Derek Johnson

Derek Johnson

I hate to sound like a weatherman, but the storm is coming. Unlike the weathermen here in Seattle, I can say with confidence that this storm’s arrival is guaranteed. Some have tried to convince me otherwise, telling me that the excitement over text message marketing has already passed or has reached its peak. I don’t claim to be the next Nostradamus, but all the signs I’m seeing are pointing to the beginning of one hell of a storm, and most certainly not the middle or end. Below are the five key observations I’m seeing right now in the text message marketing space, which lead me to make these bold claims.

Text messaging is still in its teen years.

I think people forget that the first text message was sent only 17 years ago. If text messaging were a person, he or she wouldn’t even be able to vote yet. We are still talking about a communication technology that is in its infancy stage. Remember also that the use of text messaging as a marketing tool is a fairly recent implementation, leaving years for this channel to be explored by businesses.

Text messaging is still growing.

According to Nielsen’s Customer Value Metrics research, 18 to 34-year-olds have increased their text messaging from 138 messages per month in 2006 to 845 messages per month in 2009. That’s over a 500 percent increase in just three short years. While these numbers are definitely striking, we have to realize that the majority of these messages are sent from consumer to consumer. As text message marketing grows and becomes a part of people’s everyday lives, businesses will no doubt recognize this and start to take action.

High profile usage is spurring growth.

You don’t have to think far back to remember the first presidential campaign that implemented text message marketing. It was first used in a 2008 presidential race, when Barack Obama announced his VP pick to his nearly 10 million subscribers. That was only two years ago. Since then, there has been a huge push by senatorial candidates, like Massachusetts Senator Scott Brown, a Tatango client, to implement text message marketing into their own campaigns. This, in addition to the incorporation of text messaging into “American Idol” –the most popular show in the history of American television—continues to add exposure to this form of mobile marketing.

Businesses more than ever want value in their advertising.

As economic times worsen, businesses start to demand more from their advertising budgets. Right now, there is no better return for your marketing dollars than text message advertisement. With a 98 percent open rate and the average open time being only four minutes, the bang for an advertising buck just can’t be met with any other methods.

The newness of social media will fade.

A lot of businesses are looking to the big, shiny, new social media networks like Facebook and Twitter as the next big advertising front. Unfortunately, the numbers just can’t compete with text messaging. Did you know that only 23 percent of Americans check social networks like Facebook on their phones, and even less than that 10 percent check micro-blogging sites like Twitter on their phones? You can compare that to the 72 percent of people who actively text message on their mobile phones. When the buzz of these social networks starts to wear off, and business owners look for a communication tool that can directly capture their audience, text message marketing will be there waiting.

BIO: Derek Johnson is the 25 year old CEO of text message marketing startup Tatango. Derek was selected by BusinessWeek as one of the top 25 entrepreneurs under the age of 25 and featured in the Wall Street Journal, Seattle Times, Mashable, TechCrunch, PC World, LifeHacker and other national publications. You can follow Derek on Twitter, Facebook or check out Derek’s blog.

Curated by Deepak Gupta.

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9 Comments on Text Message Marketing – The Storm is Coming!

  1. I hate spam messages when it is not relevant. I have also screened some of the numbers.

  2. fred says:

    Rss is best for updating news

  3. Seems like more than 2 years passed since this post – I am curious to hear the author’s opinion on his “forcast” in the light of smartphone revolution that we are facing these days (BTW, I personally am strong believer in SMS – though do not expect it to create any storms – only to always be there as a tool that is impossible to replace in some cases)

  4. I agree with Ace because almost people have mobile phones. But is it a kind of spam when you text people without their consent? or is it not?

  5. Ace@investingfordummies says:

    Mobile marketing is the next trend.I find it very effective to catch people’s attention about the your services and products

  6. […] It’s a two way street, businesses use Tatango to send text message coupons, discounts, event reminders, etc. to the consumers that opt-in to receive them from the businesses. It’s a win-win situation for both the business and consumer. “Did you know that only 23 percent of Americans check social networks like Facebook on their phones, and even less than that 10 percent check micro-blogging sites like Twitter on their phones? You can compare that to the 72 percent of people who actively text message on their mobile phones.” –  Derek interviewed on Marketing by Deepak […]

  7. For the past few months, I’ve been using the Trumpia SMS Mobile Platform. It’s competitive in feature set and pricing.

    I recently came to know about the iZigg 90210 Mobile Media platform. They are billing it as the next generation in “branded” mobile media. I thought owning the keywords: cheapdivorce, cloudcomputing and toothache would be high demand mobile search terms.

    Their Banding concept leverages the marquis value of the 90210 zip code, in that it is very famous and well known, that when a SMB uses their promo model (ie) tells their customer to Text “keyword” to 90210, its an easy thing for the Consumer to remember.

    The businessman who owns the keyword LIMO is quite happy. He gets to ask his customers to Text LIMO to 90210. Pretty simple eh?

    I’m still testing these keywords. Once I have enough stats, I can approach local business in the 90210 zip code who want to own and use these mobile keywords to grow their business. I suspect there will be a few Law Firms who want to own CheapDivorce and a few Dentists who want to own Toothache.

  8. […] This post was mentioned on Twitter by Patrick Lundbom, Deepak Gupta. Deepak Gupta said: Text Message Marketing – The Storm is Coming! http://bit.ly/d4S87Q via @AddToAny […]

  9. […] This post was Twitted by dgupta5150 […]

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