Sunday, October 12, 2008

The Future of Text Message Marketing

By James Collett

Mobile phone marketing, otherwise known as digital marketing, is the newest evolution of direct promotion. Direct promotion has always been chosen by businesses as a specialized and focused way of reaching new consumers and, with the popularity of cell phones, SMS marketing has risen in usage. Mobile marketing is perhaps best defined as the practice of advertising products and services using digital distribution channels to reach consumers in a fast, appropriate, personal and economic way.

The most common form of digital marketing is SMS marketing, which has expanded very quickly in Europe and Asia. It is predicted that several hundred million promotional messages are sent through SMS every month in Europe alone. SMS stands for 'short message service' and is a communication form unique to mobiles where a short message can be quickly sent to any cell holder. As well as sending information to consumers, advertisers can often encourage consumers to participate in promotional and brand publicity promotions by encouraging consumers to SMS a specific number at an event in order to enter a competition, to receive a prize or to have their SMS displayed on a multimedia wall at an event. All of these methods involves the consumer through the medium of SMS and creates brand exposure.

There are a range of other types of mobile marketing. One variation is sending texts via MMS, which is a multimedia version of SMS, allowing customers to receive MMS with color, pictures and video. There is also mobile web marketing, where brands advertise marketing objectives through websites accessed by cell phones. Advertisers often make innovative use of SMS marketing such as location-based services where customers are offered specific marketing and other network-related information and promotional information based on their whereabouts. With the multitude of methods and choices available to promoters, it is no wonder that a recent marketing survey found that 89% of major brands planned to advertise their products through mobile marketing by the end of 2008.

SMS marketing is an example of what is known within the industry as "push" marketing. The thought behind push marketing is that that the business has to send (push) the information to the subscriber in order for the material to be received. This is different to "pull" marketing, a more unobtrusive form of advertising, where it is consumers who seek out the information from sources such as websites or blogs.

There are many advantages to SMS marketing. Primarily, the attraction is that this mode of promotion can be tailored to the consumer. This is the ideal in marketing as it means getting the material specifically to the audience it's aimed at, rather than squandering money on an broad campaign. The specialization allowed by this type of promotions, which results in a more cost-effective campaign, is one reason why a high return on investment is possible with SMS marketing. Another advantage of SMS marketing is the detailed tracking and reporting of recipients it allows. Through this medium, promoters can track how many customers viewed their information and also access detailed data about each consumer such as their name, their age, their demographic and where they're located. This allows a business to develop profiles of their users; data which then guides future promotional campaigns and, ideally, their success.

It is noted in the industry that push marketing, of which SMS marketing is a type, can help drive new revenue and brand reinforcement if it is implemented correctly and appropriately. This is because it makes users aware of new events that they may not think to enquire about already and the way a message is written, and even the fact that the material is being delivered by a innovative, hip medium such as text, can say a lot about a brand and a business.

There are, however, some negatives to SMS marketing. Inherently, it needs a mechanism - the cell - to be able to deliver content. The company, as well, needs to make use of specific technology and applications in order to send the information to users, which can lead to substantial outlay. Another negative is the fact that SMS marketing is heavily regulated by the telecommunications industry in response to public disquiet about what data and promotions they get exposed to. Most Western countries have laws in place that compel companies to gain the approval of users before promotional material is received by them and must clearly give them with an 'opt out' option if they want to stop receiving information. If businesses are found to be in violation of these laws, network providers can block marketing information by companies.

As mobile technology improves, SMS marketing will surely continue to rise in importance.

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