Advertisers to Consumers - We will Text You

.....
http://online.wsj.com/article/SB121185056833021519.html

Advertisers to Consumers: We'll Text You
Cellphone Messages Find a Mobile Niche; Customers Ask for It
By EMILY STEEL
May 27, 2008; Page B4


Analysts like to make bold predictions about the growth of mobile
advertising. Most have overshot reality.

But at least one slice of the business appears to be catching on, according
to marketers: ads sent via text message. A growing number of companies are
using cellphone text messages to lend more interactivity to their ads. For
instance, Coors Brewing's Coors Light beer recently added a text-message
component to its traditional sponsorship of the NFL Draft. Football fans
opted to receive draft alerts, and each message contained a squib about
Coors Light.

Some marketers like text-message ads because -- unlike most ads -- viewers
asks to receive the message, which means the marketer doesn't bombard the
viewer with unsolicited commercials. The potential audience is also
attractive: Almost all cellphones can send and receive text messages.
Finally, marketers say, the results of text-message ads are much easier to
measure than those of mobile Web ads.

On Tuesday, Silicon Valley start-up 4INFO, one of the most-active players in
text-message advertising, plans to announce a new trial partnership with
Yahoo. Under the arrangement, 4INFO provides the technology for Yahoo to
publish its content, such as news updates, horoscopes, sports scores and
weather forecasts, via text messages that also contain a small ad. Consumers
sign up online to receive the alerts.

Yahoo can sell the ads alone or as part of a broader online-mobile ad
package, or, alternatively, 4INFO can sell the ads through its mobile-ad
network.

Ad executives report click-through rates with text-message ads of 1% to 10%,
a significant jump from the figures for Web banner ads, which are typically
only a fraction of that.

Those higher rates, of course, could be attributable simply to the newness
of text-message advertising. And, for marketers that do text-message
marketing, there are challenges. One is limited space. Of the 160 characters
allowed in a text message, typically 120 are reserved for content, which
leaves only 40 for the ad. Often, the message is simple: "Sponsored by The
All-New Toyota Corolla" was the tag line for a recent campaign with
IAC/InterActiveCorp's online invitation service Evite.

Mobile-message advertising is expected to reach $1.5 billion by 2008, up 82%
from last year, according to research firm eMarketer. Spending on
mobile-message advertising now accounts for about 88% of the total $1.7
billion spent on mobile ads, which also includes search ads and display ads
as well as mobile Web advertising.

On top of its new pact with Yahoo, 4INFO, founded in 2004 by Zaw Thet, now
27 years old, has struck similar deals with big media companies from General
Electric's NBC Universal to IAC and newspaper company Gannett, which owns a
stake in the company. 4INFO, which says it reaches eight million unique
visitors a month, usually splits the ad revenue with the media company
60-40, with the majority going to whichever party makes the sale.

With these ads, a phone number to text is typically embedded in a print or
TV ad. Consumers send a text message to that number to receive the content,
which is sponsored by a marketer.

"A newspaper is produced once daily. With the text messages you can layer in
interactivity, whether it be stock quotes, sports scores or updated
weather," says Matt Jones, director of mobile strategy for Gannett.

Among the marketers that Gannett has sold ads to are Marriott, which
recently sponsored a print-and-mobile ad combination in USA Today, and Radio
Shack, which is sponsoring free sports alerts from the paper's Web site.

Other companies that compete in text-message advertising include
YellowPepper and HipCricket. Like 4INFO, HipCricket has focused on bringing
new life to old media through mobile ads. HipCricket works with radio and TV
stations to create programs like mobile loyalty clubs for listeners to join.
Then, both the radio stations and its advertisers market to this group via
their phones.

Using text messages to deliver ads isn't completely new. A company called
Screenvision, which uses text messaging along with commercials on movie
screens, launched its network in 2005. Since then, it has expanded its
approach. Starting early next month, Screenvision, whose advertising network
is made up of more than 14,000 screens in 2,300 theaters, will test a
live-polling feature that is activated by text messages. Audiences will be
polled on music, movies or other entertainment-related topics, and then can
vote. The results will be immediately tabulated and flashed up on the
screen.

