Last year, ComTel released the first Australian advertising-subsidised mobile phone plan through it’s subsidiary, SMSPup.
How it works is, customers who agree to receive five advertisements a day, can save $19 off a $29 monthly phone plan. Additionally, customers who choose to ‘opt-in’ to the advertising component will also receive reward points that can be redeemed for a range of benefits including movie passes, travel discounts and used in auctions for devices such as handsets.
According to David Sweet, ComTel’s CEO, the power of SMS advertising is the ability to convert advertisements into sales.
“To get a direct call to action via email can be quite hard,” he says. “But because people have their phone with them all day every day, you’ve actually got a much stronger call to action response.”
Ref: SmartCompany