I could not stop smiling and rolling my eyes as I read the document. It discussed the effect mobile had on lead generation and the conversions rate of those leads. There were the usually mobile-is-everywhere-and-everything facts and figures, but what caught my eye were the claims of how effective mobile is in driving business. Don’t get me wrong, I truly believe in the power of mobile technology. Mobile marketing, done right, produces great results but the paper I was reading was going beyond great… it was pushing into the ridicules! I mean, one can drink the Coolaid… but that paper was way too much Coolaid for anyone to drink.

I am starting to think that certain companies and associations, faced with the inability to make serious money in the mobile industry are starting to get desperate and amp-up the hype to the point where it is just hurting everybody in the mobile eco system.

It is not just the desperate get-rich-fast-car-salesmen-type entrepreneurs I blame for the whoring of “data” and “measurable results” that are hard to verify or prove. It is also the industry related media and associations who, in my humble opinion, accept as gospel seemingly positive messages, without investigating the source or asking a few basic questions in order to validate the data or claims. How many times did you read a yawn invoking yet eyebrow raising article that reads like a paid advertisement? How many companies are “adopting” clients just because they lease a platform that such clients happen to use? How many companies change the logo on case studies (with or without permission) just to present it as their own?

I love to see my clients make money, succeed and achieve uncommon results. This is where mobile technology shines, in blowing traditional benchmarks out of the water, but there is a limit to what mobile marketing technology can do. The success of a campaign is not guaranteed just because mobile technology was added to the media mix. Last time I checked, the word “mobile” did not mean “success” despite what some research companies would like you to believe. Ultimately, It takes knowledge and some good old fashioned hands-on experience to drive results.

The mobile marketing technology industry is very segmented. Everybody from the smallest to the largest providers claim to have their own secret technology / sauce/ strategy that makes them unique. Truth is that most industry players did not build their own cutting edge technology solution; they lease / buy technology, usually a white labeled solution (that’s CellForce’s main business, selling such solutions) or build a fairly basic software platform.  Add a snazzy website, sprinkle some sure-to-blow-your-mind facts and figures, mix all that with some claimed branded clients whose connection to the tech provider is as thin as it gets and, to borrow from Emeril Lugassy,  BAM, I just described 80% of mobile marketing service providers in the market.

Don’t get me wrong, I have nothing against marketing strategies or using case studies and research papers to bolster a pitch. I do, however, have an issue with loosely put together facts and figures aimed at confusing the unsuspecting client to think that the company in front of him has “been there and done that”, whatever the project may be. I do have a problem with half facts, half truths and outright lies aimed to acquiring a client just to get to that paycheck no matter what.  I do have a problem when the entire industry is flooded with marketing papers and hockey-stick shaped diagrams that promise that this year is the year of the mobile, this year is when the big bang will happen, etc. That makes mobile marketing practices in general look bad. Once burnt by failure to live to the expectations, a client is not likely to return to the marketplace for additional campaigns and from what I hear, many clients do get burnt. I don’t even want to get into shoddy, unregulated business practices that everybody turns a blind eye to (SMTP in the US, anyone?). But let’s focus on facts, figures and data for now.

As the CEO of CellForce, I am used to getting calls from all kinds of excited individuals: Potential clients, potential investors, fellow entrepreneurs, mobile marketers, advertising executives and business owners, they are all excited about the mobile channel. They are, each in his own respective field, very excited about mobile marketing, mobile couponing, mobile web, mobile applications, HTML5, iPhone apps, Android apps etc. etc. This excitement is fueled by the biased propaganda campaign I discussed above which is unleashed on starved minds, hungry eyes and ears who eagerly seek that golden opportunity, that exit, that cash cow, that “Google play”, where Google buys your company for $750 million. The problem I have with all the gold rush is that it is destroying the mobile business ecosystem. Soon enough mobile technology will be as lucrative as VOIP technology… Ask yourself where are all those billions of dollars poured into VOIP in the early 2000s? Also, nowadays, who is making money out of VOIP? Answers: the money is gone and nobody is making any real money out of this, once cutting edge, technology. Not even SKYPE!

