April 11, 2005

Mobile marketing company Flytxt will partner with Time-Warner on wireless marketing campaigns based on some of the magazine publishers' 130 titles.

The companies plan to announce a deal this week that will target both new and current readers of Time, Entertainment Weekly and other magazines.

The first text-messaging campaigns were launched quietly April 1 featuring People and Teen People, offering news, chat rooms, horoscope information and text polling.

A Sports Illustrated campaign is expected to launch in coming weeks.

While well established in some European markets-he company provides a weekly, nationwide two-for-one movie ticket offering via short message service for subscribers of Orange U.K.-Flytxt has just a handful of U.S. employees and is just beginning to gain a foothold in the North American market.

"Time Inc. is really a significant client win for us," said Pamir Gelenbe, director of corporate development and co-founder, of the two-year deal. "Time is committing to this at the highest level-they've given us office space within their building."

Initial projects under the agreement will be text-message based; future efforts will include multimedia messaging service campaigns and may involve third-party services that allow users to win coupons or other prizes.

Revenue-generating premium services also eventually could be offered.

Time's editorial and marketing teams will use Flytxt Direct, the company's flagship product that allows clients to establish and create custom messaging programs.

Gelenbe said that although Flytxt has notched only two major agreements with U.S. companies-the company declined to give details regarding its first American deal-the growing market here may entice the company to move its headquarters across the Atlantic.

"I really think 2005 is going to be the year of mobile marketing," Gelenbe said. "We see North America as a key area for us; we wouldn't rule out within 12 to 18 months moving to North America."

The sheer size of Time's empire and the length of the deal is evidence that mobile marketing is evolving quickly, said Vikrant Gandhi, a wireless analyst with Frost & Sullivan.

In addition to granting Flytxt an immediate presence in the United States, the partnership could help Time tap younger readers, a market that has become more difficult to reach for U.S. publishers.

"I think Time and Flytxt could be a good combination; it's an encouraging sign," said Vikrant. "It's good to see companies outside the wireless industry embracing mobile marketing."

Source: RCR News