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HAPPY NEW YEAR MOBILE!

Posted: January 21, 2008

In belated appreciation of the dawning of another new year, we have compiled several indicators which point to the awe-inspiring growth of mobile adoption and the role of SMS as the most popular application for mobile subscribers.

PHONES FOR EVERYONE…ALMOST.

Figures released by industry analyst Informa Telecoms & Media reveal that worldwide mobile penetration hit 50 per cent - or around 3.3 billion subscriptions - on November 26, 2007, just over 26 years since the first cellular network was launched. This is all the more impressive when it is revealed that global penetration was 10% , with only 500 million subscriptions, in the year 2000 and took another 5 years to reach 30%, but only two more after that to reach 50%!

As of the end of September there were operational networks in 224 countries around the globe, a figure that has increased from 192 in 1997 and 35 in 1987. Informa estimates that mobile networks covered 90 per cent of the global population by mid-2007.

A large number of more mature markets worldwide already have in excess of 100 per cent mobile penetration, as users increasingly sign up for more than one subscription. As of the end of September, 59 countries had mobile penetration of over 100 per cent.

WHAT’S A LANDLINE?

More than one in eight U.S. households have cell phones but lack traditional landline telephones, according to a federal study that tracks the country’s growing dependence on wireless phones. The report showed that for the first half of 2007, 14 percent of households had cell phone service but no landline telephones.

Nearly one in five Hispanic adults (18 percent) have cell phones but no landline phones, the survey showed.

In addition for the first half of 2007,

11 percent of white adults and 14 percent of black adults had only cell phone service.

Roughly three in 10 people age 18 to 29 had only wireless telephones — more than double the portion of those aged 30 and older who rely only on cell phones.

14 percent of males and 12 percent of females only had cell phone service.

The National Health Interview Survey, conducted by the CDC, involved in-person interviews with people in 15,996 households conducted from January through June of this year.

Researchers found that more than 55% of all adults living with unrelated roommates relied solely on cellphones, and noted that this is the “highest prevalence rate among the population subgroups examined.”

With Americans cutting the cord to their land lines, 2007 is likely to be the first calendar year in which U.S. households spend more on cell phone services, industry and government officials say.
While there are roughly 170 million land lines in use nationwide, industry officials estimate there are close to 250 million cell phones. (These figures include residential and corporate use.)

SMS = SO MANY SUBSCRIBERS!

As the popularity of SMS continues to grow, Gartner forecasts 2.3 trillion messages will be sent across major markets worldwide in 2008, a 19.6 percent increase from the 2007 total of 1.9 trillion messages. Mobile messaging revenue across major markets will grow 15.7 percent in 2008 to $60.2 billion, up from $52 billion in 2007.

Gartner estimated that there were 189 billion mobile messages sent in 2007 in North America, and this is forecast to reach 301 billion in 2008.




Verizon, AT&T do an about-face on open networks thanks to Google

Posted: December 7, 2007

My how the times are changing.

Verizon, historically one of the most “closed” carrier networks in the United States, announced at the end of November that by the end of 2008, it will allow an “any device” policy, enabling users to use nearly any phone on the Verizon network, accessing nearly any application via the network. Perhaps more notably, this announcement was followed-up by the company stating that they will be switching from their CDMA network to a GSM one, further enabling the ease of transport of phones across networks. (GSM networks, the most common in the world, use the SIM card interface to easily switch carriers.) Switching to GSM from the closed CDMA architecture is by definition a move towards a more open network, so by announcing open access strategy first, Verizon avoids looking internally conflicted.

AT&T, the #1 mobile carrier in the US, followed up by announcing to the world that it too would be embracing the “open explosion”. In reality, you could always bring an unlocked GSM handset to AT&T and use it on its network. The real big news here is that when you’re contract’s up, AT&T will unlock your phone (unless of course, you have the coveted iPhone).

So what does this mean for mobile marketing?

The big PR blitz was actually initiated by a little company called Google, with its effort to “open” the carrier networks to allow for “any app” on “any phone” on “any network.” What they really mean is “any app” on “any GOOGLE phone” on “any network”. And Google’s PR tantrum worked; Sprint and T-Mobile signed up to be Google partners (with rumors that Verizon is next).

The Google platform will allow for ease of development of rich mobile applications that can run cross-network, adding yet another standard to the mix, on top of J2ME, BREW, Windows Mobile, and the ever-so-sexy-yet-ever-so-closed iPhone.

