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SMS a huge money spinner
08/08/2004 21:10 - (SA)
Dulile Sowaga
Johannesburg - The marriage of short message service (SMS) and TV is gradually becoming a useful medium for broadcasters to increase viewers and generate more revenue. Cellphone companies also benefit.
A study in Belgium, France, the Netherlands, Scandinavia, Spain, and the UK by consulting company McKinsey suggests that 42% or more of cellphone users, and up to 70% of teenagers in Europe's largest TV broadcast markets, are interested in using SMS to interact with TV.
The company says that marrying SMS and TV can help boost the ratings of TV programmes and increase advertising revenue. The interactivity between the two also increases viewer loyalty.
"SMS provides excellent indications of a show's popularity, even though conversion rates, from viewer to active SMS participant, vary widely by application and by content of individual shows," the study shows.
It says Europe is the world leader in SMS-TV. In a study of more than 60 SMS-TV shows in Western Europe, between 5% and 15% of the total audience was converted from viewer to active SMS participant. This compares with the results of traditional marketing campaigns which might yield participation rates of between three and eight percent. Rates for internet advertising average 1% to 4%.
McKinsey says that last year, the 900 million messages sent in the European SMS-TV market generated about €400 m for broadcasters, mobile phone companies, and technology providers.
No research has been done in South Africa on the phenomenon but pay-TV channel M-Net agrees with McKinsey's findings.
For M-Net, SMS is becoming the tool that viewers use to vote for the station's live shows. The pay-TV channel also uses SMS to create a reminder service, which allows viewers to request an SMS reminder one hour before their favourite show starts. These can be set days in advance, said M-Net marketing director Glenn van Loggerenberg.
"Typically, reality-based shows are best for this because the audience is better able to identify personally with the content and is more likely to want to make an input," said Van Loggerenberg.
For instance, in a reality show such as Project Fame, of which the headline sponsor is MTN, the SMS traffic around the show is seen as an important marketing device.
"It allows them (MTN) to position their brand as the enabler of this audience power. Because Project Fame has such a loyal viewership, we have also been able to offer exposure around the SMS strap to create value for sponsors," he said.
MTN said the number of SMS messages to the show had increased sixfold from June to July.
The SABC said it could draw no conclusions about the service, but viewers of SABC programmes such as MTN Soccerzone, Asikhulume - Let's talk and 3Talk are familiar with the use of SMS to vote.
- City Press
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South Africa
