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Monday, January 19, 2009

Short codes: opportunities and challenges

In the US advertisers are starting to use short codes more and more. "'The expansion of short code marketing depends largely on the ability of advertisers and their agencies to use this medium in an interesting and compelling fashion,' said Nic Covey, Chicago-based director of insights for Nielsen. 'The text-message audience is there, it's now up to marketers to create a reason that consumers would want to relate to them through such a personal and immediate medium.'" Participation TV and radio interaction are helping drive this.

However, "'It's imperative to all of us that consumers come to view SMS as a safe, interesting and reliable means of communicating with brands,' Mr. Covey said".

In the UK in the last 6 months it's estimated that phone-paid services have declined by 15% in value. The main reasons given are: lack of interest, alternatives and a drop in disposable income. The report, from PhonepayPlus, notes "the penetration of mobile Internet will pose a growing threat over the next year, as its usage reaches the mass market", and "although premium-rate SMS will fare reasonably well despite some potential negative impact from mobile broadband towards the end of the year. "


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