This week, Juniper released a new study calling for mobile messaging adspend to blow past the $7 billion mark within the next five years.
Juniper Research believes that the growth projected from now until 2017 will be driven by a “dramatic upsurge in the use of location-based SMS to deliver relevant ads to consumers.”
The idea of location-based SMS is something that is likely to raise questions of privacy amongst consumers. However, operators are extremely sensitive to this and the schemes which already exist, such as O2 More, are opt-in and the consumer can choose which types of offer they would like to receive.
“SMS ads have significant benefits for marketers,” Juniper says. “While they may lack the rich media content of other advertising formats, they are very familiar to consumers and have a much higher chance of being opened, even if unsolicited.
As we know, SMS ads are also a low cost option for those seeking large reach.
“Sending adverts using mobile messaging gives advertisers a simple, cheap and effective way of reaching consumer,” says report author Charlotte Miller. “Adding location technologies is an even more powerful proposition, particularly for transactional advertising as marketers can reach consumers who are near a location where they can purchase. Knowing that the recipients of an ad have actively asked to receive it and will in all likelihood open it is also particularly attractive.”
To learn more about the new Juniper report and its projections, click here.
