Communication Devices: Contexts for Advertising
Smartphones
Smartphones act as wireless terminals. They are web phones basically. A smartphone is the combination of mobile phone and handheld computer (e.g. the Nokia nk9110) (www.cheapest-mobilephones.co.uk/glossary.shtml). Instead of logging onto a server for access, as you would with Wi-Fi, 3G finds 3G towers, just like cellular service does which means, users have web access anywhere they have cellular service. Ironically, this also begins to suggest the opportunity for Wi-Fi, in that it can provide access in the areas in which cellular service, or 3G, is unavailable. Smartphones allow for real-time, interactive browsing of Internet content, providing a hub to access to information, commerce, entertainment and communication. They also amass Internet content and applications, such as e-mail, the most common usage of the Internet, today. Additionally, smartphones enable users to personalize their entry points, whether they are fixed or wireless (www.bradley.blackboard.edu).
Yankee Group, a Boston-based technology firm states that about 60.9 million North Americans will be using WAP phones, personal digital assistants (PDAs) and two way messaging devices by 2005, up from 1.3 million by the end of 2000.Consumers can use a PDA with wireless Internet access for e-mail to browse ordinary Web sites, or to access PDA-formated Web channels. Cell phones have also become an essential link to consumers as wireless Internet access has become widely popular. These are user-friendly and more familiar to users than desktop computers, so that cell phones or PDAs may provide marketers with their best chance, through truly individualized advertising.International Data Corp (IDC) states "There will be more wireless users of the Internet than wired users, and that there will be more people carrying phones that connect to the Internet than have access to land lines." Consumers have already showed a willingness to pay for the value added by interactive service in Europe and Asia
An
area of opportunity for advertisers to utilize the convenience and speed of
access available through 3G is via the emergence of smartphones. Many mobile
phone makers, as well as PDA companies, such as Handspring, Sony-Ericsson,
Kyocera, and Nokia have introduced smartphones, that take advantage of 3G
technology. Smartphones
act as wireless terminals -- they are web phones, most basically. Instead of
logging onto a server for access, as you would with wi-fi, 3G finds 3G
towers, just like cellular service does. Which means, users have web access
anywhere they have cellular service. This, ironically, also begins to
suggest the opportunity for wi-fi, in that it can provide access in the
areas in which cellular service, or 3G, is unavailable. Smartphones allow for real-time, interactive browsing of Internet content, providing a hub to access to information, commerce, entertainment and communication. They also amass Internet content and applications, such as e-mail, the most common usage of the Internet, today. Additionally, smartphones enable users to personalize their entry points, whether they are fixed or wireless.
Many analysts believe in fast growth for the mobile device (other such devices include PDA's, Palm Pilots, etc.) industry and other related industries. Some estimates of the market growth for wireless advertising are indeed very generous. The mere expectation of growth is a powerful driving force at this stage. Here are some of the predictions: "...by 2005, one-quarter of all data will be transmitted over mobile devices (compared with less than 2.5 per cent at the end of 1999)..." (Crédit Lyonnais). By 2005, Ovum forecasts that mobile advertising will be worth more than $16 billion and will comprise 20% of overall Internet advertising spending. T he American market for mobile phone advertising is "in its very early stages, way less than $100 million, whereas in Japan and Europe it has begun to be a real medium with five times more revenues," said Perry Ellison, vice president of strategic alliances for SkyGo and co-chairman of the Mobile Marketing Association.
"We are on the edge of a very big opportunity because 47% of Americans own cell phones, and the mobile device lets consumers respond to all media, billboard, radio, television and print ads…" Great strides have been made in Europe and Japan. The Hakuhodo Institute of Life and Living, which studies consumer behavior in Japan, found that cellphone users there generally are receptive to mobile advertising, "but most people are very unhappy about spam and push-push marketing," said Mariko Fujiwara, research director for the institute. It is true that the United States is an entirely different market. First, the consumer population is larger and dispersed over a wider geographic area. This is certainly one major obstacle to widespread mobile advertising. While populations in major metropolitan areas such New York City might be reached easily, consumers in more remote areas might be slower to adapt to wireless technology in general and thus be less receptive to wireless advertising. Advertising can take many forms. Image or text ads can be delivered to a users wireless mobile phone allowing the users to repond by clicking or calling through: Phone-Text-Click-Through: Phone-Text-Call-Through: Phone-Image-Click-Through; Phone-Image-Phone-Through; Call Through-Direct marketing with a representative.
Reference: <http://www.skygo.com>
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