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NEWS
Issue #2001 - 09 (Feb. 2001)

(Updated on Feb. 28, 2001)

MARKET OUTLOOK

Jupiter Reports on Prospects for Wireless Advertising

Despite the hype about the next wave of devices, ranging from wireless to interactive, advertisers will be leery of launching ad campaigns on these next generation platforms, according to a recent report released by Jupiter Media Metrix.

Jupiter’s report, "Interactive Advertising Post-PC Platforms: Emphasizing Modal Marketing," predicts that post-PC audiences, including wireless, interactive television, and Internet kiosks, will reach critical mass by 2005, but will continue to be overshadowed by a dedicated PC Internet audience.

Jupiter analysts advise marketers to target the Post-PC audience as ‘modal targets’ or groups with the same behaviors and attitudes based on their use of the device rather than using traditional categories of demographics, geography, and gender.

Advertisers are advised to market messages that match the user group’s intention for using the device. Thus some messages will be better suited for these post-PC devices while others will not.

Overview Finding: Wireless Advertising

  • Of the corporate executives surveyed, 77 spent ‘nothing’ on wireless advertising last year, but 36 percent plan to do so this year.
  • The total of on-line ad revenue is expected to reach $16-billion by 2005, while wireless advertising will only generate $700-million.
  • Wireless ads will have the advantage of immediacy (defined as reaching customers closer to when and where they may actually purchase) over the other platforms.
  • Hurdles to overcome include lack of standards, audience fragmentation, and unclear return on investment.
  • Compensation sought by users for wireless ads: Among PDA users, 36 percent preferred subsidized content and access, followed by 35 percent preferring subsidized devices, while 46 percent would not accept any form of compensation for advertising.
  • Identifies the wireless audience as a united group by their need for time- and location-sensitive information and their intolerance for irrelevant information.

Even though there are some interesting opportunities, almost nobody should be pouring a lot of money into these platforms (wireless, iTV and kiosks), in the short-term, advised Mike May, senior analyst at Jupiter.

Mobileinfo Comments and Advisory: This appears to be a well-balanced report. It provides some guidance to advertisers to identify their target group and devices they use. We expect more marketing research in this area. Stay tuned.

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.

All trademarks used in this summary are the property of their respective owners.


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