Mobile Coupons by JCPenny
The large retailer JCPenny recently made its first move into mobile couponing by piloting a program in Houston with 16 stores. This is following a trend of successful mobile forays by companies like Starbucks and Domino’s Pizza. The would allow for redemption of mobile coupons at the point of sale (POS). That way as the phone never leaves people’s side it is easier to manage then clipping and saving paper coupons.
Neil Stother, an analyst at Forrester research , stated “”In a down economy, we’ve seen online couponing expand, and this is [a similar] extension to the mobile phone.” (Dillworth, 2009). While fast food and grocery companies have been the pioneers mobile is quickly emerging in other verticals and with the growth of online couponing the retailer wisely seeks to gain traction in that market.
The company has run mobile campaigns since 2007 but this new foray is meant to mostly maintain customer but will also work on awareness and some new customer acquisition. The channel is for younger consumers who do not use coupons. The redemption rate is higher as well being closer to 10-20% as opposed to 0.5% with traditional direct mailers (Dillworth, 2010). The brand acknowledges that it will need to work on training customers for this new foray into mobile.
Dilworth, D. (2009, September 25). Jcpenny takes coupons mobile. Retrieved from http://www.dmnews.com/jcpenney-takes-coupons-mobile/article/149790/
Posted in Advertising, communication, internet advertising, Internet Marketing, Marketing, mobile, technology
Tagged Advertising, Coupons, JCpenny, Marketing, Mobile, mobile coupons, Penny's
Increasingly (and especially in rough economic times) advertisers have been turning to digital media for their marketing efforts. Gap made headlines last summer when it cut advertising costs by 18% and watched profits soar by 40%. Why should we all take note? Well, Gap made a data-smart spending move. By reducing ad spending from traditional means, Gap was able to increase their profits and decrease their spending. Even P&G continues to experiment, dropping traditional media by 19% and increasing digital as much as 10%. This represents a major spending shift. In fact, the popular bourbon brand Southern Comfort poured its entire marketing budget into Internet advertising**.
Companies in the United States are moving $65 billion in advertising to online sources. To put this shift into context, listen to what Anthea Stratigos of Outsell Inc. said in a recent interview in Forbes Magazine. “To scale that, compare the total U.S. TV and cable advertising revenue for 2009, which is about $66 billion. The marketing dollars companies now spend on their own sites is equivalent to all TV ad revenue for the year.”
Reasons for the switch are numerous, but the most resounding reason has to do with accountability and metrics. In contrast to most traditional media outlets, digital media can be tracked, managed, and even changed during the campaign. This means it is easier to prove the return on investment for marketers.
The idea of integration and convergence in media has to do with traditional and digital media coming together or converging into a more accountable and trackable media landscape. Moves in this direction include the use of digital billboards, IP-based television programming, and online radio campaigns. To see more about convergance check out this graph . It clearly shows the types of ads that consumers see as the least obtrusive.
For some strategy on how to harness and a further in depth look on the trend please visit this article.
*source: Myths About Online Retail Marketing Posted by Kelly Mooney on 02.17.09 @ 10:40 AM on Adage.com
**source: Southern Comfort Pours Entire Media bugetIinto Digital by Jeremy Mullman on: July 29, 2009 on adage.com
Advertising and math go hand in hand. In order to come up with a guarantee for a product you must make sure it is not false advertising. Using deductive logic you can actually use math problems in order to make sure your guarantee is valid and economically feasible for your company. For example the use of clauses with your guarantee can help solve the validity and feasibility of your claim. So if you offer a weight loss product you must not just claim an amount of weight lost for a refund but instead give conditions that must be met that include a weight loss. Your company has done the research on the mathematics of weight loss. In order for people to get results they must show a weekly deficit of 3,500 calories. They must also use the product daily. It must include the differences in Men and Woman’s calorie counts and what is healthy as well. You can then make a journal of all foods, activities, weight be a part of your conditions. If the people do not take down their weight or activities then they cannot get the refund. Click to read more here .
An increasingly important part of advertising today is text-based ads that are Pay Per Click (PPC). PPC ads show up relevant links to terms searched within a search engine. You can bid on the words used in order to show your ads. For example if you sell trailers and you bid on the word trailer you will be billed for every time that someone clicks on your ad. The ad was generated by the word “trailer” in the search engine and is displayed along with links found by Google (organic search results). You must then do a math problem in order to see if your bid is successful and worth the price. According to searchengineguide.com most campaigns can expect a conversion rate of 6%. Meaning you can expect 6% of the clicks will turn into sales. This must balance out the cost of your ad campaign. Math allows us to use a variable in order to turn this into a equation that will answer those questions for every campaign.
X=Number of clicks on your ad
Y=Bid on your ad
Z= Average Sale
P= Number of Conversions
The equation would look like this:
X(.06)= P (z) = MUST BE GREATER THAN X * Y
This will prove whether or not your campaign was a success financially. Click to read more here.
I will be using equations like the one formulated above for a PPC campaign a lot in my future endeavors. As someone that sells Internet advertising and who does marketing for my clients I must do similar equations for all the ads bought for my clients. Even if it is on my site I must prove a return on investment. A similar model can be used to the one above for PPC on Facebook ads on my own website and other Internet ad campaigns. I already have to do a bit of math to prove any new clients ROI and I just expect that to become more of the routine.
Mathematics and Marketing are not necessarily one in the same. But lately that isn’t the case. I think that as the use of Internet Advertising increases so will Marketers use of mathematics. I have included an article talks about how to rate the success of an Internet Marketing campaign.Click to read more here. This is important for as an Internet Marketing professional to consider for my own use and for my client’s campaigns. I must take into account the factors found in the article and make sure that I am setting up the proper equations to hit my goals. The nice thing about this article is that is details out all the factors found in campaigns and how to use them together in order to build equations to show your success or failure for your campaigns. Another fun link I found that applies to any job that needs to use a search engine, Click to read more here. The article clearly shows how to use math and specific commands to get what you want out of a search.
In reality the majority of jobs will use some sort of math. It may be more logic or reason based but most careers have some component of math used. Even if it is just to balance your finances or to check if your paycheck is right I think that you will find Math a valuable tool. I am not a big math fanatic in fact I have Math anxiety but I recognize that in marketing and business development it a crucial part of my job and owning my business. I found an article that showed the math used in cosmetology, a field I think that couldn’t be less math oriented. If you use math in hair styling, I can assure you that it will come up in your chosen career. Click to read more here.
Posted in Advertising, communication, Internet Marketing, opinion, SEO
Tagged Advertising, guarantees, internet marketing math, Marketing, math, math and advertising, search engine math, statistics