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Preethi J.
On average, an Indian mobile user gets six SMSs and sends four a day. Brands are taking advantage of this to reach customers in newer ways. |
IT sits pretty in your pocket, buzzing with information on new deals and offers. It's one of the latest media the advertising industry has hit upon a quick and easy way to reach consumers. The short messaging service (SMS) on your mobile phone offers advertisers a simple method of reaching millions.
According to the Telecom Regulatory Authority of India (TRAI), the number of mobile users at end-November 2005 stood at a little over 7 crore. The Indian advertising industry itself is worth over Rs 13,000 crore. Of this, SMS marketing is pegged at around Rs 1 crore, but is growing at a scorching rate. Telecom companies such as Bharti Televentures, Spice Telecom and Tata Telecom have jumped right into this mission. Around 60 per cent of their revenue from the text messaging service comes from SMS advertising, say industry experts. The telecom industry can reap benefits from SMS marketing as long as text messaging remains the number one data service available across societies, they say.
According to a survey by Swedish mobile communications company SmartTrust, messaging services and WAP (Wireless Application Protocol) have become hugely important to operators keen to raise average revenue per user.
Short codes
Cellular service providers offer short codes, made up of four-digit numbers. Short codes can be used for voting, polling, contests, surveys and direct marketing. They direct responses from mobile users to a database at the telecom operators' end, which is then analysed. The data sourced from short codes can be used to track spending patterns. Individual tastes as well as the needs of millions of users can then be determined.
SMS marketing offers real-time information about the target base, is personalised, accurate and quantifiable. It is also location-sensitive, hence advertisers can evaluate demographic charts. "Mobiles enable a marketer to reach out to a niche audience and deliver results in shortened time frames and quicker response times. Marketers who have used it are aware of its competitive advantage, available literally at the push of a button and have insisted on integrating the 4-digit short codes consistently across all campaigns," says Preeti Desai, President, Internet and Mobile Association of India (IMAI). Currently, short codes allow mobile users to download ringtones and picture messages and even participate in tele-voting. Even at Rs 6-10 per ringtone, there are many takers. "We see around 80,000 downloads a month," says Parthasarathy Madhukar, Head of Post-Paid and Value Added Services, Spice Telecom. Per month, this company earns Rs 8 lakh-9 lakh just from short codes.
Tele-voting applications have also successfully combined the reach of the TV and mobile to enable an interactive medium. Talent hunt shows such as Indian Idol have evoked a good response. Each short code attracts around two lakh SMSs per month. The Indian Idol series received around 5.5 crore SMSs per day.
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