Showing posts with label text messaging. Show all posts
Showing posts with label text messaging. Show all posts

Friday, November 25, 2011

40% Drop in SMS revenue by 2015

EMEA Nov 2011 Event Report Slides v3 Messaging decline.pngIndustry executives surveyed by Telco 2.0 believe it is possible that over the top messaging services will displace about 40 percent of text messagin revenue by 2015, at least in Europe and the Middle East.

In part, that might be a function of generally higher costs in such markets. Costs for consumers in North America tend to be lower than in Europe, for example.

The main cause is competitive pressure from Facebook, Skype, Google and BBM. Mobile voice isn’t that far behind, with a 20 percent decline foreseen by surveyed executives. 40% drop in SMS revenue by 2015

Sunday, May 1, 2011

Millennials Most Responsive To Text Ads

ad-response-by-age.gifGFK MRI has found that the Millennials (born between 1977 and 1994) are 57 percent more likely to recall seeing a text message ad on their mobile device, compared with the average mobile phone user. More importantly, they are 93 percent more likely to have responded to a text ad or made a purchase using text messaging.

Overall, the study found that about 6.2 percent of adults with a mobile phone had looked at an ad sent by SMS. In terms of response, 2.65 percent had used SMS to respond to an ad or make a purchase during the last 30 days.



Thursday, September 2, 2010

Heavy Texters are Heavy Callers, Study Finds

Want a clue about which consumers, of whatever age, will be heavy text message users? Just look for users who are heavy voice users, a new study by the Pew Internet & American Life Project.

Heavy adult texters who send and receive more than 50 texts a day also tend to be heavy users of voice calling. Light texters, who exchange one to 10 texts a day, do not make up for less texting by calling more. Instead, they are light users of both calling and texting.

Texting by adults has increased over the past nine months from 65 percent of adults sending and receiving texts in September 2009 to 72 percent texting in May 2010. Still, adults do not send nearly the same number of texts per day as teens ages 12-17, who send and receive, on average, five times more texts per day than adult texters.

Adults who text typically send and receive a median of 10 texts a day; teens who text send and receive a median of 50 texts per day.

About five percent of all adult texters send more than 200 text messages a day or more than 6,000 texts a month. Fully 15 percent of teens ages 12 to 17, and 18 percent of adults ages 18 to 24 text message more than 200 messages a day, while just three percent of adults ages 25 to 29 do the same.

The average adult cell phone owner makes and receives around five voice calls a day. Women tend to make slightly fewer calls with their cell phones than men.

Men and women are equally likely to be represented at the extreme high end of callers, with eight percent of men and six percent of women making and taking more than 30 calls a day.

link to study

Wednesday, August 18, 2010

Facebook Message Congestion?

As is the case with Twitter, mobile users tend to receive many more Facebook, than text messages, in a month's time.

That might suggest more reliance on Facebook and Twitter for communication programs is a reasonable decision.

But it might also indicate the odds of getting noticed are much lower for Facebook or Twitter campaigns.

Twitter or Text? Clutter Might be a Factor

Twitter has emerged a huge generator of mobile messages, dwarfing text messages, for example.

That should convince some mobile marketers that Twitter is a channel they ought to be using.

Others will see too much "clutter" and might prefer text messaging as a channel.

But SMS remains a highly-personal medium where the risk of end user irritation is quite high.

Twitter might be a more congested channel, but the risk of end user irritation is far lower.

Wednesday, February 10, 2010

Send SMS Messages to Multiple Recipients Using Google Voice

One of the differences between email and texting, aside from the SMS character limitation, is sending a single message to multiple recipients. Google Voice now allows such multi-party text messages.

Users just click on the SMS button at the top of their Google Voice inboxes, enter names or numbers (separated by commas) in the "To" field, write messages and click "send."

Replies from each recipient are threaded into separate conversations, so users can keep track of them in their Google Voice inboxes. To prevent spam, Google sets a maximum of five recipients per message.

It's useful.

