Tanzania: Mobile Phone Users Opt for Messages

THE number of on net traffic mobile phone calls declined by 2.6 per cent in the first quarter of 2012 compared to quarter ending December 2011, with many people opting for short messages (SMS) that more than doubled.

Official data released last week by Tanzania Communication Regulatory Authority (TCRA) shows that the number of on net calls declined to 4.63 billion in the quarter under review from 4.76 billion of the preceding period, a sign that many mobile users have opted to messages.

"The number of short messages sent through mobile phones more than doubled to 1.23 billion in the quarter ending March 2012 compared to only 598.74 million recorded in the period between October and December, last year," stated the report.

Total revenues garnered from the number of messages which exchanged hands among various mobile users jumped to 72.64bn/- in the period ending March compared to only 20.95bn/- accrued between October and December, 2011.

In the meantime the number of calls from one network to another declined by 3.31 per cent to 232.12 million
in the quarter under review compared to 240.07 million of the previous period.

But the number of mobile sms from one network system to another increased by 16.27 per cent to 324.80 million in March, this year compared to only 279.34 million messages. Tanzania lead in the East African region in terms of average number of text messages sent per month per subscriber.

Moving the 2012/13 budget estimates in Dodoma in June, this year, the Minister for Finance and Economic Affairs Dr William Mgimwa said the government has increased taxes on mobile phone calls by two per cent to 12 per cent, which will definitely impact on the rate of both on and off net calls.

The quarterly operator's subscriptions market shares show that Vodacom still leads with 45 per cent, Airtel 27 per cent, Tigo 21 per cent and Zantel six per cent.

Source by: Sebastian Mrindoko on 22 August 2012

SMS to drive mobile messaging ad revenue past $7.14bn by 2017

Think mobile messaging services like Whatsapp are killing SMS? Think again.

In fact, the use of location-based SMSes to deliver relevant ads will see mobile messaging ad revenue hit US$7.14-billion by 2017.

According to UK-based tech analysis company Juniper Research, targeted SMSes have significant benefits for anyone looking to push their brand. While they may lack the rich media content of other advertising formats, they are very familiar to consumers and have a much higher chance of being opened, even if unsolicited. SMS ads are also a low-cost option for those seeking large reach; in the UK, for example, a bundle of 1 000 text messages costs around £0.05 (8¢) per message, falling to around £0.03 (5¢) for larger bundles.

That said, consumers can react negatively to this kind of targeted advertising. That’s why the campaigns that work best are the ones that people have to opt in to. Juniper research reckons these types of schemes will become more common as operators attempt to look for revenue streams beyond voice and data but it is unlikely that they will become opt-out or compulsory.

According to Juniper research’s Charlotte Miller, the effectiveness of SMS, combined with location-based ads is a particularly effective one:

Sending adverts using mobile messaging gives advertisers a simple, cheap and effective way of reaching consumers. Adding location technologies is an even more powerful proposition, particularly for transactional advertising as marketers can reach consumers who are near a location where they can purchase. Knowing that the recipients of an ad have actively asked to receive it and will in all likelihood open it is also particularly attractive.

Although SMS will drive the market, companies will have to include other forms of mobile adverts, such as those that direct consumers to mobile optimised sites or content, particularly given the highly promising mCommerce opportunity.

Mobile apps meanwhile offer valuable inventory for mobile ads and, according to Juniper Research, spend on in-app advertising will increase rapidly over the next few years.

Source: By Nur Bremmen on 20th August 2012

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