Editor’s note: Text messaging is more than a means of communication; it’s a mass medium – with the emphasis on mass. It’s universal (anyone can use it), it’s effective (capable of reaching millions across the planet and returning direct responses within seconds), and it’s ours (SMS is a language native to mobile phones created by mobile users). Mark Hawkins, Director of Communications at the Mobile Data Association (MDA) – the U.K.’s longest established mobile industry association – explains how lesser known areas such as mobile CRM, mobile health and conversational marketing bode well for the future of text messaging and mobile data.

Text messaging allows companies and brands to interact with mobile users everywhere. From appointment reminders, to remote diagnosis, to more personalized mobile marketing pitches, these conversations are driving new growth and new business models.

The Mobile Data Association’s most recent Mobile Trends Report found that the U.K. is sending 11 text messages per hour. That may not sound like much, but mobile data analyst Tomi Ahonen has global figures that show the vast reach and potential of messaging. At the end of 2009, 77 percent of the 4.6 billion mobile phone subscribers on the planet used SMS text messaging (that’s 3.5 billion), and 37 percent used MMS messaging (1.7 billion).

Connect the dots, and messaging is a mass media used and enjoyed by a global messaging-literate audience.

Despite our fixation with smartphones, super-phones and apps — mobile 2.0 attractions that interest affluent audiences and users living in developed markets – text continues to be the main attraction. SMS features on all mobile devices launched to the market. Thus, messaging is the best and most effective way to reach everyone everywhere.

Moreover, the evolution of mobile marketing and the introduction of new mobile tools and technologies are pushing messaging usage to new levels. Little wonder that messaging continues to make considerable money. Non-voice mobile markets are still predominantly driven by SMS messaging, which is second only to voice in mobile network operators’ revenues.

A WORLD OF OPPORTUNITY

SMS began as a person-to-person form of communication. Over time text emerged as an ideal way to deliver mobile marketing messaging, a scenario that made good business sense from brands, but partially blinded the industry to the many other use cases possible.

While it is often neglected in favor of new, richer mobile media, messaging is still the centerpiece of mobile marketing campaigns today. But it also sits at the centre of much more.

Messaging is used to deliver basic notifications to both consumers (B2C) and businesses (B2B). And it is increasingly being deployed in more innovative ways across a number of industry sectors.

Indeed, messaging can be harnessed to coordinate aid efforts, raise funds, and help people and non-profits in remote areas of emerging nations organize their daily routines. Closer to home, messaging can significantly reduce costs and increase productivity in the U.K.’s own healthcare sector.

The advance of messaging and the its impact on business and society at all levels strengthens the MDA in its goal to promote the use and benefits of mobile data and allow companies across the mobile data industry to speak with a single voice.

Building on successful projects such as the BBC Radio 1 Picture Messaging Day in December 2009 — a day that saw over 42,000 BBC Radio 1 listeners send in MMS messages of themselves via an MDA-enabled free short code — the trade body will continue to focus on activities that bring mobile data to a larger audience.

Indeed, a key focus in the 2010/12 term will planning and activities to integrate messaging into preparations for the 2012 Olympic Games in London. Efforts will also center on ways to improve mobile giving by streamlining the mobile charity text messaging process in accordance with the existing MDA framework.

To spearhead this effort Roger Craven – CEO of Vir2, a U.K. pioneer in mobile charity fundraising services – has recently been appointed Director Responsible for Mobile Charity within the MDA. The position has been created to encourage wider adoption of the framework and make it possible for more users to give to their favorite charities and causes. Roger is more than qualified. Since founding Vir2 in 2005, he has been involved in over a thousand charity campaigns using messaging, Bluetooth and other mobile media. He has also lobbied British Parliament for HMRC VAT rules for SMS donations to be clarified.

In recognition of messaging and its increasing role in marketing the MDA has also appointed Oscar Jenkins — CEO of Dynmark International, a U.K.-based mobile marketing company with a strong focus on messaging — the MDA Director responsible for Mobile Marketing. Shawn Brown, Head of Sales at Dialogue Communications, a mobile solutions specialist, has been named Director responsible for Regulatory matters.

MOBILE DATA STATS

From telematics and Machine-to-Machine (M2M) messaging, to mobile health and mobile (conversational) marketing, the intersection between mobile and business is a lucrative one. This is where the MDA strives through its work to bring benefits to industry, educating stakeholders about the potential applications and giving guidance on best practice.

Technology and user behavior are perfectly aligned to drive significant growth in mobile messaging – both SMS and MMS. However, regulatory issues must also be overcome before messaging can achieve its commercial potential as a mass-market mass media.

Live SMS voting, competitions, chat and tarot services are all well-positioned to experience healthy growth provided the industry is united on best practice and firm regulation. This is why the MDA is involved in liaison with PhonepayPlus, the U.K. regulator of phone-paid services, as it draws up its latest Code of Practice.

There’s a lot at stake.

A study by the research firm ThinkTank estimates that Premium SMS market revenues totalled GBP316.7 million in 2009. Meantime, new MDA board member Dynmark recently reported that the commercial messaging market (which excludes person-to-person messaging) will be worth GBP 620 million in 2011. This forecast is a clear indication that mobile data is thriving and will remain a strong-growth sector for some time to come.

What’s more, Dynmark suggests that evolving media consumption behavior through subscription-based publisher paywall models will likely encourage new ways of integrating messaging as companies and organisations seek new ways to monetize their content.

BUSINESS IS BOOMING

Clearly, messaging in the enterprise – and across a variety of sectors including M2M, healthcare and public sector — is poised for significant growth.

A vertical high on the radar is mobile health (mHealth). Here the deployment of even the simplest messaging service, such as a reminder service alerting patients to the time of their appointments, can create huge benefits and cost savings. In fact, local health organizations estimate the cost associated with missed appointments alone is a whopping GBP180 million per year. More importantly, the National Health Service (NHS), the U.K.’s publicly funded health service, report inefficiencies cost the country GBP800 million. An excellent opportunity for mobile to reduce wastage and make a positive difference.

Against this backdrop, case studies demonstrate that messaging is the best way to reach patients on the move.

Why? Because text messaging is simple, affordable and it can give consumers the opportunity to reply. Another benefit is the guarantee of scheduled delivery within a 24-48 hour period before the appointment, allowing doctors and general practitioners to reach patients when they are most likely to respond in the first place. And let’s not forget that these messages can be delivered to all mobile devices everywhere. Sensing a business opportunity, an increasing number of companies now offer solutions that integrate with appointment software, completely automating the task.

As this column illustrates, messaging and mobile data continue to play a central role in much more than marketing campaigns and direct-to-consumer offerings. It is a primary communications medium that connects companies and enables all verticals to communicate with their customers. Bank statements, medical advice, appointment reminders, voting and location-linked services are just a few examples of the services that will ensure the advance of messaging in data-hungry societies across the globe.

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Mark Hawkins is the Director of Communications of the Mobile Data Association (MDA), a U.K. trade organization that has spearheaded the promotion and use of mobile data by businesses and consumers since it was established in 1994. As a director of the MDA Mark has acquired a deep knowledge of the mobile industry. An area of expertise is mobile data transmission and aggregation, including messaging (SMS and MMS), 3G Video and Location-Based Services (LBS). Mark is also the founder of Composed Communication, a company providing public relations and marketing communications services to technology companies.

For more information, and good reasons to join(!), visit the MDA website here. Sign up to become a member here.

This entry was posted on Wednesday, July 28th, 2010 at 4:18 pm and is filed under Guest Columns, Mobile Advertising, Mobile Research. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.