MMS6 essential points you need to know - now and going forward - about integrating MMS into a

robust digital communication strategy.

A Waterfall Quick6 eBook

1 So You Think You Can MMS A Multimedia Messaging Service overview

2 How MMS Stats Up Statistics analyzing MMS as a mobile marketing channel

3 MM-Yes! The MMS value proposition

4 Look Ma, MMS! Useful specifications to ensure MMS delivery

5 Case Closed MMS case studies

6 Do Your Best Essential MMS best practices

TABLE OF CONTENTS

1So You Think You Can MMS A Multimedia Messaging Service overview

A Multimedia Messaging Service overview

What is MMS?

MMS stands for “Multimedia Messaging Service.” By utilizing MMS, marketers can extend the core functionality of MMS’s closely-related mobile messaging cousin, SMS. Whereas SMS lets marketers deliver a text message of up to 160 characters in length, MMS enables the distribution of multimedia content such as pictures, music or video. When executed well, the enhanced richness increases customer engagement, as campaigns can draw on combinations of various branded elements. !Though MMS has been around for a while, technological limitations previously prevented widespread adoption for brand-to-consumer communication. At present, telecommunication networks have sufficient bandwidth and the average consumer’s cell phone has sufficient technology to make MMS an easy-to-use standard for brand-consumer mobile dialogues.

1

Factoid — Consumers have used MMS enabled phones since 2002. In 2012, U.S. citizens consumed 2.241 trillion cell phone minutes, 2.052 trillion SMS and 56.6 billion MMS.

Best of all, just like SMS, MMS messages go to a customer’s messaging inbox. This high importance placement on a mobile phone makes for extremely efficient and interactive communication. Customers read every MMS they receive –usually within minutes after receipt – and respond accordingly. Plus, MMS can go beyond standard pictures, audio or video. Marketers can launch campaigns that use GIFs, scannable coupons and any other type of rich media. !Like all direct marketing channels, marketers’ biggest challenge with MMS is execution. Understanding key best practices and specifications before launching a campaign will result in much more compelling and actionable results. This eBook contains everything a marketer needs to know in order to create MMS mobile marketing campaigns that customers love. !!*For those new to mobile marketing, MMS draws on the same short code and keyword infrastructure as its cousin SMS. For a quick refresher, be sure to review the SMS Marketing eBook, available for download here.

Having Good Character — Whereas an SMS has a limit of 160 characters, MMS can have up to 1,000.

A Multimedia Messaging Service overview1

How Does MMS Work?

Software platform encodes message into an MMS-capable format.

Server determines whether phone is MMS-enabled or not.

Message is forwarded to the individual carrier’s MMS store.

If MMS-enabled, content sent to a temporary storage server.

If not MMS-enabled, content delivered to a web-based service from where customer can view via a normal Internet browser.

MMS pushed to the customer’s device. When devices are turned off or out of range, network

providers store the content and retry delivery until successful (or the number of retries exceeds

corporate policy).

SMS control message containing the URL of the content sent to recipient’s handset. This triggers the cell phone’s Internet browser to open and access the content from the web URL.

Step 2Routing

Step 1Origin

Step 4 Loading

Step 3Identification

Step 5Delivery

A Multimedia Messaging Service overview1

2How MMS Stats Up Statistics analyzing MMS as a mobile marketing channel

MMS Has Enormous Revenue Potential U.S. consumers sent and received 207 billion MMS messages in 2011. This volume projects to increase 182% to 387.5 billion by 2016. This level of MMS, representing ~1.7% of global messaging traffic, will equal 10.6% of global messaging revenues (for numbers heads out there, MMS will generate ~$20.7 billion USD by 2016).

GROWTH OF MMS - WORLDWIDE (IN BILLIONS) 2005 - 2016 F

VOLU

ME

- BIL

LIO

NS

0

50

100

150

200

250

300

350

400

YEAR

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

F

2015

F

2016

F

Trendline

Actuals

Source: Portio Research

MMS Has Grown Rapidly Since 2005 The stats behind MMS reveal a rapidly growing channel that has enormous potential for revenue generation and customer engagement. For more stats and insight into MMS, feel free to reach out.

