It took 10 years for the Web to go from being pages with text and occasional photos to the slick, flashy sites we see today,” says Kaan Yigit, president of digital culture research firm Solutions Research Group in Toronto. “We’re seeing a similar evolution in the wireless space.”

In this day and age, it isn't only desired, but expected that we should be free from wires. According to the Cellular Telecommunications & Internet Association, there are currently 166,016,850 wireless subscribers in the United States. As researched by J.D. Power and Associates, “6 out of 10 wireless phone calls are made outdoors. Of those, 62% are made in a vehicle, while 36% are made while walking or standing.” (Rosenthal, 2004). And the technological advancements that surface almost every day speak to that expectation, quite clearly.

Wireless technology is the wave of the future. It is becoming a hot topic due to the fast development of wireless networking and technology and significant increase of mobile device users. By the year 2005, there will be ninety six million active mobile internet users in the U.S alone (www.emarketer.com). Nearly one billion people carry cell phones worldwide today (www.emarketer.com). "In Japan, more than 2 million people already use their wireless handsets to send e-mail and access the Internet, and in Finland, 90% of teenagers have wireless phones that enable them to buy a coke or pay for a carwash (Artesia Update, 2000).” “Applications such as instant messaging and mobile e-commerce will transform the handset from being a 'nice to have' wireless phone to a 'must have' information appliance," said Ray Jodoin, principal analyst for In-Stat's Global Wireless Service (www.regisoft.com).”

Evolution of Wireless: Brief Historical Overview

True mobile technology has been around for roughly 20 years now. However, there is still a very high level of innovation in what should be a very mature market. The history (leading up to today) of mobile communication can be broken down into three generations of innovation. Today we are approaching the third generation (3G), but as you will see, the lines between wireless and mobility are beginning to blur making the future generation of technology very interesting.

1G: (Cellular Analog) The true origins of mobile communications begin in analog cellular systems. In these systems, a series of cell towers would cover an area allowing the user to move between cells while being allocated a certain sliver of the spectrum to complete the call. These types of phones and communications systems have be known as the first generation systems or 1G.

2G: (small bandwidth digital) For this examination, however, we will focus only on the digital transmission standards that work on the RF spectrum. These new systems have become known as 2G and 3G systems. Second Generation (2G) systems are what we use most frequently today. They are categorized as systems that are digital in nature, have the ability to transfer data as well as voice, but are still a too low a bandwidth to make high levels of data transfer a very practical option. Some innovations have been made within the 2G space allowing for broader bandwidth capabilities such as always-on access and Multimedia transfers. Since these are still relatively small leaps in bandwidth they have been classified as 2.5G

3G: (Medium-High Bandwidth Digital) Third Generation (3G) mobile technologies are characterized as devices with relatively high bandwidth data capabilities. (2Mbps fixed, 384kbps urban/pedestrian, 144Kbps wide area network). These are supposed to have very large capacity for full video and audio messaging. However, it does not approach the bandwidth levels of Wi-Fi or WiMax, meaning that it’s hold on the mobile market may be very short lived if manufacturers decide to conform to the higher wireless standards.

3G is enabled to carry data, voice, text and graphics, in real-time or as stored information. And it is the prospect of real-time interactivity, which poses the richest opportunity for content providers and advertisers alike.

Using 3G services, activities such as web navigation will much easier. Using a 3G-enabled device with voice recognition, for example, users need only to speak their favorite sites to navigate. That, plus color display screens with touch sensors, and the ability to recognize handwriting or finger prints, will make the concept of an all-in-one portal that much more realistic and believable.

In addition to the consumer applications, the most significant benefits to providing 3G content are the VAS (value-added services). A multitude of services, such as multimedia messaging, financial transactions, news and information delivery, as well as location-based content, will all need to be advanced and useful, if VAS is to be successful. Most importantly, the services will need to be simple, consistent and economical (philips.com).

From a consumer-benefit point of view, 3G will enable advanced, lightweight, easy-to-use wireless devices, such as web-surfing mobile phones, that are designed with familiar and intuitive interfaces. These devices will provide instant, real-time multimedia, global mobility and roaming, high-speed e-mail and Internet access, as well as software downloading.

Therefore, 3G can provide access to the Internet that's specifically styled to be wireless. Additionally, 3G makes it possible for users to transmit animated images, voice, and data.

Essentially, in order to do this, 3G provides data transmission speeds of up to 144Kbps in a high-speed moving environment (driving), 384Kbps in a low-speed moving environment (walking), and 2Mbps in a stationary environment (sitting).

How Are Wireless Networks Categorized?

Wireless Wide Area Networks (WWAN's)

Enabled by technologies like 3G (Third-Generation), WWANs allow users to establish wireless connections from just about anywhere, connecting to the Internet through wireless service providers. Wireless service providers maintain these connections over large geographical expanses, like cities or countries, via antenna sites (cellular towers) or even satellite systems. WLAN technologies, such as 802.11b (WiFi), enable users to establish wireless connections within a small geographic area.

WLANs utilize local access points, often called "hotspots", which provide users with access to a local network of computers that can be used as stepping stones to the Internet or to access local information. These access points can be contained within private office buildings, or public spaces, such as airports.

WLAN’s, otherwise know as wireless local area networks use a variety of flavors on 802.11 which are usable over distances of hundreds of feet. A WLAN installation uses one or more access points, which are dedicated stand-alone hardware with typically more powerful antennae. The three standard types of WLAN’s are 802.11b, 802.11g and 802.11a. The differences are listed below:

WMAN’s, or wireless metropolitan area networks, or 802.16a, is a high-speed short-range solution. With a range of several miles, this technology will provide an economical last-mile solution, particularly in urban and suburban areas. Eventually, the technology will have a range of up to thirty miles.

Understanding the different types of wireless networks can be quite confusing. There is much more to be known than what phone number to call, as is the case with the standard dial up modem. Wi-Fi works in networks. It is making this change that will be the hard part. Wi-Fi stands for Wireless Fidelity and it can also be referred to as a Wireless Lan (W-LAN) or an 802.11 standard. The 802.11 standard is a family of specifications organized by the Institute of Electrical and Electronic Engineers (IEEE) The specification most commonly referred to as Wi-Fi is the 802.11b standard. This provides for nearly 11Mbps on the 2.4Ghz Band.

The two basic components of a Wi-Fi network are a computer device outfitted with a low-power radio and another radio-equipped gadget known as an access point, which is wired to the Internet or a local network. The two communicate with each other over a free slice of the radio spectrum reserved for consumer use and inhabited by microwave ovens and cordless phones.

This is a system that provides wireless Internet and intranet access. These are small connection zones created by low-powered radio access points installed in an increasing number of airports, coffee shops, hotels, conference centers, schools, businesses, and homes. For example, Starbucks now has Wi-Fi running in more than 500 shops and recently has announced plans to make it available in up to 70 % of its 3,200 company-owned outlets in North America.Mobile users with Wi-Fi cards in their laptops or handhelds can connect without wires to these access points from up to 300 or 400 feet (sometimes up to a thousand feet) away.