If Google has it’s way, and the world goes “gPhone”, our job as mobile marketers will be easier. Cool new apps (mobile catalogs of products, custom-branded games, and more) will be easier to develop and have a higher likelihood of working on more phones. More likely, however, we will be left with one more “standard” on top of J2ME, BREW, Windows Mobile and iPhone. It will be up to companies like Cellit to make solutions that work no matter what “standard” you’re on.

The first phones sporting the Google technology (named “Android”) aren’t expected to hit the market until the end of next year. That’s still a long way and the show-down for “mobile platform dominance” is far from over.

The “end” of closed networks marks the very early start of a new age of delivering more powerful applications into the hands of the end-users. This end was predicted and prayed for. (In fact, I did it back in September of 2006.) We will just have to see how quickly the “open factor” affects our abilities to deliver richer, more compelling content to the consumer.




Text-Messaging for a Better World

Posted: November 7, 2007

That’s right. The latest trend in SMS is using the immediacy and reach of the technology to help improve our world. Here are just four examples of the power of text-messaging to encourage positive change.

1) US marine conservation group Blue Ocean Institute has launched a cell phone-based service to send you text messages with the information you need to make smart seafood choices.

Next time you’re at the seafood counter or in a restaurant and can’t recall whether farmed catfish is managed in an environmentally sustainable fashion, send a text message and within seconds you’ll have the institute’s take on it.

The service covers more than 90 species, and suggests alternatives to options that pose environmental concerns.

2) The National Farmers’ Union (NFU) is responding to the need for farmers to keep up to date on the latest Foot and Mouth and Bluetongue outbreaks using text messaging. The NFU is encouraging its members to register their mobile phone number to ensure they receive the latest news alerts.

Currently, the NFU is sending over 12,000 text messages at a time. The text alerts cover areas such as changes to exclusion zones and news from the Department for Environment Food and Rural Affairs.

3) Disability charity Scope has rolled out an SMS service to provide information and support to disabled people and their families.

Interested parties will be able to get advice on conditions such as cerebral palsy, as well as other disability-related issues.

Texts will be answered for free by members of the Scope Response team, a guidance service offering support. Information will either be texted back or a contact will be sent for those needing a fuller reply.

Steve Cairns, head of Scope Response, said, “Our Scope Response service is a lifeline to people, particularly to parents of children who have been newly diagnosed with CP, and we wanted to be able to support them in any way we could.

“The addition of a text-based service means we have another way of providing free and confidential advice to disabled people and their families.”

4) Amrita TV, an Indian television network, has launched a public service initiative ‘Send an SMS. Save a Child’ to help underprivileged children.

The entire SMS revenue garnered by the viewer’s votes on the reality shows of the channel will be donated for the education, shelter and health care of underprivileged children, stated an official release.

To showcase the campaign, the channel has produced a Public Service Announcement, directed by film director, Shyamaprasad. He is also president for programs at Amrita TV.




Brands Across the Spectrum Realizing Mobile Marketing’s Potential

Posted: October 11, 2007

The number of brands considering message-based (SMS and MMS) mobile marketing campaigns has doubled over the past year and a half, according to new survey data.

During June and July of this year, market research firm Vanson Bourne surveyed 50 global brands representing products across retail, automotive and technology verticals–among others.

The results were compared to findings from a similar survey conducted in January of 2006–yielding an advertiser-centric view of the future of simple text and multimedia (including video, pictures and coupons) messaging campaigns.

For example, some 28% of brands were considering implementing SMS or MMS campaigns during the next 12 months–double the 14% that had considered the option last year. In terms of spending, 71% of brands expected to devote up to a tenth of their marketing budgets on mobile messaging campaigns within two years–up almost 20% from the respondents who said the same last year.

Brands’ own projections for their overall mobile marketing spending were also on the rise. Some 58% of respondents said that their mobile marketing campaign would take up to 15% of their total ad budget within the next five years, and 32% said this would happen by 2009.

The trends also extended to brands’ confidence in MMS and SMS campaigns as a way to drive both requests for more information and financial transactions–bolstered no doubt by the widely publicized user response rates to “text to enter” campaigns for shows like Fox’s “American Idol” and NBC’s “Deal or No Deal.”