Statistics analyzing MMS as a mobile marketing channel2

MMS Maximizes Customer Reach and Engagement

Statistics analyzing MMS as a mobile marketing channel2

Source: Wired; GoMoNews

redemption rate compared to traditional coupons.

10xMobile coupons have a

of all U.S. customers can use MMS.

98%

MMS works non-natively on 95% of mobile devices in the U.S. – a figure that constantly grows. When including non-native accessibility,

of Americans send MMS on Christmas, New Year’s & Valentine’s Day.

57%

The personal nature of video and picture messaging make it popular during festive times, as

87% of U.S. customers trust MMS as a communication channel to share updates with their nearest and dearest.

87%

higher than email for redemptions and purchases in retail.

10xMMS provides ROI

of MMS messages, with 87% of those opens occurring within the first hour.

97%Customers read

30%MMS messages conversion rates average as much as

for SMS & MMS.

~4min

Average time for a customer to open an email is 48 hours, versus

Statistics analyzing MMS as a mobile marketing channel2

Source: Archer; Iris Mobile

watching an MMS video that explains brand value

2.79minutes

Customers are willing to spend up to of customers feel more

engaged with a retailer after watching a video.

50%

of consumers are more likely to return to a retailer after seeing a video.

45% of shoppers use mobile for coupons and 47% want retailers to send coupons when they are in or near a store.

34%Consumers show a higher preference for MMS, as

MMS Content Incites A Customer Response

3MM-Yes! The MMS value proposition

Immediacy and Interactivity Thanks to the short code infrastructure, marketers can send an MMS to a large database of customers relatively quickly (file size differences mandate that MMS throughput < SMS throughput of course). Since MMS goes directly to customers’ mobile messaging inbox, response time is far less than any other channels like email and social media. As a result, marketers using MMS should generate timely interactions geared toward inciting action. In doing so, they can take advantage of MMS’s key benefit of interactivity. !Flexibility For Cost Savings Marketers can use the fact that MMS and SMS go to the same inbox to their advantage. Due to MMS’s large file size, per message costs will be higher than SMS. Thus, use SMS when multimedia communication does not need to be part of the exchange. Customers will receive a seamless experience while marketers will be able to maximize cost efficiency for their business.

Targeting and Personalization Like email and SMS, marketers should deploy MMS as a data-focused CRM strategy. By targeting relevant content to specific customers and customer groups, marketers will immediately impact ROI. Personalized content produces a more pronounced customer response, which leads to increased purchase values and more frequent visits. In addition, targeting reduces the number of messages sent that miss the mark, which decreases cost. Any number of data fields can govern which customers receive what content, including behavioral, demographic and transactional information. Take advantage and reap the benefits. !Interest And Engagement MMS gives marketers the power to craft a messaging strategy that weaves all types of rich media, including text, pictures, GIFs, audio, video and redeemable coupons. Compare and contrast different media types using A/B split testing to discover how and why customers react to branded content. This not only results in higher MMS open and redemption rates, but also produces an ideal forum to test what will incite action online and across social.

The numbers behind MMS paint the picture of a powerful opportunity for customer engagement. That said, reaching MMS’s potential for success comes down to understanding how to execute well – just like any direct marketing channel. Effective execution requires grasping the core principles of how to smartly implement MMS. Let’s explore them now:

The MMS value proposition3

4Look Ma, MMS! Useful specifications to ensure MMS delivery

Aspect Ratio The Mobile Marketing Association recommends a 16:9 and a 4:3 ratio for the average MMS rectangle image. Marketers can also use a 1:1 ratio to produce good results. !Dimensions In addition to aspect ratio, the Mobile Marketing Association advises the following width recommendations for different-sized images:

• X-large: 300 pixels • Large: 216 pixels* • Medium: 168 pixels • Small: 120 pixels

*The Large format is the one most recommended for best quality MMS campaigns; it has shown the most success across today’s myriad of mobile device types.