I bring this up because I want to hear your views about this issue. However, before you reply, please don’t see this as an opportunity to SPAM the rest of us with your special / unique / incredible secret that makes your product better than anyone else’s. I would love to see a discussion about the problem I describe: inflated numbers and too much hype are hurting our market.  Shouldn’t the industry’s associations / publications exercise more restraint and responsibility? Should there be someone who is objective and trustworthy to monitor such reckless (dare I say fraudulent?) claims and publications? I would love to hear your opinions.

So you opened a Twitter account, Twitted twice, never to use the service again. Apparently you are not alone. In fact, if the early part of 2010 is any indication, all those snake-oil-salesmen, peddling their twitter-success-how-to books or tweet-or-die programs will have to have to look elsewhere if they want to continue selling their hyped-up-get-rich-quick schemes.

Twitter is now officially a bust. But don’t trust my opinion, let’s look at the numbers:

· While Facebook continues to grow: as of December 31^st 2009, 117 million users is the US, 400 million users worldwide, Twitter is shrinking: 23.6 million US members on December 31^st 2009 vs. 29.2 million US users in August 2009.

· 80% of Twitter account holders have not tweeted more than 10 tweets.

· 40% of Twitter account holders have NEVER twitted even one Tweet.

· 25% of Twitter Account Holders have no followers.

Sources: Comscore.com and RJMetrics.com

But enough with the dry facts, they do not really tell the Twitter story, although, I am sure you’ll agree, they do make a very strong argument. The first time I looked at Twitter, I found it hard to understand: what is the difference between its services vs. the utility I get from my Facebook status updates? I have been baffled by this for several months as I have seen time and time again articles and forum discussions stating clearly how Twitter is the best thing since slice bread. They all came to the same conclusion: Twitter genius is in its simplicity. Well, ladies and gentlemen, I would argue that Twitter’s biggest drawback is its simplicity. In fact, I will dare to scream out loud:

LIKE MANY OTHER DEFUNCT SOFTWARE AND WEB PRODUCTS TWITTER IS A COOL IDEA THAT SOLVES A PROBLEM OR SATISFIES A NEED THAT DOES NOT EXSIST.

In other words: No one really needs Twitter. There are far better products and services that do what Twitter does much netter.

Facebook and MySpace have done what Twitter does via features of their products. In fact pretty much every social networking site is doing what Twitter does: allow its members to update their followers about their status (the “What are you doing right now?” question).

However, unlike other sites, Twitter is trapped by its own simplicity: add functionality and risk lose your unique positioning by becoming a blog / photo service / social network or in short become a Facebook / Myspace knockoff. Twitter insistence on being a micro-blogging service reminds me of George Costanza from Seinfeld when he was pitching the show to NBC executives, insisting that: “It’s a show about NOTHING!”. However, unlike Seinfeld, Twitter is not here to make us laugh, it is here to serve a business or functional purpose and it is failing to do so.

I found it funny that as I am writing this piece I actually own four twitter accounts: one for myself, one for my business, two other for small websites I own as a hobby. I actually send Tweets but I do it via LinkedIn Status updates and I could not care less who reads my Tweets or follow me on Twitter. For me Twitter is an afterthought, if it works, great; if it doesn’t, I could not care less. And I am sure I am not alone.

But there is more bad news for Twitter worshippers: Google has entered the social networking game with Google Buzz. I believe Buzz is a Twitter killer – take Facebook, make it simpler but keep the essence and functionality (good job Google!). And Buzz comes with members to boot: You own a Gmail account? You’re a member! (BTW, I haven’t seen such predatory tactics since Microsoft forced every Windows user to adopt its Explorer web browser. Does anyone remember Netscape?).

In conclusion Twitter loses on pretty much every front:

On the market share front, it looses to Facebook and Google.

On the functionality front, it looses to Facebook and Google.

On the business model front, it looses to Facebook and Google.

P.S. Have the last Twitter member turn off the light when they leave the service.

