Tuesday, July 25, 2006

Advertising on Instant Messaging and SMS

I have heard more "hype" in the last two months about IM based advertising models. VC's are throwing money at anyone with a business plan containing IM or SMS revenue models.

The basic idea for many of these businesses is to insert ads (marketing messages, offers, etc...) into IM/SMS conversations based on demographics, or possibly even "keywords" that are used in the conversation.

I just don't get it. This sounds more intrusive than even pop-ups or spam to me.

I heard Kanoodle (a second or third tier search engine) has created such a platform/product for MSN, and then there's these guys too. Who knows, maybe "these guys" are really Kanoodle in sheeps clothing. Check it out and let me know why oh why this is a good idea.

IMing is free for consumers today, and there's so many free platforms (Google, MSN, AOL, Yahoo, Skype, etc, etc...), I can't imagine why consumers would tolerate such an intrusive type of marketing.

Secondly, with SMS, the consumer is already paying for a data plan (SMS) via his/her carrier. I pay $30/month! Why would I allow Cingular to insert ads into my text messages when I am already get raked over the coals with my monthly fees?

A little help here...please....!!!


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