Mobile Marketing

Author
Affiliation

Ashish Kumar

School of Economics, Finance & Marketing
RMIT University

Rise and Rise of Mobile Marketing

Mobile devices have become an entry point to the Internet for most of the users. With telecommunication boom in many countries, people in those countries first time experienced the Internet over their mobile phones. Especially, in countries like India and Indonesia mobile audience in the largest segment of the Internet users.

Source: Smart Inisghts

Furthermore, users are spending more time on mobile devices than on their desktops. This trend of shift in increasing level of time spent on mobile devices is a global phenomenon.

Source: Smart Inisghts

Source: Smart Inisghts

Therefore, it is no wonder that mobile ad spending has has surpassed all traditional media combined in 2020.

Source: eMarketer

So, the questions is how mobile is making a difference?

Features of Mobile Marketing

Four unique characterisitcs of mobile devices make it very unique:

  1. Personal: Mobile phones are used by single individual.
  2. Portable: Mobile phones are always with the user, whenever and wherever the user goes.
  3. Connected: Most of the mobile phones are connected to the Internet.
  4. Intelligent: Today’s mobile phones are intelligent with lots of processing power in them.

Thus, mobile phones has become a personal digital concierge to the users.

(Ghose 2017)

Being a personal concierge, mobile adds values in the following ways:

  1. Tending every steps of customer purchase journey: Mobile helps in providing superior customer experiene at each and every stages of customers’ purchase journey.

  2. Faciliating connection between the consumers and firms: Mobile are best at connecting existing and potential customers with the firms. They help in managing and nurturing customer relationship in real-time.

  3. Making information flow fast among network partners: Mobile marketing facilitates at the moment marketing or moment marketing or marketing on the move.

Behavioral Differences on Mobile Device

The same consumer may behave differently on mobile device due to the following reasons.

  1. Mobile users are more impatient.

    • Mobile users pay more attention to top search results (Ghose, Goldfarb, and Han 2012). Thus, consumers incur higher search cost on mobile device.
  2. Mobile phone usage is characterized by ‘snacking’ rather than ‘feasting’.

  3. Rich media content (such as videos) are equally important for the mobile device.

  4. The location is the prime consideration of mobile users.

    • Search on mobile device should take location into consideration for relevant searches to minimize the search cost.

These differences create unique opportunities for the marketers.

Location-based targeting or geo-targeting is form of advertising where marketers use location of the users to serve relevant ads.

Before the advent of mobile, marketers used narrow definition of location based on geographic region (such as zip code).

Now, with precise location of users marketers in real-time, marketers can adopt other advertising strategies such as geo-fencing and geo-conquesting.

Geo-fencing triggers a signal when a potential customer typically enters a defined geographical area. Such signal may be accompanied by targeted advertising message.

Example: McDonald could send a discount coupon when a user is within hundren meters of its location.

Even though geographical targeting ields higher returns than behvioral targeting alone, geo-fencing strategy should include other dimensions of targeting strategy as well such as behavioral and temporal targeting in order to increase its effectiveness. In the above example, McDonald could target only those customers who usually eat outside (behavioral dimension), and send those coupons only during lunch time (temporal targeting).

Aggressive form of geo-fencing where marketers send advertising message (e.g., a discount coupon) to customers when they enter or approach a rival firm’s business premise, in an effort to lure them away and win them.

Forces Shaping the Mobile Marketing Landscape

  1. Context: “What’s going on?”
  2. Location: “Where is the customer?”
  3. Time: “When to send a marketing message?”
  4. Saliency: “How to stand out?”
  5. Crowdedness: “Mobile is the device for users to avoid crowd.” - Can marketers exploit this phenomenon (e.g., sending marketing message when people are traveling in subway during peak hours.)
  6. Trajectory: Trajectory gives information on multiple dimension of movements such as time, route, and velocity.
  7. Social Dynamics: Exploiting social dynamics among individual in mobile marketing strategy.
  8. Weather: Weather has tremendous impact on consumption. Using mobile, marketers can have real-time information on the weather of particular location that can be exploited to serve relevant marketing message.
  9. Tech Mix: New technologies such as augmented reality (AR), virual reality (VR), and smart wearables are going to constantly change the mobile marketing in coming years.

