SMS Pal, Inc.

Press

March 13, 2008

SMS Pal takes the computer out of online ad placement

By Debra Beachy

Joe Moreno's fledgling classifieds company, SMS Pal (www.smspal.com), aims to appeal to a market sector sometimes overlooked in the Internet era: Folks without a computer.

Moreno, a former online engineer for Apple, said that even people who can't afford a home computer often have a mobile phone. Now in beta, SMS Pal (See CIR 9.03, Feb. 14) lets users place classifieds via short message service (hence the name), commonly known as text messaging.

"I think SMS Pal will give print newspapers the ability to reach a segment of consumers who don't readily have Internet access, and it will help newspapers compete with the likes of Craigslist," said Moreno, founder and president of the Carlsbad, Calif. based company. "The poorest people in the world, and here in the U.S., all own cell phones, usually as a prepaid subscription model."

The ads cost 99 cents each and appear online at SMS Pal.com and in participating newspapers. The cost of the ad is charged to the user's mobile-phone carrier. Text messages have a 160-character limit, compared with traditional classifieds, which usually are up to five 22-character lines long. he was serving as a U.S. Marine in East Africa in 2005. He said he noticed mobile phones were used for most communication, and as a marketplace for buying and selling things. "When I got there, I was amazed at how advanced they were at text messaging," Moreno told Classified Intelligence.

Moreno said he funded the start-up partly with stock options he received as a Apple employee. Moreno said he expects computer-savvy college students to use the service, as well as lower-income people without ready access to computers.

"Craigslist shifted the dynamics of classifieds, but the downside is that you need a computer" to place an ad, said Moreno. "There are 3.5 billion cell phones throughout the world. There are less than 1 billion computers."

The San Tan Sun News, a small semi-monthly complimentary Arizona newspaper, began test marketing SMS Pal texting last month, Moreno said, adding that the company is in talks with some larger newspapers. Papers would pay a small subscription fee for the service. "We're still fine-tuning the pricing model," he said.

At least one other company, SMS Classifieds (http://www.smsad.co.za) of South Africa, provides a similar service, Moreno noted.

Nxt bst 4 txtmsg

That stands for "Next best for text messages" in texting lingo. Text messaging, a.k.a. "texting" or more formally, "Simple Message Service" (SMS), is available on virtually every cell phone worldwide, and SanTan Sun News readers can now use it to place a classified ad.

Texting is commonplace in foreign countries where access to computers and the Internet is limited. In the U.S., cell phone companies either bundle text messaging as part of a package or charge individual users an average of 5 to 25 cents per SMS text message sent and received, which has somewhat limited its popularity here. However, unlimited text messaging plans are becoming more commonplace in the U.S., and market demand may ensure that soon, texting is as inexpensive as sending an email or making a phone call.

The number of "smart phones" that enable email and Internet access has been increasing, but so has the dominance of text messaging, with each of the past several years setting a new record for text messages sent.

A number of companies are offering services to texters. One is SMS Pal, a text message classified ad company, which is offering a new service for cell phone users everywhere. Text a classified ad up to 160 characters to "short code" phone number 99134 and SMS Pal posts the classified ads on its website. In addition, SMS Pal places it in participating local newspapers upon request from the advertiser, including the SanTan Sun News, which is in a Beta test program with SMS Pal. The service costs 99 cents for each listing, and is charged back as a premium SMS message on the user's cell phone bill.

SMS Pal plans to also offer an "update" service. For instance, when a specific type of ad appears, those who have signed up for "updates" will receive a text message to their cell phone with the ad and contact details from SMS Pal. SMS Pal is currently in discussions with other newspapers and has plans to expand internationally in the future.

For more information about how text messaging got started, and other uses for it, including directions, stocks, sports and more, visit www.SanTanSun.com and click on Business.

February 14, 2008

SMS Pal Offers Texting For Ads

SMS Pal, a classifieds company that's in beta, has launched a service that lets ads be placed via text message.

The ads, which cost 99 cents each, appear online at SMS Pal.com and in participating newspapers. The price is charged to the user's mobile-phone carrier.

Based in Carlsbad, Calif., SMS Pal was started last year by company President Joe Moreno who previously was a senior Web application engineer for Apple Inc.

January 30, 2008

Things to Do on Your Cellphone: Submit Classified Ads
By Peter Krasilovsky

Classifieds can now be sent in via text messaging thanks to SMS Pal, a text message classified ad company. The service costs 99 cents for every listing and is charged back as a premium SMS message to the user’s carrier. The classified ads run on line at smspal.com and in local participating newspapers.

Based in my town of Carlsbad, CA, the company was started last July by former Apple Online Store engineer Joe Moreno, who noticed lots of texting activity in 2005 when he served a stint in East Africa, where he was stationed as a Marine Corps Reserve.

Moreno’s innovation is taking out several text words for classifieds, including “sell,” “job” and “skills.” Instead of renting out his own short code, he is working with an SMS aggregator. Using his service, ads can be up in 160 characters. “Most cellphones make a ‘ping’ when the cell tower has processed it,” he says.

SMS Pal’s first affiliate is a small Arizona newspaper, The San Tan Sun News. SMS Pal is currently in discussions with other newspapers and has aspirations for international outlets. Moreno’s expectation is that the local papers will serve as promotional partners, supplying print display ads, etc. A number of newspapers are already using texting to deliver news headlines, he notes.

Moreno says the East Africans have made a marketplace around their cellphones since they don’t have ready access to the Internet. In the U.S. Moreno expects the service to appeal equally to smartphone-savvy users sitting in Starbucks, as well as less advantaged people who don’t have easy Internet access. He has observed, for instance, that African-Americans and Hispanics are the heaviest users of cellphones. Without Internet access, “they can’t use Craigslist; they can’t use eBay,” he says.

The next step for the service is to provide users with SMS updates. “People will want to be looking for specific merchandise or jobs. They’ll want to find babysitters and lawn service workers.” As with ad placements, the alerts will also run 99 cents.

For more info, contact Kerry Kerr or by phone at 703.436.2704.