Phone won't recongnize FM transmitter

Trying to use a cheap (13 bucks) fm transmitter through the headphone jack. The transmitter works with my tablet, but my HTC Desire won't register that there's anything in the jack.

The phone registers my normal headphones, it's just the transmitter. Has anyone else had this problem?

Before anyone suggests bluetooth...if I could afford a bluetooth transmitter or another radio with a aux jack, I would have such. I can't.

Anyone have any idea what could be stopping this transmitter from working in this phone?