Tuesday, February 2, 2010

Text Rules, Even for Older Users

A survey by Tekelec shows that text messaging, once seen as the main communications tool for teenagers and young adults, has become prevalent among older generations. The 500-person survey shows that 60 percent of users older than 45 are just as likely to use SMS as they were to make voice calls from their mobile.

That's perhaps not good news for voice usage but shows the value of text messaging plans. About 40 percent of female users say they "mainly text," rather than talk. About 30 percent of male respondents reported they are likely to text rather than call.

Text messaging also is catching up to e-mail as the preferred means of daily international communication, with 32 percent of responses across all ages preferring SMS, compared to 33 percent who prefer to use email.

So is the fact that text messaging is displacing some amount of voice a good thing for mobile service providers? Not entirely. More than 80 percent of mobile service provider revenue still is derived directly from voice, says Alan Pascoe, Tekelec senior manager.

"Of the remaining data piece, SMS has the largest chunk of revenue and the highest profitability," he says.  "Texting is particularly appealing for operators because nearly every subscriber can do it and networks have sufficient signaling bandwidth."

"Still, profitability isn’t quite keeping up with usage, thanks to all-you-can-eat plans, but operators can reduce costs with a more efficient SMS network infrastructure," Pascoe says.

Pascoe says Tekelec is not sure how much email volume is being displaced by texting. But as a general rule younger users are more comfortable with texting than older users and businesses still prefer email.

"A key reason is that an SMS message implies an urgent request, whereas email is typically less urgent," he says. "Personal communication often revolves around an immediate need, like making plans, so texting is the more natural approach outside of the office."

But email is also more conducive for business tasks like sending attachments, he adds.

So will text messaging ultimately be as "archivable" as email? Certainly operators are looking at a number of ways to "add value and stickiness to SMS offerings, including archiving," Pascoe says.

"The most common ideas we hear discussed are email-like functionalities: archiving, copying, forwarding, black and white lists and group distribution," says Pascoe. "The wild card for text message archiving demand is Google Voice, which allows subscribers to store SMS in Gmail instead of on their phones, keeping messages indefinitely."

"With Google providing this for free, it may be difficult for operators to generate revenue from it," Pascoe notes.

Person-to-person messages are the foundation of SMS, and will dominate for the foreseeable future, he thinks. "But the model is evolving so that growth is strongest for person-to-application, application-to-person and machine-to-machine communications."

Monday, October 19, 2009

Quick Messaging Phones Gain Favor Fast




While smartphones like Apple’s iPhone, the BlackBerry Storm, and T-Mobile’s Android-based MyTouch get all the attention, another category of mobile phones has quietly been accelerating its market share, says Forrester Research.

The quick messaging device offers a keyboard and, or touchscreen, providing much of the functionality of a smartphone but lacking the high-level operating system. Where a smartphone user likely is interested in email or mobile Web, a quick messaging user is text message centric.

At the start of 2008, seven percent of U.S. adult mobile subscribers owned a smartphone, while just one in 20 subscribers used a quick messaging device. A year later, more than one in 10 adult subscribers was using a smartphone, an impressive growth rate of 57 percent, but quick messaging devices grew nearly twice as fast and almost doubled their market share to nine percent.

In other words, quick messaging devices have nearly reached the level of smartphone penetration.

With all major operators expanding their quick messaging lineup and prices declining, these numbers are likely to continue in 2009, Forrester Research predicts.

For example, AT&T today offers more than 10 phones in this category, beginning at just $9.99
for the Motorola Karma when purchased online with a two-year contract. Verizon Wireless goes even further with the Samsung Intensity. Iit’s free with a two-year commitment, says Charles S. Golvin, Forrester Research analyst.

As you might guess, mobile subscribers ages 18 to 24 are nearly 50 percent more likely to own a quick messaging device than a smartphone.

Smartphones are most prevalent among subscribers ages 25 to 34, yet quick messaging devices are nearly as popular in this segment, and more than doubled their share in this group last year, says Golvin.