Like any technology, MMS has a few technical specifications that marketers need to keep in mind in order to optimize customer experience. The two most important are content sizing and presentation.

Sizing When sending MMS messaging, the content should be perfect. Don’t let any messages fall prey to unattractive photo ratios or blurry pixelated text. Here’s the basic information needed to ensure MMS delivers the most effective multimedia content to customers.

Useful specifications to ensure MMS delivery4

Presentation With the proper sizing nailed, keep these presentation details in mind to ensure MMS delivers the highest quality content. !

• Avoid tiny text and graphical details. An MMS message goes through a lot of steps before it’s finally perfectly formatted for the end-user’s device. Once the image is sized down and compressed, you don’t want to risk it becoming blurry on a lower-resolution mobile phone. Remember to test and retest your images.

• On video MMS, avoid fast-moving videos and rapid scene changes. You want to make sure that messages stick with your customers.

• If you’re sending a video, be sure to take a look at the fixed frame. You don’t want to have the video’s one frozen frame be ineffectively used. You have a limited amount of space, so use that space wisely.

• While an MMS is technically unlimited in size, the MMA’s recommended MMS message size is 300KB—this should be enough for a high quality rectangular ad and even animated images.

Useful specifications to ensure MMS delivery4

In these examples, note how the fixed frame image for a video campaign brands the customer experience to incite engagement.

MMS SMS

Definition Multimedia Messaging Service: text + rich media messaging.

Short Message Service: text messaging.

Transmission Messages sent to a message center. Recipient receives content via their messaging inbox if the phone supports MMS. If not, customer views the MMS in a browser.

Messages centers send and receive texts. All messages retried in case of intermittent delivery failure.

Use Cases Rich content results in high engagement rates. Ideal for creating higher touch interactivity.

Smaller file size results in speedy delivery. Ideal for instantaneous, interactive communication.

Size 1,000 characters with 3MB attachments. 160 Characters.

Technical Requires content adaptation for different devices. Handset fragmentation and increased likelihood of user error requires more customer service expenditure.

Received on all phone types. No rich media available, unless executed through a link to an online site.

Cost Higher volumes decrease variable cost. At scale, expect to pay pennies per message. This rate will decrease as the industry matures.

Higher volumes decrease variable cost. At scale, expect to pay fractions of pennies per message. This rate will decrease as the industry matures.

Infrastructure Both SMS and MMS delivered via short codes (5-6 digits). Though long code delivery possible (10 digits), no regulation or support exists. Throughput for SMS is higher than MMS given the larger file size.

SMS & MMS Breakdown In addition, marketers should grasp the differences between SMS and MMS. The two channels overlap considerably, so interplay becomes a way to optimize cost and customer experience.

Useful specifications to ensure MMS delivery4

5Case Closed MMS Case Studies

MMS’s rapid growth among customers and clear value proposition for marketers make it an extremely attractive method for communication. But what does an actual deployment look like? Glad you asked. !Here are four case studies from brands across industries that demonstrate how to implement an MMS campaign. Read through each to understand the do’s and don’ts that will result in an increased customer lifetime value.

MMS case studies5

BMW Takes Advantages Of MMS Hyper-Targeting BMW, to promote a winter tires initiative, reminded customers via mobile messaging that better tread in the snow was a necessity, not a luxury. Instead of sending a vague, anonymous, mass-mailed print advertisement, BMW personalized a mobile message to each customer depending on the specifications of their owned car. Each message included a link to BMW’s website where customers could discover alternate tires, compare prices and view different styles for their vehicle. BMW supplemented this MMS content with a mobile app that customers could download to further their experience. Interestingly, the BMW marketing team decided to optimize content for only ~20% of cell phone types. The campaign focused on delivery to the high-end smartphone market, rather than attempting to support every single phone type.

