A surge of mobile advertising interest and activity has made Africa the market to watch. We look at recent brand campaigns running on the Tigo Ads service. Tigo, a leading mobile operator in Ghana, has implemented the advertising solution to bring personalized mobile advertising to its over 3 million subscribers.
To increase revenues, differentiate services and reach a wide and willing audience with mobile advertising, Ghana’s mobile operator Tigo has become the first in the country to introduce permission-based marketing.
The opt-in service, Tigo Ads, delivers mobile advertising aligned with preferences of its subscribers because it asks them first. The service is based on the Alcatel-Lucent Optism mobile marketing solution
In practice the service invites subscribers to share information with Tigo about their interests and demographics (age range, sex). This information ensures subscribers receive text messages (containing important news, promotions, discounts and exclusive offers) from their favorite brands.
A raft of recent research –including Tigo’s own focus groups — confirms that people are more receptive to marketing messages when they have explicitly agreed to receive the ads in the first place.
In the case of Tigo, a whopping 90 percent of focus group participants said they approved permission-based mobile advertising.
So how does the Tigo Ads service stack up?
During the limited initial launch more than 40,000 subscribers opted in and used the service. At the other end of the spectrum, advertisers — local businesses as well as global brands including Nissan and Volkswagen — reported response rates ranging between 18 and 45 percent. This is significantly more than the single-digit (less than one percent on average) response rates achieved by brands using online and digital advertising channels.
Permission and advertising opportunities
These impressive results have moved Tigo to open up its mobile advertising service to all its 3 million subscribers. “This new service is one that we are particularly excited about. It helps our business customers reach their customers and it gives us insights into what our customers are interested in, so we can better serve that segment as well,” Rosy Fynn, Consumer Manager Tigo Ghana, said in a statement. The operator regards the service as a “true asset for all members of the mobile advertising ecosystem, because it acts as a key tool to help us to better understand and meet each customer’s needs and preferences.”
Tigo isn’t the only one to benefit from permission marketing, an approach that allows it to market its own services better to subscribers. Brands are also positive about the value of opt-in, a process that provides them with access to an audience that will accept — and appreciate — their marketing message.
“The mobile campaign we ran with Tigo Ads brought us to a wider audience than any other form of digital advertising in Ghana,” Haadi Bawah, Marketing Manager of Auto Parts Ltd, distributor of Nissan automobiles in Ghana, said in a statement. “The response rates to the Nissan Patrol campaign were extremely positive, and we gained insight into consumers’ needs that we can use to shape future campaigns.”
Nissan case study
Auto Parts Ltd, the exclusive distributor of Nissan automobiles in Ghana, wanted to generate awareness of the new Patrol SUV. To this end the company’s campaign leveraged interactive text dialogue to connect with Tigo subscribers who expressed an interest in receiving automotive advertising.
The first message asked people to identify what was most important to them when evaluating an automobile (safety, features, performance or comfort). After answering this query the conversation continued with a second text message emphasizing the aspect of the vehicle that was top of mind with that type of subscriber (information the brand knew because it was contained in the response to the initial question).
For example, a subscriber who answered that performance was what they looked for first and foremost in an SUV received a text detailing the vehicle’s powerful V8 engine. The call to action included in this message encouraged subscribers to call a local dealer for more information. (To encourage maximum response rates replying to all text messages is free of charge.)
Results:
In total 14.3 percent of women responded to the campaign, compared to 12.8 percent of males.
- 15 to 24 year-olds were most responsive age group.
- Overall, 20 percent responded to the campaign, volunteering what they look for most in a car (safety, features, performance and comfort).
As a result, the campaign also shed important light on what matters most to consumers considering a car purchase. Safety emerged as the most important factor for the majority of consumers (9.78 percent). This was followed by features (4.26 percent), performance (3.48 percent) and comfort (2.58 percent).
Interestingly, some people were so eager to engage with the company that they ignored the four options displayed on their screen (safety, features, performance and comfort) and sent text messages back to Nissan asking the price for the Nissan Patrol model car.
My take:
Another case study that confirms the high response rates achieved when advertisers use permission marketing to start — and continue — the conversation with people who want to listen. The Nissan distributor reported a 20 percent response rate, which is impressive. However, the real story is the enthusiasm of the audience (people interested in automotive advertising in the first place) for the campaign. Although the advertiser didn’t specifically request it, some people texted the company to ask the price of the SUV. It’s a reaction that doesn’t only exceed expectations; it underlines the effectiveness of mobile marketing campaigns that truly strike a chord with their audiences.
Editor’s note: What are the key characteristics of the market in Ghana? How have consumer attitudes toward mobile advertising evolved? What is the business value of permission marketing and how has this impacted Tigo’s mobile marketing strategy? These are just a few of the questions we ask Tigo in an exclusive interview later this month – so watch this space.