Currently, most Wi-Fi networks use the 802.11b standard system. This system transfers 11 megabits per second at a 2.4-GHz radio frequency. There are also new systems on the way that provide faster service. This network is categorized as a 802.11a network. This service offers Wi-Fi access at a speed of 54 megabits per second. While this information sounds great, the 802.11a network is created on a 5-GHz radio frequency. Because of this, the two systems are not compatible. It is not possible to simply upgrade to the faster service. An entirely new system is required (Wade, 2002). Converting WiFi networks is not as simply as converting from a dial-up connection to cable or DSL modem. Where simple wires and access devices are required, upgrading Wi-Fi requires entirely new networks. As time progresses, the availability and ranges of networks will be discovered and applied. An area that will require greater and wider networks involves multimedia. In order to successfully work all applications in one’s home, a great network will be required.

WiMax: (Wi-Fi on Steroids)

WiMax is the next generation of Wi-Fi systems. It is identified within the IEEE as its 802.16 specification. Basically WiMax is Wi-Fi for the masses. Whereas the 802.11 standard allows for high-speed data transfer within a home or office, the 802.16 standard allows for high-speed data access for entire communities from a single access point.

The Wi-Fi standard allows for 150-300 feet, but the WiMax standard allows for access within a 3-5 mile radius in metropolitan or uneven terrain. It also has a LOS (Line-of-Sight) range close to 20 miles or more. It also allows various 802.11 networks to pick up the WiMax signal and then relay it within its smaller Wi-Fi network. These ranges are very similar to the footprints of cellular towers and thus helps close the gap between the wireless world and mobility world. If mobile handheld devices can be adapted to work across WiMax networks, then high-bandwidth media would be possible

Wireless Personal Area Networks

WPAN technologies enable users to establish impromptu, wireless communications between devices, like laptops, cell phones and PDAs, within a personal operating space (POS), which is a personal space surrounding a user of up to 10 meters.

The art of connecting things is becoming more and more complex every day. We sometimes feel as if we need a Ph.D. in electrical engineering just to set up the electronics in our homes. A completely different way to form the connections would be through the use of Bluetooth. Bluetooth is wireless and automatic, and has a number of interesting features that can simplify our daily lives. Bluetooth is a standard developed by a group of electronics manufacturers that allows any sort of electronic equipment from computers and cell phones to keyboards and headphones to make its own connections, without wires, cables or any direct action from a user. Bluetooth wireless technology is used by more than 2,490 companies worldwide make this wireless networking system one of the highest volume home-networking applications available today.

The Bluetooth standard is a very effective system for very short range wireless data transfers. The Bluetooth standard was created to make a very secure, very low-power, alternative to wired devices. Its purpose is to create a wireless link between digital devices that are within a very close proximity of one another. It transfers data at nearly 750Kbps making data transfers very quick, but it uses very low power from small batteries hence making the effective range less than 35 feet.

Today, Bluetooth devices are basically limited to headsets for phones, mp3 players, and ports for printers and other computer peripherals. However, Bluetooth enabled phones could easily become destinations for Bluetooth direct advertising.

For example, if someone where to walk into a store that had a Bluetooth proximity-based ad server, they could recieve an instant ad that would promote a perticular product or service meant only to be seen by those in the store.

One of the best examples of WPAN is Bluetooth, which uses radio waves to transmit data at distances of up to 30 feet, and can be transmitted through walls. Aside from Bluetooth, devices can also be connected at close-range utilizing infrared technology that is beamed from device to device. In the most basic sense, 3G services combine high-speed mobile access with Internet Protocol (IP)-based services. It's not just about the idea that mobile users will have access to a fast mobile connection to the World Wide Web, however.

Wireless Technologies

Standard and cost-effective wireless technology is the key to the success of wireless advertising. Today, three major wireless technologies are being used worldwide. In Japan, I-mode, based on C-HTML, is the most popular wireless technology. In Europe, SMS is the popular protocol in the wireless community. In America, up to this time, WAP is the popular choice and standard for wireless vendors and service businesses. These technologies focused on special groups of users, and recipe particular mobile devices and wireless environments.

WAP Wireless Application Protocol (WAP) is an open, global specification that empowers mobile users with wireless devices to easily access and interact with information and services instantly (www.wapforum.org). WAP technology utilizes the WAP gateway and WML/HDML language to translate a mobile web request into a traditional HTML/HTTP request that the web server understands and vice versa. WAP plays as a bridge between wireless network and Internet. It can be used as an information channel between wireless devices and the Internet.

SMS Short Messaging Service (SMS) is a digital cellular network feature. It allows user to send and receive text messages to and from digital cell phones using cell phones and e-mail addresses based on public SMS messaging gateways over the Internet. The text can comprise of words or numbers or an alphanumeric combination. SMS was created as part of the GSM Phase 1 standard. The first short message is believed to have been sent in December 1992 from a Personal Computer (PC) to a mobile phone on the Vodafone GSM network in the UK. Each short message is up to 160 characters is length when Latin alphabets are used and 70 characters in length when non-Latin alphabets such as Arabic and Chinese are used (www.gsmworld.com). Today, SMS applications include stock quotes, sports scores, and news than can be delivered to mobile phones at regularly scheduled intervals. Currently, there are approximately 16 billion SMS messages sent globally each month. The majority of that traffic occurred in Western Europe and Asia. In North America, most major cellular phone providers offer either one-way or two-way SMS services to their subscribers. With one-way service, a user can receive messages; while with two-way service, the user can receive and send messages with a cellular phone. “Increasing use of Short Messaging Service on mobile phones is good news for the media industry. Newspapers and magazines struggling to generate direct consumer revenues from their Web sites have more opportunity to charge for content on mobile phones,” said Jupiter MMXI’s Oliver Beauvillain. “They should use their Web presence as a way to promote mobile content with which they will be able to generate more revenues.”

I-mode I-mode provides a predominant wireless Internet service that offers wireless web access and e-mail services through mobile phones. It was first introduced in Japan by NTT DoCoMo and was patented (www.mobileinfor.com). As of November 2000, I-mode had an estimate of 10 million users roughly represent 60% of world’s wireless Internet users. In Japan, I-mode users are not charged for the user connection time to a web site or service, but they are charged according to the transmitted data volume. This is different from typical western web services.

Applications of 3G Technologies

3G means access to service anywhere, anytime, from a single device -- a mobile phone, for example. There will be no such thing as barriers to communication as access to information, media and entertainment blend together.

In other words, services that today are regarded as "fixed" will be offered in a mobile environment. In fact, it's said that mobility will soon become the expected manner in which communication services are provided. Therefore, while we're playing interactive games, we'll also be able to make video calls into meetings, while reading The New York Times, online -- from practically anywhere.

But 3G is about more than just apps that need high-speed data rates. From a basic consumer-need point of view, the big benefits are convenience and access speed. 3G will enable users to be on-line constantly, meaning, for example, that e-mail messages with file attachments will download to mobile phones, instantaneously. And gradually, mobility will be an expected aspect of high-speed access to the Internet, entertainment, e-commerce, and information, from wherever we are, on the move, or not.