Just over a third of all respondents said that they expected up to 10% of recipients of mobile marketing messages to “undertake a financial transaction”–with 52% of brands saying the same for recipient requests for “more information or a product sample.”




Text-Messaging Fast Becoming The Go-to Communications Tool

Posted: September 27, 2007

Saying it had the right to block “controversial or unsavory” text messages, Verizon Wireless last week rejected a request from Naral Pro-Choice America, the abortion rights group, to make Verizon’s mobile network available for a text-message program.

But the company reversed course this morning, saying it had made a mistake.

“The decision to not allow text messaging on an important, though sensitive, public policy issue was incorrect, and we have fixed the process that led to this isolated incident,” Jeffrey Nelson, a company spokesman, said in a statement.

“It was an incorrect interpretation of a dusty internal policy,” Mr. Nelson said. “That policy, developed before text messaging protections such as spam filters adequately protected customers from unwanted messages, was designed to ward against communications such as anonymous hate messaging and adult materials sent to children.”

The other leading wireless carriers had accepted the Naral program, but legal experts said private companies like Verizon probably have the legal right to decide which messages to carry. The laws that forbid common carriers from interfering with voice transmissions on ordinary phone lines do not apply to text messages.

“This is right at the heart of the problem,” said Susan Crawford, a visiting professor at thelaw school, referring to the treatment of text messages. “The fact that wireless companies can choose to discriminate is very troubling.”

Nancy Keenan, Naral’s president, said Verizon’s initial decision interfered with political speech and activism.

“No company should be allowed to censor the message we want to send to people who have asked us to send it to them,” Ms. Keenan said. “Regardless of people’s political views, Verizon customers should decide what action to take on their phones. Why does Verizon get to make that choice for them?”

Text messaging programs based on five- and six-digit short codes are a popular way to receive updates on news, sports, weather and entertainment. Several of the leading Democratic presidential candidates have used them, as have the Republican National Committee, Save Darfur and Amnesty International.

Texting has proved to be an extraordinarily effective political tool. According to a study released this month by researchers at Princeton and the University of Michigan, young people who received text messages reminding them to vote in November 2006 were more likely to go to the polls. 59% said that the text reminder was beneficial and voter turnout increased by 4% within the test group. The cost per vote generated, the study said, was much smaller than other sorts of get-out-the-vote efforts.

Texting has become one of the easiest and most cost effective ways of reaching large groups of people while simultaneously being able to track the success of individual campaigns. The popularity of SMS has caused even the biggest carriers to limit their interference when it comes to content, and if the current trends continue, that interference will soon disappear. The cost per consumer has become significantly less than traditional marketing methods, and the use of trackable codes has resulted in a level of transparency and accountability that wasn’t possible before. Thus, a well-planned mobile marketing campaign is one of the most efficient and least risky strategies currently available to companies both large and small.




Advertisers Can Learn From Operators’ Missed SMS Revenue Opportunities

Posted: August 30, 2007

Anam Mobile has revealed that global mobile operators are losing out on as much as €3.6billion (£2.4billion) of revenue per year through lost opportunities to create value-added SMS messages.

Text messaging has grown into a phenomenally popular form of communication, with research from the telecoms analyst company Informa Telecoms & Media revealing that over 600 billion messages were sent worldwide during the first quarter of this year – over 75 messages for every mobile subscriber. Yet many operators are focusing on other, less well-established, data applications as they aim to increase ARPU and profitability.

By introducing new data services through SMS, operators can tap into the existing level of comfort that consumers already feel when using the short, 160 character format. This approach will make it easier for new services to be adopted and can attach real value to the messages that individuals already send.

“After voice, text messaging is still the most popular application on mobiles,” said Dan Winterbottom, Senior Analyst, Mobile Content & Applications at Informa Telecoms & Media. “Yet when it comes to innovation and new services, text messaging is being ignored by many operators in favor of new data services. There is an innate understanding by subscribers of how texting works, this could be utilized by operators when they introduce new services.”

Currently, a large proportion of text messages are included as part of bundled deals provided by operators and therefore are, in effect, free to the customer. This means that each individual message has a low perceived value to the user and almost no financial value to the operator.

However, there are many applications that could potentially be introduced to consumers through SMS. If the subscriber is able to use SMS to interact with their device in a more efficient, more enjoyable or more productive way, then they will be willing to pay a small additional fee for those SMS messages. The subscriber will accept that these messages fall outside of the ‘free’ text bundles, or add on a new bundle to their service plan; SMS messages are one of the few services that the user will always know how to use on their mobile phone.

