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TextNow’s CEO is looking for ways to make its mobile services cheaper for its customers.
As explained by Light Reading, TextNow SVP of product, Tristan Huntington revealed that they’ve been using advertising revenue to bring down the prices of TextNow’s service. Even though several others have tested this concept, TextNow is “the market leader in the free business model.” They generate over $100 million in revenue annually in the US.
With this, TextNow is looking to expand and even refine its approach. As Huntington says: “There definitely is a challenge in making this model work. You have to have ads that don’t get in the way too much… That takes a lot of skill and time.”
TextNow has experimented on various types of ad units, including display and banner ads and more native experiences. They have also tested using ads like text messages or push notifications. Finally, they have also tested out ads that let customers earn perks when they fill out a form or view a video.
One of the strategies that TextNow is considering in the future is a model that lets customers purchase data on individual days they need it. Hopefully, they continue with the strategy since it helps out customers.
Source: Light Reading
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