Quick messaging devices also appeal to a more mainstream audience. In terms of demographics and psychographics, quick messaging device users more closely resemble other mainstream mobile subscribers than do smartphone users.

While smartphone owners are overwhelmingly the male, well educated technology optimists that personify the early adopter, quick messaging device owners earn slightly less than the average subscriber and are more likely to be female.

More importantly for mobile operators, the quick messaging device owners spend a much higher percentage of their monthly income on mobile services than does the average subscriber.

Ttext messaging (SMS) is the driver. Some 70 percent of quick messaging device owners say they use SMS daily.

From a mobile operator's point of view, quick messaging customers are important because they are "mobile centric." Their traffic is much more likely to remain on the mobile network than to terminate on a landline and their communication is more likely to end up on another phone than on a PC.

More than 60 percent of quick messaging device owners use multimedia messaging (MMS), which most often exploits the phone’s camera and terminates on another mobile phone. For large operators like Verizon Wireless and AT&T in particular, this traffic is more likely to be “on-net,” which reduces their fees from interconnections with other operators.

Users with a quick messaging device are more likely to be primarily motivated by entertainment than the average mobile subscriber. Therefore, it’s no surprise that these subscribers are among the most avid purchasers of content for their mobile phone, says Golvin.

Nearly half of quick messaging device owners say they bought at least one form of content in the past six months, versus only one quarter of all subscribers.

"Heavy Texters" are a fast-growing mobile end user segment.

Thursday, April 23, 2009

EU Caps International Text, Mobile Internet Access Rates

As expected, the European Union has mandated price caps for international text messages, Reuters reports. Charges will be capped at rates as much as 60 percent lower for travelers in the European Union. The caps take effect in July

Operators will be allowed to charge customers a maximum of 11 euro cents (14 U.S. cents) for each text message, excluding sales tax, compared with current prices of about 28 cents, when customers use their mobiles outside their home countries.

Buying a song using a mobile phone or using a laptop with a dongle or GSM card to access the Internet will cost a maximum of 1 euro per megabyte at the wholesale level, from about 1.68 euros today.

Price caps that were introduced in 2007 on roaming voice calls.

The rule has to be ratified by each member state.

Friday, April 17, 2009

Building an Ad-Supported Text Messaging Business

Many observers think communication service providers have got to create new revenue streams in partnership with business partners, rather than basing 100 percent of revenue on end users who pay for communication capabilities.

As always is the case for a developing business based on partnerships, partners will differ about the relative values they are bringing to the relationships, as well as relative revenue splits. Ad-supported text messaging campaigns are no different.

“For advertising-supported SMS, the net revenue per message is $0.004, and the carriers dispute this, but that’s the reality of the business,” says David Oberholzer, Limbo VP. “The model isn’t completely solid, and it’s unrealistic to think the CPMs (cost per thousand) we’ll be able to charge will go up dramatically, so it’s unrealistic for carriers trying to impose these types of per-message fees.

“Even relatively small carrier fees will drive out innovation to other platforms, and that’s already happening—look at all the advertising in iPhone apps,” he says. “If carriers raise costs, then that will be exacerbated.”

All of this will get worked out over time, but the issue illustrates the problem: a new and somewhat experimental new business requires nurturing and some degree of give and take between ecosystem partners.


Friday, January 18, 2008

Mobile Web: Falling Walls

The Internet has proven problematic for communications providers in any number of ways. Aside from mobility, the Internet and private IP services provide the foundation for most growth initiatives. Without it, there would be no demand for broadband access services, music downloads, video downloads and streaming, videoconferencing or Web services.

On the other hand, IP-based services also allow creation of services outside the traditional service provider walled gardens, creating competition for captive provider services. As a rule, IP also lowers the cost, and therefore the retail price, of just about any communications, content or information service.

So it is no surprise that wireless providers have mixed feelings about wider use of mobile instant messaging services that compete, at least in part, with lucrative text messaging services.

