SMS Advertising - A New Media Mix Tool

            
 
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Case Details:

Case Code : MKTG043
Case Length : 9 Pages
Period : 2000 - 2002
Pub Date : 2003
Teaching Note :Not Available
Organization : Varied
Industry : Cellular Telephony
Countries :

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Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

Exploring the SMS Advertising Tool

Realizing the benefits SMS advertising could offer, many companies such as Pepsi, Sony, Cadbury Schweppes, Coca-Cola, Heineken and Johnson & Johnson tried advertising their products through this medium.

In early-2002, Pepsi conducted a 'We'll Take You There' campaign in Australia, wherein Pepsi customers could enter into a lucky draw by submitting a unique code that was printed on the Pepsi cans. Pepsi asked its customers to SMS this code to a specified number, following which they became eligible to enter the draw.

Of the total number of responses received, as many as 79% were through SMS. Pepsi also conducted a 'SMS Concert Ticket' promotion, through the 'Pepsi Live' program on a popular music television (TV) channel. Viewers were requested to send an SMS with their name and a unique keyword to enter a draw and win tickets to famous music festivals/concerts in Australia...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

SMS Advertising - The Future

A marketing company based in the US, The Mobile Channel, conducted a survey of 1000 people regarding the acceptance of SMS advertising. Approximately 94% of the users were positive about the choice of advertisements sent and showed that text advertising could elicit a product response of upto 28%.

Even as corporates and cell phone users seemed to be rather enthusiastic about the growing popularity of SMS advertising, there were a few criticisms as well.

Like many other media mix components, SMS advertising too had various pitfalls associated with its usage - the foremost being that of 'Spam SMS' (similar to spam e-mails, spam SMS refers to the unsolicited, unwanted junk SMS that land up in a cell phone user's inbox). Commenting on this, an industry observer said, "Some unscrupulous firms are bound to start sending out spam and clogging the vastly bigger inbox of your futuristic phone with messages that you do not want about services or offers you do not need."...


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