The advertising revenues of Europe's large free-to-air television broadcasters are beginning to recover after the declines of 2001 and 2002.1 But owing to the proliferation of niche cable and satellite television channels, those revenues are still spread too thinly. The broadcasters' road to revenue growth thus remains far from smooth.
One way to boost ratings and advertising sales would be to marry TV broadcasting with the Short Message Service. SMS, which enables mobile users to exchange text messages, is quickly becoming more and more popular despite high prices. A survey2 suggests that 42 percent or more of the mobile-phone users, and up to 70 percent of the teenagers, in a number of Europe's largest TV broadcast markets are interested in some form of interactivity between TV and their mobile phones.
At present, SMS-TV messaging accounts for less than 2 percent of the €22 billion in gross annual advertising revenues generated in the European TV broadcast market. But broadcasters could be underestimating the greatest strength of linking SMS to TV: SMS is an effective direct-marketing tool and can also increase ratings. McKinsey studies found that adding SMS interactivity to certain shows improved their viewers' loyalty. In some cases,...
One way to boost ratings and advertising sales would be to marry TV broadcasting with the Short Message Service. SMS, which enables mobile users to exchange text messages, is quickly becoming more and more popular despite high prices. A survey2 suggests that 42 percent or more of the mobile-phone users, and up to 70 percent of the teenagers, in a number of Europe's largest TV broadcast markets are interested in some form of interactivity between TV and their mobile phones.
At present, SMS-TV messaging accounts for less than 2 percent of the €22 billion in gross annual advertising revenues generated in the European TV broadcast market. But broadcasters could be underestimating the greatest strength of linking SMS to TV: SMS is an effective direct-marketing tool and can also increase ratings. McKinsey studies found that adding SMS interactivity to certain shows improved their viewers' loyalty. In some cases,...
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