Yesterday we broke the news on our blog about CallFire acquiring EzTexting, but there was still the lingering question as to why CallFire was keeping their acquisition such a secret. While there may be many reasons why CallFire wants to keep the acquisition a secret, there’s one that if exposed would most certainly impact the value of their acquisition of EzTexting.
How is this possible you ask? Let me explain…
The one thing EzTexting did a good job of was creating a handful of brands to confuse consumers about the market. EzTexting created brands like GroupTexting, ClubTexting, MoboMix, TellMyCell and NightlifeTexting (maybe even more that I don’t even know about), which where almost identical services, with almost identical pricing, features, etc.
This resulted in the consumer feeling like they had a variety of choices when it came to selecting an SMS provider, when really the deck was stacked in favor of EzTexting, and the consumer wasn’t the wiser. Don’t believe me? Try searching “Mass Text Messaging” in Google search, and look at the results you get (see below for both organic and non-organic results including both CallFire and EzTexting). Essentially they’ve been able to take over the first page of any Google search result regarding SMS marketing.
Not only does this tactic misleads the consumer about their choices in the market, it also violates Google’s Adwords policy on what they like to call “double serving”. This policy was put in place to protect the value and diversity of the ads people see on Google, and discourages advertisers from running ads for the same or similar businesses that have common ownership, common product offerings and similar pricing triggered by the same or similar keywords.
As a workaround, EzTexting created different business entities to manage each of their brands. For example, EzTexting was managed by Ez Texting, Inc. and ClubTexting was managed by Club Texting, Inc.
Stopping this practice would significantly decrease the amount of traffic each recently acquired brand receives, as they would only be able to display one brand per search result. This would no doubt have a significant impact on the value of EzTexting and their associated brands, which is why I think CallFire wanted to keep their acquisition of EzTexting a secret.
What do you think? Is this the reason why CallFire has tried to keep their acquisition of EzTexting a secret? Let us know what you think in the comments below.