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Statistics
1.5 Billion cell phone users worldwide. ( 1.3 Billion GSM or
74.9% of total users)
20 Million South African cell phone users (expected to grow to
30 Million by 2008)
500 Billion sms sent worldwide 2004
85.5 Million sms sent in South Africa 2004 (over festive season)
674 Million cell phone sales worldwide 2004 (30% increase over
previous year)
Global marketing observations
15% Average response to sms
marketing
94% Of messages are read
23% Of messages are forwarded to
a friend
50% Better at brand building
than TV
130% Better at brand building
than radio
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News
SMS MARKETING GETS
BETTER RESPONSE THAN DIRECT MAIL
Enpocket has published its third Insight
report. The response performance of SMS
advertising. The study, which is based on
independent ICM telephone survey work with
over 5,200 consumers who had seen some of
more than 200 campaigns researched by
Enpocket between Oct 2001 and Jan 2003,
revealed that the average campaign delivers
15% response (of any type), which is more
than twice the average other industry re-
ports have given for direct mail (sources:
Gartner, DMIS.
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The report also noted that the best performing response
mechanisms are Reply to SMS (8% average), Visit a web site
(6%), Visit a store (4%), Buy the advertised product (4%).
The research shows that 94% of messages are read, which helps
explain the high levels of response and brand impact that
previous Enpocket Insight reports have unveiled. 23% of
messages are shown or forwarded to a friend, which indicates
that the total impact of activity is significantly higher
than even these figures suggest.
For the best performing campaigns, the study reveals
outstanding results as follows: 46% response (of any type),
27% Reply to a message, 19% Visit a web site, 15% Visit a
store. Most impressively, the best campaigns have resulted
in 17% buying the advertised product, which suggests that
marketers who tailor communications most effectively to this
new personal medium can generate exceptional ROI.
Commenting on the findings, Jonathon Linner, CEO of Enpocket,
said: With these results, and the findings of the earlier
branding report,
SMS advertising has firmly proved that
it is a more effective marketing channel than other media.
The personal nature of the medium and high attention it
commands, coupled with its unparalleled targeting and
response capabilities, means marketers can deliver
actionable campaigns of greater relevance and impact to
their target audiences. Add to this the facts that
production and delivery costs are low and that 1 in 4
messages are shown or forwarded to friends, and there is
tremendous opportunity for marketers to improve total ROI
through use of the medium. (Enpocket is a global mobile
media marketing company.)
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SMS MARKETING:
WHATS'S THE WRITING ON THE WALL?
Latitha Srinivasan - Financial Express: India - Monday April
19, 2004.
MUMBAI: The focus seems
to be on 'mobile marketing services' in the Indian
marketplace. Realising the significance of this mode
of marketing, marketers are increasingly opting for
mobile marketing techniques to connect with their
target audience-directly. And with around 33 million
subscribers in the country, the concept of mobile
marketing is rapidly gaining momentum, observe new
media analysts.
For instance, Coca-Cola India is planning to launch
an aggressive SMS-based campaign to promote its new
launch 'Coke Vanilla' along with its mass media
advertising plans within a few days. Recognising the
potential of this medium, Coke had in fact initiated
a host of SMS-based promotions almost two years ago,
informs Coca-Cola India director (marketing) Mumbai
Sharda Agarwal.
"The bulk of our SMS activation has revolved around
contests and games. To reach out to our prime target
audience-the youth- we
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have opted for SMS-based promotions and contests. To stay
connected with the youth segment, we'll be using this mode
of marketing as it is direct and personalised," she adds.
Recently, the cola major integrated its television campaign with
SMS-based contests to promote its flagship brand Coca-Cola,
says Ms Agarwal.
Yet another company, L'Oreal India kickstarted its mobile
marketing activities just a year ago. Says a spokesperson
from the company: "We chose this mode of marketing because
it is a personalised and interactive medium. We have
launched SMS-based promotions with the help of Mobile2win in
the last few months. I think this concept will gain momentum
in the next few years."
In view of the interactive nature of this mode of marketing,
Standard Chartered Bank has been using SMS-based promotions
to popularise its products and services in the last few
months.
Says Standard Chartered Bank head marketing Sugato Banerjee:
"With this concept, you enter into a conversation with a
customer. It's an interactive medium as you can send direct
and personlised messages. Also, we see it in a different
light-if a person can afford a mobile phone, he can surely
be our bank's potential customer."
