4INFO raises $20M to SMS to your Mobile
By Azam on January 22, 2009
4INFO the hot start up that was planning to bring search on to the mobile is now platform to send SMS to the mobile phone for permission based marketing. 4INFO has raised $20M from investors to market to the mobile device with investors from previous investors and Peacock Equity.
The company says it delivers more than 80 million text messages a month to users. Users sign up for the message service at places like Yahoo, Gannett and IAC when they request update alerts about everything from weather, sports scores and celebrity news. A large number of wireless subscribers received SMS related to American Idol form 4INFO service. 4INFO is the intermediary, handling the text message service for these media giants, and inserting ads for them into the messages.
4INFO CEO Zaw Thet told the WSJ he expects the company to be profitable by the second half of this year. The company, now employing 70 people, sends more text messages in the U.S. by volume than any other provider, according to Nielsen.
The mobile messaging ad market is expected to reach $2.4 billion this year, up 62 percent from last year, according to research firm eMarketer. Spending on mobile-message advertising now accounts for about 85% of the total $2.8 billion spent on mobile ads, which also includes search ads and display ads as well as mobile Web advertising.
It will be interesting to see how 4INFO will do in the future as the rapidly changing modbile device market and wireless industry move towards more media rich environments. The iPhone and new entrants like Google Android and Plam’s Pre new smart phones are changing the way we communicate and offer a better experience that is popular in the market. Companies in wireless advertising like AdMob are planning to capitalize on the new media rich environment to target consumers, and question arise how relevant and attractive will SMS be in the future. Even Twitter has become a threat to the SMS use and popularity.
Previous investors include Gannett, US Venture Partners, Draper Fisher Jurvetson, Sand Hill Capital and Selby Ventures.
Reading List
NYT Bits Start-Up Raises Money to Send Text Message Ads
VentureBeat 4Info gets $20M more for text message advertising
WSJ Digits 4INFO Gets $20 Million
Tags : 4INFO, AdMob, Android, Google, iPhone, Mobile Search, Peacock Equity, Plam Pre, SMS, SMS advertising, twitter, Zaw Thet