In a typical user's day, 3G will emerge in many fresh ways. For instance, shopping via e-mail order, over the Internet. Playing online games, like The Sims Online, or banking, while sitting on the train, for example, are also very real instances in which 3G is likely to infiltrate our day-to-day lives.

Just think of the convenience of sitting in a cab, while using a web phone to check bank accounts, and pay bills. Have a question about an account? Videoconference a virtual bank visit with a teller.

When traveling, our phones will allow us the convenience of spur-of-the-moment hotel reservations, locating taxis or tour guides, and send pictures of our adventures, home to friends and family -- all thanks to 3G enabled devices

Rural Applications

Imagine cable or telephone companies attempting in small rural townswith high speed Ethernet of cable access. It is economically not feasible. A system of this sort would never pay for itself. It is not and cannot be expected for companies to supply high speed internet service to these areas. Attempting to do this could single handedly shut down companies over the cost. Yet, these individuals deserve the same high speed access that is available in more urban cities. While the majority of the United States population is in urban areas, the majority of land in the United States is rural. The individuals living in these areas are waiting on something that can bring high speed internet service to them.

The most simple and economically feasible way to provide these areas with high speed access involved using wireless technology. This type of service can provide these areas with the high speed service, without sending any companies into bankruptcy. It is often wondered how a system like this would operate. Consider this example. Currently, the United States is equipped with antennas that provide service for wireless telephone communications. There are few places where one cannot retrieve some sort of wireless signal on a cellular telephone. A system of this nature would work great to bring high speed service to rural areas.

Vivato, a start-up wireless internet company, recently introduced a system using antennas that transmit signals farther than those today. Currently, a good wireless signal can go roughly 300 feet. The system designed by Vivato transmitted a signal up to seven kilometers. The system has also been demonstrated by equipping an entire five story building with internet service from an antenna that is across the street. These are all great advances in the wireless network. It is this type of technology that will unite rural and urban areas with high speed access (Boutin, 2002.)

The system designed by Vivato does not require the area used by what individuals commonly associate with antennas. The system is only two by four feet and a few inches thick. It works by placing several short antennas in this small area. The whole system emits only 30 milliwatts of radiation, or the equivalent of a single computer base station. The system has the ability to detect Wi-Fi clients in the area and adjusts the signal accordingly in order to adapt to each computer. The goal is to create directed beams whether than circular beams. By doing this, the coverage is greater than the standard Wi-Fi service available (Boutin, 2002).

The system has been proven to work over four miles without breaking any FCC regulations. Another unique feature of this system is its ability to continually adjust the beam while a computer is being moved around. This is something entirely new. Currently, one must wait to find the signal or the service becomes slower. With Vivato’s Wi-Fi network, the service remains at full force while the system is being moved around (Boutin, 2002).

It is a system of this nature that will bring Wi-FI to rural areas. Currently, the four mile area is not wide enough to connect these areas, but in the future this will change. As stronger and more powerful systems are created, a broader ban will be created, thus bringing the internet to areas where it is not now. All that is will take for these individuals to become connected is one, simple wireless card for their computer. Because wireless computer technology proves to be a lot less expensive in some cases, it may prove successful in rural areas of the country where Internet access is still not feasible. In rural Minnesota for example, wireless technology is proving to quite cost effective.

Michael Mimbach

Michael Mimbach, a software developer in rural Minnesota discusses the advantages of wireless technology. "For once, we're ahead of the metro, the cable modems, we're faster than DSL, we've got better latency than them and we're in rural America. Wireless Internet technology is turning the tables on the so-called digital divide. It's completely flipping it. It's leveling the playing field and its wonderful."

Urban Applications

New York City: Marcos R. Lara, vice president of product management for Open Air Communications, decided to determine the number of wireless access points in Manhattan. He accomplished this feat by simply driving and walking around the island counting the number of times his computer accessed a new network. His goal in this experiment was to find hot wide spread Wi-Fi use was in New York. At the end of the experiment, Lara was amazed at the number of access points he discovered and wondered at the ability to capitalize with advertising in the forum (Batista, 2002). Lara found 12,647 access points on the Manhattan island alone. While some were pay for service, the majority were free and without any limitations. All that one had to was simply have a wireless card and a computer. Lara said, “It kept going. I was looking for a way to stop,” (Batista, 2002). Lara was delighted to discover this great infrastructure. He believes that all one needs to do now is connect them together. Connecting each infrastructure together is where problems arise. Each system is privately owned, either by a business, individual or another entity. Lara believes that instead of continually building new networks, the existing ones should be open to the public. Whether this should be a fee service is still debatable. “When I saw this map, it was obvious there was already a deployed infrastructure. If we can just connect it and get it to operate under one umbrella, everyone in the city can have instant wireless internet access,” (Batista, 2002). Currently, connecting these systems is not possible because of security measures. But Lara believes that his idea is possible. When discussing this point, Lara refers to the network currently being put into play by Sprint PCS. allowing its users to roam on other wireless networks without having to pay roaming charges. Doing this allows a much broader access for its clients. Lara believes that this is a start to a much larger wireless network (Batista, 2002).Of the wireless networks existing, only 60 percent have even basic encryption. This allows for anyone who knows computer networks to “hack” into the server. Security has been and will always be a major issue with individuals. Before networks can be opened to the public, the public must be assured of their security. When this is accomplished, large Wi-Fi networks will be available to the public. New York is an example of how a city can become wireless. With infrastructures already in place and constantly growing, creating a completely wireless city is not that far fetched. It simply takes more researching and additional brainstorming. New York should be a model of how other cities can create successful networks.

Applications at Work

It is a common occurrence today for individuals to not be completed with work at five o’clock. One either has to stay late, or carry the work home. Carrying the work home can be a hassle because most work revolves around computer systems today. One had to be able to access the work server from home in order to complete task. This becomes a great hassle. It also presents a problem as individuals travel on work related needs. Constantly needing to be connected to the work server can create an obstacle. Wireless internet service can and will change this. “Wireless technology seems to be spreading rapidly, but we are just in its infancy. We are just beginning to scratch the surface of a worldwide wireless office, but it will happen,” says Michael Zey, professor at Montclair State University is New Jersey (Eng, 2002).

Besides needing to stay in touch with the office while out of town on work, it is also a common need to stay in touch with families. This is commonly accomplished through cell phones and late night calls. Wireless technology will enable one to simply “plug” the internet into his or her car. By doing this, family members and other individuals can constantly know where you are located. This is also a convenient service for families that are not traveling. By simply accessing a computer at home, one can discover if a family member is going to be late for dinner or where he or she is currently located. This can provide a great “Big Brother” experience for parents who are worried about their children who are beginning drivers. They can constantly monitor his or her location and path and make sure the children are secure. “I claim that the application of the internet to things will affect us in much deeper ways than the internet to the people,” says Foresters David Howe (Boyle, 2002).

