SMS 2.0 – Yeah Right!
Affle came up with “the next generation SMS” some time ago. They call it SMS 2.0. Airtel also tied up with them for this new version of SMS. I had the chance to analyze it a bit over the weekend -
Features / Selling points of SMS 2.0
A personalised messaging experience
Wasn’t SMS personal already? Dont you send an SMS to a friend / someone you know only? We know of many “bulk SMS” companies and Affle surely isnt one of them – but one never really understood the “personal” part of it.
Color messages -
Now thats interesting. I am sure it makes a difference if you read “Hey that was such a stupid idea” like this or “Hey that was such a stupid idea” like this. I am sure they would have studied Gtalk vs Ymsgr and realised that while Ymsgr is feature heavy and gives users a lot of “choices” – people just want to chat (yeah I mean those bolds). MSN messenger has the most options – thats exactly why it sucks so much as a messenger – gtalk is simple and thats why it works.
Fun emoticons -
Same argument as above.
Scheduled SMS -
This adds some value. However in India, most networks are usually over-burdened by SMS. So an SMS intended to reach at 10 pm might reach at 11. So if you want to make sure the SMS about breaking up reaches ur girlfriend once you are out of Indian airspace – yes that might work. Or maybe not – you arent allowed to have cellphones on in airplanes you know.
Content on SMS -
This definitely has value. People are interested in content and they would gladly pay for it also (Remember Hutch ads to pay Rs 50 for cricket scores? There are some free services like this ). There already are a few guys in the business like MyToday, SMSGupshup (user generated) etc. The question is – what is Affle doing more / different that people would try them? ALso if you are creating content – and placing ads on them – where is the “contextual intelligence”?
Sending Free SMSes -
They would use the existing J2ME app and send SMSes over the GPRS connection you have. SO the SMS is free, but the GPRS connection is what you pay for. Bright idea Sherlock!
What are the roadblocks for Affle / Why it wouldnt work / What should they address
The need -
I think the greatest factor for adoption of any product is the need for it. There is no great and real value for the customers here. Affle, of course, can serve “contextual ads” but that doesnt help the user – it helps Affle.
The effort -
Affle needs GPRS / CDMA or some kind of data connectivity. Considering the value is minimal, will the users go the length and get data connectivity AND install Affle? The answer is very close to No. I am not sure what their tie-up with Airtel is, but if it means a free Affle install with every GPRS Aitrel install, I would have serious doubts on the intelligence of the Airtel BD guys. Its illumating to talk to BD guys sometimes. In many companies (including a few ones I have worked in) BD guys have absolutely no idea of what they are selling or partnerships being done.
Where do I download it from -
They show up on Airtel Live. I wouldnt be surprised if a lot of people ignore the banner for Affle there. I once talked to a person at a big gaming portal who told me about banner ads on all GPRS landing pages of all providers. My first question was – do you make games for mobile phones? The answer was “No”. They just wanted the customers to register – duh! Thats what you get when you get MBAs from FMCGs to Sales in Technology companies. In that particular meeting I just kept my mouth shut after that (to prevent the laughter). Banner ads wont get you users. Think of something easier / better.
User education – receiving messages / sending messages
Do they expect users to format and send messages accordingly? If yes – then I couldnt find any user education on how to send sexy SMSes.
Advertiser value -
I read somewhere about Aviva tying up with them. I am looking forward to see the conversion rates on that (if thats made public). In case you want to put a bet on the value of conversions – do drop a comment in the comments section. I am sure Aviva is one disgruntled company with SMS 2.0.
Anton Ego’s Perspective -
I think Affle has a J2ME application which accesses your SMS inbox. I think they have a service for editorially creating content and pushing to users. They have a ad serving mechanism to serve ads contextually to the message but I sincerely doubt the volumes. I do not think they have much to sell but I think they have good people in BD.
All views here are my own. They have no bearing on and are not influenced by my present company. In case of brickbats, throw them at me.
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About the author - 
As you rightly pointed out. I don’t see much value add. A compelling point on why I should use their service!!
I am sorry rAm – I did not get your point
But at the same time, I have read tht the pilot project actually resulted in more ARPU. How do you account for that?
The typical market segment may not be people like you (tech savvy) rather rich kids?
Whats your take?
Hi Karuna,
Sorry for the late reply – I was off to a conference. Let me clarify myself –
1) User studies – these user studies (many of which we conducted during my MBA days), are usually done on a sample population who *are open* to the idea. Also such studies make sure the sample set *do not* have to pay for the study – thereby making it free. In such cases ARPU is bound to rise because the user behavior does not necesarily mimic real behavior.
2) The app needs GPRS to be enabled. Airtel has either 7 Rs a day or 200 Rs a month for unlimited GPRS connectivity (at a low speed). I have Hutch and spend about 1000 Rs (1Rs per 10 KB) per month. The point being that your usage on GPRS would increase and thereby drive more ARPU.
3) Value for advertiser – ARPU goes to Airtel. They obv would be happy. What I didnt see and would like to see is what advertisers think is the value. I am sure the Aviva guys have not too good things to say (else that would have been a case study already)
4) I am not rich. No matter how hard I try (and have been trying at IIT and later at IIM) I havent got rich yet. Do let me know if you can help me in that. I hate being poor.
[...] RCom to use mobile banner ads to get across TRAI’s DNC RCom is putting up banner advertisements on its data suite of applications – Reliance Mobile World – accessible over the company’s handsets. When a user clicks on the advertisements, a lead is generated which is passed on to the advertiser for a follow-up. [Read our earlier coverage of SMS 2.0, i.e. Airtel/Affle partnership). [...]
something affle could do …
1. Application is built-in. ( Max cellphone manufacturers won’t like that because they want to keep the doors open for themselves – why have a 3rd party application on their product)
2. Accept the fact that people don’t like unnecessary advertisements. Even if I’m interested in some particular product I don’t want advertisements being pushed on my cellphone. And something I really want to receive as ads , they will never know about that.
3. As you suggested ” Keep it simple”.
4. gprs connectivity is a big problem. they will tell others that they are going to target a considerable number of mobile customers even in that case , BUT they need to polish their product. Polish it the Indian Way.
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