I don't think SMS is completely gone, but as an observation, most of the mobile offers I've come across these days specifically restrict SMS as a source of traffic. This is not across the board, of course, but logically as advertisers crack down on SMS more and more. the method becomes less useful to you as a publisher.
I agree exactly with Johnoffermarket SMS is still about and best to just stay clear of US. Affiliates with CA and UK traffic seem to be going strong still as they're less strict with the so called 'spam' mentality.
As John mentioned though its hard to come across an offer that allows SMS traffic.
I think it depends on how you look at SMS and how you define affiliate marketing. We do SMS for a group of businesses that pay us based on the usage of the discount offers we promote. Technically, we are doing affiliate sales, but it is self-promoted, not through a normal affiliate clearinghouse.
The businesses enjoy the increased traffic to their businesses and the fact that they do not have to mess with it. We have offered to sell them the script we use, but they always decline and want us to do the work. SMS is far from dead, it is just not a free-for-all concept any longer.
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