TXT//AD™ - the new Pay-Per-Text mobile marketing product from MIVA and 118 118

TXT//AD™ - the new Pay-Per-Text mobile marketing product from MIVA and 118 118

I first saw a reference to this in a New Media Age article and really didn't think much of it. Then saw a reference to it in the next week's NMA.

What is a 118 service?

For those not in the UK - 118 is a directory service similar to 411 in the U.S. There are lots of 118 providers and you can chose who will provide you directory service by using the full 6 digit number. One of the biggest brands in directory listings is 118 118.

When you dial 118 118 you can receive directory information including the phone number or address of a business - and in some cases additional services are available such as bookings, tickets, table reservations and more. Upon completing the phone call portion of the service you can receive a text message sent to your mobile phone with all of these details for later reference.

118 makes its money based on a fixed price of each call and then a per minute fee. Taking from the 118118.com website:

Calls to 118118 cost 14p per minute (charged per second) + 49p per call from most landlines. Costs from mobiles vary.Click here for accurate pricing for your network.

(Although they use a 6 pt font...)

Until now that is…

What I meant to say was that 118 118 made their money according to the terms and outlined above until now. Now 118 118 has found a new way to make money and that is by selling advertising to the consumers who are using the service.

I mentioned that you can receive a text message with information related to your recent inquiry such as the business telephone number – but now you get something extra – you get an advertisement that promotes a similar, related and/or even a competitive service embedded as part of the text message sent to your mobile phone. In one case consumer’s who asked for the number for Home Base got the number back but also included an ad with the number for Home Base competitor B&Q.

Sounds great! Not.

Not to me. When I’m paying 49p per call plus 14p per minute I’m already paying a premium for the directory service and the last thing that I want is to have further marketing messages sent to me.

By the scenario’s very nature the message sent to me is Timely and Relevant – it’s arguable if it will be Valuable but it most certainly was not Requested (TRVR) – even if somewhere buried in the terms and conditions it states that they can provide me with marketing information as part of the service (btw – I looked at the 118118.com Terms and Conditions but did not find any reference to this new content)

Opt-in permission can be implied by the “existing business relationship” exemption that implies that you can send a consumer marketing messages if they have or have expressed an intent to engage in business with you so long as the content is for similar or related services. And clearly – providing you an extra number for a similar or related inquiry would surely qualify – but here’s my beef.

I’ve already paid full price for this service – and I don’t want any ads!

I have written to 118 118 to ask how I can opt-out of receiving any future marketing and am awaiting a response. Until this matter gets cleared up I’m not going to use 118 118.

If MIVA want to make money from a service like this they must offer the 118 directory inquiry at a heavily reduced rate and/or FREE. The subsidized content model has worked for years.

What 118 118 is doing is basically the same thing that happened to cable television 15 years ago. You bought cable so you could avoid having to watch commercials. And now you pay for the privilege of having satellite and/or cable and you still have to watch commercials. 118 directory services used to be services you paid for to get just the information you wanted. Now you get them, but with advertising too.

What should MIVA and 118 118 do?

One of my first bosses told me, “Never come to me with a problem without a solution attached.” – I’ve always tried to live by that – so here’s the solution.

118 118 should offer consumer’s the opportunity to opt-out of receiving marketing messages as part of their text message responses. They keep enough information on me as it is, this should be a simple thing for them to do.

Alternatively, 118 118 should launch a second 118 type service at a reduced or FREE price where the directory queries are advertising supported.

What do you think?