Verizon Wireless Sets Record with SMS Messages Over Holidays

Mobile Marketer

Verizon Wireless has set a record with the number of SMS text messages processed on its network in the holiday season.

The wireless carrier processed an estimated 1.6 billion text messages on Wednesday, Dec. 31, New Year’s Eve. This was a 20 percent jump from an average Wednesday in December 2008.

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Quick Stats: Have Students Graduated from E-Mail?

eMarketer Article
October 2008 ROI Study

• More than six out of 10 US high school and college students surveyed “never” or “hardly ever” read marketing e-mails.
• The majority of respondents said companies were not effectively speaking to them personally through e-mail.
• 2/3 of students surveyed said they rarely or never took action after reading marketing e-mails.

Parents Say Texting with Kids is GR8

AT&T

Parents say text messaging is the most cost-effective way to keep tabs on their offspring, according to a survey from AT&T, conducted by Synovate. Parents felt pricing plans were high, but had positive opinions for text messaging.

Survey Data:

• Nearly three-fourths of texting parents (73%) think teens are more responsive to text messages than to other forms of communication, 56% say it makes their children easier to reach.
• 79% of parents said they text with their children most often to tell them to come or phone home,  the most common type of parent-child text message.
• 76% text to work out logistical arrangements and 74% send kids a loving message via text.

Children say they text their parents most often to tell them when they’re going to be home (88%), that they’re safe (78%) and to ask to be picked up (75%).

The Parent Perspective

• 87% of parents say their child is on an unlimited text messaging plan.
• 50% of parents think text messaging makes them a “cool” parent.
• 55% say they have more frequent communication with their child by texting.
• 61% percent say text messaging is the most cost-effective way to exchange messages with their child, compared with phone calls, e-mails and instant messages.
• 53% of parents say their child taught them how to text (vs.42% of kids who said a friend taught them how to text).
• 33% of parents began texting for the first time so they could reach their child.

The Teen/Young Adult Perspective

• 84% of kids say text messaging is easier than calling friends.
• 82% say texting makes it easier to tell their parents where they are.
• Kids like the privacy of text messaging (65%), the cool/hip factor (49%) and say it’s a better use of time than calling (48%).
• 53% of children sent a text for the first time because it was an easier way to stay in touch with friends.

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Industry Case Study: Johnson & Johnson’s IVR Mobile Campaign

Campaign Overview
Pharmaceuticals giant Johnson & Johnson wanted to engage the mobile savvy youth market and promote its Acuvue contact lens brand.

Campaign Objective
Create a targeted mobile campaign that combines Interactive Voice Response (IVR) and mobile web (WAP) to build customer subscriber lists, extend its branding reach and enhance its two-way relationship with consumers.

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Politics’ Next Step? Donations Go High Text

AP- Rob Runyan

“An unprecedented number of small contributors demonstrates the potential for small text-message donations. The convenience of replying to a text to give money is a great way to reach young people.
Nearly 10 % of 18-to-29-year-olds reported contributing to a campaign in 2008.”

Related articles: Best Practices: Mobile Politics 2008 – Barack Obama Leads, Mobile Politics.

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Mobile Marketing Association Annual Study: Increase in Mobile Marketing Receptiveness and Adoption

The Mobile Marketing Association (MMA) released its Annual Mobile Attitude and Usage Study, conducted with research partner Synovate. The objective of the study is to help brands and advertisers better understand the habits of mobile users, provide insight into overall consumer mobile usage by demographic group and awareness for the United States, Europe, Asia Pacific and Latin America markets.

Studies have clearly indicated text messaging levels have increased in the past three years, 4 out of 5 users text and 3 out of 5 users text daily or weekly. In an economy with decreasing advertising spend, marketers will focus on traditional media outlets. Can traditional media provide measurable usage data and metrics like mobile marketing campaigns can?

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How Do Mobile Users Spend Time?

Good data from eMarketer, US mobile users on “phones more than ever, talking, texting, watching videos and using the mobile Web.” For mobile users, SMS text messaging activity leads.

More from the report:

• 54% of mobile users surveyed in September 2008 had increased usage over 25% over the past two years
• Close to four out of five mobile users sent text messages
• One-fifth said their usage had increased by 50% or more
• One-third of respondents talked on their mobile phone more than 10 hours per week
• 34% of respondents ages 17 and under talked for more than 15 hours weekly
• Almost four out of 10 mobile Internet users surfed the mobile Web for 2 or more hours every week.
• 62% of mobile users surveyed said they either already owned or would own one within the next 12 months
• 29% of those who did spent more than 2 hours every week texting

Will Mobile Marketers Pay for Texts?

Source eMarketer

An eMarketer report on the the biggest component of mobile message advertising. According to eMarketer, will reach $4.5 billion in revenues in the US by 2012, from nearly $1.5 billion this year.

Since the Verizon Wireless announcement that it would begin charging $0.03 per SMS message sent to its subscribers, uncertainty on the possibility of doubling or even tripling costs to marketers who send text messages to their subscription Verizon consumers.

John du Pre Gauntt, senior analyst at eMarketer, said “Carriers will likely start charging marketers for commercial texts at some point. But in the long run, it will be thought of as negotiating point, rather than a threat to the freedom of the mobile Web.”

Though Verizon Wireless has rescinded its October 9, 2008  announcement that increase fees to subscribers on its network, this data provides clear insight that text messaging revenue is on the rise. Verizon indicated that it had not initiated an increase in fees since 2003.

Ensure SMS Messages Comply with Carrier Rules

In an article titled, “Ensure SMS messages Comply with Carrier Rules,” Raj Choudhury, opens the discussion on how the “level of inconsistency and mixed interpretation is mainly due to a lack of oversight and standardization in the industry.”

Choudhury provides mobile case scenarios to help interpretation of SMS text standards. He supports the mobile marketing industry but is concerned about taking steps backward to move forward.

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SMS Transaction Fee Update: Verizon Will Not Impose Charge Nov. 1

Verizon Wireless has told SMS aggregators it will not impose a new $0.03 cent transaction fee for every outbound SMS message sent to its subscriber base starting November 1.

Verizon, the second largest wireless carrier would have either doubled or tripled the cost to marketers who send SMS text messages to opted-in consumers subscribed to Verizon Wireless mobile.

The latest decision from Verizon Wireless is the result of industry push back from an alarmed mobile marketing industry by the increase in SMS rates for opted-in text messages to the carrier’s customers.

Here are a few background articles on Verizon Wireless SMS transaction fee announcement.

Verizon’s Initial Announcement, October 9.

Verizon Denies SMS Fee Hike, October 13.

Mobile Marketing Community Reacts to Possible Verizon Transaction Fee, October 16.

Recently, Waterfall Mobile’s Price Guarantee, addresses mobile industry uncertainty and will secure clients against possible fee increases in 2009.

For more information on mobile marketing, Waterfall Mobile or the Price Guarantee, please visit www.waterfallmobile.com or contact sales@waterfallmobile.com.