Telephia has published a report which says that USA premium SMS revenues totaled more than US$273 million, making up 32 percent of mobile content revenue in Q1 2007. Download purchases paid for via premium SMS (at off-portal storefronts) totaled nearly US$215 million, accounting for 79 percent of premium SMS revenue. These off-portal storefront purchases include content such as ringtones and horoscopes.
Voting/sweepstakes entries generated more than US$35 million. While voting/sweepstakes entries generated only 13 percent of total revenues for premium SMS transactions, they represented 47 percent of premium SMS volume, equaling more than 34 million transactions.
"Premium text messaging continues to be an additional way to reach consumers directly - off the carrier decks. Premium SMS has grabbed a healthy slice of the mobile content market, accounting for an off-portal share of 32 percent," said Kanishka Agarwal, vice president of mobile media, Telephia. "Moreover, marketers are experimenting beyond the standard rate SMS voting pioneered by American Idol and tapping into premium SMS with voting/sweepstakes campaigns. NBC's Deal or No Deal has translated into a premium SMS hit, generating nearly half of the volume and revenue of voting/sweepstakes entries in the first quarter of 2007."
Premium SMS Transaction Volume and Revenue Share (U.S.)
|Category Type||Volume Share||# of Transactions (000)||Revenue Share||Total Q1 2007 Revenue|
|Off-portal Storefront Purchases||40%||29,544||79%||$214.9M|
Source: Telephia Premium SMS Report and Telephia Attitudes and Behavior Survey, Q1 2007
*Represents unclassified premium SMS short codes."
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