SMS-Driven Mobile Advertising
Why should SMEs be interested in acquiring mobile audiences? Well, almost every South African consumer has a cell phone. All cell phones can use SMS. More than 90% of SMSes are read.
Need more convincing? In March 2008 The Nielsen Company in its bi-annual Mobile Advertising Report reported that twenty-three percent (58 million) of all U.S. mobile subscribers said they’d been exposed to advertising on their phones in the past 30 days.
More significantly, half (51% or 28 million) of these subscribers said they had responded to a mobile ad in some way.
SMS-driven advertising really WORKS. Industry reports that it is significantly more cost-effective than any form of “cloud” advertising (TV, Newspaper, leaflets, etc). Furthermore, Google CEO Eric Schmidt said at the All Things Digital conference in May 2007 that Google wants its share of mobile advertising revenue because “they are twice as profitable or more than non-mobile ads because they’re more personal.”
To be successful, however, SMS-driven advertising campaigns require sufficiently large and up to date databases of permission-granted cell phone numbers.
But, how can a SME acquire a cell phone base without contravening the strict industry rules around consumer privacy, permission-based messaging and anti-spamming measures?
First prize would be that the SME already possesses a database, acquired over time through consumers filling in application forms and via other mechanical means. Experience has shown, however, that SMEs with such databases are the exception.
Fortunately, an excellent solution is available. Simply launch a promotional SMS campaign, using 5-digit premium rated SMS short codes. These promotional SMS campaigns have significant benefits.
- The SMS campaign can easily be included as a low-cost component of other, larger advertising campaigns.
- In themselves the promotional prize(s) in the SMS campaign provide brand awareness opportunities.
- Consumers are very familiar with these promotional campaigns.
- Reply SMSes to consumer entries can contain further branding messages.
- Each cell phone number is effectively a qualified lead that can be used for a number of mobile advertising campaigns.
Thus a cycle of events is created. Regular promotional campaigns ensure the database remains up to date. An up to date database ensures optimum return on the mobile advertising campaigns that follow.
And typically, the computer system the SME will use will be able to
o Manage the promotional campaigns.
o Manage the mobile advertising campaigns
o Manage the database of cell phone numbers.
SMS-driven mobile advertising must be considered a viable complementary channel to the four traditional pillars of the advertising business; television, radio, print and billboards; as well as to internet advertising. A unique and largely unknown medium, mobile advertising has the potential to bring together these entities. It is understandable that SMEs are wary because they’re treading on unfamiliar ground. It’s time to get your feet wet!