Verizon Wireless, a joint venture between Verizon Communications and
Vodafone Group, is the first sponsor of the polling service. The campaign
includes a two-minute original film ("VCast Street") directed by Spike Lee,
and VCast-branded popcorn bags.

Write to Emily Steel at emily.steel@wsj.com






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On 2008-06-03, Manoj Misra <ManojMisra59@yahoo.com> wrote:


> Some marketers like text-message ads because -- unlike most ads -- viewers
> asks to receive the message,

I think SMS ads are a great idea as long as the recipients ARE actually
asking for the ads.

I guess my only concern is that a lot of advertisers are less than ethical.


--
Steve Sobol, Victorville, CA PGP:0xE3AE35ED www.SteveSobol.com
Geek-for-hire. Details: http://www.linkedin.com/in/stevesobol

> GUEST wrote:
> .....
> http://online.wsj.com/article/SB121185056833021519.html
>
> Advertisers to Consumers: We'll Text You
> Cellphone Messages Find a Mobile Niche; Customers Ask for It
> By EMILY STEEL
> May 27, 2008; Page B4
>
>
> Analysts like to make bold predictions about the growth of mobile
> advertising. Most have overshot reality.
>
> But at least one slice of the business appears to be catching on,
according
> to marketers: ads sent via text message. A growing number of
companies are
> using cellphone text messages to lend more interactivity to their
ads. For
> instance, Coors Brewing's Coors Light beer recently added a
text-message
> component to its traditional sponsorship of the NFL Draft. Football
fans
> opted to receive draft alerts, and each message contained a squib
about
> Coors Light.
>
> Some marketers like text-message ads because -- unlike most ads --
viewers
> asks to receive the message, which means the marketer doesn't
bombard the
> viewer with unsolicited commercials. The potential audience is also
> attractive: Almost all cellphones can send and receive text
messages.
> Finally, marketers say, the results of text-message ads are much
easier to
> measure than those of mobile Web ads.
>
> On Tuesday, Silicon Valley start-up 4INFO, one of the most-active
players in
> text-message advertising, plans to announce a new trial partnership
with
> Yahoo. Under the arrangement, 4INFO provides the technology for
Yahoo to
> publish its content, such as news updates, horoscopes, sports
scores and
> weather forecasts, via text messages that also contain a small ad.
Consumers
> sign up online to receive the alerts.
>
> Yahoo can sell the ads alone or as part of a broader online-mobile
ad
> package, or, alternatively, 4INFO can sell the ads through its
mobile-ad
> network.
>
> Ad executives report click-through rates with text-message ads of
1% to 10%,
> a significant jump from the figures for Web banner ads, which are
typically
> only a fraction of that.
>
> Those higher rates, of course, could be attributable simply to the
newness
> of text-message advertising. And, for marketers that do
text-message
> marketing, there are challenges. One is limited space. Of the 160
characters
> allowed in a text message, typically 120 are reserved for content,
which
> leaves only 40 for the ad. Often, the message is simple:
"Sponsored by The
> All-New Toyota Corolla" was the tag line for a recent campaign
with
> IAC/InterActiveCorp's online invitation service Evite.
>
> Mobile-message advertising is expected to reach $1.5 billion by
2008, up 82%
> from last year, according to research firm eMarketer. Spending on
> mobile-message advertising now accounts for about 88% of the total
$1.7
> billion spent on mobile ads, which also includes search ads and
display ads
> as well as mobile Web advertising.
>
> On top of its new pact with Yahoo, 4INFO, founded in 2004 by Zaw
Thet, now
> 27 years old, has struck similar deals with big media companies
from General
> Electric's NBC Universal to IAC and newspaper company Gannett,
which owns a
> stake in the company. 4INFO, which says it reaches eight million
unique
> visitors a month, usually splits the ad revenue with the media
company
> 60-40, with the majority going to whichever party makes the sale.
>
> With these ads, a phone number to text is typically embedded in a
print or
> TV ad. Consumers send a text message to that number to receive the
content,
> which is sponsored by a marketer.
>
> "A newspaper is produced once daily. With the text messages
you can layer in
> interactivity, whether it be stock quotes, sports scores or updated
> weather," says Matt Jones, director of mobile strategy for
Gannett.
>
> Among the marketers that Gannett has sold ads to are Marriott,
which
> recently sponsored a print-and-mobile ad combination in USA Today,
and Radio
> Shack, which is sponsoring free sports alerts from the paper's Web
site.
>
> Other companies that compete in text-message advertising include
> YellowPepper and HipCricket. Like 4INFO, HipCricket has focused on
bringing
> new life to old media through mobile ads. HipCricket works with
radio and TV
> stations to create programs like mobile loyalty clubs for listeners
to join.
> Then, both the radio stations and its advertisers market to this
group via
> their phones.
>
> Using text messages to deliver ads isn't completely new. A company
called
> Screenvision, which uses text messaging along with commercials on
movie
> screens, launched its network in 2005. Since then, it has expanded
its
> approach. Starting early next month, Screenvision, whose
advertising network
> is made up of more than 14,000 screens in 2,300 theaters, will test
a
> live-polling feature that is activated by text messages. Audiences
will be
> polled on music, movies or other entertainment-related topics, and
then can
> vote. The results will be immediately tabulated and flashed up on
the
> screen.
>
> Verizon Wireless, a joint venture between Verizon Communications
and
> Vodafone Group, is the first sponsor of the polling service. The
campaign
> includes a two-minute original film ("VCast Street")
directed by Spike Lee,
> and VCast-branded popcorn bags.
>
> Write to Emily Steel at emily.steel@wsj.com
>
>
>
>
>
>
> Posted Via Usenet.com Premium Usenet Newsgroup Services
> ----------------------------------------------------------
> http://www.usenet.com

