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An Insight into the United States Mobile Marketing & Short Code SMS Markets
Frost & Sullivan, Nov 2004
Improved Coordination between Participants Key to Enhanced Consumer Interaction
Overcoming initial difficulties such as unclear objectives and untested technologies, mobile marketing campaigns have emerged as a preferred choice for leading brands. In comparison to traditional media, short message service (SMS)-based media interactivity campaigns have exhibited a higher rate of success. Technical innovations and a rising return on investment (ROI) are providing mobile marketing campaigns an extra edge. However, participants need to work toward better coordination between mobile operators, application developers, and brands, as mismanaged relationships are a long-standing bottleneck. This will boost customer interactivity and ensure maximum brand awareness.
This Frost & Sullivan analysis of the mobile marketing and short code SMS markets in the United States provides information on mobile marketing campaigns based on push/pull, voice, SMS, multimedia messaging service (MMS), wireless applied protocol (WAP), and Java and binary run-time environment for wireless (BREW). The study offers industry and application trends and market drivers and restraints, as well as strategic market forecasts. Profiles of the key industry participants and description of important mobile marketing campaigns by leading mobile operators have been also been included.
Mobile Marketing Campaigns Lucrative for Mobile Operators and Participating Brands
The strong impact and wide reach of a mobile campaign also benefit brand advertisers. Besides remarkable success, increasing penetration of SMS and greater promotion of short codes are influencing mobile subscribers’ view of text messaging as a successful medium. For instance, the 'American Idol' campaign introduced by AT&T Wireless in association with Mobliss Corporation, FreemantleMedia, and 19 Entertainment had more than 40 percent of respondents sending SMS for the first time.
Having gained such a strong foothold, mobile marketing is a lucrative option for mobile operators. Revenues from short code SMS-based mobile marketing campaigns are expected to rise as more brands enter the arena and the number of companies extending their portfolios to include short code SMS campaign management increases, says the analyst of this research.
Highly Targeted Nature of Permission-based Mobile Marketing Campaigns Promotes Adoption by Marketers
The high dependency of mass communication on interactivity makes permission-based mobile marketing a logical choice for advertisers besides opening new streams of revenue for mobile operators. These campaigns are direct, interactive, and ubiquitous, as mobile handheld devices are increasingly proving to be extremely effective instruments in terms of immediacy in response and interactivity.
The combination of profile information, location-based technology, time, and other demographic data allows mobile marketing campaigns to target specific customer segments at a level, which other traditional interactive marketing media such as e-mails or direct mailings cannot, says the analyst.
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