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SinglePoint Jettisons Messaging to Focus on SMS Ads

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SinglePoint this morning said it’s spinning off its mobile messaging business to Ericsson (s eric) to focus solely on the quiet — but lucrative — SMS advertising segment. A longtime player in mobile marketing, the Seattle-area company gained traction with interactive text campaigns including those used by Barack Obama’s presidential campaign and TV shows such as “Deal or No Deal.”

Mobile text ads have steadily picked up steam even as sexier offerings like in-app marketing or video ads attract attention. Text ads accounted for an astounding 88 percent of total U.S. mobile ad revenues last year, according to J. P. Morgan, ringing in $2.3 billion. And it will surge to $3.2 billion in 2010, J. P. Morgan pridicts. Veteran mobile companies OpenMarket and mBlox launched SMS ad platforms last year in an effort to tap some of those dollars, joining a host of others in the space. Look for some of the SMS ad guys to get picked up in the coming months as the bigger players — including perhaps Google (s goog) — seek to fill the holes in their mobile advertising businesses.

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Image courtesy Flickr user Tom Legrady.