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« Why lack of cellphone polling is creating bias in US Presidential polls | Main | Faust, Banking and Trust »

September 26, 2008


Romi Parmar

Tomi/BMW: Thanks so much for this wake up call to advertisers...

A bit of back of the envelope calculations tells me this marketing manager is going to get a bonus because i calculate the team there has just sold over $45 million of extras to existing customers via mobile.

Cost of winter tyres about $700
Cost of tyres & rims about $2500
Approx. Average sale $1300
Total sales of BMW in summer 2008: 297k
-Those sold to hire/fleet: 180k
Total potential customers: 117k
30% response rate = 35,000 customers
35,000 customers spending $1300 each = $45,500,000

At a time when new car sales are falling (total number of cars sold in Germany during 2007 was 3,148,163 – the worst performance since the reunification of Germany in 1990) they will be looking to promote guys who can do that.

Tomi T Ahonen

Hi Romi

Thanks, great quick calculation of the scale involved. Yes, and all this at a cost of approx 50 cents US per MMS sent in Germany. So the total cost of the campaign (telecoms cost, not design and targeting which would be extra of course) is approx 60,000 dollars. And turn that into perhaps 45 million dollars of sales. Not bad, not bad at all..

Romi, I'll be using this case example in my presentations now this Autumn whenever I speak about advertising and mobile. I'll include the calculation and mention that it was you who offered the analysis here at our blog. So thank you Romi. I'm so sorry this came just too late to make it into my newest book, Mobile as 7th of the Mass Media... But yes, amazing numbers and I'll definitely use these in my presentations. Should wake up some people.. I'm also sure Alan will love these numbers and use them in his workshops around mobile marketing and advertising..

Tomi Ahonen :-)

Alan Moore

Outstanding - Timely, relevant and contextual




Great example, once again. My guess is that the "extra" of design and targeting was larger than the direct cost of $60,000 for delivery but still a great deal.

Hopefully this sparks more creativity with personalization and targeting to open up the mobile ad front.

Tomi T Ahonen

Hi NW Guy

Thanks ! Yeah, that cost structure is roughly what I'd think as well. Not a million, but not ten thousand, probably under 100,000...


Oh, I'm sure the BMW winter tyres campaign will be featured well in the industry; I'm talking about it in my workshops and seminars and I know many other thought-leaders really liked it, such as Russell Buckely the chairman of the Mobile Marketing Assoc so I'm sure you'll see it well spread..

Tomi Ahonen :-)


BMW ads are amazing. They must spend a lot of time testing their ad responses. I love the one posted at

tyre changers

A new form of advertising through mobile.I like the idea that customers can compare prices.Goodluck and hoping for more sales in the future.

tyres in redditch

Also it helps save a few gallons of crude oil that would otherwise go into the making of a fresh tyre. There are many resources where information on tyre retreading is available; you should always try to get your tyres retreaded through an environmentally conscious dealer.

tyres in redditch

Also it helps save a few gallons of crude oil that would otherwise go into the making of a fresh tyre. There are many resources where information on tyre retreading is available; you should always try to get your tyres retreaded through an environmentally conscious dealer.

Adiamor Reviews

that the customer could experiment with other variations and see their prices and compare.

The comments to this entry are closed.

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