Mobile Messaging Adspend to Reach USD7.4bn by 2017
VALUE ADDED SERVICES| 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
SweepSouth first SA startup to join Silicon Valley’s 500 Startups acceleratorSilicon Valley-based venture capital fund and startup accelerator 500 Startups has announced its 14th batch of startups, which includes the South African home cleaning service, SweepSouth. Read More
FirstBank launches Loop lifestyle appFirstBank of Nigeria has introduced Loop, a lifestyle app delivering premium content to customers’ mobile phones. Read More
Tigo, Western Union enable mobile remittances in RwandaTigo Rwanda and Western Union have announced the launch of a new service that allows reception of international remittances directly into mobile through Tigo Cash accounts. Read More
Airtel debuts direct purchasing on facebookAirtel Ghana has launched the first direct data bundle purchasing on Facebook. Read More
Effortel helps deliver Africa’s first mobile banking MVNOMobile virtual network operator (MVNO) and enabler, Effortel, announced today that it is working with fellow MVNO, Equitel to provide Kenyan mobile subscribers with Africa’s first fully integrated banking approach via a mobile network. Read More
Standard Bank Expands InstantMoney service to Botswana and Uganda: Namibia to followStandard Bank, Africa’s biggest lender by assets, has expanded its InstantMoney payment solution to Botswana and Uganda as part of broader plans to roll out the service across the continent. Read More
Transfast expands proprietary bank network into 23 African nationsTransfast, a leading provider of online, cross-border p2p payments solutions, has announced the expansion of its proprietary bank network into 23 African nations. Read More
BotswanaPost introduces PosoOnlineBotswanaPost continues to explore the technology space, this time with a new product called Electronic Bill Presentment and Payment (EBPP) or PosoOnline. Read More
Telecom Chamber welcomes new guidelines on E-money issuers in GhanaThe Ghana Chamber of Telecommunication has welcomed the newly proposed guidelines for e-money issuers in Ghana and Agent Guidelines by the Bank of Ghana. Read More
FEATURED STORYKenyan SACCOS riding on innovation to attract customers
As confidence in mainstream banks remains low due to prohibitive interest rates, customers are embracing Savings and Credit Cooperatives (SACCO) as an alternative.
BEST READ NEWS
IN DEPTHAs curtain falls on MDGs, what next?
Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.