Thursday 16 August 2007

SMS Marketing USA

Although the states are usually ahead in telecoms, they have been surprisingly late to catch up on the text messaging game. Although the states are usually ahead in telecoms, they have been surprisingly late to catch up on the text messaging game. What is it about texting that Americans haven't yet 'got'?

SMS Marketing USA
Before answering this question, it might be useful to understand the reasons behind why SMS became such a widespread phenomenon on this side of the pond. Although never intended as a peer-to-peer communication and certainly never advertised as one, SMS was invented in 1992 as a means for mobile technicians to communicate while working in the field. SMS began spreading like wildfire in '95 - largely driven by the fact that the networks opened up, so consumers could text across different networks. Another driver was the lack of a pricing structure for SMS in the early days, so it was free to text! Later, when the pricing structure was introduced, the fixed standard tariff of 10-12 pence per text was still affordable and therefore didn't deter teenagers from becoming text crazy! Text messaging became a fully established teen phenomenon by the late 90's and today networks send over 1.4 billion texts a month, across a much broader age demographic.

By contrast, cell phone subscribers in the US have to pay when they both send and receive a text message. Only AT&T Wireless do not charge their customers for receiving SMS messages. However, this does not get around the fact that customers on other networks still pay to receive messages from other mobile subscribers.

Cross-network texting is another issue for the emerging US market. Until relatively recently cell phone users in the US have only been able to send text messages to people on the same network. To educate the entire base that they can now text anyone on any network is no trivial task. While we have now reached a stage where UK consumers are educated enough to handle differential pricing for both on and off-network texting (for example, Virgin's 'text another Virgin Mobile customer for 3p'), American customers are still learning that they CAN text other networks.

A factor which drove the usage of SMS marketig in the UK and which by contrast has restricted usage in the US is prepaid phone packages. Until recently, there have been no prepaid packages in the US, but their existence in UK is cited as one of the reasons why text messaging flourished so rapidly. Teenagers could text away happily, knowing exactly how much of their pre-paid budget was left as opposed to getting a nasty surprise at the end of the month.

Finally, one reason why the future success of SMS in the US may continue to be jeopardized is the messaging channels available on mobile that are competing with SMS, such as instant messaging and email.

Beyond these technical and commercial issues, the last consideration is a cultural one. Can SMS really become part of the American culture in the way it has in the UK? With most 'cell phone' tariffs giving in excess of 1,000 cross network voice call minutes per month, many Americans question why they would ever want to send a text message for potentially an additional 10¢ per message. "Why would I send a text when I can call them with all those minutes I have?" This, for me at least, is what 'getting it' is all about.

Communication by text message is not the same as talking to someone on the phone; it is not even the same as emailing someone. Text communication is a law unto itself. For some it is a way of throwing out an insult, for others it's an easy way of passing on some quick information, it's a way to let someone know you care, it's a way of arranging your social life, it's a way of communicating when you have to be quiet, it's a way of talking behind someone's back, it's a safe way to flirt, it's an easier way to lie. If you can understand why all of this is different from speaking to someone on the phone then you've 'got it'.

Find out more at mFUSION: www.mfusion.net. Contact us at: sales@txtnation.com.

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