On-Campus
Exhibits
Industry
About AEF | Newsletter | Site Map | Legal | Advanced Search
 
Print Version

The Promise And Problems Of SMS Marketing
Pushing Ads Through Mobile Phone Short Messaging Services


Teens in Singapore spend hours tapping out messages to friends on their cell phones but these days they're as likely to be pitched on joining the navy as they are to be asked out to the movies.

Tech-savvy youth's 24/7 use of cell phones has spurred the marketing use of SMS, or short messaging service, which lets mobile phone users transmit text messages quickly and cheaply. Cell phone subscribers will send about 400 billion text messages globally during 2002, up from 250 billion last year, according to the GSM Association. Person-to-person "texting" still accounts for most traffic, particularly among youth, but marketing applications are becoming more common.

SMS marketing

"SMS is proving to be an excellent means of communicating brand values. This is because it is such a personal and direct medium," said Jonathan Linner, CEO of Enpocket, one of an increasing number of SMS marketing agencies in London. "The strength of an individual's relationship with their mobile phone is unique."

But others note that SMS marketing is not without its serious problems.

A big obstacle in creating a successful SMS campaign, said Daniel Pipela, chairman of Hong Kong's Mobile Marketing Association, "usually are the telecom carriers. ... Unless carriers are willing to opt in to a promotion, it won't work, because they are hesitant to give away phone numbers."

Spam backlash

Unfortunately, carriers are not adept at putting together marketing plans. "They haven't done their homework profiling individuals, so promotions often come off as spam. This has caused a lot of backlash, particularly in the Philippines and Singapore," said Mr. Pipela.

"Even telecom companies haven't figured out how to use it yet," said Kent Wertime, regional partner based in Bangkok for WPP Group's Ogilvy Interactive. "Too often, SMS is treated as mass medium rather than a personalized medium."

Costs vary depending on whether marketers send messages to consumers, or vice versa or both. "The cost to the client ranges from a few cents to 50 cents per customer, depending on numerous variables, such as whether an agency was involved for strategy and creative; carrier and third-party data costs; and the overall complexity of the campaign," Mr. Wertime said.

So far, the two most successful forms of SMS marketing involve digital coupons and time- or event-based messages, which usually involve other forms of media and an intuitive process on the part of consumers, who opt-in voluntarily.

Coke SMS contest

In China, for instance, McCann-Erickson Worldwide, part of Interpublic Group of Cos., partnered with Siemens to create a SMS contest for Coca-Cola Co. in July. Cell phone users were invited to guess the next day's temperature in Beijing; a correct guess could win a Siemens phone or a one-year supply of Coke.

Contestants who didn't win were invited to download Coke's jingle as a free ring tone. The result: 4 million messages were exchanged during the 40-day promotion; nearly 50,000 people downloaded the Coke jingle. Coca-Cola has already decided to repeat the contest next summer.

Several ad agencies have set up interactive divisions to handle SMS campaigns. Ogilvy & Mather, for instance, formed an alliance with TVC, a Singapore-based interactive marketing company, to offer interactive telephony marketing services, including SMS, to Ogilvy's clients in Asia.

Asia a hot market

SMS is particularly hot in Asia, where mobile phone penetration is beginning to outstrip that of fixed-line phones and PCs in some markets.

"Asia is, in many ways, the great mobile part of the world," Mr. Wertime said. "It's a trendsetter in terms of importance and influence, and the interest of advertisers in SMS is very high right now. "

In Singapore, Asia Pacific Breweries did a SMS teaser campaign, created by Publicis Groupe's Leo Burnett Worldwide to promote Anchor Beer's new packaging and flavor. The agency invited potential customers through SMS to "have a beer on us." About 24% of recipients accepted the offer and were sent a secret serial number redeemable for a free beer at selected night spots.

'King for a Week'

To boost SMS usage in Taiwan, Burnett developed a campaign dubbed "King for a Week" for Chunghwa Telecom's Emome brand. Each week, the person who sends the most SMS messages is treated like a king, his wishes fulfilled, filmed and aired on cable TV. The contest boosted the number of SMS messages sent by 10%, to more than 1 million a day.

Buzz was created in Singapore when people flipped open their phones to find friendly messages from God. Working for the evangelical Churches of the Love Singapore Movement, Ogilvy transmitted witticisms purportedly from God via SMS. On Friday afternoons, many Singaporeans received a message saying, "Thank me it's Friday. God."

 

Normandy Madden, AdAge.com. December 2, 2002

Copyright © 2002 Crain Communications Inc.. All rights reserved.