Despite the popularity of SMS or text messaging particularly among the younger generation, its revenue potential for mobile operators is not fully maximized.

About $4.9 billion per year is the estimated lost opportunities for mobile operators, according to a research by Informa Telecoms & Media.

However, there are many applications that could potentially be introduced to consumers through SMS. If the subscriber is able to use SMS to interact with their device in a more efficient, more enjoyable or more productive way, then they will be willing to pay a small additional fee for those SMS messages. The subscriber will accept that these messages fall outside of the 'free' text bundles, or add on a new bundle to their service plan; SMS messages are one of the few services that the user will always know how to use on their mobile phone.

I don't think the not-so-customer-oriented mobile operators are blind about these lucrative opportunities. The major challenge is how to seduce millions of mobile users to embrace mobile marketing as a whole.

Privacy and security are the major hurdles so far, not to mention that majority of mobile users are still annoyed with mobile ads in general.

Via Fierce Mobile Content