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TEXTING 1-2-3

Companies are discovering the power of the latest marketing tool, but getting customers to opt in and pay is a hurdle.

By ASSOCIATED PRESS
Published October 3, 2006

CHICAGO - Like any normal consumer, Tom Gruss was leery about the idea of a company sending promotional text messages straight to his cell phone. Who needs a bombardment of sales pitches in another format?

But he found one offering a heads-up about changing gasoline prices at Meijer Inc. stores benign enough to sign up, especially since he could opt out at any time. Now, says the Indianapolis area resident, "I'm a fan."

Get ready for the inbox on your phone to fill up faster. More and more companies are adopting text messaging as a way to target consumers on the move.

The practice has taken off in the past year and appears a trend ready to explode, says Gerry Purdy, an analyst for Frost and Sullivan.

"Probably the most important medium for advertising in the 21st century is going to be the cell phone, not print media, not billboards," he said. Globally, the number of cell phones in use recently crossed 2.5-billion, according to Wireless Intelligence, a joint venture between the GSM Association industry group and research firm Ovum.

Most U.S. cell subscribers pay for outgoing and incoming messages, often buying plans with a monthly allowance. It's unclear, then, how many will "opt in" to a marketing campaign unless the marketer foots the bill. That is the approach wireless carriers take when text messaging account information or promotions to their customers.

[Last modified October 3, 2006, 01:13:38]