eMarketer's Catherine Boyle discusses the latest mobile messaging trends and how leading brands are beginning to use a variety of channels to engage consumers.

1. ©2013 eMarketer Inc.
Catherine Boyle
Senior Analyst
Sponsored by:
A U G U S T 8, 2 0 1 3
Mobile Messaging Trends—
Tapping into SMS, Mobile
Email and Push Notifications

2. ©2013 eMarketer Inc.
Ground we’ll cover today:
Consumer use of mobile messaging channels
Messaging types used by marketers
Effectiveness of mobile messaging campaigns
How multiple mobile messaging channels are
being used together to achieve brand
objectives
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SMS: A 160-character text message sent via Short
Message Service
MMS: Recorded audio, a still image or a short video sent
via Multimedia Messaging Service
Mobile Email: A email message sent or received through
a mobile device
IM/Chat: An instant message sent via a native app
Push Notifications: A message sent from a native app
to the home screen or lock screen on a mobile device
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A quick review of definitions

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Twitter – #eMwebinar
A consumer with a smartphone or tablet
holds multiple channels in one hand
Chat MMS
Email Push
SMS

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Consumer use of mobile
messaging channels

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Exchanging messages is a reflexive
behavior among most mobile users

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Nearly a
third of
mobile
users
worldwide
checked
text
messages
first thing
every
morning; a
quarter
checked
email

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The number
of mobile
messages
sent
worldwide
will nearly
double
between
2012 and
2017
This is due primarily to the increased use
of over-the-top (OTT) messaging apps

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While texts are still popular, US SMS
volume declined for the first time in 2012
MMS volume grew 40% year over year in 2012
Consumers’ channel preferences are changing as
smart device adoption increases

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Internet
users’
propensity
to take and
send
pictures
with their
mobile
phone is
one factor
driving up
usage of
MMS in the
US
Twitter – #eMwebinar

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As for email, more consumers check email
via mobile than via desktop or webmail

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IM/chat apps are growing more popular,
but use is relatively low (8% of US adults)
Android users are more likely to have the
apps, but iOS users access them more

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No single
IM/chat app
has yet to
win over a
significant
number of
US iPhone
users

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Marketing via mobile
messaging channels

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Mobile email
is more
widely used
by marketers
compared to
SMS/MMS
and push
notifications

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Email
marketing
campaigns
in the US
are nearing
a mobile
tipping
point: 41%
of marketing
email opens
in H2 2012
were via a
mobile
device

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Still, many marketers are not optimizing
email messages for mobile viewing

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In turn, metrics for mobile email have
been lower than desktop norms
Twitter – #eMwebinar

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Testing a mobile-optimized email
template pays off for Deckers
Results:
9% increase in mobile opens
10% increase in clickthrough rates
Deckers tested a new email template for its
Tsubo brand of shoes. The template used
responsive design techniques.
Photo and data source : Litmus, “Responsive Email Testing Yields 10% Higher Click Rate for Deckers,” March 2013

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SMS and MMS

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When it comes to SMS, marketers cite
‘immediacy’ as the channel’s top benefit

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A key to gauging the effectiveness of SMS
and MMS lies in the call to action used
Embedding URLs in SMS/MMS messages allows
marketers to more accurately monitor response
rates. Without embedded URLs, marketers typically turn
to more costly response tactics, such as voice calls or
coupon redemption, to measure success.
To drive visits to a physical location, a call to
action that is relevant to the recipients’ current
location is effective. Aggregated results from
location-based text programs managed by Placecast
between 2009 and 2012 showed, on average, 73% of
participants visited a retail location after receiving a
location-aware text message, and 61% made a purchase.
Twitter – #eMwebinar

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Starbucks’ SMS/MMS campaign included
an embedded URL to track results
Photo credit: Zach Zimmerman, ePrize.com
Starbucks used SMS and MMS to quickly engage customers
who had previously opted in to receive promotions via SMS
Engagement: A trivia
question with prize
opportunity sent via SMS
triggered response.
Device/OS Detection:
Responses allowed Starbucks
to detect the device type and
operating system.
Call To Action: An MMS tailored to
the device and OS was sent with a
happy-hour invite and embedded URL
to measure engagement.

24. ©2013 eMarketer Inc.
A location-based SMS program increases
foot traffic and sales for Kiehl’s
Kiehl’s Alerts are geotargeted texts sent on an opt-in
basis to customers within close proximity of a Kiehl’s store
Results of six-month pilot
program:
62% of recipients visited a
Kiehl’s retail store
75% of recipients made a
purchase

25. ©2013 eMarketer Inc.
Other metrics come into play when
measuring the effectiveness of SMS/MMS
“Basic marketing measurement metrics such as
ROI [return on investment] are important, but
there are ancillary objectives that are also
vitally important.
For example, it might be a strategic priority to
build an opted-in database if a brand does
not already have one, in which case the pure
marketing ROI becomes secondary to the
strategic criteria.”
—Michael Levinsohn, executive chairman, CEO and founder of
Archer

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Push Notifications

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Push
notifications
have a
positive
effect on
app
retention