By the end of 2013, as many as 24 percent of mobile consumers will be using mobile IM services, say researchers at Forrester Research. That likely will cannibalize some amount of text messaging and shift brand awareness towards the IM providers (Microsoft, Google, Yahoo, AOL) rather than mobile carriers.

Monday, December 31, 2007

300 Million Text Messages New Year's Eve: Verizon


This New Year’s Eve, Verizon Wireless expects its customers to send and receive more than 300 million messages in the 16 hours between 12 p.m. today and 4 a.m. ET New Year’s Day. This forecast of SMS use by Frost & Sullivan shows how expectations have grown over the past couple of years as Frost & Sullivan analysts raised their forecasts.

Thursday, December 13, 2007

Conflicting Regulatory Silos Keep Popping Up


One of the problems everybody faces as we move increasingly to a world of IP-enabled communications, information and entertainment is that a growing clash is occurring, piecemeal, between historically-distinct regulatory silos. Whether we can stumble forward forever, without acknowledging the end of regulatory silos, as well as technology or industry silos, remains open to question.

The problem is simply that different sorts of activities and businesses are governed by distinctly-different frameworks. Magazines and newspapers, for example, operate under First Amendment "free speech" rules and have virtually no "common carrier" obligations.

TV and radio broadcasters operate under different rules, with more limited "free speech" rights (broadcasters do not enjoy unrestricted rights to transmit any sort of content). Cable TV regulation is more akin to broadcasting than telecom regulation, but there are some tax and local franchising rules that are more akin to common carrier businesses.

Telecom companies operate under the most-restrictive rules, with legal requirements to interconnect with other telecom service providers and deliver their traffic. Data services and content generally have been immune from these rules, though. That's why the Web, and Web content, have developed essentially as a zone of freedom.

Of course, in the U.S. market there is more talk about "network neutrality", a troublesome issue not because of the immediate implications some attribute to it, but because it is just one more examples of how the old "silos" of regulation are breaking down, and becoming intellecutually incoherent in a world where media, TV, radio, music, talk, testing, Web surfing and data communications all occur over one physical pipe.

Should that not require some harmonization or revamping of the fundamental regulatory regimes each of the media types up to this point has enjoyed? And here's the crux of the matter: how does one square first amendment, "zone of freedom" rules historically applied to newspapers, magazines, data services and the Web, with common carrier rules applied to telcos, or the quasi-regulated broadcasting industry?

The fact that delivery modes change does not alter the zone of freedom newspapers, magazines and other media, even "Web media" are supposed to have. And the U.S. courts have ruled that corporations do possess rights of free speech as well. So the issue is whether the zone of freedom is expanded or contracted as multiple media types are delivered over IP pipes.

So it is that some consumer and public advocacy groups are urging the Federal Communications Commission to declare that "short code" text messages deserve the same nondiscriminatory treatment by telephone carriers as email and voice messages.

So are "short codes" advertising, a direct response mechanism, or are they "speech." And whose "speech" rights are supposed to be protected? Those of the speaker, as the early founders seemed to think, or the rights of the "listener," as jurists increasingly have argued over the past 50 years or so?

The issue is more complicated than sometimes positioned. Text messaging services might include a "zone of freedom" in terms of what is said. But note that the freedom is for the speaker. But who is the "speaker" whenever we are looking at media?

The Washington Post might not accept advertising from its competitor, the Wall Street Journal. Verizon Wireless might not accept ads from Sprint or T-Mobile. Cable companies don't take ads from telephone companies marketing competing services. In those cases, rights of speech are exercised by a "speaker." A TV, cable or radio network has the right not to allow speech (advertising also is speech) to be paid for and transmitted.

The fundamental problem is that as IP pipes carry virtually all communications, information and entertainment, we are going to see more disjointed efforts to regulate "unlike" things in "like" ways. That will be the corollary to regulating "like" things in "unlike" ways.

Sunday, December 9, 2007

Text Messaging Growing 37% a Month

U.S. text messaging (SMS) traffic volumes have increased at least 37 percent a month since 2003, according to CTIA researchers. Usage also is significant across many age categories as well. About 19 percent of users are 18 to 24; 24 percent are between 25 and 34; 22 percent are between 35 and 54 and 19 percent are between 45 and 54.