Entertainment Applications

Wireless technology can also create great advances in the area of entertainment. By using this technology, a movie theater can simply “dial up” the feature movie of the night. The production house then sends the theatre the signals and the movie plays. Gone are the days of heavy rolls of film or digital tapes. All moves are produced to be shown wireless. This can also help lower ticket prices. The technology will be so advanced that the production houses will be able to lower ticket prices while earning more money per film than they do today. This also eliminates scratchy film or film reels that skip. Since the technology is all wireless and sent through antennas and satellites, one can be assured of a successful movie watch (Norr, 2002).

Imagine a wireless home. . . . And I mean completely wireless. Not a cord in site. This is possible using wireless technology. When systems are created, it will be possible to carry on everyday life without the fear of tripping on a cord of worrying about power failure. By using wireless technology, all systems are run on either antennas or satellites. Now, I am not just aiming this conversation toward televisions, computer and telephones. I mean everything. Imagine taking a mixer out of the cabinet in order to make a cake and it automatically working. Or blow-drying your hair in the morning without having to untangle the cord. When the technology prevails, everything will work by satellites. This will enable much greater ease of use of products. One will not have to deal with the hassles that he or she is accustomed to today. Simply buy the product and it works. Paying for this type of service is more complicated. The need for electricity will be erased. That too can be wireless. When this technology becomes a reality, a system will have to be in place to measure the amount of time spent using the wireless sources and individuals will have to pay accordingly. While this is many, many years in the future, I do believe it will revolutionize the American home as one knows it today.

Madonna

When Madonna was about to launch her Music album, several operators and wireless portals offered the possibility to download a picture of her on to their phone screens and also some tunes from her single as a ringing signal.

Elementary students using wireless computers in Parkersburg, Iowa

Educational Applications

Wireless technology has already had a considerable impact on education.

Two particular cases are mentioned here: Parkersburg Indepedent School District in Iowa and Minnesota State University in Mankato, Minnesota.

Parkersburg is a small school district, 900 kids K-12 and 125 staff members. The school shares its technology with one other school district and has been involved with the technology for about 7 years.

Parkersburg purchased 32 wireless computers last year. One factor influencing the district's decision to go wireless was simply space. The school had run out of room and going wireless was a cheaper soulution than erecting a new building. With wireless computers, a cart with all the computers on it is simply the lab and it can easily be transported from classroom to classroom. This enables students to be in their own learning environment when using computers.

Students at Minnesota State University

n March of 2001, college students at Minnesota State University in Mankato were given the opportunity to lease wireless laptops from two high tech firms, Midwest Wireless and Nokia at reduced rates. In return the students participated in regular focus groups to help the companies refine their product.

Alliances between tech companies and universities are common for a variety of reasons. Most companies see colleges as the perfect market for testing new products.

"They get wide-eyed when they think about the millions of students, the hundreds and thousands of schools and the thousands of districts. . ." says Steve Robinson, vice president of Madison-based Discourse Technologies.

To see an example of an Interactive Environment at Northwestern University, please click on the logo below. The IE ate Northwestern consists of data nodes, compute nodes and visualization nodes tightly coupled through a private gigabit network. These nodes serve, operate and render the data. Final output appears on a display, visualization workstations, desktops, and high-speed wireless devices. The IE connects to the building networks, including wireless, through a firewall.

Source: www.northwestern.edu

Law Enforcement Applications

Wireless technology has also helped law enforcement in rural areas reduce the amount of time it spends on traffic stops. In Sulpher Springs, Texas, a town of about 14,000, a federal grant and some local money has enabled the Sulpher Springs police force to install a $165,000 wireless network. Assistant Chief Robert Stidham said the system installed this past September lets officers get information on suspects and vehicles in seconds instead of minutes.

Implications for Advertising

In the years ahead, Wi-Fi will become a universal standard, found everywhere in the electronics world. It will show up in consumer electronics devices, from videogame consoles to music players. Cell phones will have it, as will PDAs and digital cameras. Any PC bought in a year or so will instantly become the hub of a wireless network, simply by turning it on. The numbers will quickly reach true mass-market levels: an estimated 99 million people with Wi-Fi by 2006, according to Gartner. In respect to wireless advertising, research from Frost & Sullivan believe that wireless marketing will not take off for another decade. Despite such a forecast, it is obvious that good wireless advertising will tie into a company’s offline advertising.

Retailers have the capability to reach their audience anywhere and anytime through wireless devices. Marketers increasingly will serve up audio or text ads and promotions to wireless devices, based on the user's preferences and location, to lead traffic to nearby stores or to induce a consumer to make a phone call or link to an advertiser's wireless site. It is expected that sponsorship opportunities for wireless content and service will abound.

Moreover, those who talk up wireless marketing's potential predict that it will be two to three times more effective than Internet banner ads. They say the success of wireless advertising hinges on an opt-in approach admitting customers to dictate when, where and what the types of ads they get. Rosalie Nelson, senior consultant in e-commerce and new media for Ovum Ltd., a London-based technology consultant firm, states "With wireless advertising, it's an immediate call to action. Consumers can respond on the spot, which makes ads very effective"(James, 2000).

Cell phones, pagers, and personal digital assistants (PDAs) can be interactive mobile device for wireless advertising, and, according to a study by Ovum, Ltd., wireless devices are expected to reach more than $16 billion worldwide and to comprise 20 % of Internet advertising expenditures (James, 2000). Wireless advertising looks like direct marketing. Greenberg (2000) states that wireless devices offer a cheaper method to get connected to the Internet. So, what does this mean for advertising?

Immediacy

ue to 3G's always on, real-time access, the ability to get a message in front of a consumer, immediately, is a promising opportunity for advertisers to reach their target markets. How?

Consider the ability to program your GPS-enabled smartphone to notify you when in the vicinity of restaurants, coffee shops, or retailers that are of interest to you. Since your smartphone has "always-on access," and since you've essentially "opted-in" to hear from these establishments, whenever you're in the vicinity, your smartphone alerts you with a specific tone, while an e-mail coupon, with attachment, is automatically sent to your inbox.

This "permission-based" form of preference selection will help legitimate marketers escape the inevitability of less reputable marketers spamming, due to this increased access, on both the side of the consumer, as well as the advertiser.

Take travel, for example. I am traveling and in a new city. Since mobile service providers know my actual locale (they know you're area code), they'll be able to detect that I'm traveling, and therefore, the messages and advertisements I receive while surfing local hotel options, could potentially be travel-related, sending me to restaurants, flagging cab companies, and coffee shops in the same area.

Now, not only is my hotel preference known, but it's also known to which cities I travel, therefore creating an opportunity for travel offers, specific to the areas I frequent. And since all of this is real-time, the true opportunity is the fact that advertisers will be able to hit target audiences with messages that are not only immediately meaningful to them, but immediately actionable, as well.

A weary traveler is in search of last-minute hotel reservations, using always-on Internet access with a smartphone. After keying in the zip code, the mobile service is quick to recall that Hilton is an indicated preference for this user, and pulls up the appropriate information. In addition, Hilton is a smartphone advertiser, which provides easy, personal access to a the nearest Hilton reservations desk, via video-conferencing.

Essentially, 3G allows advertisers the ability to talk to consumers who are ready to purchase, right there, right now.