Gerry McKenna, CEO of Anam says, “I am constantly surprised that, until now, operators have not fully grasped the opportunities available to them through SMS. The €3.5 billion of missed revenue can be earned by simply enhancing the text services that they offer customers. There doesn’t need to be a shift in consumer mobile behavior - they can stick with their trusty SMS message, whilst the operator is able to create immediate results with additional revenue streams.”

Similarly, many advertisers have yet to grasp the potential of text messaging as an integral part of their marketing strategies. Aside from the staggering usage statistics mentioned above, SMS is the mobile service that the most users feel comfortable with and already know how to use. The only potential stumbling block mentioned above regarding the carriers does not apply to advertisers: extra cost. Since mobile marketing is handled by a company such as Cellit, and not the carriers themselves, advertisers are able to utilize the messages that most subscribers are already allotted as part of a text bundle or other plan. Thus if mobile users are willing to pay extra to “interact with their device in a more efficient, more enjoyable or more productive way”, then how thrilled would they be to do the same thing with advertisers for no extra cost, especially when they would only be receiving these advertisements and offers from companies whom they have specifically requested information from via an opt-in system?




Shortcodes Vastly Improve Advertising Recall

Posted: August 15, 2007

Research commissioned by the UK based, 2ergo, in conjunction with O2, has highlighted that companies are missing a trick when it comes to converting advertising into sales, with nearly one in two consumers failing to respond to advertising because they don’t remember key details.

However, the good news for business is that the mobile phone holds the key to solving this dilemma. Over 50% of respondents said they would like to access further information by sending a text to a shortcode and receiving a link to a mobile internet site where they can source additional information.

The research revealed that 44% of mobile users between the ages of 18 and 60 fail to respond to advertising campaigns because they simply forget the brand name and contact details when the moment their interest was captured by the advertisement had passed - with many people wasting time later, trying to find the company, and eventually giving up.

Other key findings highlighted that more than one in three mobile users have sent a text message to a five digit shortcode, primarily in response to TV and radio advertisements, and competitions. When asked if they would find it useful using text as a response mechanism to an offline advertisement, to then be forwarded to a mobile internet site for more details, more than 51% of consumers said they would be quite keen or extremely keen to use it.

Of the consumers who were keen to use the services, three quarters (74%) said they would use their phones to request a brochure, 70% to check product availability, two thirds to help locate their nearest store and over half to book tickets or request further information from the advertising brand.

Paul Terry, Marketing Director at 2ergo, comments; “The mobile channel provides a significant opportunity for advertisers and brand owners to more effectively capture the moment of when consumers are most interested in their advertisements.”

“This study reinforces our own experiences of helping brands capture the valuable responses generated by offline advertising that would otherwise have been missed.”

The future of mobile services looks positive as seven out of ten people aged less than 30 (71%), are keen to maximize the use of their mobile phone to access a company’s details or promotions. Similarly, more than half of people under 50 and a third of people over 50 are keen to utilize such services.

Paul Terry concludes; “This is a really exciting time for the industry. It is clear from the research that calling and texting from mobile phones is now part of everyday life, but the real opportunity however lies in taking that familiarity and extending it into other services that bring convenience and value to both the consumer and brands.”




SMS - Where it’s been and where it’s going.

Posted: July 27, 2007

This was a great week for text-messaging, as two important SMS milestones were announced and an important text-based initiative was launched.
The mobile phone industry is celebrating the 15th birthday of the Short Message Service Centre (SMSC), the principal application behind text messaging first brought to market  in 1992. The first ever SMSC was introduced as a product designed primarily to deal with the demands and improve reliability of a developing mobile industry.

In 1992, SMSC version 1.0 had a capacity of 10 messages per second which was soon quickly surpassed through ongoing innovation to improve capacity, reliability and accessibility. By 1999 the mobile industry saw the introduction of the first high performance SMSC, with what was then an incredible 50 fold capacity increase to 500 messages per second. Such capacity speeds have now been greatly exceeded by today’s further 32 fold capacity increase.

Despite the rapid evolution of the mobile market, SMS is still the most important value-added service for operators. For operators looking to provide subscribers with robust messaging services, today’s mix and match platform means they can specify SMS capacity to meet their requirements. It is this scalability that makes the SMSC cost effective and adaptable to both growing and mature markets. Even in the most developed markets, such as Western Europe where SMS service penetration has reached 90%, SMSCs are vital to operators seeking to differentiate themselves through high-quality enhanced messaging services.

