Is paying people to receive ads the way of the future? I certainly think it is a cool permission-based option. The New Zealand Herald ran a story last week on HooHaa (www.hoohaa.co.nz), an enterprising New Zealand company which believes that paying people to receive ads is the key to mobile phone marketing without irritating consumers or phone companies.

According to the article, mobile phone users registered with HooHaa input their name, age, location, and buying interests on a database and allow themselves to be reached by advertisers by text. By doing so, they receive a 10 cent credit for each advertiser text which is accumulated into lots of $2.50 and deducted from their mobile accounts.

When HooHaa was launched in January, 20,000 consumers quickly signed up to the service. Last month, the figure doubled to 43,000. As of late, the company has already began its move into the Australian market.

HooHaa managing director Brian Hawker said their new scheme is proving popular with a wide cross-section of consumers, and not just teenagers looking to knock a few dollars off their cellphone spend each month.

Mobile phones are enticing for marketers because it gives them direct one-to-one access to consumers. HooHaa answers a problem that has ensured mobile marketing is heavily self-regulated by the phone companies it lets advertisers reach mobile users without becoming a nuisance.

HooHaa advertised through mainstream media and registered people in an online survey giving their interests and buying habits. As a result, they got approaches only on things they want to hear about.
“I don’t want to get messages from a fashion store but I do want to know there is a special deal for golf club members at a local golf store or if my favorite beer was selling at $15 a dozen at a local supermarket,” said media strategist Michael Carney.

Robert Limb, a direct marketing executive that was interviewed, said the type of service offered by HooHaa was more likely to be attractive for promotional advertising than for discounting. The appeal of mobile marketing was based on the close relationship that could be forged and had to be built on permission to communicate. Consumers had to be in control of the messages they were receiving.

The HooHaa model which is promising indication that consumers are happy to absorb marketing activity in return for a reward could prove to be a winner if their database continues to grow in the months ahead.