Future hype and talk of "endless possibilities is a common marketing tool used for all new technology developments. It is also the factor that influences marketers to make rash decisions. As a marketer who has been through the dotcom disaster, the key learning from this is not to rush into new technologies. Instead, wait for the audience. Equally as important is choosing a supplier with a track record that demonstrates what they have achieved, not what they think they can achieve.
Next generation wireless messaging, such as MMS on 3G networks, offers enhanced features allowing for greater creative applications, which means additional opportunities for marketers. Direct marketing applications and content will still exist, but branding capabilities will be thrown into the mix. Some of these improvements include the ability to send and receive messages comprising text, sounds, images and video to compatible handsets.
An early example of marketers taking advantage of the first phase of MMS capabilities (GPRS) is promotional staff taking photos of patrons at an event using the new Nokia MMS phones with a built-in digital camera, branding the images with a promotional offer and sending them as an MMS to the recipient's handsets. This also allows recipients to forward the picture to their friends meaning increased traffic and branding, which is great news for both carrier and clients. An example of utilising the second phase of MMS capabilities (3G) as a marketing application is where a consumer can request a movie trailer, then receive a TVC-quality 15-second trailer which also gives them the option to buy tickets to that film directly, with the ticket value billed to their next mobile account.Whilst these applications are exciting and offer true internet quality applications on a handset, there are still some issues for marketers, including:
- Handset replacement cycle - consumers must purchase MMS-compatible handsets
- New infrastructure is required by the telco's
- Inter-operator compatibility will slow the uptake for marketers, as only single operator applications will be made initially. Hong Kong CSL is one of only four operators offering a commercial MMS service, and one of the few who have successfully established interoperability functionality across networks. The global rollout will take some time. According to Credit Suisse First Boston, penetration rates of MMS-compatible handsets will be 53 per cent in 2005 with only half activated. Is this enough for marketers? Delivery costs are also prohibitive at present, ranging from US$0.50 to $1 for delivery. Marketers should not only use existing technology and offer new and unique services to reach a mass market, but also ensure the market is ready before executing a niche campaign.
