Australia’s first advertising subsidised mobile phone service, SMSPup Mobile launched today, offering an innovative post-paid mobile plan for consumers.

Core to the plan’s offering is the extra value generated through special brand promotions and participation rewards. Customers who ‘opt-in’ to accept SMS and MMS ads on their phones will pay a plan fee of $10 a month for $130 of standard call and text value, and receive member reward points that can be redeemed for a range of benefits including movie passes, travel discounts and used in online auctions for devices such as handsets.

SMSPup Mobile says customers will effectively receive a 65 per cent discount off the service’s $29 a month base fee structure.

With research showing 50 per cent of mobile users would be happy to receive ads on their handsets if they were relevant and reduced call and SMS charges, creators of SMSPup Mobile believe the concept will be popular in Australia, as it has been in UK.

Managing Director of telecommunications group ComTel Corporation, David Sweet said the low cost and high value offered by SMSPup Mobile gives Australians a better and more rewarding mobile deal.

“The average Australian is battling rising fuel, food and mortgage costs, so if they can save on their mobile phone, that’s money that can be allocated elsewhere,” Mr Sweet said.

“SMSPup Mobile’s highly competitive $10 a month deal has been made possible because,
unlike any other plan in Australia, it is mainly funded by advertising, just like a newspaper or magazine.”

David Sweet said there was a growing acceptance towards receiving mobile ads that are relevant and if users are rewarded for receiving the messages.

In a recent survey conducted by ComTel, over 80 per cent of the 6,500 respondents said they expected mobile advertising to grow, while over half said the advertising messages would have to be relevant to them for the concept to work.

The survey also found that on a list of devices people ‘could not live without’ the mobile ranked the highest ahead of the laptop/PC and television, which is traditionally considered the most lucrative medium for brand advertising.

David Sweet said the idea of SMSPup Mobile emerged when, late last year, the company acquired Melbourne based online marketing agency, Empowered Communications.

“ComTel has both the marketing infrastructure and mobile technology to deliver highly effective and cost efficient mobile advertising campaigns,” Mr Sweet said.

“Importantly SMSPup Mobile’s permission-based model ensures the consumer is in control of the advertising process as they can opt-in and out anytime they choose. The ads they receive reflect their demographic and lifestyle profile registered with SMSPup Mobile, which means they’ll be sent ads based on their interests and be rewarded points in the process.”

Mr Sweet added that those who opt out will be charged the full $29 a month for the same call value.

Advertising funded mobile phone services have been embraced in the UK following the successful launch of Blyk in late 2007. Targeting 16-24 year olds, Blyk outstripped growth expectations, attracting its annual member target of 100,000 six months ahead of schedule1.

The European market, often considered to be at the forefront of mobile developments, is expected to see mobile advertising grow from $US231 million in 2008 to $US1.5 billion by 2012.

Please visit www.smspupmobile.com.au for further information.