Verizon SMS Cost Increase Equals Big Impact For Marketers

Posted: October 10, 2008 in Mobile
Tags: , , , ,

While I often joke that next year has been the year for mobile marketing for the last three years, one of the real truths behind that statement has been the carriers clinging on to every ounce of control at the expense of the holistic ecosystem growth. Of course the other factors that contributed to this – slow network data speed and devices that didn’t facilitate good consumer experiences, are soon to be a thing of the past with 3G networks and the widespread adoption of devices that are designed for more than just voice services.

When I read about Verizon potentially moving forward with a new SMS rate structure for marketers last month, I had no idea that it would be such an abrupt roll out. Today I learned that the new rate structure, a flat $0.03 per outbound SMS, which in many instances doubles to quadruples the costs of a marketer’s SMS program, (depending on scale) will roll out on Nov 1st!

While SMS marketing has certainly started to take off, in no way is it widely adopted yet, and many of those who have adopted it are still funding it with discretionary budgets. Amid the current economic crisis, this could not have happened at a worse time.

That being said – business is business and Verizon has the right to increase fees, and I do indeed hope that this is a warranted increase, as opposed to Verizon’s means of increase revenue versus offsetting rising costs. Although if that is the case, I would assume that other carriers will follow suit. The billion dollar question is whether the new rates will decrease volume and thereby decrease the market? At the very least it will contribute to a possible decline in growth rates prior to the market hitting its tipping point.

Participate in My SMS Poll
Text the word OPTIONS to 75309 to participate in a poll on the subject. You will be prompted to answer the question: Do you plan on implementing mobile marketing in 2009? Reply with “A1” for Yes, “A2” for No, and “A3” for Undecided.

Live results can be found here
(courtesy of TextMeForBusiness.com)

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