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ROI of Common Short Code and
SMS Mobile MarketingNovember 2009ROI of Common Short Code and SMS Mobile Marketing
The Time is Right for Mobile Marketing mutually beneficial to consumers and brands by establishing a two-way communication channel with considerably flexible Mobile has hit the mainstream in the U.S. At the end of 2008, data-delivery capabilities. The CSC gateway enables wireless the number of mobile subscribers had grown to 270 million, subscribers to access mobile applications and participate in reaching 87% of U.S. households. The availability of unlimited voting and polling, customer feedback, database enrollment, data and text messaging plans has pushed consumer mobile news and offer alerts, contests, surveys, chat, games, direct usage beyond voice to text messaging and Internet access. Last marketing and mobile commerce.year U.S. consumers sent over 110.4 billion SMS messages per month. This number continues to grow. Meanwhile new devices Short code campaigns are rapidly growing in popularity because like Apple's iPhone have made web browsing on the phone more of their inherent simplicity, ubiquitous outreach, societal prevalent and improved the app store experience to create a trendiness, and perpetual accessibility. Whereas some forms better market for mobile applications. of mobilization may require smartphone interaction, nearly all mobile phones (over 96%: CTIA 2009) are capable of receiving As consumer usage of mobile devices explodes, mobile SMS. This further signifies nondiscriminatory and unbiased marketing has emerged as a viable marketing channel with subscriber participation, greatly leveraging the overall reach eMarketer predicting mobile ad spending growing to $3.3 and penetration of a campaign initiative. And with the average billion by 2013. Historically, privacy and spam concerns age of an SMS user in the U.S. at 38, CSC campaigns tend to slowed the adoption of mobile marketing. However, the reach more than the just youth. success of mobile campaigns, such as voting on American Idol Time Period Average Number Average Number of Monthly Calls* of Monthly Text Messages*Qtr 1, 2006 198 65Qtr 2, 2006 216 79Qtr 3, 2006 221 85Qtr 4, 2006 213 108Qtr 1, 2007 208 129Qtr 2, 2007 228 172Qtr 3, 2007 226 193Qtr 4, 2007 213 218Qtr 1, 2008 207 288Qtr 2, 2008 204 357or receiving mobile coupons, has revealed that consumers are Source: The Nielsen Company (January 1, 2006 to June 30, 2008)willing to participate in timely relevant campaigns. Among * Note: Data includes U.S. wireless subscribers only.teens surveyed in a 2008 Harris Interactive poll, over half (56 percent) said they would be interested in viewing mobile ads with incentives, while over one-third (37 percent) of adults In addition to providing access and engagement to the world's noted that they would be receptive to such advertising. In largest addressable market, CSC campaigns have proved to fact, mobile may be the best channel to reach the 20% of be more effective than traditional marketing methods such U.S. households that no longer own a landline telephone. as email or banner ads. For example, SMS-based campaigns Companies are turning to common short code mobile achieve over a 90 percent opt-in rate, compared to 22.1 percent marketing today because it delivers personal, immediate and for email. Consequently, Mobile is capable to deliver profound actionable content to a target audience that has opted to results in terms of response rate and database generation, receive messages. far superior to the traditional forms of advertising. In fact, the average SMS response rate typically ranges between 15 to 30 A Common Short Code (CSC) is a 5 or 6 digit carrier-approved percent, compared to 5 percent for email and 2.61 percent for number that mobile phone subscribers use to send Short direct mail. Message Service (SMS) messages in order to receive information, promotions, alerts and branded content on The result of an advertising initiative by Chicago's Shedd their mobile device. The implementation of short codes is Aquarium perfectly illustrates the benefits of using short
Page 2ROI of Common Short Code and SMS Mobile Marketing
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