Wednesday, October 18, 2006

mobile Messaging: Not Sexy, But Profitable

eMarketer: Messaging is the least sexy but the most profitable part of the mobile data universe. Multimedia messaging is gaining in popularity, but short text messaging continues to bring home the mobile data revenues for the vast majority of the world's mobile carriers. This year, revenues for short messaging service (SMS) will hit $20 billion in Western Europe, $9 billion in the Asia-Pacific region and $7 billion in the US.

The continued, dogged and ubiquitous success of SMS in spite of every attempt to replace it with something more 'sexy' gives credence to the idea that mobility's primary value lies in the user's ability to get things done. Consumers like the convenience and speed of SMS.

Although not yet as popular in the US as in Europe and Asia, SMS grew 98.8% during the first half of 2006 (64.8 billion messages) compared to the same period in 2005 (32.6 billion messages).

SMS is particularly popular among young people. Nearly 70% of consumers between the ages of 18 and 30 polled by Harris Interactive stated that they used SMS. Focusing on teens only, the poll showed that 46% have a mobile phone and use text messaging. Hispanic Americans and African Americans are also more likely to be heavy users of text messaging.

Marketers are appealing to SMS users through television programs such as American Idol, in which viewers vote whether an Idol singer deserves to pass to the next round.

mobile Message Marketing: Cash Not Flash Publ 20061018