It’s been a rollercoaster ride with Verizon when it comes to charges for mobile coupon marketing.  Last year they announced a plan for a 3 cent per coupon surcharge.  That didn’t come to pass, as the backlash was swift and quite widespread.  With 87+ million subscribers, where Verizon goes, others are tempted to follow.  So, the dropping of the 3 cent charge was a nice first step toward better treatment of the mobile marketing community.

Verizon has been said to consider mobile coupons as “third party marketing,” which contributed to the plans for extra charges.  A standard-rate mobile coupon program functions just the way standard-rate text messages do – consumers are not charged for the SMS except the standard rates.  Others who tacked ads onto SMS text messages fell into this third party ad category.  Now there seems to be a view at Verizon that most coupon campaigns are designed to build internal marketing lists, thus not third party advertising.

It is hoped that this new attitude and adoption of standard-rate programs will also speed the process from plan to market.  It has been taking months for mobile marketers to receive short codes from Verizon.  Add that delay to the development of the campaign, and some would find their plan out of date before it ever got going.  The immediacy of response to timely offers is one of the major benefits of SMS text messaging, including highly targeted consumers, and ease of redemption.

As the cell providers completely control the SMS medium, their clout is clear.  And, Verizon is the largest, weilding a great deal of influence over how SMS text message mobile marketing develops…or doesn’t.  This change in policy will hopefully bring confidence to the aggregators, mobile marketing firms, content providers, publishers and ad agencies.  The ability to serve up offers to customers when and where they want them, and make it easy to redeem those offers, should be enough of a benefit to entice the cell service providers to help to develop responsible mobile marketing costs and procedures.  These are their customers too.

Well, it’s a new world out there, and, even though we’re now talking about cellular phones, it’s not that call that makes cash registers hum.  It’s the thumbs of a text messaging consumer.  More text messages are sent than cell phone calls made.  Those who would lament the current economy should take to heart a quote from a New York Times article: “Coupons and discounts are a major ‘tell’ as far as consumer behavior,” said Andrew Lipsman, an analyst at comScore. “Coupon sites grew 33 percent year over year for this January.”

The context was that the current economy is causing an online surge in searches with the word “unemployment,” and a corresponding large jump in coupon site traffic.  It’s all about making ends meet in a tough economic situation.  If consumers are spending more time in searching for coupons and bargains, we can help them and ourselves at the same time.

Using SMS text message marketing to deliver coupons and notices of special values and sale deals is mainstream marketing now.  Are you taking advantage of the fact that your customer is out there wanting a deal, searching for one, and would be greatly appreciative of having it delivered to them when and where they can use it?

Take a lesson from Planet Funk, a clothing retailer highly successful at using SMS text message marketing to motivate their targeted customers to redeem coupons in the stores.  That’s unless a 91% redemption rate and a 377% ROI are not enough to get you interested.

Though it’s only in Mexico right now, Starbucks is planning to introduce 2D barcodes for mobile campaigns in the United States soon.  That’s due to a 60% coupon redemption rate for their program in Mexico, a success rate we’d all like to experience.

Their campaign is designed to both reward existing customers and to bring new customers into the stores.

• Postcards are being handed out in malls, universities and retail outlets, with an invitation to text keyword STARBUCKS to 80080.  This results in a text message with a barcode to “buy one get one free.”
• In-store signage with call-to-action to text VENTI to 80080 to receive various offers and product size upgrades.

The stores are equipped to read the coupons directly from the 2D codes on the customers’ cell phones.  80% of consumers in Mexico carry a cell phone, and the redemption rate is reported to be 60%.  The two-pronged approach of rewarding loyal customers and attracting new ones is quite successful.

Each time a coupon is presented, the offer is modified, encouraging another store visit to redeem it.  Consumers find it easy to participate, as they carry their cell phones anyway, so popping it out to get a free drink or product upgrade is hardly a deterrent.  There is also a benefit in learning more about what their customers value, as the redemption rate for different products can also be tracked.

