My window to the world


The SMS advertising market gets crowded with Txthub arrival

By Mauricio Freitas, in , posted: 17-Aug-2007 08:31

How many SMS marketing companies would you think New Zealand could accomodate? At least two, I'd say, now that Txthub is entering the market to compete with Hoohaa.

I met Brian Hawker (Hoohaa CEO) and Jason King (Hoohaa Operations Director) during drinks a few weeks ago and I was told users love Hoohaa.

The idea is that they will send very targeted advertising via SMS to your mobile phone. You have to sign up to the free service, and for each SMS received you will acrue $0.10 in your account.

Now, I am a bit skeptical about this, but when I asked about how much money people are making receiving SMS they told me people are more interested in the advertising bringing them timely information about promotions and new products then money. Anyway you can only get a maximum of $0.40 a day with Hoohaa, which means no more than $12 a month to receive 120 SMS.

Now Txthub enters the same market, with support of brand names such as Burger Wisconsin, which provide free chips when buying burgers - you get the idea.

Txthub too pays $0.10 per message but it doesn't seem to limit to only four messages a day like Hoohaa, but you can set your own limit if things are getting too heavy.

Although both companies have "About Us" pages, Hoohaa tells us a bit more about the company than Txthub. Actually the Txthub "About Us" tells us everything about the product and nothing about the company itself. We need more disclosure!

Other than this, it's actually great that we have companies offerrig opt-in campaigns, instead of being inundated with unsolicited SMS spam, which I believe will come when some dirty cheap spammer decides to run their own gateway through a small India outlet (like the ones who keep sending me e-mails offering cheap SMS to the world). The only thing preventing this happening is that SMS actually costs something to be sent, in addition to the hardware and software needed, unlike e-mail spam which is mainly free after the costs are wiped out with their revenues.

If you are an advertiser, how much would a campaign like this cost? I can't tell for sure, but we can speculate. We know the New Zealand operators are really bad at giving bulk discounts, so assume it's still $0.20 per SMS for the operator. Then $0.10 credit for each user. Then advertising networks generall add another 40% of cost on top. And we can't forget the companies running the show which would be another 40% I'd imagine. You can imagine how much each SMS would end up costing. It needs to be really well targeted to bring back benefits at this price point per message.


Tag(s):     


Other related posts:
Microsoft Ignite New Zealand, Microsoft Surface Studio
Geekzone data analytics with Power BI
Now with more fibre






comments powered by Disqus

freitasm's profile

Mauricio Freitas
Wellington
New Zealand


I live in New Zealand and my interests include mobile devices, good books, movies and food of course! 

I'm the Geekzone admin. On Geekzone we publish news, reviews and articles on technology topics. The site also has some busy forums.

Subscribe now to my blog RSS feed or the Geekzone RSS feed.

If you want to contact me, please use this page or email me freitasm@geekzone.co.nz. Note this email is not for technical support. I don't give technical support. You can use our Geekzone Forums for community discussions on technical issues.

Here's is my full disclosure post.

A couple of blog posts you should read:

Social networks presence

View Mauricio Freitas's profile on LinkedIn


My Blog by tags...

Blog...
Entrepreneurship...
Media...
Personal...
State of Browsers...
Technology...
Viral Marketing...
Web Performance Optimization...
Windows...
Windows Phone...

Other recent posts in my blog

Microsoft Ignite New Zealand, ...
If the headlines indicate the ...
Geekzone data analytics with P...
State of browsers Geekzone Mar...
2Cheap Cars discussion...
Now with more fibre...
Unlimited is not unlimited: Vo...
How bad is Vodafone cable at t...
Frustrated with Microsoft Fami...
State of browsers Geekzone Mar...

New posts on Geekzone