Although it has greater reach than any other form of mobile marketing and though it is highly versatile and can be quite effective, SMS based marketing programs are still struggling for attention and respect. Many CMOs and even some mobile industry insiders simply perceive it as a kind of interim step to a future dominated by apps, mobile search and rich media on mobile devices (e.g., iAd). 

In recognition of this and in a move to diversify its offerings 4Info has acquired New York City-based Butter, a development shop that builds apps for brands. According to a piece appearing in AdAge on the acquisition:

4info plans to take its newly acquired app expertise to its 300 brand partners, which include USA Today and other Gannett newspapers, the NBA, Yahoo and Evite. Today, 4info sends nearly one-third of all content-based texts in the U.S., said Ms. Shumaker, adding up up to about 100 million texts per month. Butter, on the other hand, is on track to bring in 5% of app content-sponsorship ad revenue, she said. 

This is a bid for more revenue and mindshare but also an ironic move to remain "relevant" to brands and other types of marketers that want sexier mobile offerings.

Earlier this morning I also received this email from a PR person for LSN Mobile, which operates a local ad network and serves TV affiliates:

Did you know that LSN Mobile, a leading mobile marketing and media company, sends more than 10 million permission-based SMS news alerts each month? The company empowers media companies and advertisers to deliver their content and advertising to 97% of mobile device users in the U.S—all 270 million of them. By providing local media content in all 210 DMAs and on every major carrier, LSN Mobile gives advertisers extensive opportunities to reach mobile subscribers where and when they want to be reached.

Text messaging has much greater penetration than any other form of mobile marketing. It is also the cornerstone of most mobile loyalty programs, which can be extremely effective. And it has the added virtue of being able to track other forms of media, including traditional media. 

As more brands and marketers adopt mobile, SMS will continue to be an important part of the overall marketing mix. But many executives don't see this because they aren't thinking clearly about the segment and they're mesmerized by the sex appeal of apps.