As part of its recent entrance into the US mobile payments space, Citibank recently began advertising via SMS. When USA Today readers receive stock quotes on their mobile phone, they now find an accompanying advertisement asking if they’d like to check their Citibank account balance or even find the nearest ATM. Uptake of these offers is around 15 to 20 percent, several times higher than traditional advertising.

SMS advertising is a frequent topic of discussion around CGAP. As many mobile banking services in developing countries have had difficulty maintaining adequate volumes of usage, we often wonder if users would respond to SMS messages reminding them of this service and encouraging use of e-money. What if we could use SMS to provide financial management tips? Could we use SMS to encourage clients to save a small amount after each transaction? The potential of SMS advertising is indeed exciting, but in thinking of how I would respond to a pesky advertisement on my own phone, I feel less confident. Is SMS advertising the new telemarketer?

Exploring and testing innovative ideas is the cornerstone of CGAP’s Technology Program and SMS advertising is likely to play a role in at least one of our projects. Perhaps users will find the service more helpful than annoying and the skeptic in me will be proven wrong…?