Just reading this, there are gears turning in marketing minds.  How does their business and customer compare to Starbucks?  Are there parallels, and can mobile barcode coupon marketing work for their business.  Many will definitely see how to make it happen for their business.  And, we’re here to help with everything it takes for success.

In tough economic times, moving marketing budget from 3% response rate methods to 50% or higher is not just smart, it’s necessary.

Nokia e71x

SMS text message marketing isn’t a flash in the pan, because consumers who text are a huge and still-growing market.  We’ve posted recent survey numbers here, and the trend doesn’t seem to be slowing.  AT&T is hoping to capitalize on the American public’s love for texting with their recent release of six new phone models that are featured for text messaging.

Nokia e71x -Billed as the “thinnest” smartphone, AT&T says the phone “helps you combine your personal and business life. Merge your pocket devices into one with a seamless user interface, personal management features, Wi-Fi access², instant messaging, 3.2 megapixel camera, browser, music player, and more.”

Samsung Propel

Samsung Propel Pro – This phone features Windows Mobile 6.1for PDA functions.  With WiFi and 3G, it looks to be a popular choice at around $150.  The phone boasts a 3 MP camera, MP3 player and web browser and:

• Alarm clock, Call waiting
• Caller ID Address book
• Conference calling
• Call Forwarding
• Multitasking

Samsung Impression

Samsung Impression – Advertised at $199, this phone adds a touch screen to lure buyers.

Also featuring bluetooth, 3G, and web browsing, the AT&T site also lists under Extras:  “Accelerometer, dual speakers for 3D sound; day and evening themes change at preset times; advanced speech recognition”

LG Xenon

LG Xenon -LG is right in the mix with the Xenon, listing at $99.99.  This phone only has a 2 MP camera, but the price is right.  Also offered is the full suite of AT&T entertainment services such as AT&T Navigator, Napster Mobile, eMusic Mobile, and more.

With a handsfree speaker phone and USB data transfer, there’s a lot packed into this phone at the price.

Samsung Magnet

Samsung Magnet – Not quite out yet, but due in a couple of weeks, the Samsung Magnet is a sleek and low cost orange colored phone that should appeal to the younger set.  Features include a camera, personal organizer and a speakerphone.

It’s turning into a rapid-fire news release week for mobile marketers.  The biggest news is the announcement that Verizon Wireless, AT&T, Sprint and T-Mobile USA announced an agreement to incorporate their mobile marketing guidelines within consumer best practices outlined by the non-profit industry trade group the Mobile Marketing Association.

Mobile marketing has been growing by leaps and bounds despite the myriad of platforms, operating systems and software out there.  The mobile marketer has been faced at times with limiting their target consumer to the platform or operating system that would yield the best result.  Beyond that, the differing rules imposed by the cellular providers have made it tricky to avoid violation and penalties.

The mobile providers expect to save more than $200 million annually by streamlining and best practices with benefits:

• Standardizing disclosures to provide a more pleasing and consistent consumer experience.
• Making short code programs run more efficiently.
• A big one:  accelerating the time to market for mobile programs and campaigns.
• Making monitoring and audit reports more consistent.
• Cutting marketing costs over the entire mobile marketing spectrum.

There is no doubt that mobile marketing, whether it be SMS text messaging, IVR (Interactive Voice Response), or mobile Web, will only accelerate its growth curve if these reforms come to pass.  There’s nothing like making an already very effective marketing medium more efficient and cost effective.

Another bit of news this week is the phenomenal growth of the CNBC mobile news service.  Beginning in June of 2008, we now see a ten-fold growth to a 30 million page view month in March 2009, as compared with their first month at 2.7 million page views.  This domination of the mobile market for business news is expected to last, though imitators will no doubt be coming out everywhere.

If you’ve been thinking about mobile marketing, this kind of news should accelerate your discussions and planning.  It’s a medium that is just beginning to show its power.

