Nouveau by Zaw Thet - Interesting New Stuff

Don't Overlook SMS (Reposted from VentureBeat)

I had the pleasure of being a guest contributor on VentureBeat. Thanks Matt for asking me to write! Here's the link to the article entitled: "Don't Overlook SMS". Don't forget to digg it!

I'm reposting it here for your reading pleasure. Also, short update at the end about 4INFO that does not appear in the VentureBeat website.

Don't Overlook SMS

In the U.S., the promise of the future in accessing mobile information via WAP or a rich client application casts a shadow on SMS, better known as text messaging or “texting”.

According to conventional wisdom, WAP and downloaded client applications are the holy grails of mobile, with their ability to deliver splashy, colorful landing pages, images and videos to consumers on their mobile phones. Companies like AOL are snapping up WAP advertising startups like Third Screen Media with the belief that, as devices and networks improve, increased consumer adoption will follow.

But SMS is no underdog. It has huge adoption now, is very versatile and useful and is going to persist, even if the handsets and networks catch up to the hype being created around WAP and clients. It’s not like the industry is slamming text messaging, most just ignore it for the razzle-dazzle of newer technology. But some are realizing where the real volume is. Maybe more importantly, SMS has the highest overall usage rates in the US (37%) compared to WAP (14%) or rich clients (6%).

Why are people going to keep using SMS?

1. My mother can use SMS

SMS is simple. My mom can text message, but she doesn’t have a clue how to go to a website on her cell phone or download a client application. As much as people think they want the cutting edge technology, when you want information right now, you’re going to go straight to the quick and easy feature that you know how to use, which is text. Answers come quick, efficiently, and on any device, not just the newest and hottest.

2. People (including my mother) are using it NOW

I think the market’s default assumption is that it will eventually be able to replicate the web or a desktop experience on a cell phone. That assumption overlooks the widespread adoption of what’s already in most people’s hands. Unlike the new, and more expensive technologies, text messaging works for almost everybody, right now. People don’t change when they have a tool that already works. Eighty-eight percent of US Internet users said they used text messaging; WAP and clients didn’t even make this list.

3. SMS is asynchronous

That’s fancy talk for being able to do the following (not possible with WAP or a client): You can send an SMS, then turn off or put away your phone and get the response later. You don’t need to keep your phone open to wait for a page to download. You can also store the information from an SMS permanently in your inbox

4. Check out Europe and Asia

Take a look at how SMS has taken off in Europe and Asia. In the UK, you can get local election results via SMS. You can order a pizza or a taxi via SMS. Despite access to faster networks and more advanced handsets, in Asia as much as 72% of mobile revenue comes from text messaging.

5. Pushing the Possibilities

The fact that SMS is the only true “push” mechanism for mobile information makes it quite powerful. Want sports updates or traffic information sent to you automatically? The only mobile medium for this type of service is SMS. Although users can visit WAP sites or receive email on their phones, SMS has both the simplicity and the immediacy to encourage ongoing usage and wide adoption. Also, anyone can receive a text message alert. They can set it up on the web and still get the value of staying in the know on the go. They don’t even have to know how to send a text message!

Today, SMS accounts for approximately 75 to 80 percent of non-voice service revenues worldwide. Despite all the noise around WAP and the latest technologies, most of the action is in SMS. Traditional media companies (online, print, TV) and advertisers are taking notice. I’m not saying that browsing the web on your phone isn’t going to become better and that new handsets won’t continue to offer great experiences. You absolutely need to be able to browse for some things. Just don’t overlook SMS: this technology isn’t going away.

4INFO UPDATE: For those I haven't talked to in a while, there is lots of big news at 4INFO these days. We've expanded from being a pure "mobile search" company to becoming the leader in SMS/Text mobile advertising. We've got over 700+ publishers on the platform sending out SMS alerts (promoting both our content or their content). We turn mobilizing content via SMS from a cost center into a revenue stream. On the advertising side we've got some of the biggest brands in the world getting response rates 15-20 times higher than they would on the web.

There is lot's of noise around mobile advertising these days. AOL's recent purchase of Third Screen being the highlight. I just want to clear up one misconception: we are a mobile advertising company, not a mobile marketing company. We don't spam our users or our partner's users with text messages, we only deliver free, relevant content and attach an ad. That's mobile advertising. Those companies that send marketing messages on behalf of companies are mobile marketing (otherwise known as CRM). We serve ads in SMS messages. Mobile marketing companies can't serve ads in their messages because their partners are trying to keep users, not attract them.

 

Premium Billing for Text Alerts: Not the best deal for bloggers/websites

TechCrunch recently wrote about a new product from TextMarks that allows publishers to charge readers to receive breaking news, newly published content and other information via text messages. I wanted to add my thoughts on this premium model to the discussion in the Techcrunch comments and elsewhere. My conclusion? Publishers have better options for making text alerts available to their readers, and other methods for getting revenue from those alerts.

There are 3 primary reasons why I think the premium billing model (at least in this instance) is flawed:

1) Consumers have not shown a willingness to pay for content on a cell phone (outside of ringtones and games). Adoption and retention of consumers on free services are much better.

2) Carriers take too large a percentage of the premium plan to make this a viable business model. In the end, this ends up hurting the consumer because they get charged extra-ordinary fees because everyone involved needs to make their cut.