Steven van Zanen, VP Marketing for Intuitive Messaging at Acision commented: “Mobile messaging contributes significantly to the total mobile service revenues of almost every network operator on the planet, and the phenomenal evolution of the SMSC over the past 15 years has been a direct factor to the overall success of SMS.”

Also this week, Verizon Wireless announced that their subscribers sent and received 10 billion text-messages in the month of June, an all-time record for a single carrier in a single month. Verizon Wireless customers also sent and received more than 200 million multimedia messages. Both monthly figures represent an increase of more than 100% since September 2006, when the company broke the 5 billion monthly text message threshold for the first time.

The robust performance and usage of SMS has not gone unnoticed, and have led to new and innovative uses of the technology. During the first-ever You Tube debates on Monday night, presidential candidate Dennis Kucinich encouraged Americans to use text messaging to voice their opposition to the war in Iraq. Wireless subscribers were encouraged to enter the word “peace” as a text message and then send it to the number 73223, or p-e-a-c-e.

According to Michael Carmichael, Kucinich campaign strategist, the campaign team received more than 10,000 responses within the first 12 hours and days later are receiving an average of 225 text messages an hour. He said the viral nature is building thanks to the planned “peace chain” response mechanism the campaign has implemented. It is texting back to each supporter asking him or her to forward the call for peace to five more people.

“It is a new day in communications, and it is a new day in creating a new conversation with America,” said Colin Rogero, representative of the media agency assisting the campaign.

Asked if he thinks other candidates will pick up the texting concept, Rogero said, “Absolutely.” He pointed to how Howard Dean in the last campaign harnessed the power of the Internet and other candidates subsequently followed suit. He expects Kucinich’s opponents to jump on the texting bandwagon very soon.

As SMS celebrates its suprisingly long past and immensely positive present, its continued level of innovation and voracious adoption by consumers, companies and even political candidates points to an even brighter future.




A terrible use for texting

Posted: July 24, 2007

It’s official. Amp’d just went under. And how did they notify their paying subscribers? Let’s have a quiz:

  1. A phone call, saying sorry and wishing them well
  2. A box of chocolates and a note
  3. A text message a day before turning off service.

If you guessed choice 3, you’re correct! Shame on you, Amp’d. With customer service like that: no wonder they’ve gone under!

More available here.




It’s All Relative

Posted: July 20, 2007

The majority of Australians believe that mobile phones have helped to balance their family and working lives. Social researchers from The Australian National University, the University of New England and the University of New South Wales found that only 3% of people reported that the mobile phone had a negative impact on their work-life balance.

The project, part of an Australian Research Council Linkage Grant connecting researchers and the Australian Mobile Telecommunications Association (AMTA), examined the social impact of mobile technologies at home and work. It collected nationally representative data between March and May this year from a sample of 1358 individuals from 845 on-line households.

The preliminary results of the three-year project found that the mobile phone is an indispensable part of the Australian life, with more than 90% of respondents reporting that their lives could not “proceed as normal” without their mobiles.

“Very few respondents reported that the mobile phone has a negative impact on their work-life balance (3%),” said lead researcher Professor Judy Wajcman from the Australian National University. “A high proportion of respondents (43%) said that it has had no effect. Yet more than half (54%) of the respondents believed that the mobile helped them to balance their family and working lives.”

“Rather than fragmenting time, our study suggests that mobile phone practices are strengthening and deepening relationships and building durable social bonds,” Professor Wajcman said.

Apparently, the 3% who found cell phones to have a negative effect on their lives belong to a very vocal and very disturbed minority.

Last Saturday, a man went on a rampage with a stolen armored personnel carrier through suburban Sydney, crashing into several mobile phone towers, telecommunications buildings and an electricity substation before being arrested. The man led officers on a 90-minute chase across six western suburbs before the vehicle stalled as it was being driven toward another mobile phone tower, New South Wales police said in a statement.

The damage was pretty massive, according to cops: “He continued to destroy mobile tower communications sheds by crashing through the perimeter fence and colliding with structures, causing significant damage.”

Police charged him with numerous offenses, including predatory driving, possession of a prohibited drug and use of a weapon to avoid apprehension.




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