It was just over twenty years ago this month that the deal was signed to build mobile networks based on GSM technology. Since then the success of the mobile phone has been phenomenal. It has transformed from being a simple communications device to an apparatus for gaming, photography and downloading music, a payments tool for content and services and more recently a distribution and advertising channel for brands wishing to interact with their customers.

Big brands face exciting opportunities to increase revenue and market share by deploying innovative mobile marketing techniques to demographically predetermined groups of potential customers. And more and more big brands are already taking advantage of this emerging opportunity and gaining early brand reinforcement and customer relationship advantages. To shed some light on the market and how it’s evolving, Airwide recently commissioned an independent survey of 50 global brand-name companies which revealed that 1 in 3 big brands have already launched live mobile marketing campaigns.

Among the other findings: brand experience with mobile marketing is increasingly positive as more brands are getting higher response rates from their campaigns. Brands surveyed confirmed that many recipients of mobile marketing campaigns requested more information as a result of receiving a mobile marketing message. Three quarters (73%) of brands answered that up to 10% of recipients subsequently undertook a financial action as a result of the campaign. Every responding brand agreed that their most recent mobile marketing campaign was successful in increasing customer familiarity of their brand.

However, according to the survey, despite enthusiasm for mobile marketing, barriers continue to hold back even higher growth rates; almost half of big brands (46%) are concerned that mobile marketing is too intrusive, with many feeling that customers will perceive messages as spam. Of these, 41% are unsure how to rectify the problem by targeting specific audiences. Over a third of brands (36%) would require detailed information on how the user responded to the message, and one in five want proof that the message has been received by the user’s handset (concerns mirrored by recent high profile issues with TV text voting).

The ongoing development of mobile messaging systems has paved the way for a range of valuable new marketing opportunities for brands, but mobile marketing will only reach its true potential when brands and operators recognize the need to confront the present lack of supporting information to manage and optimize marketing programs, and enhance the targeting and tracking characteristics of mobile marketing. It is essential that marketers target their campaigns specifically to gain the desired response rates, and enable opt-in mechanisms to avoid being perceived as ‘spammers’.

The good news is that there is help at hand: with reliable infrastructure in place and a means to control and measure campaigns, more and more big brands will be competing to create and deliver the most effective mobile marketing initiatives to subscribers. And consumers are set to benefit too; almost 60% of brands intend to send special offers via the mobile phone, and over a third (36%) will send discount vouchers. Other incentives will include digital loyalty cards, free gifts and preferential terms.

We hope you find the findings above of interest - we certainly did and hope you stay tuned for more info in subsequent posts. Also worth checking out: a mobile marketing roundtable Airwide recently convened to discuss the findings of the survey and further identify and investigate some of the dynamics that impact mobile marketing.

We’ll be releasing audio recordings of the discussion held earlier this month as well as video interviews with the attendees in the next week or two and invite you to listen in and add your own perspectives. Among those who participated: Nick Lane, analyst; Jonathan Bass, the chair of the UK Mobile Marketing Association (MMA); Anthony Reilly, head of mobile for Universal McCann; David Murphy from Mobile Marketing Magazine; Ian Williams of Vnunet.com; and Helen Keegan, a blogger on mobile marketing.

Jay Seaton is the CMO of Airwide Solutions