Viewers who use their mobile phones to interact with TV shows are more likely to tune in again and to tell friends about the shows - interest that generates higher ratings and ad revenues. Broadcasters and advertisers should sit up and take notice.

McKinsey research suggests that viewers who use their mobile phones to send text messages to TV shows, either to vote in a competition or take part in a dialogue, are highly engaged and more likely to tune in again, to tell friends about the shows, and even to buy related merchandise. This added interest can increase ratings by as much as 20 percent for mainstream shows and 100 percent for niche ones - a message that many advertisers would be glad to receive. We asked 124 ad executives from 39 companies across Western Europe whether they would be willing to spend more money in channels offering this type of growth - for example, through new technologies such as SMS.

As the exhibit shows, more than half said that they would, and almost a third of the spending would represent new investment. Europe is ahead of other markets in experimenting with SMS - TV, and even at this early stage the extra revenues for broadcasters, mobile carriers, and technology providers added up to Euro 400 million in 2003.