90% of Mobile Marketing Revenue Comes from SMS

19
Apr
90% of Mobile Marketing Revenue Comes from SMS

It is increasingly apparent that the SMS segment of the global mobile advertising market is very dominant due to the rapid surge in smartphone and tablet use around the world. Some 90 percent of adults in the U.S. use mobile phones, 60 percent of which are smartphones.  The Mobile Marketing Association (MMA) believes that soon smartphone use in the U.S. will rise to 80 percent. 

“With consumers carrying mobile devices wherever they go, it has become crucial for marketers to target this large consumer base with mobile advertisements and promotions,” according to Transparency Market Research (TMR). “A mobile advertising platform firm provides services to marketers that allow them to send these advertisements to consumers using mobile devices. Each distinct mobile advertising platform contains opportunities for marketers to deliver their message to a broad range of consumers.” 

SMS is subsequently a “big deal,” as mobile advertising services are easily sent out via text message. Mobile advertising is also being used to place banner ads on smartphone apps, which appear either at the top of the app (mobile web banner) or at the bottom of the app (mobile web poster). One of the many advantages of SMS is it allows users to view and send short messages without worrying about privacy issues or seriously interrupting the receiver’s day. It’s therefore not shocking to note that SMS accounts for 90 percent of total mobile marketing revenue. Simply put, it's the most cost-effective of all mobile marketing tactics.

In addition to SMS, multimedia messaging services, aka MMS, are experiencing an increase in popularity. Other services gaining momentum include full-screen interstitials, mobile videos, and mobile games. 

Transparency Market Research believes the next few years will see advertisers in the global mobile ad marketing space focus increasingly on performance. An increase in ROI spending will likely occur, as will the quantifiable results that follow. Preference for location-based advertising is also growing, and will only get bigger and better in the future. Such advertising makes it possible for advertisers to target specific portions of their target demographic, therefore dramatically enhancing mobile ad effectiveness.  

Unlike traditional phone calls, “spammy” emails, and the days of going door to door, SMS is a safe and effective means of catering to target audiences. Most read text messages as soon as they come through compared to the hours that pass before reading an email or the disgruntled consumers on the other end of a marketing phone call. In addition to its effectiveness, SMS messaging is a low-cost marketing option. No wonder it makes up 90 percent of mobile marketing revenue….

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