As the SMS market matures, operators are lowering SMS prices, which is resulting in greater use but lower margins. Operators are now faced with the question of how to increase SMS revenues and profits, while also reducing churn. Mobile advertising may be the solution they are looking for.

Mobile operators have a unique opportunity to generate substantial new revenue and increase customer loyalty. With mobile devices outnumbering televisions and personal computers, operators have access to a lucrative advertising channel. Leveraging the ubiquitous SMS market gives providers a reach that is difficult to match with traditional media.

This paper examines how operators can use their existing SMS networks to create time and location-based advertising programs, targeting content to individual subscriber preferences.