Mobile transaction network mBlox has expanded into the mobile advertising market with the launch of an ad-insertion pilot. According to the company, this pilot program is meant to demonstrate the effectiveness of putting ads in the "dead space" in commercial SMS messages. Content publishers and service providers will benefit because the ads will offset the cost of sending an SMS.

mBlox isn't altruistic, however. The addition of an advertising service gives it a new space in the mobile value chain, connecting content providers and ad networks.

The pilot will run with an inventory of 10 million messages a month. Content providers have the opportunity to review and improve any ads that are inserted into their messages. Also, mBlox will vet all messages sent to ensure that consumers aren't spammed with unwanted SMS messages.

Publishers and content providers taking part in the trial include Myxer, LSN and dmd:mobile. Participating advertisers and ad networks include MoVoxx, Kadoink, Jingle Networks and Pudding Media.