Zoove, the company behind the StarStar dialing codes that marketers can use to promote special deals and offers, has now extended its system to all four major U.S. carriers. On Monday, the company announced launching its service on Sprint and T-Mobile. It became available on Verizon Wireless and AT&T last year.
Zoove's registry of vanity numbers are typically formatted as ** followed by two to 12 digits that correspond to the name of a brand, for example, **ACME (**1263). By dialing the StarStar code for a brand, consumers can opt-in via text message or voicemail to get offers or content, including mobile apps, coupons or sweepstakes directly on their mobile devices.
The company positions its dialing system as a simpler, easier alternative to other mobile pervasive marketing options, including SMS text messaging, email and 2D barcodes. Approximately 46% of mobile spend in the U.S. was allocated to SMS campaigns in 2009, according to BIA Kelsey, accounting for the largest share of mobile marketing dollars.
Because its technology is integrated with the major carriers, Zoove CEO Joe Gillespie says clients can get campaigns up and running much faster than the typical 12-14 weeks to roll out an SMS marketing effort. And while 2D codes may be in vogue as marketing tools, he argues that the fragmentation among barcode systems, and the need for users to download software to use them, make for a challenging user experience. Dialing ** plus a number, by contrast, is "brutally simple," said Gillespie.
To date, the company has signed on advertisers such as CBS' "The Early Show," which in recent weeks has used the StarStar program to allow viewers to vote for the dishes they would like to see prepared in its "Chef on a Shoestring' segment. Others include 1-800-Flowers, which has licensed **FLOWERS (**3569377) for an upcoming Mother's Day campaign, while Suzuki is using the StarStar code for its brand to promote its 2011 GSX-R sports bike.
Like text short codes, the StarStar numbers can also be added to existing campaigns across TV, print, billboards and online to extend marketing efforts to mobile. On its site, Zoove exhorts marketers, "don't miss out--it's crucial that you reserve your Number before someone else does."
But adding those two stars in front of a brand name doesn't necessarily come cheap.
Zoove charges annual licensing fees of about $7,500 for longer-digit code and up to $100,000 for shorter ones, according to Gillespie. High-demand generic terms, like **CARS, will be priced higher. Plus, clients pay a $1,000-a-month service fee for its self-service platform for creating, running and tracking campaigns.
Gillespie joined Zoove last September from CBS Interactive, where he oversaw CNet and the CBSNews.com sites. He noted that the company has spent years building relationships with the major carriers, which it shares revenues with, and integrating its technology into their respective networks.
Zoove said it has raised nearly $37.5 million in funding to date from investors including Highland Capital Partners and Cardinal Venture Capital.