SMS marketing campaigns certainly aren’t anything new, but in the US, where just over a third or so of mobile users (according to M:Metrics) actually text — compared to 85% in the UK — it’s been a bit slow-going, beyond the success of Cingular’s tie-in with American Idol for SMS voting. However, it looks like things are starting to change, however slowly. Driving that change is the use of SMS marketing by big brands such as McDonald’s and Coke, in campaigns that are actually encouraging people to send in messages, not just receive them.
Neither campaign is really anything too remarkable in itself: McDonald’s is running a text-and-win campaign that’s tied in with the latest Pirates of the Caribbean movie (a bad picture of their on-bag promotion at right), while Coke’s doing My Coke Rewards, the latest incarnation of the loyalty program, where you have to buy approximately $7000 worth of Coca-cola products to get a free TV set (though you can get a free ringtone for approximately one 12-pack and two 20-ounce bottles, which doesn’t seem so bad). The point, though, is that two of the biggest consumer brands in the US are actively engaging their customers to send them text messages — which is a pretty huge move.
This should lead to a lot more interest in this area, particularly if these promotions are successful, which by sheer volume, you’d expect them to be. Like I said, they’re not especially interesting, but that’s almost beside the point — encouraging people to text, but also to interact with brands via text, is more meaningful. There’s a big opportunity here, particularly for people that have been through this early growth phase in other countries and can apply their experience. I’m curious to see how these campaigns play out, particularly if and how they try to maintain a relationship with participants. In intrepid effort to explore (and ensure my Diet Coke with Splenda purchases aren’t in vain), I’ve registered for My Coke Rewards and given them permission to text me. I’ll keep you posted.
[tags]mobile, mobile marketing, sms, my coke rewards, mcdonalds, sms marketing[/tags]
Mobile Marketing has been hyped for soooo long. It’s always been “this is year it takes off in the US”.
The reality is that there are a 100 vendors chasing after the same market of brands, agencies, media and on-pack promotion. as such, many companies know this and the revenue of these campaigns is miniscule. sms volume is often very disappointing.
If you are sick and tired of the American Idol example, please raise your hands.
BTW, the carrier Cingular usually pay around $10 M to secure these rights. The rest of the companies fight for scraps on the floor while burning through investor money so fast it would make anyone’s head spin like Linda Blair.
Proctor & Gamble also launched a multi-product mobile marketing campaign the same week. They are starting with Crest.
Though mobile marketing has been hyped for a long time, does not mean it will not happen. The internet was created 40 years before it started being utilized extensively and still took a while to really grab hold. Cell phones were around for almost 20 years before finally obtaining significant usage. It just takes time and it also requires that the infrastructure be available to support it, which did not happen until just four years ago with SMS interoperability among carriers.
There are not 100 vendors in the U.S. chasing the same market, though I’m sure there will be as with any “new” revenue opportunity. There are certainly more than scraps available to go around since the medium is a valid option for almost any entity and there are plenty of companies, organizations, governments, etc. not yet using the medium.
If there is one thing the history of technology certainly has taught mankind over the years…never say never.
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I don’t know of a single mobile marketing company that is independent that is doing well. Most get bought up or acquired to round out a product offering. MQube, IPSH! (good, part of OmniCom), etc al. I do know however, having worked in this sector, is that the dirty secret is that pureplay mobile marketing companies are struggling and waiting. I am aware of P&G and Crest but there really aren’t too many opportunities as the cost of revenue is quite high, shortcodes take a long time to set up, there are recurring monthly fees and messaging fees, etc. Any many deal sizes are quite small.
I do believe it will grow but it has taken longer than many expected…the goals have been the same as 2001 and we’re in 2006 and not too much change. Yes, cross carrier is there and PSMS is useful for voting campaigns. But the Carriers take 50% of PSMS revenue.
I see paypall mobile and opopay (?) being newer models for mobile transactions as well as Google coming into the fray.
Nuestar charges people a 1000 per month for a vanity shortcode yet it takes 2 months to provision the shortcode at your expense eating $2000 in cost. That is a problem.
Neustar and Carriers with PSMS and messaging costs and procedures are stifling their own industry while mobile IM and other methods will circumvent this.
Typical walled garden. I’d always go for a smaller slice of a big pie than a bigger slice of a small pie.
There are at least 100 companies doing mobile marketing solutions in the US.
See the Mobile Marketing Association Member Profiles from the pull down menu.
http://mmaglobal.com/modules/content/index.php?id=198
And I know there are quite a few in the UK as well.
I agree that there are many companies in the mobile arena. My take is that most of those in the list are not truly in the mobile marketing industry, as described in Carlo’s post, that has indeed taken some time…too long really…to take root.
are empowering businesses, organizations and governments here in the U.S. with the power of marketing via the mobile medium. Competitors are springing up, almost daily it seems, and that will certainly drive awareness. Eventually, as with any industry, consolidation will occur…we’re a ways of from that. It should be a fun ride and a lot of innovative, helpful and powerful interactive services improving customer service, company engagement and more should come out of it.
I contend that most of those listed market mobile content…they don’t do mobile marketing. Selling ringtones is not the same kind of mobile marketing that P&G, McDonalds, Friendly’s and others are finally starting to effectively utilize.
The cell companies themselves have really not done much with mobile marketing for businesses. The same goes for many companies that have marketed mobile content or mobile fun.
Companies such as OTAir, QTags, Third Screen Media, CellSigns, CouponZap, Vibes, FlyTxt and others…did I mention OTAir
Finally, I am wholeheartedly behind you on the frustrations with cost and delays in getting set up. We at OTAir certainly thought long and hard about it and waited almost two years to launch (a good decision in retrospect). Though, once you’re on the other side of that effort, I must admit it serves as a nice barrier of entry for more competition. What OTAir and the other companies like us are able to do is to provide immediate mobile marketing solutions and divide the costs of providing such services among many, thereby overcoming those cost and time barriers for our clients. Also, there are plenty of marketing opportunities aside from premium, where yes the carriers unfortunately grab 50%. What really gets me is how it’s the same amount even for fundraising text campaigns for non-profits…that’s gotta change.