Academic Review: Mobile Marketing Messaging via SMS Versus SMTP/Email Channels

Michael Becker, EVP Business Development, iLoop Mobile, Inc.
February 20, 2007
Over the last few years marketers have shown an ever increasing interest in reaching out to and communicating with their customers and prospects via the mobile channel, i.e. employing mobile marketing within their marketing mix. Mobile marketing initiatives include everything from simple text messaging alerts (weather, sports, news, horoscopes, etc.) to intelligent real-time interactive sessions between the marketer (brand) and its customers via text messaging, multimedia messaging, Bluetooth alerts, location aware services, voice/IVR, the mobile internet, device resident portals, and much more. Mobile marketing initiatives are discovered by consumers either through Mobile (Carrier On Device Portal, Mobile Internet Sites, etc.) or Mobile Enhanced Traditional Media channels (TV, Radio, Print, In Venue Screen, IVR, etc.). The most common element of any mobile marketing initiative today is text messaging, which is also referred to as SMS; however, after talking with many marketers it is clear that there is some confusion around text messaging and an alterative messaging method--specifically SMTP/Email. This article compares the practice of messaging via the SMTP/Email and SMS channels and highlights which channel should be used for commercial mobile marketing traffic and why.
Comparing Two Common Messaging MethodsTwo common, but very distinct, messaging channels to send messages to a mobile subscriber’s phone are SMS and SMTP/Email.
Sending a message via SMTP/Email Channel:Sending a message to a mobile subscriber via the SMTP/Email channel is straightforward. Many mobile operators have setup an email gateway within their network to support person to person messaging. In order to send a message via the SMTP/Email channel on a mobile operator’s network you address the message with the following syntax: 10DIGITMOBILEPHONENUMBER@MOBILEOPERTERATORSMTPEMAILDOMAIN.com (Visit a mobile operator’s web site to see if it supports this form of messaging and what its messaging address syntax is). For example, to send a message to a T-Mobile subscriber in the United States you would address the message as follows: PHONENUBER@tmomail.net, e.g. 5551112222@tmomail.net. This message can be sent to the mobile subscriber via any standard email client, e.g. messaging via the mobile phone, Microsoft Outlook, Hotmail, Gmail, etc.
Sending a message via SMS Channel:Sending messages to mobile subscribers via SMS (Short Message Service) is equally a straightforward process, however it requires a slightly different one. In order to send a commercially approved SMS to a mobile subscriber marketers must have a relationship with a messaging aggregator (like mBlox, Singlepoint, or OpenMarket, see http://www.usshortcodes.com/csc_aggregators.html for a list of aggregators) or application provider that has contracted with an SMS aggregator (see http://www.usshortcodes.com/csc_applicators.html). SMS messages are addressed using short codes and the mobile subscriber’s phone number and are routed through the mobile operator network. See MMA Academic Review Article Understanding the Common Short Code: Its Use, Administration, and Tactical Elements (http://mmaglobal.com/modules/article/view.article.php/552) for additional details on the common short code and messaging process.
The following figure shows the message flow for these two messaging methods.
Figure 1: SMS and SMTP/EMAIL Channel Messaging Flows2
The SMS channel and SMTP/Email channel are very different. Many marketers are attracted to the SMTP/Email channel due to the fact that there is a perception that there is no messaging cost, unlike SMS, they perceive the channel to be free. However, as shown in the table below, messaging cost is just one element that must be considered when considering the “cost” of messaging. Other elements to take into consideration are Coverage, Carrier interoperability, Bi-directional traffic support, Message delivery reliability and receipts, Message formatting control, Message form, OperatorID lookup support, Premium billing support, and Allowance for commercial traffic.
SMS Channel
SMTP/Email Channels
Coverage
Regional and Global coverage is supported
Operator specific, many operators do not have SMTP channels.
Carrier interoperability
Single addressing mechanism with participating carriers (i.e. common short code and aggregation channels). Message flow works across regional carriers (each country has slightly different, but similar, practice)
None
Bi-directional traffic
Message traffic is bi-directional, marketers can send messages and subscribers can reply.
For the most part message traffic is one way, subscribers cannot reply (which obviously causes problems with any renewal or opt-out support) and means the channel is not compliant with MMA Best Practices or carrier requirements.
Message delivery reliability & receipts (Quality of Service)
Inherently reliable, employs store & forward mechanism and retry to guarantee message delivery. Relatively prompt. Provides delivery receipt.
There are no delivery guarantees, slow; moreover, an operator may shutoff the channel at any time. No delivery receipts are available.
Message formatting control
Standard based
No standards
Message form
Supports message concatenations.
No standards
OperatorID lookup, i.e. ability to look up subscriber carrier to ensure message delivery and routing through operator network(s)
Available
Not available
Premium billing support
Available
Not available
Messaging costs
In the United States, standard rate wholesale messages rates typically $0.01~$0.05/message. Support for Free-to-end-user messaging models (i.e. marketer covers consumer’s messaging charges) are expected to be available Q2 2008 in U.S. Standard messaging rates vary by country, see http://www.clickatell.com/pricing/message_cost.php for example global SMS rate card.
Free to marketer, data and messaging charges to consumer.
Commercial Traffic Allowance
Yes, mobile carriers support SMS channel for commercial/mobile marketing traffic.
No, mobile operators do not support this channel for commercial traffic; it is designed for person to person traffic. Violators run the risk of having their services blacklisted and face carrier sanctions.
The distinction as to which channel should be used for commercial mobile marketing messaging is clear—only SMS should be used. Not only is the SMTP/Email channel strictly designed for use for person to person traffic, it is not reliable enough for commercial mobile marketing messaging due the broad number of items listed above. . To learn more about this topic see the Mobile Marketing Association Consumer Best Practices documents as well as individual carrier guidelines published by mobile operators through their developer sites and messaging aggregation partners.

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