Mobile Messaging Adspend to Reach USD7.4bn by 2017
VALUE ADDED SERVICESBy BiztechAfrica - Aug. 20, 2012, 11:28 a.m.
Advertising spend on mobile messaging will reach $7.4 billion by 2017, a new report from Juniper Research finds.
This growth will be driven by a dramatic upsurge in the use of location-based SMS to deliver relevant ads to consumers.
The idea of location-based SMS is something that is likely to raise questions of privacy amongst consumers. However, operators are extremely sensitive to this and the schemes which already exist, such as O2 More, are opt-in and the consumer can choose which types of offer they would like to receive. These types of schemes will become more common as operators attempt to look for revenue streams beyond voice and data but it is unlikely that schemes will become opt-out or compulsory.
SMS ads have significant benefits for marketers, says Juniper. While they may lack the rich media content of other advertising formats, they are very familiar to consumers and have a much higher chance of being opened, even if unsolicited. SMS ads are also a low cost option for those seeking large reach; in the UK, for example, a bundle of 1,000 text messages costs around £0.05 (8¢) per message, falling to around £0.03 (5¢) for larger bundles.
Report author Charlotte Miller noted that: “Sending adverts using mobile messaging gives advertisers a simple, cheap and effective way of reaching consumers. Adding location technologies is an even more powerful proposition, particularly for transactional advertising as marketers can reach consumers who are near a location where they can purchase. Knowing that the recipients of an ad have actively asked to receive it and will in all likelihood open it is also particularly attractive.”
MORE VALUE ADDED SERVICES NEWS
MTN launches CANAL+/CANALSAT payment via Mobile MoneyMTN Cameroon’s new CANAL+/CANALSAT bill payment package allows consumers to make their re-subscription payment via mobile. Read More
BBM coming to Android, iOSBlackBerry plans to make its popular BlackBerry Messenger (BBM) service available for the first time to iOS and Android users later this year. Read More
Mobile content revenues to pass USD65bn in 2016Juniper Research has revealed that annual revenue generated from content delivered to mobile handsets and tablets is expected to reach USD65bn by 2016. Read More
Mahindra Comviva expands Africa mobile musicMahindra Comviva is expanding its mobile music offerings for Africa, in partnership with over 70 local and international content providers. Read More
SA’s Waytag shortlisted for BlackBerry Achievement AwardThe Waytag location app for BlackBerry 10, available in SA and Nigeria, has been shortlisted for a BlackBerry Achievement Award. Read More
Full stream ahead for mobile musicMobile streamed music revenues will rise more than 40% this year to USD1.7bn, says Juniper Research. Read More
M-PESA goes out to dinnerNow M-PESA users will be able to pay for restaurant meals using their mobile money, says Safaricom. Read More
Google Maps voice navigation in 4 countriesGoogle Maps with navigation is now available in Kenya, Ghana, Senegal and Ivory Coast. Read More
EzeeMoney makes inroads in UgandaNew e-payment firm EzeeMoney says its services are quickly gaining consumer confidence in Uganda. Read More
Google maps navigation for iPhone, Android launched in KenyaGoogle has officially launched Google maps navigation services in Kenya for phones running Android 2.2 or superior and iOS 5.1 (and above). Read More
FEATURED STORYICT opens doors for Kenyan slum dwellers
A Nairobi based group is equipping high school girls from Nairobi's slums with ICT skills to help them participate meaningfully in building the economy.
BEST READ NEWS
IN DEPTHDollar-a-month broadband can change Africa
The Microsoft-led 4Afrika TV white spaces project, taking broadband to rural people for as little as a dollar a month, is now expanding in Kenya and launching in Tanzania.
COMPANY NEWSSamsung puts the spotlight on enterprise solutions
Samsung Electronics South Africa has announced its support of the upcoming Enterprise Mobility Forum.Sage Pastel Evolution: the modern ERP tool for the modern Kenyan business
This week’s Sage East Africa Conference, entitled Innovation Beyond Boundaries, attracted over 100 existing and potential customers to the Sankara Hotel in Nairobi.Connected services boosts company payroll and HR administration in West Africa
Connected Services enables SMEs to extend their desktop payroll and HR with an online solution that eases the growing burden of HR managers and payroll administrators.