of course it is...but a service which sends 1.000 or more messages, can negotiate a good price for the sms. For example let's say 4 cents. If you charge the publishers 4 cents for each ad, you'll be able to pay for the messages. If you negotiate a better price or charge more for the ads, you'll make extra cash ;)
Advertising on mobile phones is a really hot topic these days. But most of the implemented solutions are like this: you agree with the service to receive advertising messages, and you get something in return. This is not very efficient because the users can delete the messages without even opening them. I'll give more details in a dedicated article so stay tunned.
right, if advertising revenue greater than cost of SMS, then there's potential for profit. that part is easy to get.
but i still don't understand technically how such a transaction would work. how will you get a carrier to not charge me when i send SMS to someone? where is it that you step in the process? will i need to SMS you, and then it parses the number and message, and sends from you to my intended recipient?