Sensis vs. Google: Mobile Marketing Smackdown - Round 1. SMS services
Posted by alex
Alright, something that has been gagging to be written up. In Australia, there is only one serious contender to Google, and it’s not Yahoo! or the MSN partner (NineMSN). Google’s biggest challenge will come from Sensis. I’m not saying Yahoo! and NineMSN are a spent force - far from it. But as yet, they haven’t invested (or acquired) a range of assets and services that Google and Sensis appear to be heading for a showdown over.
Let’s look at our contestants!
Google. What have they got? The biggest search engine business in Oz with a whopping 72%+ of Search Engine market share according to October 2007 stats from Hitwise. Google have their on spin on it, but I see their business as having three parts: information reference services (inc. search engine, directory and mapping related services), software services (inc. Gmail, Google Docs etc) and development tools (inc. Google APIs, Google Analytics etc). Most of this they are taking into the mobile space.
Sensis. Who are they? Backed by Australia’s largest telecommunications provider, Telstra, Sensis own a suite of online and offline directory services including: Yellow Pages, White Pages, Whereis and CitySearch and a mixed bag of online businesses including Trading Post, GoStay and others. Their search business under their Sensis banner doesn’t rate a mention next to the majors. Again, most of this they are taking into the mobile space.
The question is, who will prevail between the incumbent telco / directory driven giant and the search engine behemoth that knows no bounds? So here goes. Gloves off! This will be the first round. We want a cleanly built customer focused fight. May the best ROI win.
Round 1 of the “Sensis vs. Google: Mobile Marketing Smackdown” - SMS services.
*ding ding*
Sensis. The Sensis SMS Service offering started in late 2005 with the launch of 191SMS. This simple service is driven at the backend by Sensis’ powerful directory listings responding to an SMS. The customer sends an SMS to a dedicated number: 191767 (191SMS). For example: send a text message “b officeworks sydney” to 191767 to receive business listings for Officeworks in Sydney. The service provides directory information on business and personal listings and other non-directory services (relatively) cheaply and easily.
Pros:
- Accessible from all current mobile phones. Doesn’t require 3G or a web enabled phone (ie. a data plan).
- “One box” data entry. Input is a string of terms in a single SMS.
- Relatively cheap to the consumer.
- Free* for businesses to register with Yellow Pages online.
- Powerful localised directory listings.
- ‘Pull’ service. Non-invasive.
- Inbound responses stored in Inbox on the customers mobile phone.
Cons:
- Consumer education. As there is a “system” for using the service, this must be learned to use the service.
- Not widely marketed. I would guess at a pretty low uptake to the service (see below).
- Lack of additional/related advertising inclusion/revenue.
- Difficult to integrate into third party push marketing.
Google. What Google SMS service? Sure Google have been in the mobile space for ages, but SMS outside their home market? According to the Shanghai Daily, Google have just launched their SMS services across China.
The Google China SMS service covers stock market information, weather reports, public transport information and other functions including a translation service. Whilst the service has it’s skeptics in China, a market touting 500 million handsets, currently only 60 million+ Chinese have mobile Internet capability. Note: China only has an estimated 12% mobile Internet penetration. Therefore, an SMS based service allows greater penetration against powerful incumbent search engine competition such as Baidu. Sound familiar?
According to the Budde Report (amongst others) Australia has a mobile market of 20 million with almost 99% penetration. Looking at the ever-reliable AIMIA MCIDG Australian Mobile Phone Lifestyle Index despite this dramatic uptake, only 30% of users have a 3G phone and less than 15% use the Internet on their phone. Australia and China have something in common: SMS is still the dominant channel for widespread mobile marketing.
The question is: how long until Google launch their SMS service globally?
In the meantime, Sensis have gone and done something really strange. This - I believe - will become a common theme. Sensis have reinvented their SMS service as a downloadable application. Firstly, downloadable mobile applications have their own issues, but this is a leap in the wrong direction. You’ve just gone from 100% of the market to 14%. And within that 14% you are now competing with an advanced range of mobile Internet services - including a risk of cannibalising other Sensis mobile services.
The Verdict.