Increased Revenue Potential

nline advertising is driven, in large part, by the number of eyes potentially viewing that ad. Therefore, advertisements that are location based could assumedly be in the position to command higher CPMs, since the users are more targeted, qualified and have given their "permission" to be contacted.

Competitive Advantage

3G enabled smartphones will give marketers who participate the competitive edge in industries where there may be little differentiation, other than convenience, to users. Consider gas stations, for instance.

A user needs gas, and stops at an intersection with three gas stations on the corners. The prices are all the same, and the consumer has no propensity toward any one of the three. Suddenly, your smartphone alerts you, as the gas station on your right sends you an offer with a free carwash or soda, if you fill up there. Your decision has been made.

Standardization

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.

The 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.

Click through

Call through

Reference: <http://www.skygo.com>

E-Coupons

Marketing by cell phones or PDAs can be accomplished by offers and promotions such as electronic "coupons" good for discounts at local restaurants. The electronic coupons can be stored in the phone's or PDA's memory and bought by presenting the phone or PDA screen to the retailer or restaurant cashier. Buttons on the phone or PDA can allow the consumer to purchase an item immediately or to signal a retail dealer. However, car ads can be the least likely to succeed with cell phone marketing, because they need specific visuals. Therefore, such ads should be created to provide additional information to a potential customer after the consumer clicks the button. Instant hotel reservations can be made by pushing a button, and after hearing a few seconds of new music, instantly purchasing concert tickets is possible.

E-Coupons and e-Vouchers can be sent directly to consumers' PCs, PDA’s or mobile phones. Alternatively, consumers can download e-Coupons or e-Vouchers into these platforms from the Web or they are sent directly to the consumer as advertisements. Users can then carry the e-Coupon or e-Voucher in their hand-held device for use either at an online store or a brick-and-mortar business. The service can be used either in a business-to-business scenario, enabling Internet Service Providers to provide a new tool for advertisers, or in a business-to-consumer scenario in which online stores deliver e-Coupons and/or e-Vouchers directly to consumers (www.internetnews.com). "Given today's competitive market, e-business cannot be satisfied with reaching only online customers, while service providers must search for alternative revenue sources," said RegiSoft President and Chief Executive Officer Gady Shlasky. "RegiSoft's e-Coupons and e-Vouchers answer both these needs (www.internetnews.com)."

According to a study conducted by HPI Research Group, nearly nine out of ten (86 percent) respondents agreed there should be a tradeoff for accepting ads on their mobile devices. The study found that the core mobile phone market (16 to 45) is receptive to experiencing mobile marketing in the form of a received SMS sales message. When asked about receiving an electronic coupon to be reimbursed at a nearby shop, 88 percent stated that they would be receptive to this sort of marketing. Nearly one-third (31 percent) expressed more enthusiasm by stating they would actually welcome such marketing. “Just as sales drive consumers to stores, special savings will lure consumers in, and will make the whole process of receiving mobile ads more palatable to users,” said Becky Diercks, In-Stat’s director wireless research (www.clickz.com).

Wireless advertising may come in the form of coupons or discounts offered by selected stores when consumers are near a location or searching for related products. For example, a mall patron is walking near a Bath and Body Works. If the consumer has ‘opted-in, Bath and Body Works can then send a message to his/her wireless device reading “20% off any product for the next 30 minutes” or maybe the customer’s favorite lotion is on sale. (Chisholm, 2001). “Other popular promotions include alerts about movie releases, concert tour dates, chances to win backstage passes, coupons for retail stores, scores from sporting events, discounts, the weather, even astronomical events from a NASA scientist.” (Odell, 2003). Virtually any information or discounts a consumer is interested in can be immediately sent to their cell phone or PDA. Chisholm (2001) stated that wireless advertising works because of it’s ability to be time sensitive, “That's the perfect blending of opportunity and need. As a consumer asking for information on a topic, I'm ready to see any available special offers. If I'm searching for information on a digital camera, and you offer me free shipping, I might just take you up on it.” That is why wireless advertising has become so successful: it creates a need that can be fulfilled instantly.

For example, digital coupons can ease the institution of the impulse purchase; appropriate coupons can well encourage opt-in for long-term loyalty programs. Most of all, immediate feedback on marketing messages is very valuable. The mobile channel is radically changing communications across multiple sections of society. An appearing global culture is being fashioned largely by an emergent youth market (Kotch,2001).

Electronic Coupon to wireless divices from wireless service providers or advertisers

More targeted based on customer DB than general coupon

Sending a well-targeted e-coupons to mobile device users at an appropriate time can lure consumers into a prompt purchase.

Also, as it is more convenient for mobile device users to save e-coupons than off coupons, increasing usage rate of coupons may be expected.

Thus, it is expected that eventually, advertisers can save their cost for producing and distributing exsiting coupons by employing e-coupon, and increase consumer awareness and likeness to purchase.

If it could be offered with voice activated service in color screen in the near future so that users could easily get more specific information when they need, it will be more effective. For example, Subway advertiser could provide mobile device users a map service on screen, which indicates its subway store located nearby users. Or, through a voice service, people could be noticed to get a coupon easily while moving.

Wireless advertising technology has come a long way in just the past year and cell phones with graphic and color capabilities are already on the market. Still, the majority of wireless technology owned by the public at present is relatively simple and if Starbucks or 7-Eleven decided to roll out a wireless advertising campaign tomorrow, they would be limited by the technology and their ads would look very similar to the examples above. These ads do use incentives and GPS technology to appeal to consumers. In the future, the tactics will likely be similar but obviously, have a fancier design.

PDA (Personal Digital Assistant)

Description

Image or text ads are delievered to a user's PDA

Available run-of-site

Ads allow users to respond by clicking through (PDA - image - click - through)

Image grey scale or color is available to offer.

More information than mobile phone

More rich ad media

CO-OP Ad

Streambeam Kiosk

Get immediacy on the street with interactive streambeam kiosk

Link the stationary media, kiosk to the interactive world with the beamable content of this unit

It works with all PDAs, and wireless mobile cell phones to get information, couponss, movie times, lotto numbers, etc.

Bring ad message to the public daily with up-to-date information

Referece: Viacom Outdoor

CAR + PDA

Description

Car navigation method + Advertising

Integrated PDA functions into its vehicle electronics

Basically, it's designed to help a driver by providing that service such as telephoning, address book, route planning and guidence, internet, and emergency assistance etc.

MINI is a good example employing this integrated PDA functions. You can see the simulation at http://www.mini.com/COM/en/themini/pda/index.html

A driver would like to have Mcdonald's burger and may enter a zip code. By user clicking a Zip code on, it automatically went off to find the Mcdonald store in the region she specified

Suppose you like Starbucks and at 2pm you usually have your cafe mocha. You're their regular customer. You're going to get a phone call from the local Starbucks about 1:55pm. They might say "hi, if you just make a right turn right now you're going to receive a 10 % discount."

