September 14, 2006 6:28 AM PDT
Advertising seeps into the cell phone
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The situation has created tension between the carriers and content owners. But operators can provide a wealth of demographic customer information, including billing ZIP code, age range and gender. They can also provide valuable behavioral information, indicating the types of content subscribers have purchased or mobile Web sites they've visited.
As a result, they are seen as valuable partners whose subscriber information enables advertisers to develop tightly targeted and relevant ad campaigns.
For example, advertisers could use location information to send SMS (Short Message Service) text messages to cell phone subscribers traveling to a new city. The messages could tout nearby restaurants or could include coupons to be used at certain locations.
The most effective forms of advertising could be linked to mobile search, a technology that would help determine which topics users find interesting. A subscriber searching for a Coldplay ring tone, for example, may not mind an advertisement promoting the group's new album.
"I actually think mobile advertising could be good for consumers, especially if it's search-based advertising," said Charles Golvin, an analyst at Forrester Research. "If it's linked to search, consumers will get information that is relevant to them."
But Golvin warned that advertisements can't be too intrusive.
"My sense is that people won't be too enthusiastic with any advertising that interrupts what they're doing or doesn't provide them with useful information," he said.
The ads also must be relevant. "Just because I'm walking by a Starbucks doesn't mean I want to have a coffee," he added.
Operators say preserving a good customer experience is paramount. They also agree that any advertising they allow on their networks will have to be useful to consumers. Verizon executives said they'd also give customers the option of not accepting advertising at all.
"We won't be ramming ads down people's throats," said Richard Lynch, chief technology officer at Verizon. "I don't believe every customer will see the ads the same way. Some may choose not to see them at all, and for that option, they will pay accordingly."
Golvin said there is some evidence to suggest that consumers are willing to accept advertising if they can get some content for free.
But consumers shouldn't expect advertising to make all their mobile games, TV or music free.
"Mobile advertising will be a supplement rather than a subsidy," Sprint's Reddick said. "When we did research, we found that why customers adopt or (choose not to) adopt content has less to do with it being too expensive. Instead, people said they didn't subscribe because it wasn't relevant."
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21 comments
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Now we are investigating advertiser supported WI-FI.
Of course there will always be the high-end user that has no problem with our regular $29.95 a month 802.11 service, but the economies of 802.11N will permit make the last mile free, so its easily monetized by ads.
If the ads ends up costing us anything they better expect class
action lawsuits.
We pay cellular companies to use their service, so give us the service we pay you for, not what someone else pays them to give us.
The response for wireless connections is already poor at times!!!
To the providers; work on proividing a QUALITY & RELIABLE CONNECTION SIGNAL FIRST outside the metropolitan areas.
The DO NOT CALL only works on the CONUS area, after a period of time, it does not keep the "here today, gone tomorrow" SPAM market trash that already clog up our e-Mail services!!!
If the companies have money issues, perhapse a reduction in the multi-million dollar salaries & bonuses of the tier 1 & 2 management levels will return the companies back to profitability!!!!
Alas, some clever user will hack the phone to prevent the advertising anyway. Like an Adblock.
However, I would gladly accept advertising for say, a 50% reduction in monthly "excessive and useless" charges. (Doubtful...but wishful)
This simply cannot be true, if they are exepriencing heavy losses in their voice business then they wouldn't be promoting people to buy more phones. Most of what they sell right now is useless fluff (ring-tones) that cost them next to nothing but they charge a lot for but if their business model says they loose money for voice access (the primary reason for a phone) then they'd go out of business in a hurry.
That simply cannot be true, it they're advertising it as a truth then they must be lying.
Cell phone companies beware. You could be getting yourselves into some very hot water that could potentially cost you plenty.
Also, if you receive an unsolicited text message that is advertising, why should the subsriber have to pay for it.
This is nothing more than greediness on the part of the wireless carriers.
It will become what magazines have become: you pay for the subscription and then half of the publication is advertising.
<Rant>
Excellent news! Hopefully, this will **** off cell-phone users the point that their usage decreases. Talk about an addiction! Cell phones are a world-wide addiction that makes American's oil consumption look like a pathetic thumb-sucking bad habit in comparison. I see people who can't afford to EAT walking around with cell phones! Unbelievable! Kids in school talking on cell phones! Take them away! Driving like maniacs all over the road with their mind glued to a cell phone conversation. And this is a world-wide trend we are talking about. People are SO INSECURE, they get paranoid when they accidentally leave their cell phone at home, and will actually leave work to go get it! Heaven forbid your machine has to take a message!
*talk* *talk* *talk* *talk* *talk* *talk* *talk* *talk* *talk* *talk* *talk* *talk* *talk* *talk*
Nobody thinks any more... its all gabbing and socializing.
I have 2 phone lines at home and 1 at work. I have a satellite phone in the car that is for emergencies and has been used less than 10 times. That is MORE THAN ENOUGH.
I HATE cell phones, and their crappy quality, and high prices, along with their tendency to bring out the worst insecurities in humans. I do NOT own one, and god willing, will never have to.
"I forgot my phone! What am I going to do? What if somebody tries to call me!" Suck it up and get an answering machine. Better yet, tell your friends to **** off and stop calling you when they know you are working.
*I* decide how to use my time - not some insecure button-pusher who can't stop calling me throughout the day. I will talk to people when I want, and ignore them when I want. And contrary to the suggestion that I could simply turn my phone off, nobody ever does. Not even at the movies.
Start a worthwhile movement - smash your cell phone.
/End Rant
/Off Soapbox
1) We made a decision to spend billions of dollars on high speed networks just because Europe did. Everyone knows Europe is so cool, and so far ahead of us. It was too boring spending the money to improve the voice quality of the network, and Wall Street would not have been interested.
2) We hired a bunch of 22 year olds to tell us what the 18-34 demographic wanted in the way of content for our new network.
3) We gave the 18-34 demographic what we thought they wanted, and priced it accordingly. We ignored the 35-99 demographic because all they buy is Polident anyway.
4) We realized that the only content we could provide at the decided price point was re-packaged garbage that people see at train stations and on airplanes. Shows like Comrade Katie and the Evening News and The Best Of Everybody Loves Raymond.
5) We couldn't get decent content at the decided price point and the 18-34 demographic won't pay to watch Raymond anymore. So we have no choice but to prostitute our cellular network to the advertisers, take the money and run. Wall Street will be really excited about our new strategic direction and our stock price will go up. The compensation committee will vote to give us a boatload of low-priced, back-dated options so we can upgrade the Holmby Hills mansion with a brand new multimedia theatre system that filters out cruddy commercials. Raymond will look great on that new 60 foot screen.
Check the news from police.vost.com
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