Marketing Has Gone Mobile

In 2007, over 350 billion text messages were sent in the U.S. Over 90% of text messages get read.

Although the U.S. lags behind the rest of the world in marketing to the hundreds of millions of mobile phone users, businesses are now getting the message. Many national brands are offering coupons and other special deals, through their own lists and through mobile marketing services.

Businesses with or without an online presence can use mobile marketing to drive sales

Text message marketing is a great way to reach that desirable under-35 demographic, but older people are increasingly using text messaging, too. Many of these older people love to use coupons. A study shows that over 60% of consumers feel that a coupon is the most valuable form of mobile advertising.

Mobile coupons are particularly attractive to restaurants and retailers because they offer an easy way for customers to redeem them. A text message containing a promotion code can be shown to the cashier or server upon checkout.

Promotional offers and coupons are delivered direct to mobile phones and PDAs. Consumers can discover and explore Houston restaurants and other Houston businesses at discount prices by signing up for text alerts at our site, SpaceCityAds.com.

To find out how your business might benefit from text message marketing, call 713-869-5277.

It isn't very often that a new advertising medium comes along, but according to Fortune magazine marketing through wireless phones and other mobile devices could be the biggest thing in advertising since the television. Most people with a wireless phone are at least aware of mobile marketing - they have received ads from their wireless service - but many people don't realize the scope or potential of this form of advertising.

Mobile marketing may have come of age with the Presidential election of 2008, and the millions of younger voters who signed up online to receive mobile alerts from the Barack Obama campaign.

The latest figures show that over 260 million Americans now have wireless phones. More people now have mobile phones than PCs connected to the internet. Almost every one of these phones is capable of text messaging, so obviously the potential for marketing is vast.

More importantly, 80% of mobile phone users carry their phones with them all the time. Experts say that over 90% of text messages get read, which is an astounding rate not matched by any other form of advertising. There have been very high response rates reported to some text message advertising. With these kinds of numbers, it is difficult for any business to ignore the mobile market. A survey has shown that almost 90% of major brands are planning to advertise by mobile.

Although in the future we will see more mobile advertising which includes color graphics and video, most mobile marketing today is through SMS (Short Message Service) text messages. SMS is a protocol which allows mobile devices to send messages to each other. SMS messages are limited to 160 characters. They are sent through an SMS service center, then forwarded to the recipient. If the recipient is unavailable, a later attempt is made to send the message.

The delivery of SMS messages is not guaranteed. It has been reported that perhaps 40-50% of Obama's subscribers did not receive the announcement of his running mate selection, showing that the SMS system may be inadequate at present for the largest mass campaigns.

Text messaging can get expensive, although some wireless companies such as Cricket offer free texting. Some wireless carriers have charged as much as .10 a message, even though it has recently been revealed that the actual cost to transmit these messages is minuscule. Text messaging is likely to become less expensive in the future.

There is such a thing as Premium SMS, where customers can choose to receive things like custom ring tones and stock alerts for which they are charged on their phone bills, but regular text messaging rates apply to most SMS advertising.

As with email and fax ads, it is illegal in the US to send advertisements to wireless customers who have not asked to receive them. Customers must "opt in" to get on an advertiser's SMS list, and are free to "opt out" at any time. There are several ways to "opt in" to a list, but one of the most common involves sending a text message from a wireless phone to the advertiser's five- or six-digit "short code."

It takes some effort for a business to build an SMS list. Businesses must remember that they cannot just add their customers to their list. Subscribers must "opt in" in some way, such as through a capture box on a website or by messaging a short code. The plus side is that since subscribers have chosen to "opt in," they already have an interest in the business or product.

There are a variety of ways for businesses to build lists. They can give out signup information to customers who visit their place of business, include it on direct mail and print advertising, and on their website. Customers are sometimes offered a discount for adding themselves to the list.

How can businesses use SMS lists to promote themselves? The possibilities are practically limitless, but here are a few: new product announcements, one-day specials, new location openings, mobile coupons, contests and special prizes.

Customers can respond back to text alerts, so they are an excellent way to get feedback. People who never bother to pick up a phone to express an opinion may text back a response.

SMS marketing may be used in various ways by different types of businesses:

• Restaurants offer discounts and specials, they text the next day's lunch special, give loyalty program discounts, etc. Some national chains are using mobile coupons; others allow customers to order on mobile-enabled websites.
• Retail stores use SMS to promote sales, to send mobile coupons, for delivery confirmation, to clear out overstocked items, to let customers wanting out of stock items know that the item is now available, and that items are ready to pick up. Walmart and Amazon are now using mobile alerts to promote specials.
• Doctors and dentists are using text messages to remind patients of appointments, and to tell them they need to schedule inoculations and checkups.
• Non-profit organizations send call-to-action blasts, and sometimes fundraise by Premium SMS. The Red Cross has reportedly solicited Premium SMS contributions for its disaster relief fund.
• Mobile marketing is paperless (read "green"), and is an excellent way to reach the younger, desirable demographic. Texting is used most frequently by the 13-34 age group.

SMS works better when it is integrated and coordinated with other marketing efforts, and where there is already a brand loyalty or customer base established. It is most effective when members feel they are receiving deals and offers which are rather exclusive, and not available to the general public.

For a business which can use it effectively, SMS marketing offers an opportunity to enhance its relationship with its customers through a unique one-on-one dialog.