Essentially, this mode of marketing helps a bank to build
its database, adds Mr Banerjee. However, he cautions that
marketers will have to use it judiciously, otherwise it'll
be seen as boring spams. "It should be used precisely. It
can never be the main media of marketing, but it'll
certainly support mass media ads," he adds.
As for the future of mobile marketing techniques in India,
predicts Mr Banerjee: "It's already gone over the roof.
It'll soon touch the sky."
But what are the emerging trends in the Indian mobile
marketing scene? Increasingly, Indian marketers are now
using mobile as an effective marketing tool to connect with
their target audience. Says Contest2win CEO Alok Kejriwal:
"The mobile screen is something that 33 million Indians (add
two million a month) are staring at everyday multiple
times-so can the efficacy of this mode be even questioned?
We've already conducted 50 wireless campaigns through our
company mobile2win."
Further, Mr Kejriwal reasons that brands are recognising
that PULL sms (motivating a consumer to respond by reacting
to TV, print and hoardings) is a far better mechanic than
PUSH (a la spam).
Hungama managing director Neeraj Roy, a virtual marketing
company, observes that the new trends in mobile marketing
are 'Mobile Adver-Games' and position-based interactive
communication. "Interaction can be non-intrusive if it is
pull-driven and a consumer can be engaged on the move. There
are options for creating 'Mobile Coupons' to attract new
consumers," he says.
Hungama has recently designed mobile marketing campaigns for
companies like Electrolux, HDFC Bank and Cartoon Network.
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FESTIVE SEASON BEEPS IN
WITH 85.5M SMS
Gugulakhe Masango - January 5, 2004
Johannesburg - The cellphone industry recorded 85.5 million
short message services (SMS) during the festive season, implying
that mobile network operators will continue to generate more
revenue as competition for subscribers hots up.
Vodacom registered 51 million SMS during the Christmas period in
2003, compared with 39 million SMS in the previous festive
season.
"We will release the New Year's Eve figures [on Monday] and we
expect the numbers to show a significant growth," said Mthobi
Tyamzashe, Vodacom's group executive of corporate affairs.
Rival MTN Group recorded 24 million SMS and 30 million
successful calls over the Christmas and New Year's day. Donovan
Smith, MTN's general manager of consumer marketing, said MTN had
increased its core SMS infrastructure capacity by about 30
percent in anticipation of call and SMS traffic over the festive
season.
Cell C, the country's third cellular operator, reported 10.5
million SMS during the Christmas period into the New Year in its
second festive season.
"We have benefited from our new subscribers, which have more
than doubled last year," said Fred Coetzer, Cell C's chief
operations officer. Cell C last year delivered 3.4 million SMS
in its first festive season.
The cellphone industry benefited from the mobile network
operators' seasonal campaigns to entice customers to make more
calls and SMS and to invite new customers to subscribe.
Vodacom benefited from its Yebo Summer campaign and Cell C from
its Red Hot Summer. MTN's SMS were boosted by its popular
campaign of trying to virtually paint the country yellow with
its Yello Summer adverts.
The increase in the number of SMS sent during the festive season
will go a long way for Cell C, which is expected this year to
break even financially.
MTN reported R1.82 billion in attributable profit during the six
months to September, while Vodacom clocked up R1.37 billion.
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LOVE AFFAIR:
CONSUMERS AND THEIR MOBILE PHONES
20 April, 2005
Consumers love their mobile phones - sometimes more than their
own lovers.
BBDO Europe and its direct-marketing network, Proximity,
surveyed 3,000 mobile phone owners (ages 15-35) in 15 countries.
They found that:
53% of respondents have used
their mobile phones to respond to a brand promotion
78% leave their phones on and in
reach 16-plus hours a day
80% sleep with their phones on
14% admit they've answered their
phones while having sex
(in some countries closer to 20%)
96% screen their calls
63% wouldn't lend their phone to
a friend for the day
38% say they'd go back home for
a forgotten phone before they'd go back for a forgotten
wallet
45% think a phone says as much
about a person as his car.
"Mobile phones offer a unique new opportunity for brands to
engage with their consumers on a more personal, intense level,"
said Valerie Accary, managing director Multinational Clients for
BBDO Europe, in a statement.
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