Results • 1,200 messages sent • 30% Conversion Rate • $45MM In Revenue • Cost $60K

Key Takeaways BMW displays how to use multiple engagement channels, including SMS, MMS, Mobile Web and Mobile Apps, to created targeted customer outreach. By delivering a message according to a customer’s specific BMW model, as well as following up with numerous access points for personalized customer interaction, the campaign generated a high ROI. !On the other hand, disregarding a portion of the market was unnecessary. Any customers without MMS/app-enabled phones should receive a text message with a link to where they could learn more about the promotion. By implementing SMS, given its ubiquity and correspondingly low cost, BMW could have increased conversion rate with minimal additional investment.

MMS Case Study — BMW5

Express used mobile to launch a digital version of the company’s annual “Passbook of Savings” campaign. Customers opted in via a landing page to receive up to 8 MMS messages throughout the promotion. Express’s marketing team promoted this digital marketing initiative in stores and online with calls-to-action directing customers to subscribe with their smartphones.

Key Takeaways This Express campaign demonstrates a key benefit of SMS and MMS: the opt-in. By driving customers to subscribe, Express can use the scope and immediacy of mobile coupons to drive customers into stores, redeem promotions and buy additional apparel. Note also the importance of launching a promotion across a brand’s portfolio of marketing assets. By promoting mobile across online, print and social, customers will see value and develop trust, which greatly increases ROI.

35%16%

SMS MMS

Results Percent of Customers Who Went On To Purchase After Receiving a Message:

MMS Case Study — Express5

Results • 8 million impressions in 24 hours

• Broke an all-time record with the highest number of first-time guests in the history of theater

• Show extended for an extra week due to the high demand for tickets

• 14% who opted in shared content on Facebook

• 17% who opted in chose to receive future messages from the Chicago Shakespeare Theater

Takeaways This well-crafted campaign shows how to use MMS to create an exciting, active conversation that conveys a compelling message to customers. Particular kudos go to the use of timing and relevancy, as the Chicago Shakespeare Theater quickly reached millions of viewers and built a sizable database of opted-in customers from scratch.

In order to kick off the Chicago Shakespeare Theater’s production of “Sunday in the Park with George,” actors made a surprise live performance at the Art Institute in Chicago. The play took place in front of a life-sized reimagining of George Seurat’s Sunday Afternoon on the Island of La Grande Jatte, from which was absent certain key elements from the original work of art. After the show, the cast and crew invited the audience to opt in to a mobile campaign to discover the secrets of the missing characters. Those customers who texted in received an MMS video message explaining how the missing characters had come to life in a play, as well as where to buy tickets to see the new show at the Chicago Shakespeare Theater.

MMS Case Study — Chicago Shakespeare Theater5

Takeaways Starbucks demonstrates an excellent tactic for customer loyalty. By promoting a new initiative to existing customers, Starbucks puts its mobile program top of mind. This incentivizes referrals and viral sharing. In addition, the first message lets Starbucks gather information on whether to send the promotional video as an SMS link or MMS attachment. Thanks to mobile messaging’s flexibility, marketers can deliver a message to any smartphone type in order to maximize reach and engagement.

Starbucks Summer Promotion Opted-in Starbucks customers received an SMS alert about an upcoming mobile trivia contest where they could enter for a chance to win a prize and receive summer deal alerts. Upon participating, Starbucks sent MMS compatible smartphones a multimedia message that contained a short video and information about in-store Happy Hour specials. !Those customers without MMS capabilities received a link to Starbucks social media, which allowed the company to track click-through rates across channels.

MMS Case Study — Starbucks5

6Do Your Best Essential MMS Best Practices

The previous MMS case studies show how various companies have succeeded using multimedia to drive customer engagement and increase lifetime value. !That said, just like any marketing channel, MMS success comes down to understanding the opportunities available and how to take advantage of them. Here are the most important best practices to ensure MMS campaigns drive monetary results.

