Posts tagged: asao

The prospects of SMS-powered mass messaging in Vietnam

By Tai, April 20, 2009 2:05 pm

Micro-blogging is raising a trend in Vietnam, not by the number of users, but by the level of media coverage. Obviously, the coverage of Vietnamese media is not as high as the hype of all the global ones on Twitter and its ecosystems, but still, it is perceived by many to be the main trend of Vietnam internet market in 2009.

I don’t. Well I don’t talk about micro-blogs for Vietnam. I see different things.

Moreover, there are two missing pieces of important information from media coverage: appropriate market and the greatest monetization opportunities.

Without the knowledge of the target market of Twitter-like services, reporters easily fall into the trap of comparing micro-blogs and blogs, and users will be confused.

Without seeing the monetization opportunities, people will be reluctant in using/investing for them.

This article solves this issue by discussing the two points mentioned.

1. What is the market for Twitter-like services?

I identify 4 groups of users:

  1. Geeks. Obviously, this group has already been there. They are innovators and early adopters of the services. Most use Twitter and not the clones anyhow.
  2. Users who want to use Twitter as a substitute to Yahoo! 360 blast. Check Kazenka’s out.
  3. Those who want to keep up with the Joneses. i.e. want to show that they’re cool by using a trendy stuff.
  4. This group has not existed: those who want SMS incentives for using the service(s) to send mass messages

It’s the last group which has not existed that is potentially profitable.

2. What is SMS incentive and why is it a group when it hasn’t even existed?

In an over-simplified example:

P1 does not use service S User P2 uses service S and has 1000 followers, 500 in which are followed back. 50 in those 500 are P2’s real friends
P1 organizes a trip to Nha Trang P2 organizes a trip to Nha Trang
P1 sends 10 SMSs to 10 friends. This costs him VND2,000 P2 sends 1 SMS to 10 friends through S with “Incentive” option selected. This costs him VND60
P1 and his friends send SMSs back and forth. At the end it cost them a total of VND50,000 P2 and his friends send SMSs back and forth. At the end it cost them a total of VND6,000
Why VND50? Because:

  • Business B advertises on S by sponsoring S’s users with VND150 per SMS
  • In exchange, B’s advertisements are displayed on the SMSs
  • S gets VND10 out of 150 from B
It’s simple, painless, and costly. Full stop. It’s a market that never existed in Vietnam!
Now. Think about celebrities, attention-seekers and those who want to send mass messages in general.
Is it an attractive market?

3. Devices and platforms

  1. Device: Only smart phones or laptops can access Wi-Fi. All phones can SMS.
  2. Platform: good Wi-Fi is not ubiquitous even in urban areas. Mobile coverage is country-wide.

Hope that (2) and (3) answer @firstjames’ wonder.

4. Which player has the potential?

I would say ASAO. Their Ola Me is more than a Twitter clone; the product is one in ASAO’s mobile package suite. And the company may have the credentials to negotiate for SMS incentives.

Addendum: lamgi.vn also has SMS incentives.

5. Summary

This entry is not about micro-blogging. It’s all about the market of SMS incentives, powered by Twitter-like services.

Quick note: Micro-status-updating in Vietnam

By Tai, March 24, 2009 11:25 am

Twitter-like services have 2 usages: status update and micro-blogging.

1. As I clearly stated in my previous slide, it’s safe to drop the term “micro-blog” for discussions in Vietnamese context. That leaves status updates which is a highly desirable feature among Vietnamese users.

2. I gave a wow to LinkHay’s blast collection feature. My impression that it was a Twitter clones killer.

3. A closer glance into Ola Me reveals that it is more than a Twitter clone

  • ASAO, the company behind Ola, has the capability to build alliance(s) that offer SMS incentive to users
  • Which means values to users are tangible and can be quantified
  • And the differentiation is in terms of quality of Service, more than that of Product

4. Two channels to keep track of Twitter usage growth in Vietnam: the Facebook group ‘Twitter Community in Vietnam’ and the Twitter account @twitvietnam.

In terms of (relatively) measurable quality, check out the Grader’s list.

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