Download - Bulk SMS Market in India
BULK SMS: A BUSINESS ANALYSIS
PRESENTED BY:PRASHANT SAXENA
Y 2006 Y 2007 Y 2008 Y 2011
149.5 220 284
484
Number of Users (Millions)
Source - MobilePundit, IMRB, Isuppli
Y 2006 Y 2007
428684.8
A2P & P2A - Revenues (Crore)
25%
15%60%
Percentage in Profits
Aggregator/Developer Copyright owner Operator
Perceived Value - Perceived value of a VAS depends on perceived rather than the actual utility to the end user: BRAND ASSOCIATIONSPractical Value - Practical value is completely based on tangible benefits derived from the service: REVENUE SHARING
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BULK SMS USAGE AREAS
Messaging
Work Force Management
Mobile Commerce
Information Services
Entertainment
CRM
Mobile Marketing
Internet Portal Payment Facilitator Enterprise
Content Developer
Application Service Provider
Mobile Advertising
Mobile Portal Content Developer Content Provider Content
Aggregator
Terminal Vendor Gateway Provider
Network Vendor
Mobile Network Operator Service Provider Mobile Virtual
Network Operator
Buye
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BULK SMS INFLUENCE
FACTORS
SMS AD RELEVANCE
BRAND FAMILIARITY
CONTROL OVER OPT IN
CONDITIONSATTITUDE
TOWARDS SMS ADVERTISNG
MESSAGE PERSONALIZATIO
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MONETARY BENEFIT
KNOWLEDGE
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Message Success Factors:Content
PersonalizationConsumer Control
Media Success Factors:Device Technology
Transmission Process Product FitMedia Cost
Success Measure:Consumer AttentionConsumer Behavior
Cost Ratios
EFFECTIVE SMS MARKETING MODEL
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SOPERATOR CHALLENGE:
Operator focusing on subscriber acquisition with no incentive on
incentive to push bulk sms services
USER CHALLENGE:Operators & Partners not driving in
enough potential benefit understanding in user’s mind
CONTENT LOCALIZATION CHALLENGE:Operators haven’t done much to
customize the content according to consumer behavior
REVENUE CHALLENGE:The inappropriate partnership pie
results in a tussle for revenues earned with no profit sharing for consumer
DEVICE CHALLENGE:Providing features to aid adverts &
increase positive branding via Device supported SMS
CONSUMER BEHAVIOR PERSPECTIVE
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BEHAVIOR BELIEFS
ATTITUTDE TOWARDS
FOR BEHAVIOR
NORMATIVEBELIEF
SUBJECTIVE NORM
CONTROLBELIEFS
PERCEIVEDBEHAVIORAL
CONTROL
INTENTION BEHAVIOR
ACTUAL BEHAVIORAL
CONTROL
BEHAVIORAL BELIEFS STRENGTH FACTOR PROBABILITY OF OCCURANCE
Instant Connections & Updates 3 0.8
Spamming -5 0.9
Wrong Usage of Mobile numbers -4 0.6
Financial Incentives like offers, sale, etc 2 0.8
Social Money 4 0.9
Unnecessary Disturbance -3 0.6
TOTAL BEHAVIORAL ATTITUDE –
SUM OF PRODUCT OF STREGTH FACTORS & PROBABILTY OF OCCURANCE(3*0.8) + (-5*0.9) + (-4*0.6) + (2*0.8) + (4*0.9) + (-3*0.6) = -1.1 (Slightly Negative)
Source: Theory of Planned Behavior, ICEK AIZENScale Used: -5 to +5 Likert UnitC
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NORMATIVE BELIEFS STRENGTH FACTOR PROBABILITY OF OCCURANCE
Need to Stay connected (Maslow’s Hierarchy of
needs)4 0.7
Perceive Petty greed -2 0.9
Brand Affiliation 3 0.5
Employee- Organization Context 3 0.3
TOTAL SUBJECTIVE NORM –
SUM OF PRODUCT OF STREGTH FACTORS & PROBABILTY OF OCCURANCE(4*0.7) + (-2*0.9) + (3*0.5) + (3*0.3) = 3.4 (Moderately Positive)
Source: Theory of Planned Behavior, ICEK AIZENScale Used: -5 to +5 Likert Unit
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CONSUMER PREFERENCES WRT BULT SMS Rank
Possibility to withdraw at any time 1
The possibility to choose whether or not your personal data can be given to a third party 2
The frequency of the ads 3
The applicability of the same term of contract to the eventual third party 4
The time when you would receive ads 5
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Scenario Control opt-in conditions
SMS ad relevance
Brand familiarity Expected Obtained
1 High High High Accept enthusiastically Accept
2 High High Low Accept Accept reluctantly
3 High Low Low Refuse Refuse
4 High Low High Refuse Refuse
5 Low High High Accept reluctantly Refuse
6 Low Low High Refuse Refuse
7 Low High Low Accept reluctantly Refuse
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MARKET PLAYERS
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Core
Valu
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Futuristic Prospects
Valuing Partners
Customer- Driven Excellence
Corporate Memberships, SMS Surveys, User Generated Product
Ideas, etc
K-Capital, Hyderabad 10k Marathon, TiE-ISB Connect,
Online short film festival and VLSI International Conference
PhoneLinx Communications, Solix Technologies, Innova Health Systems Ltd, Netstart Technologies & Eastern Michigan University
Social Money – SMS & Video No SPAMMING
“Friends Network" onlyHighly Targeted & Profile Based
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MEMBER 1
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MEMBER 1
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BULK SMS PORTAL
TELECOM PROVIDERADVERTISER
SMS OR VIDEO
SERVICES
REVENUE SHARING PER SMS
SENDING SMS or UPLOADS – 10 P
RECEIVING SMS
or VIEWS – 10 P
“40% ACTIVE SMS USERSPAID BLOGS
5 – 10 sec & 40 Characters Ads2 Million Users & 28 min average time spend” – KALYAN
MANYAM
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Social Money Introduction – 20 Sept, 2007
User Revenue sharing program for Fropper?