Virtual Shopping Malls/Shopping Streets

What would the virtual shopping mall look like? It would probably look like your basic mall now, except for the addition of wireless technology used not only by consumers, but also by retail stores. Consider this: You walk by a Banana Republic. You like Banana Republic and have signed up to receive an e-newsletter from them once a month. That's where technology presently sits. When you walk in a wireless shopping mall, Banana Republic will know when a loyal customer of theirs is in the building. They'll perhaps send you an alert on your cellphone with an additional option of coupons or other special incentives to get you in the store.

For example, Odell (2003) cited an example from a heavy-traffic mall that placed promotional material around the vicinity. The signs told mall patrons to call the given number (the opt-in) and enter the special code to receive a coupon that was valid at several participating stores. Dotinga (2003) also mentioned test run at another mall where the codes were sent to the phone and could then be turned in for the actual coupon. Since wireless advertising is relatively new, redemption places (usually the stores) do not have the technical ability to read the mobile coupon. So far, consumers have shown the coupons on their wireless instruments to the stores. If, in the future, wireless advertising does take off, stores should become equipped with the technology to read or scan these coupons

It wouldn't take much imagination to think up the wireless shopping mall. Enabling stores with the technology is all that is needed.

GAP Proximity AdThis is an example of how effective a Bluetooth direct marketing system would be. In this case, the GAP store would be fitted with Bluetooth-enabled access point that is constantly "pinging" phones within it's 30-40 foot broadcast radius. If it finds a phone-owner who has subscribed to 'mobile alerts' on the GAP Web site, it then sends the user a tailored message with a promotional code, giving the user a unique special on a certain item within the store. With user shopping habits also being recorded through their inventory database, the system can instantly send discounts to the user on the items he or she buys most. Obviously, this would have a great impact on customer loyalty. Also, the 'mystery' involved in what kind of message the shopper will get next, becomes an impetus for the shopper to make many physical return visits leading to greater shopping frequency.

GPS (Global Positioning System) technology would play a large role in how the virtual shopping mall operates. All cell phones sold by 2005 will have GPS chips installed in them. To guard against unwanted wireless spam, the consumer would sign up (opt-in) to receive alerts or offers on their phone from the shops or restaurants that they are interested in the mall.

Financed or Sponsored Services

Sport event ad example

In this method, the consumer receives free services, for example news updates or voicemail. In exchange, the consumer is exposed to advertising. Not unlike more traditional media such as television or radio, this method may prove quite successful.

One popular field in financed services is so-called event sponsoring. Here the consumer might subscribes to information from a particular event, such as a sports event, and advertisers get to be the sender of the news updates or score results. This tactic was used in the Euro 2000 Football Tournament with mixed results.

Wireless and the Integrated Marketing Communication Process

Let's look at how wireless advertising and m-commerce are related. The obvious characteristics of advertising are that it is paid for a company and it expects an audience will be receptive to its message. Promotions are designed to provide motivation to the consumer to take a specific action in line with the message. On the other hand, commerce is generally thought of as what happens after a successful marketing campaign: If a consumer becomes aware of his or her need, he or she will visit the store or Web site and buy the product or service.

The difference between advertising and commerce is generally a clear one in the Internet. Email, banner ads and sponsorships are all forms of advertising designed to provoke immediate or delayed commerce. The Web site allows immediate results from the advertising. However, the distinction between advertising and commerce is not always clear with wireless. Some of this blurring online with banner ads lets consumers link or order directly from the ad, but blurrier lines of difference in the wireless world can be expected, given the space limitations of mobile devices.

Consumers can have many more contact points with advertisers in the wireless environment. Therefore, devices that connect consumers and firms can play a significant role in IMC. The strategy is used for CRM (Customer Relationship Management), e-procurement such as marketplaces or supply chains while the major reason for implementing mobile Internet solutions is to aid messaging. Many companies are investigating the mobile Internet for these functions.

Newell and Lemon (2001) stated "Consumers have told us that if we deliver marketing messages that are targeted, compelling, convenient and interactive, they will pay attention." Consumers dislike irrelevant messages but they do not mind relevantly useful messages. Therefore, the marketing target should be identical with the communication target. Marketers also need strategies which directly approach the consumer.

Moreover, users of wireless devices tend to have an objective, such as reservation of a flight, looking for a bank nearby or booking a restaurant. Therefore, marketing in wireless devices can be more persuasive. An electronic coupon can be a good method. Consumers recognize integrated brands not separated brands. As was mentioned before, consumers can have many more contact points with advertisers in the wireless environment. Thus, marketers should manage all contact points of a brand and integrate the marketing communications.

Most marketing and advertising practitioners emphasize the importance of Integrated Marketing Communication (IMC), especially the consistency of a marketing message. Schultz (1993) states that "The IMC process starts with the customer or prospect and then works back to determine the forms and methods through which persuasive communications programs should be developed. Influencing or directly affecting behavior is the ultimate goal."

MC is a "new way of looking at the whole, where once we only saw parts such as advertising, public relations, sales promotions, purchasing, employee communications, and so forth. It is realigning communications to look at it the way the customer sees it-as a flow of information from indistinguishable source." (Schultz, Tannenbaum and Lauterborn, 1994).

IMC creates through accountability by linking communications activities directly to organizational purposes and the resulting bottom line, and thus maximizing resources.
IMC influences the behavior of target audiences over time, and traditional mass communications just marginally affect these long-term behaviors (Brody, 1994).

Public relations brings a crucial element to the integrated mix. If public relations is to be completely integrated into the organization, it should counsel management and manage communications in a way that forms the consumer's opinions and behavior with relevant components(Gonring, 1994).
Many business executives already understand the interrelationships among public relations, corporate images and sales.

The Internet is becoming more accessible, and, ultimately, ubiquitous, because of wireless technology. Integrated Marketing Communication (IMC) is emphasized by most marketing and advertising practitioners to maintain the consistency of a marketing message. Consumers can have much more opportunity for contact with advertisers in a wireless environment, so that a consistent marketing message becomes more important. Therefore, we can say that the external devices that contact consumers play a significant role in Integrated Marketing Communication.

Transformations in the business-to-business market have encouraged a rethinking of the concept of Integrated Marketing Communication. A successful IMC program for the business-to-business environment needs a carefully planned and well-managed consumer database, an orientation towards targeted consumers and prospects, and a psychology which drives the prospective sales approach. These should combine traditional media, techniques, modes and methodologies with new IMC methods in order to succeed. However, Innovations in marketing have never really replaced traditional techniques. Such innovations will be successful only when integrated into earlier models (Reich,1998).

Advanced communication technology also eliminates geographical boundaries, the limitations of space and time. It is also crucial that we understand the customer, we need to identify what it is that motivates the buyer. In other words, consumer behavior should be investigated in order to understand what it is that moves specific groups of prospects closer to a determination to commit and purchase.

Consumer behavior and perceptions are important to crystallizing that all- crucial key to a successful marketing plan. The fundamental views of marketing have shifted from the 4 Ps (Product, Price, Place and Promotion) to the 4 Cs (Customer needs, Cost to meet those needs, Convenience to purchase, and Communication--dialogue between field sales, the customer and the corporate office. Reich (1998) states "The four-Cs is not designed to replace, but rather to refocus, redirect and examine the true market engines: the customer."

