Mobile messaging ad spend is set to reach $7.4 billion by 2017, according to a new report from Juniper Research, with location-based SMS driving the growth.
Location-based SMS schemes like O2 More are opt-in and the consumer can choose which types of offers they would like to receive. These types of schemes will become more common as operators attempt to look for revenue streams beyond voice and data.
Juniper argues that SMS ads have significant benefits for marketers — while they may lack the rich media content, they are very familiar to consumers and have a much higher chance of being opened, even if unsolicited. SMS ads are also a low cost option for those seeking large reach.
When it comes to what brands can do about their mobile ad efforts, the research company suggests creating a joined up mobile strategy, ensuring that mobile adverts direct consumers to mobile optimized sites or content. Mobile apps are also mentioned to offer valuable inventory for mobile ads and in that sense, spend on in-app advertising will increase rapidly…
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