Survey: Even with smartphones, texting still rules mobile advertising

Survey: Even with smartphones, texting still rules mobile advert...
http://mobile.venturebeat.com/2010/07/01/texting-still-rules-mo...
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Survey: Even with smartphones, texting still rules mobile advertising
July 1, 2010 | JP Manninen
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Are you a hip location-based service looking to make money by selling ads for
retailers on your übersnazzy iPhone app, which all the cool kids are using? Take another look at your business model. Chances are the
good old SMS text message is still beating your app in reaching the pundits with ads.
According to a recent study commissioned by digital advertising company Placecast (carried out by research firm Harris Interactive) users
still consider texting more important than any other activity, aside from talking. Which is not surprising if you consider the fact that
smartphones account for little over than 20% of all mobile phones in the U.S. So, while location-based services like Foursquare (having
just scored $20 million in funding and putting pressure on the other companies in the space), Gowalla, Brightkite and others are hoping to
cash in on advertising integrated into their products, it is worth noting that these services still have very few users in terms of the
percentage of people using smartphones. The survey points out that 40 percent of users said texting is “extremely” or “very” important to
them. When it comes to the so-called check-in services like Foursquare and Gowalla, only 7 percent of men and 3 percent of women have
same level of interest.
The survey, says Placecast CEO Alistair Goodman (pictured), represents the American population at large (2,046 adults in the United
States, age 18 and over), not just centers for the digerati like San Francisco or New York City.
“We see in this data that texting is super-easy to use for both advertisers and consumers. For instance, middle-aged women are very
brand-loyal and want to receive alerts on offers, but don’t want to use an application for it: for them, alerts are a utility and not a game they
would like to play,” Goodman explains.
For retailers, e-mail has been a great way of communicating with customers, says Goodman, and texting is the logical extension of it. As
always with advertising on a highly personal device like a computer, let alone on a mobile phone, it is a question of providing extremely
relevant information to the consumer so as not to be intrusive. One of the ways of making advertising relevant to a consumer is to use
place and time, ie. location data – which is comforting news to a hip location-based service. In fact, only less than 10% of the people
taking the survey said that using their location in advertising was intrusive or wasn’t obvious to them. One third of the respondents of the
Harris survey considered ads based on their location very useful, and other studies have shown the same tendency.
Mobile advertising is on the rise – Gartner expects the entire mobile ad segment to become a $7.4 billion market by 2014 – and seem to
have an effect, since one in three consumers claimed to have gone into a store after receiving an ad, and one in four have made
purchases, according to the Harris study. Microsoft is channeling (text-based) ads on the screens of phones using its upcoming Windows
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Survey: Even with smartphones, texting still rules mobile advert...
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Phone 7 operating system, and Apple’s CEO Steve Jobs recently introduced the company’s iAd platform, providing guaranteed reach
across a wide Apple device audience. And another study shows that the smartphone adoption rate will rise to 194 million users by 2015.
Whether or not those nearly 200 million users will take app-based advertising over SMS alerts remains to be seen.
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Tags: LBS, location based services, mobile ads, mobile advertising, MobileBeat, MobileBeat 2010
Companies: Apple, Brightkite, Foursquare, Gowalla, Harris Interactive, microsoft, Placecast
People: Alistair Goodman, Steve Jobs
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Burst SMS 1 day ago
SMS is great for certain things. It is a growth market and s long as it doesn't get abused and marketers respect recipients it will become
one of the best communication methods available. SMS marketing suffers from a bad rep because it is used badly. Its really easy to stay
compliant. 1. Identify yourself clearly, 2. Target the recipient with something relevant (location is a good start) and 3. allow an opt-out
method in the message.
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FACEwireless 1 day ago
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Survey: Even with smartphones, texting still rules mobile advertising: http://bit.ly/c41fhL
burstsms 1 day ago
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RT @VentureBeat Survey: Even with smartphones, texting still rules mobile advertising http://bit.ly/8Zt6Ps
JohnFMoore 3 days ago
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Even with smartphones, texting still rules #mobile #advertising: http://bit.ly/bzmHrr #cmo
TextPower 3 days ago
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Survey: Even with smartphones, texting still rules mobile advertising | VentureBeat http://bit.ly/aC6ueg
RickMathieson 4 days ago
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We can get all fancy with smart phones, but texting still rules mobile marketing: http://bit.ly/bzmHrr #advertising #mobilemarketing
HotFrogNews 4 days ago
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Survey: Even with smartphones, texting still rules mobile advertising http://bit.ly/drbrxB
shellb7 4 days ago
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Survey: Even with smartphones, texting still rules mobile advertising http://bit.ly/aXRS0A
mysmartmedia 4 days ago
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Survey: Even with smartphones, texting still rules mobile advertising http://ow.ly/17Y0Pd
Franky_B 4 days ago
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RT @VentureBeat: Survey: Even with smartphones, texting still rules mobile advertising http://bit.ly/a0H5Zt by JP Manninen
IzzyGregorio 4 days ago
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Survey: Even with smartphones, texting still rules mobile advertising: According to a recent study commissioned by... http://bit.ly/drbrxB
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