Mobile Marketing 2025

Optimizing the Future of Digital Engagement

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  • When Mobile Marketing Crosses the Line: ​What the AT&T Case Teaches Us​ 

    Taylor Scott

    The Law That Was Violated: Mobile Cramming and the FTC Act

    When mobile marketing is done right, it builds trust, enhances customer experiences, and drives loyalty. But when it crosses legal or ethical boundaries, the consequences can be severe, not just for consumers, but for companies as well. The case of AT&T and its $88 million refund settlement with the Federal Trade Commission (FTC) is a powerful example of what happens when consumer trust is broken. In 2014, AT&T was caught engaging in a deceptive practice known as mobile cramming—allowing third-party vendors to place unauthorized charges on customer phone bills. This violated consumer protection laws under the Federal Trade Commission Act, and triggered enforcement actions from both the FTC and the Federal Communications Commission (FCC). AT&T allegedly kept 35% of the revenue from these unauthorized charges (Federal Trade Commission, 2016).

    The Consumer Fallout: Hidden Charges and Broken Trust

    The impact on consumers was both financial and emotional. Many had no idea these charges were on their bills until months had passed, and the amounts—while small individually—added up quickly. This type of deceptive practice undermines consumer autonomy and creates a sense of powerlessness, especially when refunds are hard to obtain. Over 2.7 million customers were affected, some repeatedly, and the average refund was around $31. While that may not seem huge, the breach of trust runs much deeper.

    Legal Penalties: Fines, Refunds, and Reputational Damage

    For businesses, the legal consequences of mobile cramming can be enormous. In AT&T’s case, the company paid $80 million in refunds as part of a broader $105 million settlement, including penalties and restitution involving the FTC, FCC, and all 50 states (FTC, 2016). But perhaps more damaging than the monetary cost was the reputational hit. In today’s digital world, trust is everything—and once lost, it’s hard to recover.

    This isn’t the only example. Companies like T-Mobile and Sprint have faced similar cramming allegations in recent years, each resulting in tens of millions in penalties (Puzzanghera, 2015). These recurring cases reveal a pattern of inadequate oversight and lax ethical standards in mobile billing.

    What Ethical Marketers Must Do

    To prevent these violations, mobile marketers must adopt a proactive, transparent, and ethical approach. That starts with clear opt-in consent. Consumers must knowingly agree to any third-party services, with a clear description of the cost and recurring nature. Marketers must also provide easy opt-out options, regular billing transparency, and prompt resolution channels for disputes.

    From a compliance standpoint, marketers must stay up to date with federal regulations like the Telephone Consumer Protection Act (TCPA) and relevant FTC guidelines (FCC, n.d.). This includes maintaining data security, disclosing terms upfront, and avoiding manipulative subscription tactics. Simply put: ethical marketing means respecting consumer rights at every stage.

    The Takeaway: Trust Is the Most Valuable Currency

    The AT&T mobile cramming case is a warning to any company using mobile channels to reach consumers. Shortcuts and shady billing practices may bring short-term profit, but the long-term consequences—legal, financial, and reputational—aren’t worth it. Building trust through transparency is not just good ethics—it’s good business.

    References

    Federal Communications Commission. (n.d.). Telephone Consumer Protection Act (TCPA) rules [PDF]. https://www.fcc.gov/sites/default/files/tcpa-rules.pdf

    Federal Trade Commission. (2016, December 8). FTC providing over $88 million in refunds to AT&T customers who were subjected to mobile cramming. https://www.ftc.gov/news-events/news/press-releases/2016/12/ftc-providing-over-88-million-refunds-att-customers-who-were-subjected-mobile-cramming

    Puzzanghera, J. (2015, May 12). Verizon and Sprint to pay $158 million to settle mobile cramming case. Los Angeles Times. https://www.latimes.com/business/la-fi-verizon-sprint-cramming-settlement-20150512-story.html

  • Tap, Swipe, Buy: The Power of Mobile Marketing

    Tap, Swipe, Buy: The Power of Mobile Marketing

    Taylor Scott, September 14, 2025

    In today’s digital-first world, it’s no surprise that brands are turning away from billboards and toward smartphones. In 2024, the worldwide population of internet users was estimated to be an impressive 5.5 billion (Petrosyan, 2025). Mobile marketing—through apps, text messages, and mobile-optimized websites—isn’t just convenient, it’s powerful. Compared to traditional channels like print, TV, or radio, mobile offers unmatched speed, personalization, and real-time feedback. But what makes it so effective, and how can marketers overcome the challenges that come with it?

    Why Mobile Marketing Outperforms Traditional Channels

    Mobile phones and tablets have become essential tools for reaching consumers. With over 5.5 hours per day spent in apps globally (Tafradzhiyski, 2025), marketers are meeting their audiences exactly where they are. Unlike traditional marketing, which often relies on broad messaging, mobile campaigns can be highly targeted—based on location, behavior, and past interactions. Push notifications, social media ads, and SMS campaigns can all be launched instantly and adjusted in real time.

    Driving Sales, Loyalty, and Two-Way Communication

    Mobile marketing doesn’t just promote products, it drives action.

    • Increased sales: Mobile coupons, geo-targeted offers, and one-click purchases make conversion easy.
    • Greater awareness: Social media, influencer content, and app ads introduce new products in engaging ways.
    • Point of sale: Tools like QR codes and mobile payment integrations bring users right to the checkout.
    • Dialogue marketing: Chatbots, SMS replies, and app feedback loops open up two-way communication.
    • Loyalty programs: Apps like Starbucks and Ulta Beauty keep customers coming back with exclusive rewards and personalized perks.

    These strategies turn casual browsers into loyal customers, and mobile makes it all immediate. (Bleich, 2024)

    Constraints (and How to Beat Them)

    Despite its strengths, mobile marketing has its challenges. Privacy regulations like Apple’s App Tracking Transparency make targeting harder. Ad fatigue can also lead users to opt out of notifications or ignore content. Smaller screens limit message space, and not all users have equal access to high-speed mobile service.

    But there are smart ways to overcome these hurdles:

    • Use opt-in strategies to build trust and avoid spamming.
    • Keep content short, visual, and mobile-friendly.
    • Offer real value—through discounts, personalization, or entertainment—to keep users engaged.
    • Be transparent with data collection and focus on building long-term relationships. (Bleich, 2024)

    Final Thoughts

    Mobile marketing is no longer optional, it’s essential. It drives awareness, encourages real-time engagement, and fosters loyalty in a way traditional channels can’t. When used thoughtfully, it allows brands to deliver value with every tap, swipe, and click.

    References