Although multimedia messaging is gaining in popularity, short text messaging continues to be the most profitable part of the mobile data universe, according to a new report from eMarketer.
The report says that this year, revenues for short messaging service (SMS) will hit $20 billion in Western Europe, $9 billion in the Asia-Pacific region and $7 billion in the US.
Although not yet as popular in the US as in Europe and Asia, SMS grew 98.8% there during the first half of 2006 (64.8 billion messages) compared with the same period in 2005 (32.6 billion messages), according to CTIA – The Wireless Association.
Unsurprisingly, EMarketer says that SMS is particularly popular amongst young people, with nearly 70% of consumers between the ages of 18 and 30 polled by Harris Interactive saying that they used SMS.
EMarketer said that marketers are appealing to SMS users through television programs such as American Idol in the US, in which viewers vote on whether a singer deserves to pass to the next round.
John du Pre Gauntt, senior analyst at eMarketer and the author of the report Mobile Message Marketing: Cash Not Flash, said: “The watchword for marketers trying to crack this opportunity seems to be ‘selection’ opposed to just ‘penetration.'”
Gauntt, added: “The continued, dogged and ubiquitous success of SMS in spite of every attempt to replace it with something more ‘sexy’ gives credence to the idea that mobility’s primary value lies in the user’s ability to get things done.”
| Short Text Message Revenues Worldwide, by Region, 2006-2010 (millions) |
| |
2006 |
2007 |
2008 |
2009 |
2010 |
| Western Europe |
$20,408 |
$19,815 |
$18,316 |
$16,325 |
$14,629 |
| Asia-Pacific |
$9,163 |
$9,950 |
$10.342 |
$10,559 |
$10,469 |
| Chna/India |
$8,167 |
$10,754 |
$12,524 |
$14,150 |
$14,436 |
| North America |
$7,060 |
$7,915 |
$8,231 |
$8,266 |
$8,316 |
| Latin America |
$4,102 |
$6,066 |
$7,604 |
$9,095 |
$9,499 |
| Middle East/Africa |
$3,541 |
$4,625 |
$5,364 |
$6,222 |
$6,537 |
| Eastern Europe |
$2,422 |
$2,480 |
$2,303 |
$1,945 |
$1,503 |
Source: Ovum, March 2006; Tekelec, June 2006
The latest figures released for text messaging in the UK show that over 3.6 billion SMS texts were sent in August, the highest monthly total ever recorded, according to the Mobile Data Association (see Text Messaging For August Soars To Record Levels).
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