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shopkick users are highly responsive to
push notifications
Aggregated Results:
Push open rate ranges
between 60% and 70%
On the day a push notification
is sent, shopkick typically sees
a 100% increase in app
launches
Shopkick uses push notifications to share important news with its user
base and to alert shoppers when they are within the vicinity of a retail
store where they can earn “kicks” (reward points).
Twitter – #eMwebinar

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Marketers also use push to deliver time-
sensitive news and mobile-specific offers
“We can notify our customers right away if there’s a
delay or any change to a flight.”
—Maryssa Miller, director of digital commerce at JetBlue Airways
“Push notifications are a great tool for us to deliver
messages that are specific to our mobile-only
clients, such as highlighting a Sephora iPhone
case offer.”
—Bridget Dolan,vice president of interactive at Sephora

30. ©2013 eMarketer Inc.
Pacing push notifications is more an art
than a science—but is very important
“Push notifications are our most effective
mobile-specific messaging strategy, but it’s
extremely important to use discretion. … There is
such a thing as oversaturation, so we try to keep
our push notifications contextually relevant and
timely.”
—Gabriella Buerman, mobile marketing manager at Rue La La
“You want to push enough that the customer
remembers you exist and sees value in the pushes
when you send them. The frequency is based on
the nature of the value proposition you’re bringing
to the consumer.”
—Josh Schiffman, senior vice president of strategy and operations at Xtify

31. ©2013 eMarketer Inc.
Are brands rolling it all
together?
SMS MMS
Email Push

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Brands are finding powerful cross-channel
synergies exist with mobile messaging
Cosmetics retailer Sephora has found push notifications
sent to its app users effectively reinforce messages sent
previously via email.
For CVS, email is an effective channel for reminding
customers that the refill date on a prescription is
approaching, and texts let the brand alert people
immediately when a refill is ready for pickup.
And while some industry experts argue push notifications
will be the death of SMS, flash-sales site Rue La La uses
both channels to achieve different objectives—push
notifications to drive immediate sales and SMS to acquire
new customers.

33. ©2013 eMarketer Inc.
But, best practices for mobile messaging
are mostly channel-specific
“The mix [of channels] is going to be dependent on
the specific brand and the relationship that brand
has with the consumer. … What marketers need to
learn is how to avoid being interruptive, and
instead influence by adding value and utility
[across channels].”
The opportunity for success lies in enabling
customers to tailor messages to their
preferences and building a one-to-one,
brand-to-consumer messaging plan.
—Michael Becker, managing director, North America, for the
Mobile Marketing Association (MMA)

34. ©2013 eMarketer Inc.
Five Takeaways:
1. Consumer reliance on mobile messaging
services is escalating and channel
preferences are evolving as technology
improves.
2. SMS messages comprise the largest share of
messages sent worldwide, and this is not
likely to change over the next three years.
3. Yet, the growth of mobile messaging is fueled
primarily by the growth of over-the-top IM/chat
apps.
Twitter – #eMwebinar

35. ©2013 eMarketer Inc.
Five Takeaways:
4. Marketers rely most heavily on mobile email
but SMS/MMS and, increasingly, push
notifications are used to generate immediate
action.
5. Through experimentation, marketers are
creating synergies between channels.
Twitter – #eMwebinar

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37. The Connected Consumer
Single
Point of
Interaction
ERP
CRM
Consumer A
Consumer A

38. Mobile
Super Bowl Host Committee
Goals
• Provide Super Bowl guests with information for restaurants, parking, etc.
• Enable SMS as an additional channel for emergency situations
Solution
• Marketing materials encouraged Super Bowl attendees to opt-in to Host
Committee SMS communications
• Subscribers received daily, real-time updates on parking, transportation,
weather, entertainment, special events, and more
Results
• 2,500+ subscribers
• 130,000+ scheduled alerts delivered
• 6,000+ real-time updates delivered in response to mobile request

39. Goals
• Reduce customer service center costs
• Provide passengers with immediate access to arrival times
Solution
• Passengers could retrieve scheduled arrival times for a designated bus
stop via SMS
• Supported by printed ads/promotional materials
Results
• Cost-effective alternative to customer service center (SMS costs @
$0.10/msg vs. $2/call)
• Decrease in number of customer service calls by 40%
Orange County Transportation Authority
Mobile

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• See industry events ExactTarget is
sponsoring
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• Contact us with questions or comments
866.362.4538
Mobile

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Q&A Session
Mobile Messaging Trends—
Tapping into SMS,
Mobile Email and Push
Sponsored by:
ExactTarget
You will receive an email
tomorrow with a link to
view the deck and
webinar recording.
Catherine Boyle
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Around 200 eMarketer reports are published
each year. Here are some recent reports you
may be interested in:
Mobile Messaging Trends: Tapping into SMS, Mobile
Email and Push Notifications
Worldwide Mobile Phone Users: 2013 Forecast and
Comparative Estimates
Email Benchmarks: Key Metrics and Trends for 2013
Key Digital Trends for Midyear 2013: The
Fragmentation of Mobile
Responsive Design: A Solution for Publishers, a
Question for Advertisers
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