Customer Experience on Mobile

Marketers can use several ways to provide unique customer experience on mobile devices. Some of these are:

  • SMS (Short Messaging Service or text messaging)
  • MMS (Multimedia Messaging Service)
  • USSD (Unstructured Supplementary Service Data)
  • Email
  • Bluetooth
  • Push notiifcations
  • Beacons
  • Call streaming
  • Mobile Web
  • Mobile Contents
  • Mobile apps
  • QR codes

Mobile Readiness Audit

In today’s mobile-first digital landscape, understanding your organization’s mobile capabilities is essential for staying competitive and meeting customer expectations. This Mobile Readiness Assessment serves as a strategic tool to evaluate your current mobile marketing infrastructure and identify opportunities for growth.

Evaluate each mobile technology or channel listed using the following criteria:

  • Don’t Know/NA - Unfamiliar with this technology or not applicable to your business
  • Not Using - Aware of the technology but not currently implemented
  • Use Rarely - Implemented but underutilized or experimental
  • Use Often - Regularly deployed as part of marketing activities
  • Critical to our Efforts - Core component of your mobile strategy

By completing this audit, you’ll gain visibility into your mobile marketing maturity and create a foundation for strategic planning that ensures your organization remains competitive in an increasingly mobile-centric marketplace.

This audit covers five key categories of mobile marketing:

  • Core mobile channels (SMS, email, websites, apps)
  • Engagement technologies (push notifications, beacons, wallets)
  • Commerce and transactions (mobile commerce, proximity commerce)
  • Content delivery (streaming audio, optimized video)
  • Advanced capabilities (AR, location services, digital watermarking)

AI Revolution of Search Marketing: Beyond Google Era

The landscape of search marketing is undergoing its most dramatic transformation since Google’s inception.

Walmart’s recent partnership with OpenAI exemplifies this seismic shift — with ChatGPT driving 15% of Walmart’s referral traffic by September 2024, up from 9.5% just a month earlier. This isn’t a minor trend; it’s a fundamental reimagining of how consumers discover and purchase products.

Traditional search marketing relied on keywords and search engine results pages.

Today, consumers are abandoning search bars for AI chatbots that understand natural language. Instead of typing “best wireless headphones under $100,” shoppers now ask, “What headphones would you recommend for my daily commute that won’t break the bank?” This conversational approach feels more like consulting a knowledgeable friend than navigating a database.

The implications are profound. Direct in-chat transactions are eliminating the traditional customer journey entirely. Why click through to a website, browse products, read reviews, and navigate checkout when an AI assistant can understand your needs, recommend products, summarize reviews, and complete the purchase—all within a single conversation?

Google’s dominance as the gateway to online commerce is being challenged. Major retailers partnering with AI platforms like ChatGPT, Claude, and others signals a fundamental platform shift.

These AI assistants are becoming significant referral channels, and businesses that ignore this evolution risk invisibility to an entire generation of AI-native consumers.

This creates a competitive imperative: AI adoption is no longer optional. Companies must optimize their product information, reviews, and content for AI consumption, not just traditional search engines. The question isn’t whether to adapt, but how quickly you can pivot.

The rise of zero-click search — where AI provides direct answers without requiring users to visit websites — threatens traditional traffic models.

Simultaneously, search is becoming multi-modal. Google Lens enables visual search, voice queries are ubiquitous, and video search is emerging. Each modality requires distinct content strategies beyond conventional text-based SEO.

Perhaps most challenging is personalization at scale.

AI chatbots deliver hyper-customized results based on individual user history, context, and preferences.

Generic SEO tactics targeting broad audiences are becoming obsolete.

Success requires creating rich, structured content that AI can understand, contextualize, and personalize for individual users.

The future of search marketing isn’t about gaming algorithms — it’s about creating genuinely valuable content that AI assistants can confidently recommend.

Businesses must become AI-ready, ensuring their products and services are discoverable, understandable, and actionable within conversational AI platforms.

The search revolution is here, and it’s conversational, personalized, and happening faster than most anticipated.

References

Ghose, Anindya. 2017. TAP: Unlocking the Mobile Economy. MIT Press.
Ghose, Anindya, Avi Goldfarb, and Sang Pil Han. 2012. “How Is the Mobile Internet Different? Search Costs and Local Activities.” Information Systems Research 24 (3): 613–31.