Quick Return on Investment from SMS Advertising

Having earned a dubious reputation, SMS advertising begins to be rehabilitated, thanks to the control of network operators who took on the role of moderators of SMS-mailings. During the first months of the fight against spam, the number of mailings decreased by more than 3 times. Now the operator is primarily concerned about the loyalty of its subscribers, so bulk SMS takes place no more than once a month through direct representatives on the basis of the contract.

Will the demand for SMS advertising be as high as before?

To make mobile advertising more effective, eliminating the former mass effect, the operator offers the advertisers to target SMS sending to the target audience, making highly specialized advertising offers, using information about age, gender, communication costs, models and OS of the phone, as well as take into account the geo-location of the audience.

The operators’ offer does look attractive and corresponds to the current trends of the mobile marketing market, but the question about the demand for mobile advertising remains open. Will the demand for SMS advertising be as high as before?

All progressive business community discusses the pros and cons of bulk SMS – this popular media channel. The opponents complain about the current society acute dislike for SMS advertising, as well as greatly increased prices. There is a serious question of the price difference between targeted SMS advertising and continuous SMS-mailing. Low prices for SMS were due to the illegality of the acquired bases for sending “gray” and “black” SMS aggregators, while the price of the operator has always remained unchanged, previously, advertisers did not work with operators directly or through official representatives, and chose more profitable, but illegal offers. It is worth noting that the price of SMS advertising from the operator is almost 2 times lower than that of representatives of the foreign market. A weighty argument of the supporters of targeted SMS advertising is real examples of its effective use. Representatives of the financial, automotive business, real estate use targeted SMS today. For example, a top Manager of a large Agency, looking for a new car, consistently once a month receives reports about Rolf’s shares.

How attractive is the use of targeted SMS advertising compared to other media channels and advertising methods?

The specialists of the SMS-Smart web service told about the results of the use of SMS advertising by their customers in numbers. Let’s take, for example, a consulting company that has used banner outdoor advertising for a long time. Giving preference to the reliable checked tool, specialists of the company gave at the same time about 2000 USD per month for advertising fabric, individually designed, illuminated and located in an area with “cross” up to 30 000 contacts per month. Three months later, there was no special impact, and it was decided to abandon this type of advertising and experiment.

Geo-targeted SMS advertising at 1150 USD provided delivery and viewing of the advertising message by 35 000 subscribers within a month. The interactivity of interaction with clients (the phone number was specified in the SMS) made it possible to immediately contact the company, or save the SMS with the contact in your phone. Within a month and a half after the start of sending geo-SMS, 183 calls to a dedicated number were recorded, the conversion was 0.5%.

The high conversion was achieved due to the fact that SMS was sent not only to subscribers located in a certain place but also due to the fulfillment of additional conditions of sampling by socio-demographic and behavioral characteristics (high level of communication costs, visiting business content on the Internet, phone model). Thus, the customer of advertising easily, quickly and simply saw the effectiveness of SMS marketing.

The decision-making process of B2B audience is fundamentally different from the process of mass if for an ordinary consumer the choice of a new service can be due to prestige, fashion or the desire to keep up with the times, the B2B segment thinks in business categories: assesses risks and predicts benefits. Targeted SMS advertising will minimize the probability of receiving a negative reaction from the recipient, and at the same time will serve as a quick tool to attract new customers.