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Advertising Agencies Fail To Capitalise On SMS Marketing

Advertising Agencies Fail To Capitalise On SMS Marketing

Advertising agencies are failing to capitalise on the full potential of SMS marketing, mistakenly believing that consumer acceptance of the fledgling medium is much lower than it actually is.

A recent survey from mobile technology provider Empower Interactive reveals that a staggering 84% of European mobile users are willing to receive SMS marketing and promotional messages on their handsets.

However, just 18% of the marketing and advertising agencies that took part in the study currently offer mobile messaging to clients, while a further 57% have no immediate plans to do so in the future.

When asked to identify the biggest barriers to growth in the sector, 58% of marketers cited lack of consumer acceptance. However, Empower claims that the vast majority of consumers are willing to embrace carefully targeted text promotions and special offers.

Around 13% of agencies admitted that their own reluctance to promote mobile marketing played a crucial role in limited client uptake. Conversely, less than 8% cited client reluctance to invest as a significant barrier to growth.

Commenting on the findings, Empower chief executive, said: “There is a significant opportunity for large consumer brands to boost their own presence using this cost-effective and popular means of communication. Equally advertisers can cash in on the additional revenue that this will generate, however, it is vital that the marketing community begins to make this a viable option for clients.”

He added: “When SMS marketing first came to light we were promised all sorts of interesting applications that were sure to make our lives easier. Our research discovered that the vast majority of consumers are willing to accept promotions from local entertainment venues or retail operations, yet advertisers and their agencies seem unprepared to take advantage of the benefits.”

The research also points to a rosy future for the mobile marketing industry, which looks set to be boosted by the increase in multi-media messaging, containing video, music and movie clips. A massive 70% of mobile users said they would rather receive multi-media marketing content than a straight text message.

Last year a survey from Nokia revealed that three-quarters of UK mobile users are excited by the potential of multimedia messaging services. There is also growing speculation that MMS will provide stern competition for television and the internet when it comes to supplying specific services, such as news, weather and travel information (see MMS To Spur Mobile Services Market, Says Report).

Empower Interactive: www.eigroup.com

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