Sensis win this round because they have a live and functional SMS service in play in Australia. However, they have just changed their business plan for 131SMS and I’m not sure how that’s going to work for them. We’ll cover mobile directory services in Round 2.
Google in the meantime have a full range of mobile marketing services in the US. Google SMS is one of a number of services they are yet to launch in Australia, but if they’ve launched them in China - in similar market conditions (strong incumbent competition, non-Internet phones in the majority) - we might see Google SMS in Australia sooner rather than later. They have an existing arsenal here that’s pretty impressive.
Stay tuned. This could be a blood fest.
3 Mobile Australia and their “viral” launch of Skype Phones
Posted by alex
[click to enlarge]
I saw some PPC advertising today banging on about 3 Australia bringing out their new Skype Phone. They’re running a competition to encourage punters to put a video together and “Spruik” the Skype Phone via consumer generated video’s uploaded onto a third party site. Forever hopeful to find new mobile marketing techniques in play (video MMS CGM mobile marketing?!?!) I pressed on.
Now, before I get into the nuts and bolts of why I think this campaign is a complete waste of money… err… not a great campaign, let me explain how it works.
1. Visit either 3’s main site and click on the prominent graphic, or navigate direct to the Three Australia Skype Phone microsite.
2. Look for a skinny little link in the top right hand corner that says “competition”. Click on that.
[click to enlarge]
3. This brings you to a third party site which happens to be running a number of other competitions. So find the link to the Skype Phone one, make sure you are registered and logged in, and try not to end up back on the Skype Phone microsite. OK? *sigh*
4. Now it gets really nasty. You have to register to enter this viral CGM video campaign. And here is a list of the demographic and personal information they insist you part with to submit a valid entry:
- First name
- Last name
- Username
- Password
- Password confirm
- Date of birth (notably in a YYYY/MM/DD format)
- Country
- Captcha (security feature - and one I found quite hard to read, and no I don’t wear glasses)
- 2 Lines of Address
- Suburb
- State
- Postcode
Notice anything missing in this “CGM viral video” campaign run by a mobile company to flog a new mobile phone? They fail to ask for my mobile number. I won’t mention that all fields were text fields, so I could write anything I wanted in them and there was no email validation… oops.
5. Upload your video - or whatever. At this point the guys running the competition appear to have given up providing you with guidance. Do whatever you like.
And with the neato counter at the bottom of the screen telling me to the second I have 6 days to go, I reckon they might almost hit triple figures. C’mon! I’m an optimist.
Needless to say, I found the flow clunky and a little confusing (there are three different sites a 14 data point registration, login, THEN - if you can work out how - you upload your video). Not asking for my mobile number - and I just might be an existing 3 customer - seems to me a failing beyond comprehension.
It could have been so good! Why weren’t we asked to send in a video MMS? Why didn’t an SMS kick the whole thing off so reminders, follow ups, non-data plan holders and (importantly) existing vs. potential new customers could be quickly identified?
Pretty paisley/acid inspired graphics. Too many chefs in the kitchen and a complete lack of “mobile” in this ‘marketing of mobile’ (ie. NOT mobile marketing) campaign made it a bit of a fizzer for mine.
So what? What does this mean for you and your business?
Firstly, let’s apply the KISS principle. If you’re going to have a micro-site, have one. Not three. Keep it all on the one site. It will help your customers, and you, stay sane and not give up or get lost.
Secondly, integrating mobile into this campaign would have been the easiest thing in the world to do. Ask your customers for their mobile number. After all, they’re gunning for a free mobile phone from a mobile phone company. D’uh.
Thirdly, take it slow on the data collection. Don’t try to hit a home run on the first date. Try, “name and number” then in the next step “email address and postcode”. See? 4 important data points and my customer isn’t feeling molested.
Lastly, at all times remind the customer why they are there, what’s in it for them, and let them know how far they are into the process: “Step 1 of 4″, “You are 75% complete”, “Just two more steps and you’re in with a chance to win!”.
There are others, but let’s leave there for tonight. I’ll keep hoping and hunting for the next mobile marketing revolution. Until then, don’t forget the basics.