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Wholesale VoIP Feature Article

Blog Emphasizes Why SMS, MMS Remain Relevant

March 02, 2017

By Paula Bernier, Executive Editor, TMC

Mobile advertising is experiencing healthy growth, particularly video ads, according to Ovum. The research firm indicates that SMS, MMS, and P2P represent about 5 percent of that traffic. And CTIA (News - Alert), the cellular industry association, says that America’s wireless networks carried more than 1.9 trillion text messages and 218 billion MMS messages in 2015.

Services like MMS and SMS are an effective way to interact with customers because these communications are non-intrusive, and short and easy to read; most customers prefer texting as a medium; and MMS messages attract viewer eyes, VoIP Innovations says in a recent blog. That’s important, the company suggests, because 90 percent of companies compete solely on the basis of customer experience and because relevant images have been shown to get 94 percent more views.

In a previous blog, the company also noted that text messages have an open rate of 98 percent and that 90 percent of text messages are read in less than three minutes. And it said that SMS can allow people to share their needs and get offers in response, and that MMS offers businesses the ability to share short videos to demonstrate, help fix, or promote products or services. SMS is also a good method of supporting two-step verification.

Global mobile Internet ad spending totaled $101 billion last year, according to Mobyaffiliates, a B2B marketplace for the mobile ad industry. It said that U.S. mobile advertising spending in 2016 was $40 billion. And U.S. mobile video ad spending in 2016 was $4 billion.

“Now let’s look at what different mobile ad formats at the U.S. mobile ad market and how they stack up to each other,” Mobyaffiliates said in its study. “The first thing to notice is that SMS, MMS, and P2P messaging has actually shrunk over time, from almost 20 percent in 2011 to only about 5 percent [last] year. Video ads have doubled in volume from 5 percent in 2011 to 10 percent in 2016, and so once again it demonstrates the growth of video as a format over the years.”

Search has grown very little for the last five years, and companies seem to be cautious with their spending on ads with mobile ad platforms such as AdMob (News - Alert), Opera MediaWorks, MoPub and others, Mobyaffiliates added. Meanwhile, it said, display has experienced modest growth of roughly 1 to 2 percent year-over-year.

Edited by Alicia Young

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