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