Take back Control! The Blog of TXT Circle

Critical Question?

I was reading an interesting article on Techcrunch about Web Apps 101.  It proposed a three point plan for success.  In my next three posts I will address the following questions and relate them to what we are doing at TXT Circle. 

Who will your product or service target?

Why will they want it?

How will you make money for it?

Text Messages Are The Best

In a study published on Emarketer.com and conducted by Harris Interactive, 56% of the 344 respondents would prefer to receive valuable advertising via text message over any other method.

Text messages are quick, simple, and to the point.  They also work.  193 people apparently agree with me. 

Free Google Phone?

I spoken about subsidizing wireless service with advertising before but this could be the most significant development on that front ever!

Google is said to be currently in talks with multiple firms in order to build their own branded handset.  This device, probably some type of Blackberry-like smartphone will run Google's own operating system and will feature several types of advertising including search, gaming, and SMS.   Google has also begun acquiring companies with technology that is complimentary to this goal.

An article published by the TIMES Online claimed that Goggle CEO Eric Schmidt has suggested that the mobile service be free, supported by ad revenues.

This development represents a significant turning point in the history of the mobile phone.  The appearance of a free or nearly free handset with service supported by ads will surely accelerate wireless adoption across the globe. It will also ignite the consumer backlash I have been predicting.  The Google mobile program will be a success at first if only due to their huge brand recognition.  The early success of the "Google Phone" will surely be mimicked by others resulting in an advertising dominated mobile industry.  I'm sure there will be a large market of people who will pay just to avoid the constant avalanche of advertising.

There will also be others who will still want to receive ads, and the offers that go with them. These people will just want to get the ads on their own terms.  The need for a service like TXT Circle, that allows subscribers to receive relevant ads when they want has never been so clear.  (That's for all you potential Investors out there!...call me:)

Get this blog as a Widget to your home page!

Since I'm gaining more subscribers all the time I thought i'd make this blog available as a widget that you can post to your home page or anywhere else you like.  Hope you enjoy!

Gang Warfare

There is one underlying trend that resulted in my starting this blog and of course TXT Circle, the company that will soon take the mobile marketing world by storm....Group Buying Power and the belief that consumers want to tell us what they want and when they want it.  I briefly touched on this trend in my post "Some Trends I Believe In."

Trendwatching.com has nailed this trend almost perfectly with their article "Crowd Clout".  Its an in-depth look at the trend of consumers connecting together to achieve greater value from brands and retailers. They even suggest consumers "ganging up" on companies.   The article actually defines the concept as:

CROWD CLOUT: “Online grouping of citizens/consumers for a specific cause, be it political, civic or commercial, aimed at everything from bringing down politicians to forcing suppliers to fork over discounts.”

Now, the good people at Trendwatching have only neglected to add the mobile phone as a venue for group power but I believe that it will be just as important a tool as the regular internet is today. Obviously, as evidenced by some of my former posts, the ability to reach the right consumers directly at the right time is incredibly effective.

Why there's a shortage of entrepreneur blogs

Lately I've been running around attending meetings for my company TXT Circle and I have not had the time to write a blog entry in almost a week.  I have had some time to read however, and I've noticed others comment on the lack of blogs written by entrepreneurs.

I can attest that the reason there are so few is that we (entrepreneurs) have no time once our venture gets off the ground.  We are usually doing two or three jobs, who needs one more?

Anyways,  Here are some links to let everyone know that I'm still dedicated to bringing you news and comment on mobile marketing from around the world:

-Verizon Wireless wins court battle

-Random House SMS promotion for new book

-SMS helps you quit smoking

What does it all mean for the consumer?

Through the magic of technology, I am able to scan news feeds from all over the world.  Recently I've begun to notice a trend happening around mobile marketing.....It gets mentioned A LOT!

Papers and news channels like the New York Times, CNN, The Globe and Mail, and the Seattle Times all have recently posted articles on mobile marketing.  So, what does all this buzz mean for the consumer who's phone will soon be teeming with ads on everything from Jeans to Xbox?

Mark the date and time because I'm making a bold prediction! 

The emergence of Mobile Marketing will trigger a massive trend toward group buying behavior.

Carriers like Virgin Mobile and their program "Sugar Mama" for example, promote this type of behavior by offering extra minutes in exchange for viewing ads.  This has been a popular program, already awarding over 3 million minutes to 250,000 subscribers. Carriers and analysts all agree that for mobile advertising to work there has to be an incentive for people to watch or respond.  How long before the people that opt in to these programs realize that they are part of a large group and begin demanding more from advertisers in exchange for viewing or receiving the ads? 

People know that there is strength in numbers.  Todays consumer is already more educated than ever before thanks to the Internet.  Customer loyalty programs exist for this reason. Consumers know they can get a particular product or service from a number of different sources so certain retailers and service providers design programs to retain a select group of customers (usually the big spenders). Some of these programs fail because they fail to keep the membership happy by offering better and better incentives.

It seems to me that there will be an important niche to be filled by mobile marketing companies that can engage the masses of people that will be inundated with mobile advertising.  Firms (like TXT Circle) that can position themselves as advocates for the consumer are likely to succeed. 

Remember, you heard it here first!

A Brief History and the Future of the Internet

This a little off topic for me, but I had to share this great video.

Enjoy!

Crazy Thought of the Day

Here's my crazy thought of the day.  It came to me after reading an article in today's Globe and Mail and a press release from Verizon Wireless.

"By lowering prices on certain features, wireless carriers in Canada could attract more users and keep ARPU at a respectable level."

It seems that Canada's wireless adoption rate is a "National Disgrace" and that the carrier's efforts to increase ARPU have left Canada well behind other developed nations.

Verizon Wireless's new text messaging plans are a great example of lowering prices to drive usage and more subscribers.  Verizon clearly recognized that text messaging is a valuable service and the best way to drive ARPU and subscriber growth simultaneously.

Bravo Verizon! Now all they have to do is make it free to receive text messages like it is in Canada! eh?

Under Hyped continued...

As I mentioned last week, IDC is calling the for a massive increase in spending for the mobile advertising space in the coming year and beyond.

As a little start-up, I am unable to afford the USD $4500 to acquire the actual study, however I was sent a primer from a friend.  There has been great coverage on this study, which helps me as I am currently in fundraising mode.  I am particularly excited about some of the findings.  Have a look at one excerpt:

"We think the real potential of mobile advertising is the ability to create a very new type of advertising experience," he continued, "one that is, in some cases, on-demand, that delivers information  to you when it is directly relevant, and one increasingly based on your individual needs, interests, aspirations and behavior."

Scott Ellison - IDC Vice President Wireless and Mobile Communications

This is exactly the opportunity I saw when I started TXT Circle.  The time for an on-demand and  valuable service has arrived. I love being right, and it seems that some of the most respected people in the industry are starting to agree with me about mobile marketing's future.

Check out some more coverage of the story here.