Cell phone text-based
advertising is no problem for me - it is just the outlandish rates
that providers charge consumers for sending and receiving text
messages. 10 cents doesn't nearly reflect the bandwidth that someone
is actually using to send a text.

On 2008-06-04, JAT23 <JeffTaylor1985@gmail-dot-com.no-spam.invalid> wrote:

> Cell phone text-based
> advertising is no problem for me - it is just the outlandish rates
> that providers charge consumers for sending and receiving text
> messages. 10 cents doesn't nearly reflect the bandwidth that someone
> is actually using to send a text.

That's a valid point. Personally, I pay a monthly fee for unlimited
text/picture/instant messages so that wouldn't matter to me.


--
Steve Sobol, Victorville, CA PGP:0xE3AE35ED www.SteveSobol.com
Geek-for-hire. Details: http://www.linkedin.com/in/stevesobol

JeffTaylor1985@gmail-dot-com.no-spam.invalid (JAT23) wrote in
news5adnYsLb7RqgdvVnZ2dnUVZ_oSunZ2d@giganews.com:

> 10 cents doesn't nearly reflect the bandwidth that someone
> is actually using to send a text.
>

1GB/156 bytes = 6,410,256 messages x $.10 = $641,025.60/GB, the most
expensive data on the planet.

It's obscene.....Data is cheaper if you have your own stationary satellite
over the equator all to yourself.

It's also why "they" don't want you to have unlimited internet service thru
your SELLphone, most of them. They think anyone only paying $60/mo for 5GB
is theft.

On 2008-06-04, Larry <noone@home.com> wrote:
> JeffTaylor1985@gmail-dot-com.no-spam.invalid (JAT23) wrote in
> news5adnYsLb7RqgdvVnZ2dnUVZ_oSunZ2d@giganews.com:
>
>> 10 cents doesn't nearly reflect the bandwidth that someone
>> is actually using to send a text.
>>
>
> 1GB/156 bytes = 6,410,256 messages x $.10 = $641,025.60/GB, the most
> expensive data on the planet.

Yes, it's ridiculously expensive for the amount of bandwidth you actually
use. The problem is that many people are willing to pay anyhow, so there is
no incentive to make the per-message fee cheaper.




--
Steve Sobol, Victorville, CA PGP:0xE3AE35ED www.SteveSobol.com
Geek-for-hire. Details: http://www.linkedin.com/in/stevesobol