Emerging Technologies

There are some current technologies under development that offer exciting possibilities for future advertising. In this paper, I will describe two of these technologies.

Electonic Ink Electronic ink is a new technology developed that will eventually allow any suface to become a display. It works by pulling light and dark particles to the surface of the medium according to the electronically charged signals that it receives. Scientists hope that one day digital books can be created that will typeset themselves so that users can read them like normal books. Electronic ink has several benefits: low power usage, flexibility, and readability (HowStuffWorks.com, 2004).

Wireless Paper Recently, a Japanese paper company called Oji Paper announced a new technology that embeds semiconductor chips into paper. The chip-embedded paper is a little thicker than a normal sheet of paper, but the chip includes an intenna that can trasmit at frequences of 13.56 megahertz to 2.45gigahertz. The company's goal is to places these chips in different paper products, such as checks and gift certificates. However, the implications for marketing is huge--a piece of electronic paper that can transmit information can have many different uses (PhysOrg, 2004).

Strategies and Tactics

Gaining Permission or Opt-In Due to the high importance and sky rocketing return on investment rates of this new resource, marketers have been extremely precautions when using wireless advertising. Marketers are careful to avoid aggravating the message receivers to prevent assigning negative connotations with wireless advertising. To help avoid this situation, wireless advertising has become an “opt-in” form, which means that in order to receive the information, you knowingly had to sign up for it. “Marketers are playing it safe by messaging only with subscribers who have opted-in.” (Odell, 2003). That is right, virtually no wireless advertising spam!

Incentives Although the basic concept has been to merely send wireless advertising to cell phones, PDAs and the like, many companies have attempted different approaches. (Chisholm, 2001). It has been proposed, since wireless carriers will make tons of money off of this new form of advertising, that special rates or discounts should be offered to those willing to receive the advertisements. Pastore (2000) found survey results (from www.internet.com) that showed half of respondents would not mind advertisements if it reduced their wireless bill. To the consumer and advertiser, this would be a great deal, but the wireless service providers have the ultimate decision.

“Companies such as SkyGo are testing the concept of handing out free phones to consumers, with the agreement that each consumer receives a minimum of three ads each day.” However, the author made the point that most wireless subscribers would not want to continue with the advertising once they have to pay the wireless bill. Another company, WindWire has used a different approach to wireless advertising. “Its approach is to embed coupons within wireless sites. Customers don't have to opt in for anything -- as they search for information, they see a related offer.” (Chisholm, 2001). If, someone is searching for a company or product online from a wireless connection, like shoes, advertising by Nike and Reebok may appear.

Text Box: Courtesy of www.emailtoday.com

Partnering Byrd (2002) offers solutions to business owners contemplating the idea of using wireless advertising. If your company doesn’t have the funds to begin or just wants to learn about wireless advertising before investing in it, Byrd has some ideas: “…become a partner in someone else’s campaign or service. Companies like these sometimes offer contests geared towards wireless users. You can volunteer your services and products as incentives for the contest. In this way, you get free exposure to consumers viewing wireless advertisements.” Not only are the companies gaining exposure among their target audience, but the company will also gain an understanding of how wireless advertising works. Byrd also suggests that companies create surveys to understand the target consumer and to find the company’s best selling point to create successful future wireless advertising plans. Companies could also offer to participate in a case study for a wireless advertising firm (hopefully at a waved or discounted fee) to gain exposure, experience, and research data. (Byrd, 2002). “Every business owner dreams of being able to reach consumers anytime and anywhere. The ideal situation would be to engage consumers when they are already out and about. This would cause more consumers to act on impulse and, hopefully, spend a little more!” (Byrd, 2002).

The Promise and Perils of Wireless

His book, Smart Mobs: The Next Digital Revolution Howard Rheingold explores not only the implications for wireless advertising, but more democratically oriented topics such as how social change can be accomplished through the simple act of text messaging. Rheingold is a futurist who has many valid ideas when it comes to wireless technology. Watch an interview with Rheingold that was broadcast in November of 2002 on Tech TV's Screensavers.

Promises

Standardiziation A few years ago, the joining of two groups and the desire for wireless ad regulation formed the WAA (Wireless Advertising Association) whose purpose is to “educate consumers and businesses.” (Byrd, 2002). All other advertising media have regulations or standards including the Internet, they are successful way to keep wireless advertising universal, so all advertisements can be sent to all kinds of wireless electronics. “The thinking is that advertisers and agencies will find it easier to create, buy and analyze media across different wireless platforms and publishers once standards are established -- so that a text ad buy on one wireless site means the same thing as on another.” (Sounders, 2004). The by the WAA are found in the following table.

Graph 1

Ad Units for GSM SMS
Sponsorship	34 characters (roughly two lines of text)
Full Message	160 characters
Ad Units for Non-GSM SMS
Sponsorship	34 characters (roughly two lines of text)
Full Message	100 characters
WAP Ad Units
Text	15 characters (1 line, fixed)
	30 characters (2 lines, fixed)
	34 characters (1 line of Marquee/Times Square text)
Graphic	80 by 8 pixels
	80 by 15 pixels
	80 by 20 pixels
	80 by 31 pixels
Graphic-Plus-Text	80 by 8 pixels plus one line of text
	80 by 15 pixels plus one line of text
	80 by 15 pixels plus two lines of text
	80 by 20 pixels plus one (or two) lines of text
Interstitials	Same as Text, Graphic and Graphic-Plus-Text formats, with five-second limit and ability for users to skip.
PDA Ad Units
PDA - PalmOS	150 by 24 pixels (two lines of text)
PDA - PalmOS	215 by 34 pixels (two lines of text)
PDA - PocketPC	150 by 32 pixels (two lines of text)
PDA - PocketPC	215 by 46 pixels (two lines of text)

(Sounders, 2004)

Ubiquotous Advertising The emergence of anywhere, anytime access will be an important stimulus for the adoption of wireless technologies. Many benefits from the Web will be seen also in the wireless environment. Wireless businesses are now about 10 % of what they are going to be in the next 20 years; thus, there is remarkable upside within the wireless environment. But we should not underestimate the challenges. Wireless communication can be defined as interactivity, ubiquity, real-time, mobility. Interactivity allows consumers to immediately and directly give feedback. The ubiquity of wireless communication plays a crucial role in advertising, because it spreads out contact points between consumers and advertisers in time and place. It allows advertisers to communicate with consumers at any time and in any place. Wireless data communication also builds a real-time informative database. This database can be built through a consumer's usage of mobile devices. For example, we can track which Web sites users visited and which banner ads they clicked, who is purchasing a certain brand, and so on. We can get psychological data, such as consumer's preferences, as well as demographic data. Newell and Lemon(2001) state that consumers are interested in "accessibility," "comparative shopping," "instant information," and "customizability". Wireless technology allows the Internet to be more accessible and to be ubiquitous.

Harnessing the Power of Interactivity

Traditional media such as television and radio are also devices for wireless communication. However, these are only one-way communication. Interactivity is one of the most important features of wireless communication.

