AT&T recently announced an end to their unlimited data plans for new smartphone and iPad customers. Whether AT&T consumers will ultimately applaud this cost-saving measure or criticize the cap on their data consumption still remains to be seen. One thing that many critics contend, though, is that other carriers are likely to follow suit.
AT&T will offer new customers two data options: one that allows 200 MB of data per month for $15, and one that allows 2 GB of data per month for $25 (both with the option to purchase more data if needed). AT&T claims that most of its users consume less than 2GB of data each month anyway, and thus, will not be affected by the cap (except that they will pay less).
But what does any of this have to do with SMS marketing?
If limited data plans do become the more commonly-used model with other carriers calling for plans similar to AT&T’s, consumers will necessarily become more judicious about the amount of websites and downloads they access on their mobile devices. Those who are on the smaller 200 MB/month plan are likely to be particularly careful because if they go over their limit, an additional 200 MB of data will actually cost them more that month than people on the 2 GB plan pay for their data. Advertisers will therefore have to get much more creative in finding new ways to engage mobile users. Brands may encounter fewer clicks on their banner ads and less frequent visits to their mobile sites. What they will not find adversely affected, however, are their SMS campaigns.
SMS is enabled on virtually every mobile phone and requires nominal bandwidth. Furthermore, as carriers lean more toward unlimited text plans, consumers can get less discriminating about their texting even as they get more discriminating about their mobile web usage. These features allow SMS to continue to reach interested consumers directly and quickly without impinging on their limited data allotments. There is no question that limited data plans will force advertisers to rethink high-data requiring video ads, and may find themselves gravitating toward well-targeted SMS marketing campaigns that drive up store traffic and revenue through mobile coupon offers and contests. SMS calls-to-action can be easily advertised on mobile banners to reach those who are conscious of their data usage.
While consumers are adjusting their mobile browsing habits to new rules about data consumption, now is the time to initiate an SMS campaign. The transition from unlimited to limited data usage will change the way many people consume information through their mobile devices, but their relationship to text-message marketing is likely to remain stable. Marketing strategies with the greatest chance of success are those that can reach all mobile users (not just smartphone users) in ways that are cost-effective for the business as well as the consumer.
