3 Reasons You Need to Build an SMS Marketing Campaign
Mobile advertising stories dominate today’s mobile industry news. eMarketer projects that the global market for ad support of mobile messaging will reach nearly $12 billion in 2011, up from $1.5 billion in 2006. Though marketers are well aware of how critical it is for their brand to have an iPhone/Android app, they often tend to overlook the fact that text messaging still reigns as the most popular mobile activity. Available on almost every mobile phone, from the low-end feature phone to the priciest smart phone, texts have the most universal functionality.
Apart from reaching 90 percent of the U.S. population via text messaging, marketers want to know why they should build an SMS marketing campaign. Here are three big reasons why.
1. Communication via SMS is personal. The text-messaging medium distinguishes itself from all other media because it provides brands and their agencies an opportunity to build one-on-one dialogues with individual customers. By learning about customers and their preferences, marketers can make each marketing communication seem like a unique person-to-person interaction. According to DMA’s 2010 Response Rate Trend Report, about 90 percent of all text messages are read within three minutes of their delivery and over 99 percent of all text messages are read by the recipient.
For SMS marketing to rise above the perception that it's just spam or an unnecessary interruption and become valued content that is relevant and informational, it has to start from the principal of opt-in. Not only do opt-in campaigns help marketers reach target customers but according to MMA’s Luth U.S. Mobile Consumer Briefing Series, 2010, 36 percent more consumers respond to an ad received in an opt-in text alert than any other mobile medium, and 43 percent of all mobile ad respondents purchased the mobile-advertised product or service.
2. The SMS medium is cheap and generates tremendous ROI. The BMW Winter Tires campaign published in the July 2010 edition of Mobile Marketing Magazine is probably the best example of a high ROI marketing campaign. This mobile campaign cost less than $120,000 and generated new tire sales worth $45 million. It was designed to be highly targeted with mobile messages (SMS, MMS and WAP-supported) sent to only 114,000 opted-in BMW owners rather than millions of BMW car owners.
Related story: Recalibrating Your Digital Messaging Infrastructure, Part 1