U.S. consumers should be commended for their exceptional response to the Red Cross' text message donation campaign to help the people of Haiti. The execution of the campaign itself should further illuminate—or remind marketers—of the power of the most basic mobile communication: the text message. No app, no download, just mobile marketing in its purest form.
With 2.1 million mobile engagements (as of this morning) at $10 a piece, an impressive amount of money has been raised so far from the access-point in virtually every American's pocket. The immense amount of media and promotion for the campaign has made it part of everyday conversation and a simple, concise way for consumers to donate. It is hard to imagine any other type of mobile campaign being promoted by the White House, NFL commentators and Anderson Cooper, simultaneously.
How It Works
For the Red Cross' program, a consumer sends a text message of, "HAITI" to 90999. After a back-and-forth opt-in process with mGive, the service administrator, the user donates precisely $10. This specific dollar amount is due to a previously approved tariff level from the wireless carriers. Further, each person—or more accurately, each mobile phone—can donate up to three times.
While "premium text messages" have long been used for services ranging from ringtone sales to subscription services (such as Horoscopes) to interactive TV voting, in each of these situations, the wireless carriers have kept up to 50% of the proceeds. Notably, mGive negotiated agreements that collect 100% of the proceeds.
The Challenges
As the premium text message market has seen its fair share of scams, "fine-print artists" and poor services, the carriers are now quite cautious on what and who they will approve. Further, they have adapted self-protective policies which typically pay premium revenues out to providers quarterly. This way, the carriers collect money from their customers before making any payment.
In the case of Haiti, the money is needed now, and the carriers have said they are trying to expedite the process. It is unclear how they will do this, besides merely extending themselves, and hoping to collect later. For Haiti, they could each be on the hook for a few million dollars, and that is a huge leap from their financial comfort zones.
Beyond any analysis, the best news is that the Red Cross has raised a significant amount of money for the Haiti relief fund. In time, it will also be a well-worn and often sited case study as to how mass awareness and mobile engagement work hand in hand.
Jordan Greene is the head of the mobile practice for Mella Media. Follow him on Twitter @GreeneMarket
