google Nexus S device. Google also plans NFC support in future versions of its Android platform and is expected to begin NFC trials in New York and San Francisco soon.
The CEO of Google
mentioned that in this formulation, there appears to be an opportunity for mobile devices to become conduits for point-of-purchase advertising messages. He is saying that you will use your cell phone like
Decisions by Apple and Google on NFC will help decide the fate of this new technology. Meanwhile, Amazon, Microsoft, Nokia, Sprint and others are rumored to be eyeing NFC payments as well.
Even in these early stages, some companies are beginning to experiment with the technology.
Business to Business direct marketers are not players yet but, business users are already heavily dependent on their smartphones. It is not difficult to imagine b2b marketers using NFC to enable instant payments on trade show floors or for “bumping” information between users in meetings.
There’s a lot at stake with mobile payments. Juniper Research estimates the mobile payment market will reach about $630 billion worldwide by 2014. Wilcox predicts 20% of mobile phones will be NFC-enabled in the next three years.
The next question turns to the other side of the transaction equation. Will merchants and businesses—perhaps enabled by payment players like Verifone or Mastercard—have platforms capable of accepting NFC payments in that same time frame?
Another roadblock may have emerged as mobile marketing and payments speed down the road to reality. Concerns about privacy practices by mobile players such as Apple and Google could send mobile marketing and payments on a detour.
A Senate subcommittee
talking about technology privacy issues has called the two companies to Washington, D.C., to testify at a May 10 hearing to discuss mobile privacy concerns. Meanwhile, a similar House committee sent out letters to companies involved in this area, requesting additional information.
The issue flared up following news that Apple and Google track and store a user’s location and other personal data on mobile devices. It’s hardly surprising they would do so: Such information represents the lifeblood of the emerging mobile and local advertising industry, which is attempting, for instance, to serve targeted ads based precisely on a user’s street location.Allow me to help you implement your next strategic marketing plan focused on your niche. I will make the most of what you already have by analyzing your biggest strengths and exploiting your competition.
Timothy Little – Direct Marketing Consultant
Tim Little
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