Radio hasn’t been immune to the changes in marketing budgets and the media used.  Their ad revenues have fallen, just as experienced by newspapers and magazines.  It’s a world of change, and SMS text messaging is right out there in front as far as initiating change.  Let’s just bullet a few numbers recently bandied about:

• 157 billion text messages sent in the U.S. last year
• Text messaging accounts for 48% of all written communication by 15 to 24-year-olds
• Not just teens, as 39% over 35 years old, and 8% over 70 are active texters as well
• 84% of all U.S. consumers keep their cell phones on and with them 24 hours a day
• 94% of all text messages are opened and read
• 15% of cell phone users have no landline, while another 31% are considering giving up their landline

So, if you can’t buy into the fact that SMS text messaging is reaching an ever-growing audience, and doing it where they are and any time of day, you might want to call your friend Marconi and ask him what’s new for the telegraph.  These are facts, and they’re changing the ways in which we can reach and influence our targeted consumers.

Radio stations have begun to take notice, and the combination of SMS text messaging and radio marketing is working for them.  A recent Pew study shows that consumers want to request songs, enter contests, and get station play lists.  So, that’s what radio stations are making available to them via text messaging.  If you’ve ever called a radio station for a contest, you likely reached a busy signal, as 999 out of 1000 do.  Only the lucky winner gets through.  With text messaging, all 1000 get through to the station and hear the advertising message.  And, now they’re opted in for future marketing as well.

Well, Days Inn is taking note and has taken a campaign to a database of opted-in subscribers that includes text messaging and IVR.  The list comes from a previous mobile sweepstakes campaign.  The new campaign’s goals were to increase room stays and to offer their “Business Alliance” patrons an added value service.  The initial message prompted the recipient to text back the keyword “DAYSCALL.”  The message they received was:  “Reply with the word DAYSCALL & UR phone will ring right away with an exclusive Mobile Mystery offer from Days Inn! Reply DAYSCALL within 48 hours!”

Once the text message was received by Days Inn, the IVR kicked in with a call and this automated voice message:  “Hello, thanks for connecting with Days Inn. Earn an extra 30 percent in Wyndham Rewards Points when you book any room and upgrade to a Days Business Place Room. To receive this exclusive Mobile offer and earn an extra 30 percent in Wyndham Rewards Points, PRESS 1 NOW!”

Targeting a high percentage of their business customers was a smart move, as they virtually live on their cell phones, especially when traveling.  As business travel is down significantly during the current economic situation, increasing room stays through offers to existing customers is a good move.  And, the numbers bore that out:

• 28% of the recipients replied with the text message
• Of those respondents, 30% pressed “1″ to to claim the offer
• 31% stayed on the call 3 minutes or longer

This is just one more illustration of the power of mobile marketing and the value of the ability to precisely target the customer that will be most likely to respond with a purchase.

Las Vegas has definitely shared in the economic declines of the past year, with less travel and far less discretionary spending.  While some will go to Vegas to forget their problems for a while, far more will put off the trip to save the money.  If you’re a stock market investor, your net worth is far less than a year ago, so gambling some of it away in Las Vegas wouldn’t be high on your list of fun things to do.  So, what’s a party and gambling city to do?

Well, MGM Mirage Properties (Mandalay Bay, New York-New York, Monte Carlo, The Mirage, Treasure Island (TI) and MGM Grand Detroit) are rolling the dice with SMS text message marketing.  They state their goal as getting visitors to come more often, stay longer, and of course to spend more.  Visitors and hotel guests will received promotions on their cell phones related to real-time offers, property information and entertainment.  They will include contests, quizzes, entertainment alerts and discount offers.

MGM Grand has been doing some SMS marketing with several initiatives to build their database of opt-in subscribers:

• About ten days before their scheduled visit, MGM Grand sends their customers an email offering a $25 entertainment credit for those who fill out a form indicating their entertainment interests, and joining the Mobile Concierge service.
• One campaign promoted MGM nightclubs with billboard trucks and short code.  Those who responded via text told the company where they were going and how many guests they were bringing.  This allowed the collection of their preferences for future SMS text message marketing.

The lodging industry is watching these programs, and well should be.  It’s logical that an industry promoting repeat stays and providing special offers to loyal repeat customers would find a great deal of opportunity in SMS text message marketing.