HOW USING SMS SHORT CODES CAN HAVE AN IMMEDIATE IMPACT ON BRAND AWARENESS IN 2009 January 23, 2009

Almost every company that has embarked on mobile advertising and outreach efforts

has said that the most effective way to understand the power of mobile and what it

means to a company is to simply jump in and do it.

 

Key ways that SMS SHORT CODES are being commonly used to reach and engage audiences, some of which are discussed in greater detail below:

 

Creating a dialog and a relationship. SMS SHORT CODES are being used effectively to create

 

a dialog with mobile users. Voting, polling, requests for feedback, sweepstakes,

and contests all require interactivity with the consumer and the brand. This

interaction through SMS SHORT CODES provides valuable information about target audiences,

allowing organizations to even more closely tailor their products and associated

marketing to evolving marketplace needs.

 

Customer and employee communications. SMS SHORT CODES and text messaging are

being used by companies and even schools to distribute information, such as

employee alerts, school closings, airline reservation updates, and sales alerts.

Catalog companies and direct-to-consumer mobile commerce companies are

using SMS SHORT CODES  along with keyword item numbers as a way to allow customers to

order products without calling into a service center. This approach reduces the

number of calls handled by operators, which in turn reduces costs and can

increase customer satisfaction. 

 

Increasing brand reach. SMS SHORT CODES  are also playing a key role in increasing the

 

reach of brands and organizations. For instance, groups in the United States that

may index low for home PC penetration conversely often index high for mobile

phones. Through SMS SHORT CODES, they can now be reached with electronic media. In the

developing world, national short codes allow consumers to be cost-effectively

reached on an individual basis for the first time ever, whereas previously,

advertising campaigns were limited to mass-market radio and billboards.

 

Sales lead generation. U.S. companies of all sizes are using SMS SHORT CODES  in their

marketing efforts to generate interest and engagement with brands, which

immediately or eventually turn into sales leads. For instance, Lexus successfully

used SMS SHORT CODES to develop self-qualified sales leads. And it has been reported that

Denver-based Clarion Ventures is planning to launch the SMS SHORT CODES that spells the word

“House” on the cell phones keypad as a way for users to request that more

information be sent to their cell phones on houses that are for sale. Brands have

reported that potential customers who signal their product interest through SMS SHORT CODES  

are often highly motivated, which can result in SMS SHORT CODES response rates as high as 10%. 

 

Content distribution. Short codes are one of the key ways that mobile content

providers distribute content directly to mobile users, which avoids reliance on

already-crowded wireless carrier “content decks.” Carrier decks are the screens of

content options that each carrier’s subscribers see on their cell phones. Getting

placement on a carrier deck is a costly and long process and must be done on a

carrier-by-carrier basis. While brands can get immediate access to all subscribers

on a particular carrier deck, carriers make frequent changes to their decks, offering

less control for brands. By using SMS SHORT CODES and other forms of “off deck” access, brands

can reach almost all wireless users, not just those of a particular carrier. 

 

Fundraising. Nonprofits are increasingly interested in short codes for fundraising

efforts, having successfully used them to raise relief funds for the 2004 tsunami

in Asia and for Hurricane Katrina in 2005.

 

Mobile advertising. Brands from almost every industry sector are beginning to

 

incorporate SMS SHORT CODES into their marketing campaigns such as on billboards, in print, and

even in TV advertising in order to deliver additional marketing information directly to

users. For instance, shows on MTV regularly include SMS SHORT CODES information to further

involve audiences and drive additional content sales. New mobile advertising formats

are coming onto the scene, including banner ads, sponsorships, product placement

and idle screens, and pre- and post-roll video. Like SMS SHORT CODES, each of these mobile

advertising formats is a sophisticated way to reach customers. In fact, text advertising

can be added to SMS SHORT CODES so that the confirming message the consumer receives from

the brand can also have a line of advertising in it. This not only allows brands to

engage with consumers through SMS SHORT CODES but also allows their closest advertisers to

advertise contextually next to the appropriate mobile content. However, unlike most

mobile advertising, SMS SHORT CODES require single or double opt-ins. Thus, brands know

consumers are interested and receptive to messages initiated by SMS SHORT CODES. 

 

Building databases. Information is power, and savvy organizations are using

SMS SHORT CODES to build powerful mobile information databases on existing and prospective

customers, such as what promotions they respond to, which mobile coupons they

actually redeem and when, and how often they respond to mobile alerts, by

integrating SMS SHORT CODES response data into existing databases. These databases can be

used to develop and support loyalty programs, coupon and direct response

offers, and Internet-like experiences with media ranging from print to radio.