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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Israel - Security Industry: military tests SMS system

The Israeli military's Home Front Command is testing a Short Message Service system.  The SMS system is designed to warn the Israeli population against missile attacks. The $10 million system is a development between Israel's eVigilo and Sweden's Ericsson.

The Personal Message system is scheduled for testing in different Israeli communities each day. A Home Front Command spokesman said SMS is specifically designed to focus missile alert warnings "just to people who are within a specific area that is going to be hit. The Home Front Command, checking cellular alert system, (number)," will be the message sent to those who signed up to participate in the SMS drill.

A statement issued by Home Front Command added, "The Home Front Command will today start conducting nationwide testing of the 'Personal Message' alert system, which will end on Thursday," with the SMS texts in Hebrew, Arabic, English and Russian being sent to subscribers on Israel's three main cellular networks -- Cellcom, Pelephone and Orange. The Home Front Command has also reached an agreement to work with Hot Mobile subscribers."

Subscribers can call the cellular company to request being disconnected from the alerts if they don't wish to receive them. On Sunday and Monday, SMS mock messages about an impending missile attack were sent to the area around Ramle-Lod. On Tuesday, messages are to be sent to Ashkelon, Ashdod, Tel Aviv, Netanya, Akko, Haifa, Nahariya, Karmiel, Tzfat and other locations, while Wednesday the SMS messages is scheduled to be sent to Dimona, Rehovot, Yavne, Rishon Letzion, Kiryat Shmona and other cities. Thursday, the final day of the SMS system tests, is to focus on Beit Shemesh, Mevaseret Tzion, Modi'in and other locales.

The SMS public warning system is expected to be fully operational by September. Home Front Command officials believe that the SMS system could be used to warn the population of an imminent missile attack either by Iran or Hezbollah militia based in southern Lebanon, with the Israeli military worried that the possibility of missile strikes could increase if Israel eventually decides to mount a pre-emptive attack on Iran's nuclear facilities.

Cellular companies initially hesitated to cooperate with the Home Front Command, saying that the SMS warning system could cause widespread panic. The companies demanded the Defense Ministry indemnify them in the event of possible lawsuits. However, following discussions with legal specialists the sides agreed that no compensation would be paid, citing the legal precedent that none is paid in the case of false alarms.
A second issue that arose in discussions between the cellular companies and the Home Front Command was whether the SMS system could be defined as unsolicited, junk messaging. The two sides subsequently agreed that since the SMS system is defined as a "life-saving" service, the Home Front Command could use it exclusively in emergency situations.

Source: By upi.com on Aug. 13, 2012

Why Mobile Marketing Campaigns Reach More Customers

Not believe in the saying that a simple mobile marketing could churn up response rates? Look at the statistics below and think again. :)

Unlike social media, e-newsletters, billboard ads, or TV commercials, mobile marketing messages will most likely get through to consumers.

A recent infographic by Mogreet revealed that 98 percent of all SMS and MMS messages sent are opened.

In addition, Gene Sigalov of Content Marketing Institute says that within three minutes of being sent, 90 percent of all text messages are read by the recipient.

Texting a call to action
Content marketer Patricia Redsicker pointed to a study from Morgan Stanley that found 91 percent of people with cellphones keep them within arm’s reach at all time.

“If all those people always have their phone right next to them at any time, day or night, what an opportunity to reach them if you’re doing mobile marketing,” she said.

Redsicker said SMS marketing messages should include a keyword that is easy to remember along with a short code and a call to action. For example, a text might read, “Text LOL to 34567 to Win Free iPod.”

“Then, give them a confirmation text that makes them feel good and important,” Redsicker said. ”[It could say] ‘Awesome, you rock.’”

Use mobile to build a customer contact list
Entrepreneur’s Gail Goodman suggests that shops use text message marketing in a way that benefits themselves and consumers.

“Customers entering into your retail establishment probably are carrying their cellphones on them,” she said. ”Build your contact list by inviting patrons to send a text message or scan a QR code. Put a sign at your cash register to encourage such activity while the shopping experience is still fresh.”

Offering a coupon or special offer for customers that do so can encourage people to sign up. “And you end up building your list without having to manually enter email addresses after deciphering handwriting on a sign-up sheet,” Goodman said.

Be everywhere
Shareef Defrawi of Zizinya Web Solutions said, “Mobile marketing is where it’s at, and where it’s at is wherever your customers happen to be. By optimizing and refining your mobile marketing campaign you can reach them at the moment they need you.”

Source: By Kylie Jane Wakefield

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