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SMS Advertising On-The-Go…If, When, How?

Written by: Andy Marken

Article Overview: "All that I desire to point out is the general principle that Life imitates Art far more than Art imitates Life." --Oscar Wilde

SMS Advertising On-The-Go…If, When, How?

While on recent trips to Europe and the Pacific Basin, we were able to see first hand the progress on-line gaming, on-line video and a new aspect of cellular communications called short messaging services (SMS) have made. Already a number of service providers and advertisers are experimenting with the new advertising "opportunity."

Already on-line video gaming has become a major industry as Sony, Nintendo and Microsoft rush to deliver interactive works that individuals from across town, across the country or around the globe can use to join together and play. The subscription model is being offered on desktop systems, go with you notebook systems and in several areas on cellular phones. People of all ages are signing up and logging on.

Compelling Solution
The combination of cellphones and digital cameras is growing rapidly. The combination is already well established on the Pacific Rim and in Europe. It is only now gaining traction in the U.S. as people find it fun and useful to capture and share personal moments and images. Sony, Canon, Matsushita/Panasonic and many other leading camera manufacturers already see the combination solutions as the next wave of communications sales.

Individuals, small firms and global enterprise departments need compelling requirements before the technology and service will be widely accepted and used. While a number of research firms have noted the rapid acceptance of the technology in the pornography industry, we doubt if such applications and sales will encourage individual users and firms to accept the technology based on that “strong recommendation.”

However, service providers around the globe have begun to embrace and promote the video cellphone solution because it does provide a sharp upswing in on-line service (hence revenues). Only in very limited numbers have people accepted the value proposition for video cellphone delivery but photo transfer is growing rapidly.

Slow Launch
When the concept of short message services first arose in late 2000 it garnered very little attention. It took more than nine months for individuals and organizations to realize the value of sending short, sometimes cryptic alphanumeric messages. Today people men, women and youths routinely put their cellphones on “stun” in meetings, classes and other activities where answering the phone would be disruptive and prohibited. They are still able to communicate stay in touch and as we say all too frequently, multitask.

With the growing popularity of written messaging, service providers saw a new opportunity to increase revenues while advertisers saw a new and hopefully more productive means of reaching consumers.

In several European countries and in certain markets in the Far East service providers have offered customers the option of opting-in to lower their monthly cellular costs or maintain their present service and block the unsolicited messages.

While the messaging services are still in their infancy, most service providers and advertisers are struggling to develop a promotional model that will be acceptable to consumers to ensure they resubscribe to the service. Unfortunately because of the misguided activities of some of the service providers and advertisers the results to date have been far from encouraging. According to the limited studies by CTIA and InfoTrends noted that resubscription was less than 20 percent, hardly a vote of confidence by consumers.

Deteriorating Into SPAM
The initial sign-up rate service providers reported was excellent the concept of lower on-line costs is certainly compelling. However, it would appear that consumers quickly tired of the interruptions and barrage of SPAM.

While the flood of message servicing and service provisioning is only just beginning, at least two entrepreneurial software developers are already selling cellular message blocking software. Undoubtedly this software was probably developed by the same people who have developed and offer the on-line filtering solution for people who don’t want to endure drop-down, drop-in and sticky on-line ads.

Weighted Control
While the concept is only just beginning to emerge, it has already gained its unfair share of detractors. Consumer groups and governmental agencies in a number of countries are closely examining how the control:
 the recipient from being “trapped” into receiving advertising messages he or she has no interest in receiving just because they activated their phone
 the recipient who chooses to opt-in for the free or advertising supported service only receives a certain “class” of messages and is not forced to endure undesirable messages
 that the cellphone user only receives a specific level of short message ads based on his or her phone usage patterns and volumes
 widespread distribution of short messaging activities without prior agreement from the cellular user

As service providers seek out new revenue sources to lower their overall costs and improve their bottomlines, SMS will gain more widespread use. The challenge for both advertisers and providers is to implement the messaging technology based on a well thought-out and staged introduction program. Widespread implementation will only cause a pushback by consumer groups, corporations and governmental agencies that will position the SMS as an unnecessary, unrequested and undesirable intrusion.

All of this information is already available. Developing the selection matrix properly without abusing consumer trust will be vital. Organizations that abuse the data will face major pushback by consumers and governments. Their actions could dramatically impact the entire industry while it is still in its infancy.

Steady, Successful Implementation
If we don’t do this in a planned manner we will most certainly see a reenactment of Apple’s famed 1984 ad. Restrained implementation will be difficult but if the effort isn’t well thought out and executed it may appear in a form and shape as well as under a governmental control that can hurt the entire industry.

The path selection is ours to take!!!!

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