Mobile Marketing for Participation TV - SMS Advertising USA

Looking at several key mobile marketing applications, Michael Whelan, MD of mobile solutions provider, txtNation looks at the performance of Participation TV...

Unless you never watch television in the UK, then you must have seen programmes incorporating text messaging as an intrinsic part of the television programme.

This has been a nice money-spinner for the broadcasters and network operators alike, as the figures below show. If you imagine that each vote costs a minimum of 25p+ ($0.50) your standard text charge, and that the broadcaster is probably getting a return of around 11p ($0.25) on each text, the numbers soon add up.

Programme Votes Cast by Text
Big Brother 5 -10m+
I'm a Celebrity... 10m+
X-Factor 5.4m
Big Brother 3 5.3m
Big Brother 4 3.1m
Fame Academy 2 1.6m
Eurosong 2002 700,000

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The ubiquity of mobile devices makes mobile content provision a lucrative business, and our Mobile Billing solutions let you tap into that market easily. Mobile subscribers can be billed for third party content and services directly on their cell phone bill by their wireless carrier, and the revenues are roughly split between the content provider and carrier.

What Are The Carrier Specific Requirements And Restrictions for SMS Advertising Campaigns in USA

MMA/CTIA CONSUMER BEST PRACTICES GUIDELINES FOR CROSS CARRIER MOBILE CONTENT SERVICES
All US carriers at a minimum have adopted the MMA Consumer Best Practices Guidelines for Cross-Carrier Mobile Content Services. Each carrier may also have unique requirements.

General Conduct
At a minimum, programs should be run in a manner that is consistent with the letter and spirit of the MMA Code of Conduct for Mobile Marketing. You can find the Guidelines starting at: http://www.mmaglobal.com/bestpractices.pdf.

Learn more about setting up a mobile marketing campaign in the USA. www.mfusion.net.

SMS Marketing in the 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'?

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 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'.

Teen Cell Phones Usage Statistics... We Need to Pay Attention to This

According to the Washington Post (in an article written this summer) cell phone usage among teens age 1o-17 in the summer is astronomical! An average of 3 hours and 45 minutes they spend using their cell phones each day during summer break (during school months it is still an astounding 2 hours and 45 minutes). What I found so interesting were the statistics on text messaging....

"More than half - 52 percent - say they send text messages from the movie theater while 28 percent have sent messages from the dinner table. For many, 26 percent, texting is one of the first things they do in the morning, within 10 minutes of waking up." Washington Post

To me, these statistics not only mean that we should be finding ways to use this engaging tool in schools or at least for homework, but that teens and tweens are not being educated on appropriate ways to use the cell phone. Is it really appropriate to text message at the dinner table? Or in a movie theater? This could be a valuable professional tool in their future, but they need to learn how to use it appropriately in certain settings. Teachers could help model digital etiquette to their students.

SMS Advertising and SMS Markerting service providers in the US could just have found their space.

Example Campaigns

Example 2007 Campaigns..
Restaurant

A restaurant owner places table stands or deals out cards with information about how to join and receive a free dessert by joining the VIP customer club. The restaurant sends a marketing message using our simple online form with a special food or drink offer, which can be used at a certain time when the restaurant knows that business is slow. This creates an immediate boost in sales.

Video Rental Store

A video rental store advertises the system and as reward for joining customers get the next rental free of charge by showing the confirmation message they have received. The store sends out information about new releases to customers once or twice a week at 4 pm to remind them to pick up the videos on the way home from work.

Clothing Store

A clothing store offers customers 10% off at the counter for customers who join the system. The system is also advertised on store receipts. The store sends marketing messages to customers just before lunch time. This results in a significant sales increase. The store informs customers about special events and extra discounts for members.

Hotel Chain

The H Hotel group has successfully used SMS messaging to increase guest numbers to its hotels and build customer loyalty. The hotel sent out important marketing messages such as specials and promotions directly to its members mobile handse

SMS allowed the hotel to get the messages out instantly and at the most appropriate time of day.

The use of SMS as a direct marketing tool resulted in a 10-25% uptake of offers sent out by the hotel and proved to be an integral part its direct marketing and loyalty strategy.

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