8 Comments

Summary:

Twitter is just the beginning. SMS is finally going mainstream in the U.S. and start-ups are getting creative with this messaging technology that is part of daily life across the planet. Venture capitalists have been funding a lot of these startups that use the SMS platform […]

Twitter is just the beginning. SMS is finally going mainstream in the U.S. and start-ups are getting creative with this messaging technology that is part of daily life across the planet. Venture capitalists have been funding a lot of these startups that use the SMS platform to create social networks, share content, organize groups, or create promotions.

Mozes went out of beta in March and Frengo launched around the same time. The latest to join the ranks is 80108 Media that is officially announcing their localized SMS-based media and event info service on Monday.

80108′s idea is to create 70 different SMS channels in 15 cities that send updates about events and local insider news from the company’s hired “correspondents.” These citizen reporters are happening folks with roots in industries like music and fashion. When I signed up I chose indie rock in San Francisco, and I started getting info and news about the local indie music scene. The indie rock correspondent Nicholas T seemed like a fun enough guy. He’s a musician, hangs out in the Mission and likes veggie burgers from Sparky’s — they have the SF indie rock caricature pinned down pretty well.

Like any other publication, the strength of the service will depend on how interesting the information and news is from the correspondent. We’ll see if Nicholas can win me over in the next month. If he’s good, it could be like getting texts from an in-the-know attentive friend. If he’s not so good, it could be a tedious way to fill up my inbox and add SMS charges to my bill.

Boston-based 80108 was co-founded by CEO Rob Adler, VP of Operations Dan Smith, and VP Marketing Matt Cutler. The team raised a total of $12 million in two rounds from General Catalyst Partners, IDG Ventures Boston, Khosla Ventures, and Borealis Ventures, and is announcing their funding on Monday, too. The 80108 is their web site, short code (not random) and somewhat unusually, their company name.

80108 has an interesting business model and they’ve basically built an SMS publication for niche localized content from scratch. Like for most publications the costs of the writers is a big expense (uh, sorry Om). Hiring 60 or so contributors that they are paying what the company says is the equivalent of “freelance rates,” is a “huge investment” for the company. When I talked to the team last week they said there are 3 things they need to excel at:

1). programming/content

2). user experience, so the mobile and web platform, and

3). marketing

It’s also important for the company to run the service like a publication. For that they hired Sid Holt, formerly of Rolling Stone and VNU Business Media, to lead the content publishing effort. Hopefully Holt can help the company maintain the separation between editorial and business. When Nicholas sent me recommendations of products or restaurants I double checked with the company to see if these were true editorial content or sponsored updates. The company assured me that writing from the correspondents is pure editorial and not affected by business. Good thing, as thinly veiled ads would be a big mistake.

I definitely wondered if the company might do better to partner with local independent publications that already have a user base and want to extend content to the mobile phone. But 80108 is focusing on creating new content, that is local and relevant to get on your mobile phone. “We are mobile from the ground up,” says Adler.

80108 also has yet to establish how it will monetize the service, and now the offer is free. They say they will build the audience first and then monetize it possibly through a choice of subscriptions, premium content, ads on the site, or click-to-call. In the future the company will also work on services for the mobile web.

  1. I am curious as to what SMS rates are in the US.
    Is it a flate rate or priced per sms.

    In Hong Kong which has a mobile phone penetration of 136% http://www.ofta.gov.hk/en/datastat/key_stat.html
    and has very cheap voice plans but sms/mms rates are comparitively very expansive.

    Share
  2. Seems to me like they need to do some more work – I’m choosing Chicago for “where i am” and the only “what i like” sports option is for the Boston Red Sox.

    Uhh…

    No thanks.

    And weather? I can already get the weather a million different ways – I don’t need to sign up to a text messaging service for that.

    Why don’t they try out “bar specials” or something relevant like that?

    Share
  3. [...] reading this post on GigaOm, and hearing about all the emerging success of SMS oriented startups in USA, I’m beginning to [...]

    Share
  4. Yusuf, SMS can be billed both through package plans or per text message.

    Trevor, Thanks for the comment. They do have a lot of work to do, and also they say they are in “pilot season,” so are actively looking to improve the experience. The more feedback the better.

    Share
  5. Hi Trevor: Matt Cutler here from 80108. 100% agreed. The quick response is that we’re planning on launching local coverage of both the Cubs and the White Sox in the next few weeks. Hopefully we’ll add something new to the north side/south side rivalry.

    Longer response: We’re aiming to be locally relevant in as many cities as possible. Today, we have 70+ channels across 15 cities — including Chicago — though, during our current pilot phoase, we have deeper content coverage in our hometown of Boston. We’re using Boston to get insights into what’s working and what needs to be re-worked.

    At the same time, we’re launching new channels regularly and will be expanding our coverage on an ongoing basis. We face the classic challenge of growing our content network while maintaining our quality standards. So, stay tuned for more channels & please keep the feedback -– good, bad, or indifferent — coming.

    ps. We did make the editorial decision to offer our real-time Red Sox editorial coverage on a national basis… because the biggest demand for this channel has come from fans who live outside Boston. Plus, we’re pretty much all unapologetic Red Sox fans here at 80108.

    Share
  6. Looks like a UPOC with paid editors. Definitely interested to see how it works out.

    Share
  7. It’s interesting that they’ve not adopted the keyword model, which seems to be very popular amongst the sms startups. I’d like to see them de-emphasize the content subscription approach and adopt a multi-channel approach, i.e. making the content available through RSS, web, IM in addition to SMS. You can call that the Twitter model!

    Share

Comments have been disabled for this post