1 2 3 4 5 6 7 80
0.51
1.52
2.53 Subscriber (Millions)
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Subscription Details
Updates
Mass & Targeted Advertising
Invited Advertising
Corporate Features • Free, Direct-to-Consumer Subscription service
Consumer Friendly • Simplicity of opt-in/opt-out puts User in Control
On - Time • Making SMS into a habit with its timed delivery
New Marketing Tactics • Platform for Mass and Targeted Advertising, and Permission MarketingM
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The vertical communities aren’t really driven by “add friends/scrap other/upload video” features, but are purely need based and information based groups.
Started by individuals who are passionate about certain topics, and can be termed mavens in their respective areas of interest --- Identification & Performance based Appraisal !!
Mobile communities represent the community platforms like yahoo groups . Self-forming, somewhat closed and revolves around specific topics. The only difference is that it’s delivered on an “always-on” device, i.e. mobile.
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FOCUSSED MODEL:Advertising has been spam over SMS. Gupshup guys plan to break this by serving targeted and contextual ads as a part of the SMS and claim no extra SMSes.
HIGHLY COMPETITIVE:The new website and UI would allow users to send SMSes for free using the Internet - and that means head-on fight with 160by2.com and way2sms.com.
SPAM CONTROL:In order to control the spam, smsgupshup mandates one to validate their own number, before they start sending SMSes.
GETTING LOCAL:Eg. TSKBreakingNews is run by auser based in Tinsukhia (Assam).He sends across local news (whichis not mentioned in TOI) to hissubscribers. The group already has164 users and growing every day.
UPDATES
Getting Feeds from blogs sent to mobile devices
More variety in groups - right now its one to many.
Importing contacts from other social networking sites / phonebook
Advanced controls like posting through chat, widgets to have sms group messages posted in blog
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PEOPLE GROUP – BULK SMS SUGGESTIONS
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Media
Consumer Attention
Consumer Intention
Consumer Behavior
Consumer Attitudes
Perceived
Peer Influence
ContentPersonalization
Consumer Control
Device TechnologyTransmission Process
Product FitMedia Cost
UsefulnessEase of Use
THE CORPORATE BULKSMS ADVERTSING MODEL – A PERSPECTIVE
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Types of Ads
Brand building
Types of Ads
Special Offers
Types of Ads
Timely Teasers
Types of Ads
Requests
Comp. and polls
Ad
Content
Short and to the point (28%)
Ad
Content
Funny and Entertaining (26%)
Ad
Content
Relevant to the target group (20%)
Ad
Content
Eye Catching (13%)
Informative about Prizes and Promotions (12%)
Source: P. Barwise, C. Strong, Permission-based mobile advertising, Journal of Interactive Marketing
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Source: R.T. Watson, et al., Electronic Commerce: The Strategic Perspective, Dryden, Fort Worth, TX, 2000.
Less intrusive than phone calls, recipients can read text messages at their leisure and choose when to respond.The service provider must consider the best time and message frequency for the target group and topic.
Mobile phones amplify two key arguments for electronic commerce, location independence and ubiquity. Consumers increasingly expect tailored and location-based services, thereby underlining the importance of personalized mobile marketing. Properly applied, location-based services can create or reinforce virtual communities.
