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FMCG Talk, Pamir Gelenbe
Friday, 28 February 2003

DM News, March 2003 - 160, two dimensional, black and white characters: - an unlikely medium for marketing most FMCG brands, which typically spend millions on campaigns reliant on colour, sound and moving images. The humble SMS has proven us wrong in this assumption.

Today global brands are using text messaging, and not just for tactical one-off promotions to satisfy another consumer 'fad', but also as part of an ongoing marketing strategy, aimed at retaining and rewarding loyalty, as well as driving sales. Brands facing an increasingly saturated marketplace, in which to make their voice heard, are turning to SMS. In combination with traditional techniques, text messaging is helping them to provide that essential competitive edge. But why?

Mobile phones are highly ubiquitous, meaning that they are almost guaranteed to be with their users, allowing consumers to respond immediately to prompts on TV, billboards or on-pack campaigns. It is also a highly impulsive medium, because sending a text takes a couple on seconds.

Global brands have also discovered that SMS provides an effective route to the high spending 14-35 tier demographic. We believe that 2003 will in fact be the year that any global brand planning to reach these younger generations will need to use SMS to do it successfully.

The medium also possesses another very attractive quality: cost effectiveness. Sending an SMS averages between 5-10 pence per message. In contrast direct mail is commonly in the range of 50-75 pence per shot, which means brands can more affordably maintain ongoing relationship with their consumers.

Accountability is another crucial strength of the medium. When traditional techniques, such as direct mail or advertising, simply adds a mobile number as a direct response channel - instantly a better under standing of how many people are buying into your message is obtained.

If you're still not convinced, let the figures speak for themselves. Gossard recently promoted its new range of G-String via an intergrated advertising and digital marketing campaign. The full-length TV advert, was followed up by a shorter, 15-second ad, asking viewers to text in to a five-digit number, in order to receive a £1 off voucher for a Gossard G-String. Over 25,000 texted in during the first few weeks of the campaign. Gossard achieved its six-month sales target in just six weeks, as a result of the campaign. Gossard also built up an opt-in database of customers, by asking who texted in for their mobile voucher whether they'd like to receive more information from the lingerie brand.

The future of mobile marketing is only going to get brighter. SMS is just one form of messaging that we'll see marketers and advertisers use over the next few years. As mobile-users upgrade their handsets, they'll be able to receive colour and moving images on their phones as well as high quality audio files. With the current black & white 160 Characters....we are still at the tip of the iceberg. The impact mobile has on the way brands market and advertise, is only just beginning.
 
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