Essential MMS best practices6

Strategy & Insight

Experiment using MMS to deliver all types of media, including animated GIFs, images, audio and video. If you could only send images with MMS, marketers would have to call it IMS (image messaging service). As MMS encompasses all “multimedia,” marketers should set out to test all types of content. To do so effectively, track response rates for each campaign and collect data to understand how your customers interact with various content types. From there, implement A/B split testing to pinpoint the exact content that creates the desired response for specific customer segments.

Opportunity

Customer preferences result in certain types of rich

media producing better response

rates than others

Essential MMS best practices6

Strategy & Insight

Use a self-service platform that allows for changes on the fly. Legacy MMS platforms require that marketers have all campaigns created at the beginning of a contract so that the vendor can format and input campaigns into a blackbox-type system. This arrangement not only burdens the MMS vendor with manual processes, but also hinders marketers who need to commit to initial campaign settings that may change in the future. By using a self-service platform, marketers can build new or adjust existing campaigns any time they choose. This increased flexibility ensures an optimal customer experience, as distributed information remains relevant and contextual.

Opportunity

Maintaining MMS campaign flexibility allows marketers to

react to changing market conditions

Strategy & Insight

Mind the details when sending pictures and video Just like email marketing, there are a few best practices that will help ensure that customers receive content they can access on their phone. With photos, avoid sending panoramic photo, basic photo ratios or ones that are overly long / big / wide. The conversion through the telephone network makes these types of images difficult to deliver. Second, expect compression to occur. Any image with tiny text will probably show up jagged. With videos, remember that the first frame of your video appears as a thumbnail for customers to view. Make sure this first frame has a logo or image so that it does not show up as blank in the customer’s message inbox.

Opportunity

Delight customers with engaging

content

Essential MMS best practices6

Strategy & Insight

Track MMS performance and input metrics to measure ROI. Marketers can measure ROI in a number of ways. Some companies have sufficient data systems to measure ROI by tangible metrics such as an increase in revenue (e.g. the BMW case study). For those that have difficulty quantifying a direct increase in sales, start by embedding data tracking tools in campaigns. For instance, just like the aforementioned Starbucks campaign, multimedia images can contain an offer that allows customer to click/tap through to a website link. Here, marketers can track data on who actually participated in the campaign. Marketers can also measure redemption rates of coupons and messages. No matter where marketers stand in their ability to track your ROI, focus on gathering data. More data equals more flexibility to integrate systems and generate a true closed loop in the future.

Opportunity

Ensure success begets more and

more success

Strategy & Insight

Manage channels from a customer-centric point of view to eliminate redundancy and double contacting. Since modern consumers have access to a number of channels, they have become very proficient at ignoring unwanted content. Anybody today surfing the Internet undoubtedly comes into contact with advertisements constantly, but maintains an effortless ability to hone in on what’s needed or desired. Mobile, as a customer’s most personal device, creates brand/consumer intimacy, as marketers can literally reach the back pocket of their target audience–instantly. Too many marketers focus on all these channels as individual goals. What makes for better marketing is to view customers as a focal point, where the channels simply provide the means to convey a single conversation. This approach ensures that customers don’t feel inundated with content, rather motivated by a positive brand experience.

Opportunity

Deliver an ongoing conversation to

customers

Essential MMS best practices6

Strategy & Insight

Ensure that customers with all types of phones receive mobile content. Find a strong provider that understands not all phones operate exactly the same. Marketers shouldn’t hesitate to implement MMS because they’re wary of device compatibility. This is the provider’s job—a good platform will handle device compatibility issues behind the scenes on a white glove basis. Strong vendors’ software will validate content upon the initial file upload, instantly creating specific versions of the file for the various handset models. Think of this capability like writing a post on Facebook—you simply attach the file and then the platform does the rest of the work in distributing the information. This allow marketers to focus on their customer and content, which will produce much better customer results..

Opportunity

Maximize reach to all customers

Thanks for reading the MMS Waterfall eBook. Published Fall 2014. For additional insight, visit waterfall.com or say hello@waterfall.com.