Wireless Web Takes on Advertising

The wireless Web refers to using the World Wide Web through a wireless device, such as a cell phone or personal digital assistant (PDA). Wireless Web connections provide a connection to e-mail, instant messaging, weather, travel information and other services.

With almost 3 billion cell phone subscribers in the world and 200 million in the United States alone, the potential for mobile advertising is almost endless. Although this new media began to emerge in 2005, it already generated $871 million in 2006, according to Informa Telecoms & Media, a U.K. company that provides business intelligence to global telecom and media markets.

Some big-name media brands that own mobile Web sites, including Fox News, ESPN, Weather.com, USA Today and The New York Times, have already disclosed that they will soon include advertising on their mobile sites.

Fox News recently announced that it will partner with Third Screen Media to include advertising throughout its mobile properties, starting with a banner ad on the Fox News mobile Web site.

According to Forrester Research, an estimated 200 million people own or have access to a mobile phone, with data subscribers numbering about 84 million. With that number increasing, advertising becomes natural since consumers regularly turn to one communication device to receive an abundance of information.

Slow to Cell

Most operators remain cautious because of concern the ads could irritate subscribers and drive them to competitors. Sprint Nextel is the only U.S. operator that has announced a major advertising initiative. Although AT&T and Verizon Wireless both claim to be testing advertising technology, the companies haven't announced any specific details.

However, at least one European mobile operator has implemented advertising at a faster pace. Operator 3 U.K. in Britain recently announced that it will unveil an advertising-funded video content service. This will allow users visiting the operator's Planet 3 portal to view free video clips, including news, comedy, gossip, animation and film. Other U.K. operators, including T-Mobile, Virgin Mobile and O2, plan to include advertising through their portals in the near future.

U.S. mobile operators remain wary of mobile advertising. Part of the reason is because these operators keep a tight leash on what content subscribers access and how they access it. Because mobile operators have a billing relationship with their customers, they have access to key demographic information – data that would prove valuable to advertisers looking to target the right consumers.

Massive Potential

Verizon Wireless and Sprint Nextel Corp. have run trials of banner ads on their wireless information and entertainment services since early 2006. In February, Hearst Publications announced it would launch wireless Web sites for Seventeen, Cosmo Girl and Cosmopolitan magazines. Many expect wireless sites for Esquire, Good Housekeeping, House Beautiful, Popular Mechanics and Redbook. Ovum Research estimates that mobile advertising spending could reach $1.3 million by 2010.

Since customers increasingly use cell phones to retrieve data, many expect that even though carriers remain concerned about appearing intrusive, wireless Web advertising should increase within the next several years.

Click here for a printable version of this page.

LEGAL NOTICES | CONTACT US