Personalizing messages increases the impact. Similar to traditional media, a personalized SMS campaign relies upon databases with enough active and potential clients to reach the target group profitably. The databases regularly contain personal information such as leisure activities, holidays, music and media interests, type of Internet access, occupation, marital status, car ownership and income
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Source: CNN, New Switching Rules May Trash Millions of Cell Phones, Cable Network News (October 31), 2003.
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• Gathering Data Required For Tailoring Messages Raises Privacy Concerns.
• Corporate Policies Must Consider Legalities Such As Electronic Signatures, Electronic Contracts, And Conditions For Sending SMS Messages.
Advertisers s
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• A simple registration ensures sending relevant messages to an interested audience .
• Unsolicited messages, commonly known as spam stifle user acceptance
Changing ones mobile phone number is more difficult than changing e-mail addresses
• New regulations that allow people to keep their phone numbers when switching cellular carriers may reinforce fears of unwanted messages and misuse of personal data
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Source: H.M. Yunos, J.Z. Gao, S. Shim, Wireless advertising challenges and opportunities,
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Source: F. Newell, K.N. Lemon, Wireless Rules – New Marketing Strategies for CRM
A text message may never arrive. There is no mechanism to ensure successful data transmission. Experts estimated the probability of a text message arriving towards 99%.
No guarantees that messages will arrive within a few minutes; delays up to six hours are possible.
This is a critical problem for time-sensitive content such as account changes, last-minute tickets, product availability notifications, etc.
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Source: P. Barwise, C. Strong, Permission-based mobile advertising, Journal of Interactive Marketing
According to Experts SMS is useful for targeting young audiences – to announce events or support product launches, for example.
Experts also believe that given the personalized nature of many services, mobile marketing is more useful introducing services than introducing physical goods
Broadband access and advanced mobile devices with multimedia support should increase the medium’s attractiveness for image campaigns.
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*Source: Windwire, First-to-Wireless: Capabilities and Benefits of Wireless Marketing and Advertising Based on the First National Mobile Marketing Trial, 2000.
Cost per thousand or cost per click,
traditional advertising measures for
established media, can also gauge model’s
marketing effectiveness
Strong OPT-IN Response
from consumers
Tested response rate of more than
20% than other media*
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*Source: Windwire, First-to-Wireless: Capabilities and Benefits of Wireless Marketing and Advertising Based on the First National Mobile Marketing Trial, 2000.
Viral Marketing Effects
Viral effects multiply the impact of appealing text messages and
consumer attention. By forwarding messages to their friends, recipients
create strong peer influence
Viral success is hard to predict since it depends on erratic consumer
trends and group dynamics
Common Applications
Mobile Couponing: For targeting based on mobile phone numbers,
time sensitivity and efficient handling by scanning the coupon’s
bar code at the point of sale.
Entertainment services. Providing games and prizes via text messaging yields high participation and helps
attract and keep customers.
Education:Word Stock –
20,000 SubscribersCampusnet – B-School Updates
Financial Groups:Niksstock - 4000
Subscribers Life Insurance
Agent Federation
Media:Pluggedin,
Regional News, etc
Social Groups:Rotary Club,
Lions club, etc
Spiritual Groups:Sikhnetwork –
25000 SubscribersAol Updates
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EHealth:e.g. Honey with milk is a good combination for health & vigour. Have one glass of milk with one spoon of honey daily!
Spirituality:e.g. Guru Fateh Pyaareo, Sannu Apne Dostan - Rishteydara De Number SMS Karo Te Ohna Nu Vi SikhNetwork Da Hissa Banao .
News:e.g. Pakistan confirms delay in election,US diplomat killed in Sudan,80 revellers molest 2 girls on New Year in Mumbai .
Finance:e.g. TAXALERTS: 5TH JANUARY 2008 IS DUE DATE FOR SERVICE TAX PAYMENT FOR MONTH / QUARTER ENDING DEC 07.
Music:e.g. On January 17, 1996, Pink Floyd was inducted into the Rock and Roll Hall of Fame by The Smashing Pumpkins frontman Billy Corgan..
Gaming:e.g. Get ready for ur semifinals today @ 5.30 ,chk ur scedule in www.onlineleague.net ,team rakion .
Party:e.g. Begin ur new years(2008) party season from TONITE @*premium hotel in juhu*.til3am..finally a place wid muzik u like.. dhaval 98xxxxxxxx
Sports:e.g. Villa scored a late winner against Spurs & moved to 5th position. Today's Matches: BBurn-Sund, Bolt-Derb, Liv-Wigan, Newc-ManC
Education:e.g. Revision Session for E4C 2006-08 Batch (II nd Yr) on Jan 02, 2008 will be on Functions, Limits and Continuity by Chide Sir..
THANK YOU