RSVP Today! What is Text Messaging? What are the most relevant aspects of Text Messaging to radio today? How can stations generate revenue from Test Messaging? What does it cost?

What is Text Messaging?

"Texting" is the sending and receiving of short text messages (160 characters or less) on mobile phones. Every phone sold today has text messaging capabilities. Currently Americans are sending over 7 Billion text messages a month, that's more than 3 times the volume sent last year. For consumers it can be faster than a voice call, silent, unobtrusive and highly personal. The biggest users BY FAR today are the 12- 17 and 12-25 demographics. Over a billion text messages are sent each day outside the USA, generating over $50 Billion dollars a year in revenues. Four years ago that total revenue figure was essentially zero. Now, radio stations in the UK and Europe are making hundreds of thousands of dollars in new revenues via text messaging. In 2003 an investment was made by the wireless companies to remove technological obstacles, and use has been skyrocketing since. Businesses are finding out how useful it is and the competitive advantages it delivers. Text Promotions, such as on American Idol, generated millions of dollars in revenue.

What are the most relevant aspects of Text Messaging to radio today?

One is the pure revenue generation business model. The other is the incredibly inter-active nature of communicating silently right into the palm of someone's hand. Radio has long been the most intimate of mediums. Listeners put their favorite radio station's bumper sticker on their car. They don't do that for a television station. Wireless marketing allows that intimate relationship to grow, via a one-on-one medium, between the station and their listener's mobile phone.

How can stations generate revenue from Test Messaging?

There are at least three ways for stations to generate revenue from wireless marketing: 1) Non-Traditional-Revenue (NTR) options associated with texting a sponsor or advertiser's brand via the "outbound" message from the station to the listener. 2) On-Air sponsorship/media buys tied to the inter- active promotions. The client buys spot time, live reads by talent, etc., a full promotional campaign tied to activation via listeners mobile phones to enter a contest, tell the DJ what they think about a given topic, or provide direct feedback on anything at all. 3) "Premium Billing" where listeners' phone bills receive micro charges of anywhere from 30c to $2 for interacting with the station, either by requesting specific information (i.e. "last song played", weather, promotional interaction, etc) or by opting-in to a 'service' delivering regular information. (i.e. news on a favorite artist, traffic, loyalty club information) The amount billed to the listeners' phone is split between the telephone carriers, the station and the text provider. It is critical to give the listener total control over the interaction via their mobile phone, similar to how stations allow "opt-ins" for email push/sends. Although the system speaks most directly to Marketing and Promotions staff, the GSM usually takes immediate notice in recognizing several paths to revenue. Program Directors instantly recognized the ability to 'get sticky' with their audience while gaining excellent feedback from their P1s. These listeners NEVER get a busy signal and leave behind a written account of what they are saying. The content is live, real-time info they can use for on-air talk breaks. The automated system can provide immediate thank you responses and information to listeners.

What does it cost?

Costs to stations is minimal, either cash free via barter, just a few hundred dollars a month, or under minimal Premium use, entirely free. Given the revenue generating nature of the system, any cost is quickly covered with minimal use. Ken Benson, VP/International, Pinnacle Media Worldwide, International Office: +1.360.883.0092 Richard René is the US GM/Director of Business Development for dload, an Australian based Messaging application and platform developer. Richard has been working with radio stations around the world for over 20 years introducing new and cutting edge programming, marketing and sales concepts between nations. To find out more about dload's INVOLVE messaging platform for radio, please go to www.involveweb.com/radio and/or call Richard direct at: +208 433 9740, or email richard@reneglobal.com