The BMW Winter Tyres MMS campaign earned 45 million (!!) in additional business
Via my colleague Erlend I came across this amazing BMW mobile marketing campaign in Germany. The BMW Winter Tyres MMS campaign earned 45 million (!!) in additional business. This tiny messaging campaign was not organized by a pornographer, or a crazy tones subscription provider, nor a phony voting scam on TV, nor some outrageously addictive social networking phenomenon. It was that ultimate driving machine company from Bayern, called BMW. The BWM Winter Tyres campaign is an excellent example of excellence in mobile marketing and advertising.
The campaign went out to only those BMW new-car buyers who bought their Beemer in the summer season in Germany. Out of all cars sold in 2007, BMW sold 117,000 to private citizens in the summer period (anyone who bought a BMW as part of a fleet, would have bulk buyers for their winter tyres). They decided to send out 117.000 MMS picture messages to all their customers, in order to inform them BMW was having a Winter Tyres action. It cost them approximately a total airtime of 60.000 US dollars. According to Ajit Jaokar, who did a nice analysis of the mathematics and economics of the campaign the BMW campaign received a 30% conversion rate (ie people actually showed up in a store, and made a purchase) which is an amazing number (internet advertising gets an average of 5% click-through rates..)
The cost of a set of winter tyres is 700 dollars, and average cost of tyres plus rims 2,500 dollars. According to the analysis, the average customer would spend approx 1,300 dollars. Multiplied by 30% of 117.000, this means that 35.000 customers ( who received the MMS message ) appeared at a registered BMW dealer and bought tyres and/or rims for their new cars.
Total earned by BMW out of this campaign = 45,500,000 million dollars. Comparing this to the total airtime cost of 60.000 dollars this means the following: The return of investment per single MMS ad transmitted was 758 dollars. Should we start questioning running television campaigns that cost millions and newspaper and magazine ad campaigns that run hundreds of thousands, with no way to measure their effect? Is this a win-win situation? BMW did a good job earning 45 million by a tiny MMS campaign and the customers who received an mms are feeling less spammed or bothered, they are being approached in a far more personal way and in this case they actually need this information! This campaign seems like a perfect match for both sides, no?