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.

Windstream is Using Twitter for Customer Support

Windstream now is using Twitter to communicate with customer having service issues. "Sorry for the trouble you're experiencing. you can dm or email me and I can check on that for you," Windstream tweets back to a customer.

http://twitter.com/windstream

Toblerone Runs Social Mobile Campaign

Kraft Foods' Toblerone is sponsoring a "Play it, Forward it, Share the Gratitude" mobile promotion that encourages consumers to extend gratitude to loved ones by uploading mobile video and text messages and have them broadcast on digital walls in Greenbelt and Bonifacio High Street in the Philippines.

There is a Web site for the Toblerone ‘Play it, Forward it’ promotion with brand information, details about the promotion, upload and entry forms, desktop widgets, contact details and tallies of uploaded videos, texts and votes.

Consumers can send their thank you videos and text messages to the mobile phones of families and friends from the Toblerone campaign site.

Customers can use bar codes on the candy’s packaging to retrieve discount mobile coupons as well. Social apps supporting the campaign also are available on Facebook and Friendster.

The campaign is powered by TMSfactory.

http://www.mobilemarketer.com/cms/news/advertising/2805.html

Working Americans Use Social Networking; Not Much for Business, Yet

Of 10,000 working American’s surveyed by Compass Intelligence in late November 2008, nearly 60 percent said they were active on a social networking site, but most are not yet using social sites for business purposes.

The most popular site, according to research, is FaceBook, with nearly 35 percent of respondents being registered members of this site.

http://is.gd/hrUr

Federal Telecom Spending $47 Billion in 2009, Growing

Federal information technology spending on IT reached $129 billion in 2008, and will increase in the mid single-digits through 2013, when spending will reach $159 billion, say analysts at Compass Intelligence.

The largest category of Federal IT spending is in the telecom segment, which will receive a big boost due to new Federal policies regarding broadband.

Telecom spending by the Federal government will reach $47 billion in 2009, ramping up faster than many other categories to reach $59 billion by 2013."

Time Warner Cable Shelves Bandwidth Caps

Time Warner Cable appears, for the moment, to be retreating from its bandwidth cap tests in four U.S. cities, temporary ending a controversial experiment that would have created new usage buckets.

Those plans would have featured a lighter user plan featuring 1 Gbyte per month of usage for $15 per month. About 30 percent of Time Warner Cable customers use less than 1 Gyte per month.

Other plans would have featured caps of 10, 20, 40, 60 and 100 GBytes, plus an unlimited plan for the highest-speed 50 Mbps service.

Twitter Usage Explodes in March

The number of visitors to Twitter.com jumped 131 percent in March to 9.3 million visitors, up from five million in February.

We call that an inflection point!