Searching for riches through short text message searches
Google this week announced a cell phone based search service using short text messaging, also known as SMS. UpSnap, privately held, is also in this space, offers a free directory assistance (411) mobile SMS service, and says that Google's entry has helped to validate the SMS market, but that only UpSnap! has a working business model.
Tony Philipp, chief executive of UpSnap, said that SMS is growing fast, especially among the 18- to 30-year-old demographic. He also points out that UpSnap has a business model already in place, in which merchants pay for listings and use a free phone call feature, based on UpSnap's VOIP infrastructure, to talk with customers.
Google is famous for keeping services in beta or undeveloped for long periods, so it could be a while before it gets around to monetizing search queries through SMS.
UpSnap says it has done the ground work and established many of the relationships that are needed. I would think that search on phones through SMS should be less brand-driven than on the web, simply because the cell phone user interface is cramped, and it’s difficult to click away to another search service.
UpSnap's business model depends upon the growth of text messaging in the U.S. Text messaging here in the States is a tiny application as compared to its usage in Europe; but it can only get better. It is becoming part of the communications culture among school and college students, growing faster than any other current communications medium. SMS messages have jumped from 2.1 bn messages a month to about 4 bn messages per month over a six- month period, according to trade figures.
SMS doesn’t need a web browser, so it is a lot quicker to fire up and send a local search query. And the UpSnap service is free, which is good, because I've become leery of trying some of these services, having already been bitten by huge connection charges for being experimental. A lot of people know how cell phone companies can nickel and dime them for additional services, and create a big monthly bill. UpSnap should emphasise the word "free" as large as possible.
I would think that specialist search companies such as UpSnap should be able to keep ahead of the large, generic search companies like Google. It'll be interesting to see if large, technology enabled media companies can do as well as smaller, focused teams. I hope it's the latter...
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