TXTing Digital Signs: A data point

This is a follow-up to my post from last week where I expressed incredulity about people actually sending TXT messages in response to a Digital Sign. Scarborough Research emailed me their latest press release today entitled “El Paso, Salt Lake City, Dallas and Memphis are the Top Text Messaging Markets in the U.S.: Text Messaging Delivers Coveted Young, Multicultural Demographic Texters are Top Spenders on Cellular Service, Avid Hi-Tech Buyers.”

To summarize, their study showed:

  • 57% of cell users age 18+ use text messaging in El Paso (the highest nation-wide)
  • other leading markets: Salt Lake City, Dallas, Memphis (55% TXT use)
  • this is compared to 48% nationally
  • Ft Myers, FL (36%); Charleston, WV (36%); Grand Rapids, MI (35%) have the lowest use
  • youth and cultural diversity are two “demographic commonalities” among the high-use txters, who are 49% more likely to be 18-24, 14% more likely to be Hispanic and 24% more likely to be African-American
  • high-use txters are avid technology shoppers (among that top 6% I harp about, from another Scarborough study)

Ok, so I need to amend my rant from before.

If you’re trying to reach these high-use txters who lean 18-24 and are more culturaly diverse, than adding txt-messaging capability to digital signs can give you an edge. And everyone (er…advertisers, at least) is chasing that young demographic, which over the next 15 years will transform our country. This year’s election is the first sign of the big demographic shifts underway, driven by the high-use techno-kids who TXT a lot.

So that’s my amendment. I hope you enjoyed it!

BUT, I stand by my incredulity at actual normal non-high-use txters sending txt messages to digital signs. AND even in those high txter markets like El Paso, you’re missing 43% of the market with your txt-capability (or 65% in Grand Rapids).

I’ve yet to find good research on response rates via txt to digital signs. Is there any out there yet?

  • Ross
    I don't know if it reflects whether people would actually target signs with their SMS, but the usage rates in Europe are exceptionally high - above 80%. Maybe feeling more comfortable with SMS might have an effect on whether people would do it, but over here we SMS our votes to TV shows, radio shows, to find our nearest hotspot and a host of other services.

    There is a little info on European SMS usage with advertising at http://telephonyonline.com/wireless/news/teleco... The wikipedia entry ( http://en.wikipedia.org/wiki/Text_messaging#Europe ) also gives a few figures and sources on worldwide usage.
  • Ok, correct me if I'm wrong though, doesn't most of the world get free TXTing? It's just the US carriers that depend on SMS for a large share of their margins? For example, AT&T now has a TXTing plan for 200 messages monthly for $5 with the next plan up being for 1500 messages for $15. Clearly, they're pushing everyone to the higher plan, even though most people fall in-between, because it's a cash cow for them. I know that in Asia TXTing is free, so more people TXT than call to save money.
  • I don't know of anywhere in the world where free SMS is the norm. Nor is the US the most expensive, by any means (have you seen SMS termination prices in the UK?).

    In parts of Asia (Japan, for example), email is more prevalent than SMS, but that's more an effect of a top-down process, where carriers are even more monopolistic than in the US.

    Interesting piece on this subject (http://wcco.com/consumer/text.messaging.expensi...

    "Text messaging is a huge business for the phone companies. According to Informa Telecoms & Media, the cell phone industry will make $130 billion from messaging worldwide in 2008. To put that number in context, one year of box office tickets from Hollywood movies typically brings in around $30 billion. "

    Eric, let me know what, if any specific stats you're looking for and I'll send them over to you. I'm much more effective at that than anything blog-related :)
  • Hmmm. In a lot of countries, incoming SMS is free, outgoing is not. Maybe that's what I was thinking of. But $130 billion! HOLY CRAP!
  • Looks like my URL above is broken. Should be
    http://wcco.com/consumer/text.messaging.expensi...

    Yes, the US is exceptional in that sender and receiver pay. This is unusual both in SMS and voice.
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