PRS starts to grow again driven by virtual goods on social sites

PRS in the UK is in recovery mode – well unless both PPP and AIME have gone, as my Belgian friend says, “complete banana” – with the sector recording some modest growth in 2010 and with more to follow in the coming year. The growth has been driven largely by media interaction, where PRS calls to vote are starting to make a huge impact, along with social media on mobile seeing a rise in people using PSMS based services.

But it is the growth in the purchase of virtual goods that really tickles my telemedia taste buds. Up 400% on the same period the previous year, it has become a market worth in the UK alone £8.1million in 2010.

Virtual goods include virtual currency to spend in games on social networking sites, ‘virtual gifts’ such as virtual birthday cakes and, more recently, virtual charity badges with a donation going towards the consumer’s good cause of choice. 

According to figures from Analysis Mason, 8.5% of consumers have bought a virtual gift or object related to a social networking site using a phone-paid mechanism, while 19.4% of 25-34 year olds and 16.5% of 18-24 year olds have bought a virtual gift using PRS in the past six months. The average micropayment per transaction for virtual goods is £2.41.

This is all great news for the telemedia industry as it shows that, while more traditional areas of revenue generation are plateauing or even tailing off, social media is starting to offer some real openings for new business.

Another element of this that is encouraging is that consumers are once again trusting phone-bill based micro-payment tools. Complaints to PPP fell to unprecedented levels in 2010, with just 3% of people saying that lack of trust in phone paid services stopped them using them.

While the general economy may be in turmoil – I would cry “up the workers” at this point, but I don’t want to get hurt as the health service won’t be able to look after me – the PRS sector is again bucking the trend. The old adage that these services always do well in a recession as people seek some cheap comfort and joy was ringing a tad hollow.

But social networking, smartphones and a general embracing of a new way of interacting with each other and brands, has seen consumers resurrect the PRS sector and offer some rays of hope.

This is why the timing of Telemedia360 in Leeds on 11 May couldn’t be better. Featuring a line up of media, service provider and operator speakers, the sessions all look at how the digital ‘media’ landscape is shifting and how media companies, brands, telcos and service providers need to think in new and agile ways about how to engage consumers and offer them the kinds of services that they will pay for.

Some of it centres on new things and new ways of thinking, but a lot will really just involve putting well understood practices onto a new platform: the social media platform.

To learn more about getting involved sign up at www.telemedia360.com