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1.3 Billion Cellphones to Market to

Posted by on 06.22.04 | 12 Comments

Nice article from Business Week via Textually:

Short messages are a bonanza for wireless carriers, but one that’s now reaping only a fraction of its potential. Why? The marketing side of the text-messaging business is just now getting started. The 1.3 billion cell phones in the world give marketers a possible person-to-person link with consumers everywhere.

The potential is there to harness the cell phone to the vast databases of user profiles — the dossiers that supermarkets, retailers, and mail-order companies have created on their customers. A phone marketer with this data could use short messages to deliver millions of personalized pitches and ads, some of them tailored to the user’s whereabouts and the time of day.

A GIVE AND GET. So far, however technical challenges and privacy concerns have kept many marketers from venturing into customers’ pockets and purses. It’s a sensitive business. Anything resembling mobile spam could provoke an angry backlash against marketers.

I certainly agree with the point about mobile spam. The frustrating thing in Europe has been the operatorís refusal to stamp on it from the beginning. I believe that they saw it as a revenue opportunity, forgetting that spam would potentially kill the golden goose before it truly started laying.

I also think itís interesting that US marketers seem to understand instinctively that mobile marketing is a quid pro quo ñ something must be in it for the consumer. As such, to talk about ìmobile advertisingî is a misunderstanding of the branch of marketing at work here. Itís ìMobile Promotionsî strictly speaking, as messages must contain some added value for the consumer.

Many otherwise savvy marketing people confuse the adding value concept and attempt to bribe the consumer with some kind of payment in return for reading marketing messages. Despite the fact that this model has been debunked hundreds of times online, some will try it again in the mobile space and it wonít work again.

The fact is that the message itself must add value to the consumer.

Iíve written about this extensively in my 50 page FREE white paper. If youíre interested in mobile marketing or location based marketing and promotions, drop me a line and ask for a copy.

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