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Mar24
SMS - Is it an answer to TV Advertising Woes?

sms.jpgShort Message Service (SMS) which allows mobile phone users to exchange text messages, is emerging as a very popular activity in spite of the high prices involved with using it. In Europe they are becoming a very ubiquitous part of the mobile users culture.

For example, close to 50% of mobile-phone users, and close to 70% of teenage users in some of Europe's biggest TV markets are desirous of interaction between their mobile phones and TV.

Thus it could be a great way to increase advertising sales and boost ratings by merging broadcasting with SMS.

Some of you are already aware of the biggest uses already in motion as you see the music contests and reality shows invite viewers to vote on their favorite contestants or songs.

It's interesting as many users refuse to let go of their mobile's and go to a landline to dial in. For whatever reason, they prefer to send a text message rather than dial up.

At this point in time 65% of the interaction between mobile phones and TV involve the voting process during these type of TV offerings.
 
Another option is in the area of SMS-TV shopping which is catching on quickly where it is offered. In Germany you can purchase concert tickets and CDs with SMS text codes on the domestic music-TV channel Viva. The managment of Viva asserts that this particular service is more profitable than a number of established TV-shopping channels.

All across Europe another development taking hold is SMS-TV chat lines-similar to Instant Messaging on the Internet. Around 70% of European broadcasters say that they have started their own SMS chat lines as Germany, whose RTL-teletext offers what they call a TV broadcast message board which says they host over 200,000 text messages a day. They say that they are also experiencing the same success.
 
According to studies, SMS measures a show's popularity or potential very well, even while conversion rates can vary widely from application and by what the content of each individual show is. Studies also show that if you can get over 5% of a shows viewers to interact with it, this should be considered a break point.

The result of that break point means that the audience is extraordinarily engaged-and will have a better than normal chance of watching the show again, spread the news about the show, or to spend money on content related to the show or merchandise.   

What the end result of this will be is that broadcasters can use this specific knowledge of SMS activity to be more engaging in their marketing efforts and also be able to get higher prices for their advertising slots.


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