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Mobile Marketing Upswing Aided by Superior InteractivityTitle Text

Palo Alto, Calif. — January 25, 2005 — Overcoming many restraints, including untested technologies, mobile marketing has emerged as a highly successful medium for advertisers. Its enhanced interactivity and speed of response give mobile marketing campaigns an edge over traditional media such as television and radio.

New analysis from Frost & Sullivan (http://www.wireless.frost.com/), An Insight into the United States Mobile Marketing & Short Code SMS Markets, reveals that revenue in the market totaled $11.5 million in 2004 and projects to reach $69.3 million in 2007.

If you are interested in a virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the latest analysis of the An Insight into the United States Mobile Marketing & Short Code SMS Markets - then send an email to Danielle White - Corporate Communications at dwhite@frost.com with the following information: your full name, company name, title, telephone number, fax number, and email.  Upon receipt of the above information, an overview will be sent to you via e-mail.

To further enhance customer response, mobile marketing companies must work toward achieving greater synchronization in a comparatively extended value chain that includes advertisers, platform providers, connection aggregators, and mobile operators.

Absences of coordination and mismanaged relationships have been long-standing bottlenecks, intensified by the lack of a central aggregator for mobile operators. The plurality of mobile operators and their individual rules and regulations slow down mobile marketing campaigns.

“Although marketers reserve short codes from the Cellular Telecommunications and Internet Association (CTIA), they still have to contact each mobile operator and short messaging service (SMS) aggregator for connectivity,” explains Frost & Sullivan Industry Analyst Vikrant Gandhi.

Marketers also must ensure that each mobile operator participates in the campaign, where each one has a different set of rules and regulations about the suitability of content for subscribers.

In addition, as network speeds increase, there is mounting pressure for better coordination between mobile operators, application developers, and brands. This is esential if the entire value chain is to benefit.

The lack of flexibility among participants in the value chain also stalls decisions on suitable revenue shares in a campaign. Since revenue from mobile marketing campaigns expects to rise with more advertisers utilizing this medium, participants must resolve this issue.

“The mobile operators bill the campaign-related messages successfully delivered, retain a share, and pass the rest to connection aggregators. They, in turn, keep their share and forward the remaining to the next level of the value chain,” observes Gandhi. “The revenue flow may actually vary as in some cases, the brand owners pay the mobile operators for banners and interstitials, while in other instances, the mobile operators pay revenue share to the brand owners for text messaging-based campaigns.”

As companies outside the telecom and entertainment arena also adopt mobile channels as marketing mediums, there has been an increased flow of revenue. This upswing has led to the establishment of companies that specifically produce mobile marketing campaigns. With a large pool of mobile users, these campaigns have the potential to accelerate user adoption.

Besides mobile operators, specialized companies can assist in disseminating accurate information on interactive mobile marketing, as the popularity of text messaging is providing lucrative opportunities.

These trends toward a ‘one-stop shop’ are likely to boost customer interactivity and maximize brand awareness.

The study, An Insight into the United States Mobile Marketing & Short Code SMS Markets, is part of the CTIA Wireless subscription. Covering key issues in the market, the study has segmented mobile marketing campaigns into: push or pull campaigns, voice-based, SMS-based, MMS-based, wireless applied protocol (WAP)-based, and Java and binary run-time environment for wireless (BREW)-based ones. The research service provides industry challenges, market drivers and restraints, and application trends, and offers strategic market forecasts. Profiles of the key industry participants and descriptions of important mobile marketing campaigns on leading mobile operators have been included. Executive summaries and analyst interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. Its advisory expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities for clients. While serving clientele ranging from virtually every Global 1000 to emerging companies, Frost & Sullivan's comprehensive industry coverage includes a global perspective of all vertical and horizontal industries. Its unique coverage combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com

An Insight into the United States Mobile Marketing & Short Code SMS Markets
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Contact
Danielle White
Corporate Communications – North America
P: 210.247.2403
F: 210.348.1003
E: dwhite@frost.com

Kristina Menzefricke
Corporate Communications – Europe
P: +44 (0) 20 7343 8376
F: +44 (0) 20 7730 3343
E: kristina.menzefricke@frost.com

Sarah Lourdes
Corporate Communications – Asia Pacific
P: +603 6204 5878
F: +603 6201 7402
E: sarah.lourdes@frost.com

http://www.frost.com

Keywords in this release: mobile marketing, short code SMS, U.S., mobile operators, application developers, cellular telecommunications and Internet association, CTIA, SMS aggregator, connection aggregators, banners, interstitials, research, information, market, trends, technology, service, forecast

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