Marketingeasy

SMS Premium Messages (Love predictions, Love Calculators, Horoscopes, Perfect Match, etc…) is a damn competitive arena. These guys are top spenders on online advertising. They also are “aces” when comes to new ways to approach new consumers.

It wasn’t that competitive at 3 or 4 years ago. Back then they had a whole new world full of famish consumers keen to join their services. SMS companies had massive ROIs.

But now the history has changed, the levels aren’t the same, ROI is significantly lower, marketplaces networks are avoiding them, and customers are costing much more.

What happened?

The same it’ll happen to any other industry:

1) Human Beings have shorter time to spend with you - More noise less attention

2) Human Beings have a limited amount of money - People cant buy everything, they need to make choices

3) More products offered, less money to go around - Everytime you buy a Coke you don’t buy a Pepsi. As Seth Godin says “As the number of companies offering products increases, and as the number of products each company offers multiplies, it’s inevitable that there will be more losers than winners.”

4) More Competition = > A need to capture more attention = > Increase spending - Basically, if you spend less money than your competitors in a competitive scenario it’ll lead a decrease in sales.

5) Increase in marketing exposure costs more money

6) More money spent leads to one of these two choices:

a) upgrade your final price

b) spend even more.

Cheers

Lucio Dias Ribeiro

By the way, picture above is from Matt Skull’s FlickR collection