“Social Costing Mobile Carriers Billions?” is Discussed in the Recent Digital Marketer Newsletter

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The Digital Marketer newsletter explains why social media is costing mobile carriers billions of dollars.

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Mobile carriers lost a projected $13.9B in SMS revenue in 2011, according to a study conducted by research firm Ovum.

Social media is the topic in the recent Digital Marketer newsletter, discussing why social media is costing the mobile carriers so much money. The newsletter asks the question, “Who really wants to give their mobile carrier more business?” Chances are, the Digital Marketer newsletter explains, is that people have felt slighted or burned in at least one of their dealings with their wireless provider. Customer service just doesn’t seem to be priority #1 at AT&T, Verizon, Sprint, etc., the newsletter reveals.

So people probably won’t feel sorry for them when they learn that mobile carriers lost a projected $13.9B in SMS revenue in 2011, according to a study conducted by research firm Ovum the Digital Marketer newsletter revealed. According to Ovum, the Digital Marketer newsletter adds, smartphone users are turning to social media platforms like Facebook and Twitter to send the messages they once sent through SMS. The Digital Marketer newsletter reveals that iOS users, can send other iOS users messages for free.

It’s easy to see how social platforms are shifting things to the customer’s benefit, the Digital Marketer newsletter explains, and this change has left the SMS providers in the lurch.

The Digital Marketer newsletter advises people should absolutely not feel bad for them, for at least two reasons.

1) Business models change, consumer demand changes, and it’s a mobile carrier’s responsibility to compete, understand what consumers want, and deliver. Companies that can’t achieve this should lose money.

2) The more people rely on social media, and abandon one-to-one text messaging, the greater the reach of your social media strategy. Customers and marketers are the ones benefiting!

When technology makes a process cheaper and more efficient, the newsletter explains, there’s a word for that, progress. The Digital Marketer newsletter says that companies that align themselves with it are the ones whose customers freely choose to do business with them. Companies that dig in their heels and try to throttle this progress down so they can save an obsolete business model, the newsletter adds, those are the companies that people feel trapped into doing business with.

For many years now, wireless providers have stood on the wrong side of the line, warns the Digital Marketer newsletter, slamming customers with massive overage fees, and hiking prices — while companies like Apple and Facebook have been building models that allow users to do more for less money.


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Dennis Murphy
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