Verizon Wireless to charge companies for text messages

Verizon Wireless has announced that it will charge its partners 3 cents per text message sent to its subscribers, a move that has surprised a lot of people. For nearly five years, Verizon has not charged its partner companies that regularly send plenty of text messages, most of which are promotional in manner, to its millions of subscribers. Come November 1st, it will all change.

From now on, companies that have partnered with Verizon have to pay 3 cents for each text message they send through Verizon’s network. Companies offering text message alerts, interactive SMS polls, and SMS search will have to pay this amount from the first of November. However, Verizon has made it clear that this charge applies only to standard and premium programs and not to the free-to-end-user kind of programs.

While 3 cents per text message might not look that big an amount now, it could form a significant source of income for Verizon in the long run. This is the first time the company has reassessed its charges ever since it started partnering with other companies in 2003.

Now the important question is – will other carriers follow suit? After all, if a network carrier wants to charge for the text messages sent through its network, there is not much its partners can do. Especially, with SMS advertising becoming more popular than ever, they cannot afford to lose a highly targeted advertising medium. So, the companies will most probably try to come to terms with these changes in the industry. It will be interesting to see the reaction of other carriers in the coming days.

Categories: All things mobile phones.

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Mobile TV to become a $15 billion market in 2012

It seems mobile TV has caught the attention of market analysts big time. A lot of experts are touting mobile TV as the next big thing and here’s yet another report which has come up with quite an optimistic prediction, I should say.

A new research report from Multimedia Intelligence predicts that mobile TV market will be worth a whopping $15 billion in 2012. The report says that customers now demand personalized entertainment from their mobile phones more than ever before, as there is a huge influx of high-end mobile phones in the market these days. This has led to the belief that mobile TV will play a huge role in the future of mobile entertainment.

Also, mobile TV is considered the perfect medium for advertising by many as it has a huge advantage over other forms of mobile ads such as text message ads, banner ads, and WAP links. Ads in TV are something we’ve all got used to. So, when you’re watching your favorite show on mobile TV, an ad break won’t look too strange to you. On the other hand, a mobile banner ad can easily be considered intrusive by many. Also, the recall rates for mobile TV ads will be extremely high, as the ads are highly engaging. This is something I’ve already discussed in detail here.

However, there is one missing link here. While mobile TV could provide some good on-the-go entertainment for users and some good ad revenue for advertisers and operators, it will happen only if it’s offered free of cost. A paid mobile TV service, no matter how good it is, will not find a lot of takers in this era of freebies. We already have an example for this in the form of AT&T and Verizon’s mobile TV service - both got a lukewarm response from users. So, like I already said, ad-funded mobile TV could be the future. What do you think folks?

Categories: Mobile TV.

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Mobile advertising in India will be a $100 million market soon

With over 270 million mobile users, India is considered probably the hottest mobile phone market in the world. With this being the case, mobile advertisers are trying to cash in on the opportunity, as expected. As we’ve already seen, Indian operators are excited about mobile advertising and they see it as a potential long term revenue generating model. So, it’s only a matter of time before mobile advertising takes off big time in India.

Industry experts have predicted that mobile phone advertising in India would be worth more than $100 million in just a few years from now. Considering the market is currently valued at a measly $1million, it looks like quite a prediction. But experts firmly believe that the Indian market has the potential to become one of the top players in the world as far as mobile advertising is concerned. However, there are a couple of issues which need to be addressed to make this happen.

First, the cost of mobile web should be brought down. Though data plans in India are pretty much affordable, mobile web is one area where they can bring down the cost furthermore to attract more users to use the mobile internet facility regularly.

Second, the issue of revenue sharing between advertisers and mobile operators is an area of concern. Right now, the ratio is 70:30 with 70% of the revenue going to mobile operators and 30% going to advertisers. Understandably, advertisers are not exactly happy with this disproportionate sharing and they want this ratio to be revised.

Experts say that if mobile operators and advertisers could address these issues, the market may reach the $100 million mark sooner than later.

I actually think the issues mentioned here are common for markets all over the world. Even in the U.S., not everyone with a web-enabled phone is enthusiastic about surfing the web regularly, as the data plans are pretty costly. And the issue of disproportionate revenue sharing is not unheard of either, as the spat between Verizon and Google is well known. So, it’s basically an inherent flaw in the system. Unless people address this issue, there will always be hurdles in the path.

Categories: Cell Phone Advertising, All things mobile phones.

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Will the music industry go mobile?

After newspapers, it seems it’s the turn of the music industry to go mobile. I mean, let’s face it. The music industry is not what it used to be and CD sales have dropped considerably. The industry has stagnated to say the least and going mobile to reinvent itself seems to be the only option left. Thankfully, some artists have already realized that and have taken the next step.

A few months back, we saw Madonna sign a deal with Vodafone wherein Vodafone users were able to listen to the album Hard Candy before it was even released in the market. Similarly, earlier this month, British pop sensation Natasha Bedingfield signed a deal with Verizon and will headline a Verizon VIP tour. Verizon users will have exclusive access to Natasha’s albums and users who download ringtones and other such content will get free tickets to her concert and other such promotional items. Usher Raymond has signed a similar deal with Sony Ericsson which will be the primary sponsor for Usher’s musical tour which is scheduled later this year. Though AT&T is yet to sign such deals with musicians, it has already signed deals with music websites such as Napster and eMusic.

The future, everyone says, is mobile. The dipping sales of compact discs and the alarming growth rate of pirated discs have made musicians take some serious decisions regarding the future and some musicians have already set the precedent. Now, it remains to be seen how quickly others can adapt to this new age medium. What do you say?

Categories: All things mobile phones.

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Is ad-funded mobile TV the future?

Communicasia is one of the most talked about IT events this year and Communicasia 2008 is underway as I’m writing this blog. A congregation of IT and communication majors from all over the world are expected to be there and the list of attendees is quite impressive.

MComms TV, an Australian company, caught my attention. It is a mobile TV innovation company and it showcased a software-based solution which in my opinion can play a huge part in mobile TV in the future.

MComms Ad Insert, the software-based solution, places advertisements in live mobile TV streams seamlessly. The company couldn’t have chosen a better time. Just recently, Verizon and AT&T launched their own mobile TV service and they both received lukewarm reception from mobile users. The reason is pretty clear. Mobile users, a big number of them, are not ready to pay a monthly subscription for mobile TV yet. In this case, the only way to make users tune into mobile TV is to offer the service for free. Which is possible only if it’s ad-funded. You get the picture?

Now at this juncture, a technology like MComms Ad Insert could come handy. Operators can now try to offer free mobile TV backed with advertisements. After all, the users get to access a variety of mobile content including but not limited to music videos, TV shows, and movie trailers.

What do you say? Have any of you guys subscribed to Verizon or AT&T’s mobile TV service? Will you give it a try if it was free of cost? Let me know your views.

Categories: Mobile TV.

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