Tall Tales of Short Message Services (SMS) - Dispelling the Myths and Addressing The Hurdles of SMS Campaigns.

With the exponential growth of mobile phone adoption in the enterprise, many organizations are looking for new ways to leverage mobile technology to improve efficiency and manage communications.

When considering text-messaging technology, it is important for organizations to understand the logical progression of leveraging this technology in enterprise environments, and avoiding the common misunderstandings in approaching SMS technology. Working with organizations that specialize in developing managed SMS campaigns can streamline many of the steps involved in getting off the ground.

Below are nine common questions or concerns companies have when considering SMS, and some simple answers to help them jump the hurdles.

SMS Short Codes - Why not Long Codes?

When approaching SMS-based messaging campaigns it is important to understand the differences between short and long codes. A long code is just a fancy name for a regular ten-digit cellular phone number. Long codes, used by many companies, have a variety of uses but also limitations such capacity to send and receive messages, delivery to multiple numbers and carriers and billing management.  Long codes are controlled by the carrier that assigns that specific phone number so sending text between carriers are also subject to multiple delays between SMS gateways and centers.

Short codes on the other hand are traditionally 4 to 6 digit numbers in length and when combined with a keyword, enable the enterprises to perform a variety of features with their messaging campaign that are unavailable when using long codes. First and foremost, short codes route messages to a server rather than one phone number, which means the server can manage, control, route, audit and store everything associated with any messaging campaigns, making the process much more efficient, as you can now capture a large amount of data relatively effortlessly. Short codes also route the message directly to your server rather than the carrier's SMS center or gateway, making it a much more ubiquitous way to manage information quickly without intervention. Additionally, short codes enable you to increase your margins, meaning added value services such as personalized services, mobile wallets, private data is managed by the enterprise and not the carrier.

How Can I Get a Short Code? How Much Will It Cost?

In the United States, a group called the Common Short Code Association (CSCA) manages all short code leasing. Two types of short codes are available from the CSCA, "random" and "vanity," the latter enabling companies to use branding in the code itself. For example, Google (News - Alert) owns 466453, which spells out "Google" on a standard cellular phone keypad.  Although with the prevalence of QWERTY style smart phones today, spelling out your brand now makes little sense.  To lease a short code, you must apply with the CSCA. Random short codes cost approximately $500 per month to lease, while vanities are about $1,000 per month.

OK, I Got My Short Code…Now What?

A short code simply reserves your right to use that 4, 5 or 6 digit number; to actually use the code you must define, develop and deploy a specific text application for your mobile campaign. Once developed and operational (which can take months or sometimes years to complete), you must submit your specific text application with the response protocols and language for certification and compliance by all the carriers you would like to support your campaign. This is traditionally the longest stage when using short codes as a method to deliver and process text campaigns, as the approval process can take anywhere from six to eighteen months.  SMS Aggregators help with the certification process by applying to all the carriers they are under contract with simultaneously.  Without an aggregator, an enterprise would have to contact ALL carriers individually for certification and compliance of their application.

Do I Really Need an SMS Aggregator?

SMS aggregators have the ability to "sell" excess SMS text capacity to enterprises and business from wireless carriers.  This bulk messaging (or high volumes of text messages) can use either long or short codes and are designed to gain access to a group of carrier networks then collect responses to mobile campaigns.  SMS aggregators also speed up the time to market of your campaign by facilitating communication and certification of your application with the various carriers. SMS aggregators have widely varying pricing models and available services, so it is important to shop around for the aggregator that fits your needs.

What about International messaging?

International SMS messaging campaigns have different requirements, as there is no equivalent CSCA governing the global system. This means, enterprises have to negotiate short codes and campaign terms with each international carrier. There are a limited number of international aggregators (mostly supplying long codes), but their costs can be up to ten times that of domestic aggregators. One benefit to international messaging campaigns is you are not charged for what we call mobile terminated text messages, in other words, any text message you receive on your phone doesn't count against the end-user's message load. This means enterprises sending marketing and advertising content are more readily accepted internationally as users are not charged for the incoming SMS text message. Sadly, the US is the only country that charges for receiving mobile-terminated text messages.

What does the MMA have to do with anything?

The Mobile Marketing Association (News - Alert) (MMA) is an industry-sponsored association that oversees the conduct of enterprises and aggregators specific to mobile messaging campaigns on wireless networks. They provide suggestions and guidelines on the proper protocol and language for all mobile campaigns. One of the most prominent guidelines is that all messaging campaigns must be operated under a full permission basis, meaning the user must initiate and approve the conversation as well as the removal of their cellular number from any database (i.e. opt-in and opt-out). The purpose of permission-based protocols is to control any messaging spamming to individual users on wireless networks. The MMA also has very strict guidelines on the type of content that can be sent via SMS; messaging campaign managers are required to oversee and manage the content to make sure no illicit activities are taking place. It is very important to adhere to these guidelines, as the carriers may terminate your short or long codes for violating MMA guidelines.

What about MMS?

Multimedia Messaging Service (MMS) enables the sending of more complex internet-based data such as images with audio and video with text, but when considering messaging campaigns to reach mobile users it is very important to consider MMS and SMS differently.

SMS is an integral and necessary part of any voice phone call on every cellular phone in the world.  In other words, the use of SMS (via an overhead or paging channel) causes your phone to ring, to receive voicemail information, provide caller ID, etc. SMS capability is required for every voice call you make and by definition works on any and every cellular phone.

MMS requires capabilities that do NOT exist on all standard cellular phones.  For example, MMS requires an Internet-enabled (and paid for) data connection.  Only 12percent of mobile users in the US (and less than nine percent in the world) have Internet data plans that cost an additional $30-50 per month in service.  Certainly businesses subsidize this for most employees but for the normal basic cellular user the cost of the Internet and the device is economically prohibitive. Secondly, MMS is delivered with a variety of formats that may or may not be compatible with your cellular phone or carrier.  Today, there is no single MMS format that meets ALL carrier and handset interoperability requirements.

Although iPhones and Blackberrys "seem" to be all over, the reality is that the marketing of these devices have been exceptional.  There are over 25M Blackberrys and only 12M iPhones on carrier networks in the US.  Comparing these figures to the over 280M cellular phones in the US, it is implied that Blackberrys account for less than nine percent of the market and iPhones just over four percent.  Be careful, the 30M iPhone (News - Alert) devices publicized includes 18M iTouches that do NOT operate on cellular carrier networks.

The bottom line is this - Broad reach when considering mobile is critical and two-way communications with either voice or SMS is the lowest common dominator for ALL cellular phones in the world. If your mobile marketing and communications strategy plans to use the most advanced wireless capability (i.e. - iPhone and Blackberry) you've limited your reach to only 14 percent of the US wireless users...not a very good mobile marketing strategy whatsoever.

Are You Ready to Deploy?

In summation, launching a mobile messaging campaign can add significant value to your organization's marketing and communications strategies. Once launched, the right mobile communications technology can provide a very cost effective method of outreach, with exponential potential. But it is very important to be knowledgeable of the entire ecosystem and follow the specific guidelines that have been established.  It is also critical to be well-aware of various industry patents that have been approved especially with mobile content delivered via SMS text.

Two-way mobile messaging is the next great way to evolve your organization, but only the most well managed, user- targeted messaging campaigns that respect the end-user have the ability to take your organization to the next level.

Robert Sanchez is the CEO of Globaltel Media, the first company to provide enhanced two-way text dialog and electronic content solutions with the capability to reach the over 3.7 billion mobile phones globally. Globaltel Media is helping organizations navigate the waters of SMS communications, and implement highly-effective text-based campaigns.