As of December 2006, over 18.5 billion text messages are sent every month and that number has grown by 250 percent each year for the last two years.

Verizon Wireless anticipates the number of text messages sent by their users on their network to grow nearly five times from 400 million per month in July 2005 to over two billion per month next year.

Wednesday, September 19, 2007

Address Books for Landlines?

Embarq is adding an address book feature to its home phones, allowing people to look up an entry and dial it by speaking a name into the handset.

Embarq also is testing a text-messaging function for home phones in some markets. When a text message is sent to a land-line number, the home phone rings, converts the message into audio, and plays it back. The land-line phone user can reply with an audio message or press a button to send a standard text response.

You have to admire Embarq's efforts to add features to landlines that are standard for mobiles. You also have to wonder how well address books, which are personal, and text messages, also personal, are going to translate into a "public" setting, which most landline phones represent.

One-person households won't have that problem, of course. "Public" and "personal" are the same, in such cases. But it will be an interesting test.

Wednesday, July 4, 2007

80% of Mobile Calls Go to Just 4 People


"Although mobile phones make it easier to keep in regular touch, a typical user spends 80 percent of his or her time communicating with just four other people," says Stefana Broadbent, an anthropologist with the User Adoption Lab at Swisscom. Think of it as the long tail of communications.
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Broadbent also says different channels get used for distinct reasons. Mobile calls are for last-minute coordination. Texting is for “intimacy, emotions and efficiency.” E-mail is to exchange pictures, documents and music. IM and VoIP calls are “continuous channels”, open in the background while people do other things.
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Also, you won't be surprised by this finding, but texting is on the increase. “Users are showing a growing preference for semi-synchronous writing over synchronous voice,” says Broadbent.

And though enterprise IT managers might not like the idea, private communications are invading the workplace. Workers expect to be plugged into their social networks while at work, whether by email, IM or mobile phone.
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Saturday, June 30, 2007

Practical Anthropology at Swisscom and Microsoft

An anthropologist at Microsoft points out that when instant messaging and other social networking tools are taken away from people (especially people under the age of 35), productivity drops. That's an indication that social networking is becoming a key problem solving tool, not a "time waster" as many managers seem to believe. Swisscom Innovations anthropologist Stefana Broadbent points out that use of written channels, ranging from IM to text messaging to email is growing, while voice growth has slowed where text communications are possible.

Broadbent theorizes that written channels allow constant interplay and availability without creating an information overload. A person without online social tools averages about 20 contacts with whom they keep in touch. A person with online tools can maintain 70 or more contacts, she notes. She theorizes that IM, for example, is both fast and non-committal, allowing a wider circle of contacts without overload.

That's an interesting perspective as more people start to worry we all are too connected, too much of the time. Broadbent argues that people should not have to unplug. In fact, she rhetorically asks, "why would I want to unplug?"

And she questions the notion that most people actually are overloaded with communication requests. "Most people we interview get five emails a day," says Broadbent. "They are thrilled to get one more friend on Facebook, for example."

Though the common perception is that most people are overloaded with communications, Broadbent says that isn't true. "Not many people are overloaded," she says.

"I'm opposed to the notion of unplugging," Broadbent says. "I don't want to lose my social intelligence network." To Broadbent, "IM is like bringing your dog to work."

Though I don't see lots of evidence that "always connected" behavior is all that important to most people over the age of 40 or so, I am beginning to see how most of the social networking tools can increase knowledge diffusion and make possible a wider degree of casual monitoring of one's environment. I wouldn't say I find it as helpful as RSS. But part of the reason is that most of the people I normally want to interact with do not seem to be heavy social networkers.

"Tokens" are the New "FLOPS," "MIPS" or "Gbps"

Modern computing has some virtually-universal reference metrics. For Gemini 1.5 and other large language models, tokens are a basic measure...