3) The free ad-supported model has been proven online and is already being proven out in SMS (text messaging) and WAP (browser) ads. When CPMs for SMS ads are $40-60 ($0.04-$0.06) a message why is there a need to charge consumers?

The biggest problem that exists for mobile premium billing is as follows: Publishers can’t get a fair cut when the carriers take upwards of 50% of premium revenue off the top. After the mobilization company takes their cut, the remaining pickings are slim indeed for the publisher. Even, the basic assumption that many readers are willing to pay for premium text alerts from multiple publishers is questionable. 

Text alerts do more than create revenue for publishers. They drive the user or reader back to the web site, and create an instant and ongoing bond between the publisher and the reader. Users are more likely to indulge in their desire for instant notifications, if those notifications are free. As subscriptions to free text alerts grow, the volume and frequency of visitors to the site will grow. And with that, other revenue streams for websites, such as AdSense and affiliate programs increase. The result is a win for publishers at multiple levels.

Let’s take a look at how the free ad-supported model might work with a fictional example. Assume website X sends out just 1 new post alert to a user daily; and a third party sells advertising on those alerts at a conservative $40 CPM. The gross monthly revenue is $1.20 per month (30 alerts x $0.04 revenue a message). Let’s also assume that the website is getting 50% of the gross. If this was a premium billing model, that would be the gross after the carrier share. So, in this imaginary scenario a website would have to be charging its users $2.40 a month for this service just to make the same amount of money. That’s not even taking into account the fact that we can safely assume a much larger percentage of a website’s user base will sign up for free alerts rather than premium. Of course, to do this, you need to tap into an SMS ad network, and there are relatively few of those around. More on that in another post.

Free, ad supported text alerts are the better option to quickly build that user base of readers interested in instant access to your content, and bring in revenue at the same time. If you’re interested in being part of a whole new wave of mobile content delivery and advertising, I encourage you to check out the 4INFO jobs page here: http://www.jobscore.com/jobs/4info.

My first SMS (text-message) Spam experience

Here was the message I got:
--------
FRM:Jasona
SUBJ:hey bud
MSG:We have someone interested in buying or renting your Time Share logon to  - www .webuyresorts .com -
--------
It came from some random number (not a shortcode). I hope this isn't the start of a bad trend, it would be bad news for all the legitimate mobile companies out there....

World Cup! Goooaaaal!

Football (soccer) fans of the world rejoice! The moment we've been waiting 4 years for is finally upon us. I can't wait to get over to Germany to take in a couple of matches next week. Anyone else headed over there that wants to meet up? My Dad and I will be there for 5 days.

In the meantime, be sure to check out 4INFO's latest mobile service offering real-time World Cup score alerts on your cell phone. It's our first premium service (which means you have to pay for alerts, but any search that you do is free). At $2.99 for unlimited alerts its still a pretty sweet deal  Go to: http://www.4info.net/worldcup. I've got it set up to send me alerts for every game in the tournament, all 32 in the first round. OR just text the words WORLD CUP to 44636 (4INFO on your phone keypad). When you get the search result back reply with the number 1 to set up your alert.

See you in Germany!

UPDATE: Lots of good press for us the last couple of days, some links below:
http://digg.com/technology/4INFO_Opera_Bring_World_Cup_Scores_to_Your_Mobile_Phone
http://biz.yahoo.com/prnews/060608/sfth036.html?.v=62
http://www.webpronews.com/topnews/topnews/wpn-60-20060609WorldCupShinesOnTheWeb.html
http://www.blackberrycool.com/2006/06/09/001862/
http://www.treotoday.net/2006/06/09/4info-opera-bring-world-cup-scores-to-your-mobile-phone/
http://www.resourceshelf.com/2006/06/resources-4info-offers-world-cup-text.html
http://www.wirelessweek.com/article/CA6342227.html
http://bigbadbobby.blogspot.com/2006/06/4info-opera-bring-world-cup-scores-to.html

4INFO up for Best Wireless Service

BusinessWeek is running a poll for the "Best of the Web".

4INFO is one of the companies featured in the "Wireless Services" section. Help us rock the vote by voting here.

The New 4INFO Blog is Up!

Check out the new 4INFO Blog here.

There is a great article on 4INFO Easter Eggs and much more is coming.

Help Stop Global Warming

Join 4INFO and the Stop Global Warming: Virtual March on Washington. You can sign up here.

This event is being sponsored by 4INFO:  

    Mobile Marching, a new 4INFO SMS to Email service, has been created to allow organizations and companies to connect with people at a live event, and provide a way for those who are interested in learning more about the organization, but are at the event and not in front of a computer, to do so. The service is accessible from any cell phone via SMS (text-messaging) and sends an email to the user that describes the company’s product or, in this case, prompts for registration.

For example, to join the Stop Global Warming (SGW) Virtual March, a mobile phone user simply sends a text message or e-mail to 4INFO (44636 or 4@4info.net) with “sgw” and their e-mail address, such as “sgw yourname@domain.com.”  Instantly, 4INFO returns a confirmation to the user indicating that the text message has been received and an e-mail has been sent to assist in the completion of the registration process.

More here: http://www.stopglobalwarming.org/campaigns/sgw/partnerimpact/4info/

Nice review of 4INFO

The Pondering Primate has a nice review of the 4INFO mobile search service on his blog today.