SET TO EXPAND
Copyright 2001 www.netimperative.com
[ October 3rd 2001 ]
advertising is set to expand rapidly over the
coming 12-18 months, according to Ovum. The research
company claims that response rates for SMS marketing
campaigns are between 4-40% - direct mail campaigns
usually gain around 2% response.
Nelson, Ovum Research director, said: "We are
now moving beyond the hype and hope stage, and
into a stage where wireless marketing is being
considered as a percentage of the marketing budget."
via wireless devices has been a hotly debated
issue in Europe, where according to statistics
most individuals own more than one phone. This
opens up a huge potential market for advertising
via SMS, although traditional media agencies have
been slow in the main to react.
at a WAA (Wireless Advertising Association) meeting
in London, Nelson continued: "However, simpler
technology is needed, and new handsets will play
a central part here. New technologies such as
GPRS, 3G and Java downloads need to be made as
user-friendly as possible - both for consumers
where the opposite holds true is billing. Nelson:
"Billing is a huge issue - several companies have
said to us that if they could reverse bill users,
they would use SMS marketing, but only Vodafone
currently offers it."
Allison, WAA MD global strategy, commented: "Both
technology companies and operators are working
to make this market a reality. Europe has a huge
advantage in that it has so many devices active,
it cannot fail to be an active market."
have been a variety of campaigns conducted recently
via SMS, notably Tomb Raider, Macdonalds, Pepsi,
Cadburys and Coke. According to figures from Pepsi,
120,000 people opted in to receive product alerts
within an hour. However, it is technically still
illegal to advertise third party services over
EU telecommunications networks without users permission.