When it comes to the media these days, interactivity is the most frequently discussed issue, and this is a multidimensional concept. The first conceptualization of interactivity comes from an interpersonal communication perspective (Ha and James, 1998).Here, interactivity is defined as the facility for individuals and organizations to communicate directly with one another, regardless of distance or time (Blattberg and Deighton, 1991; Ha and James, 1998). The second conceptualization of interactivity comes from a mechanical perspective (Ha and James, 1998). This is the approach viewing interactivity as a given technological characteristic of a medium. Steuer (1992) defines interactivity as the extent to which users can participate in modifying the form and content of a mediated environment in real time, and he classifies a variety of media, based on three interactivity levels (high/medium/low).

He focuses on the functioning of three elements in interactivity: 1) the speed with which content can be manipulated; 2) the range of ways in which content can be manipulated; 3) mapping (Steuer, 1992). Sohn and Leckenby (2002) explain interactivity in terms of social communication. They pose that interactivity is a process-dependent concept, not a static attribute-based concept: Individuals' active participation in social communication processes is a crucial factor for increasing the perceived interactivity of the Internet. Ghose and Dou (1998) study the particular importance of those interactive functions that are primarily geared toward consumer support, by showing the functions of Web sites, such as 'software downloading,' 'online problem diagnostics,' 'inquiry,' 'order tracking,' 'comment,' and 'feedback.' These interactive marketing functions can efficiently handle a portion of the conventional customer support tasks that are commonly performed by firms' customer-support representatives (Ghose and Dou, 1998).

In addition, many studies point out that visitors to highly interactive sites will be more likely to get actively involved in those firms' Web communications. This is a very important reason for many firms to set up Web sites. Some researchers view interactivity as the control of the information flow, or the possibility of the user to travel over information (Bezjian-Avery, Calder, and Iacobucci, 1998). The chief goal of a system-centered perspective is finding the best guidelines for the design of technology, while a user-centered perspective studies the interaction between humans and the technology (Unz and Hesse, 1999) The studies found that the interactive capability of the medium offers uses and gratifications including convenience, diversion, relationship development, and intellectual appeal.

The more mobile and convenient technology becomes, the more essential it will be to our day-to-day lives. And in order for this mobility to be successful, it has to be meaningful and easily applicable to the here and now. That being said, the same must be said to be true for advertisers seeking a toehold in the emerging environment of marketing on the move.

Just because advertisers could contact consumers anywhere and everywhere, doesn't mean that they necessarily should. Doing so would only mean that consumers turned a blind eye to advertising via mobile devices, much as they already have with online advertising. It's a bother and a chore ... but it doesn't have to remain that way.

In order for this new form of "intrusion" to become an acceptable interruption, from the perspective of consumers, it must be applicable and relevant to them. Which is, fortunately, the most valuable benefit to advertisers, when evaluating the implications of wireless technology on advertising. The ability to hit consumers with advertising messages at the exact point of decision or purchase is the key to yoking smartphone and 3G technology, as advertisers, to the fullest.

Whether advertisers are able to message such a clear opportunity to hit qualified leads responsibly, and with restraint, remains to be seen. But doing so will determine whether advertising is viewed as a partner when consumers are mobile .

The wireless advertising medium is an exceptionally personal channel, since most users carry their mobile phones with them wherever they go. Mobile phone users are also one specific individual, which is not always the case with regular phones or computers that are often tied to an entire family. This makes it possible to adapt messages for the particular individual i.e. personalization. It is also place- and time independent which can permit the advertiser to reach a person when it is most appropriate. Another strength is the flexibility in production it is very easy to produce and deliver a message quickly and also to change it. Even "mass-customization" is possible for a low price. In general, production costs are very low in comparison with other media.

The penetration level for mobile devices is high in most western countries and it is also growing very fast in many other countries. This implies opportunities for industry growth. The trend of convergence between the Internet and mobility is also promising since it opens up for more content and more services that can be financed or combined with advertising.

Limitations and Challenges

Because the wireless industry is still in its early stages, there are still many unknowns about the ramifications of wireless advertising. Given its very personal nature, the mobile phone is an extremely sensitive channel. This places great demands on the wireless advertising industry in terms of when, where and how to advertise.

Is Wireless Technology Secure?

Much of the debate centered around the technology concerns security of wireless phones and wireless computer networks.

A survey by Computerworld, an industry magazine, found that 30% of American companies had identified rogue access-points on their networks. And if these are left open, they provide a back door past a firewall into the company's network. Rob Clyde, chief technology officer at Symantec, says that half of the chief executives at a recent round table event cited Wi-Fi as a top security concern.

The following streaming video clip addresses some of those security concerns, especially when it comes to wireless cell phones.

Tech TV's Cybercrime discusses the impact of GPS technology in wireless cell phones.

Another concern when it comes to wireless networks is the threat of hacking. Wireless networks are especially susceptible to hacking simply because encryption technology is not used widely. Some hackers have taken "war driving," driving around neighborhoods to find open wireless networks where they can gain free internet access. It is quite suprising to see just how successful they are.

Tech TV's Cybercrime discusses war drivers and the implications this could have for wirless network security.

Due to easy wireless LAN access, Wi-Fi users suddenly have found themselves with access to a company networks, or its networks have been breached by Wi-Fi users.

"Corporate WI-Fi networks have suffered interference from parking lot security systems and other facilities and devices. Home users who have installed Wi-Fi networks for their familu computers have encountered interference from other ISM radio services, as well as from neighbors who also have gone Wi-Fi."

Coverage: not as wide as 3G systems As compared to 3G systems, Wi-Fi hotspots offers users less coverage to access.

The reluctance among consumers due to privacy fears or fear of being spammed with advertising is a real concern that is quite legitimate. Secondly, initial misuse of the wireless cell phones for the purpose of spamming or other unwanted, unsolicited ads could threaten the entire future of wireless advertising. Misuse could be in the form of spam, but also unauthorized use of personal information.

Finally, the medium is still restricted regarding space, colors, graphics, and movement. Technology moves fast, but many unrealistic expectations tend to develop if too much buzz builds up with regards to the results of advertising.

Intrusiveness and Invasion of Privacy

Corey Treffilett (2004) in an article entitled "Mobile Advertising - What have you liked." tells the following story. "I was walking down Union Street in San Francisco a few weeks ago and my phone rang. As this is a typical experience, I took the phone out of my pocket and checked to see who it was. I did not recognize the number so I pushed the talk button on my Treo 600 and held the phone to my ear. As I listened I was surprised to hear an unfamiliar voice saying, "This is Dr. so-and-so and I specialize in all types of dental care. Come in this week and get a special teeth cleaning for just $39.99." Why on earth was this dentist calling me and how did he get my phone number? \I was a little disturbed and more than a little curious as to how this stranger in the dental hygiene industry acquired my number when I looked up and realized that I was standing directly in front of the dentist's office. I'd just been tagged, as I call it, by AT&T somehow targeting me with a GPS ad on my cell phone. If this has ever happened to you, you can understand the strange feeling that remained. I was annoyed from a consumer stance, but my curiosity was peeked from a marketing standpoint. I can assume that they targeted the ad. After all, I was in close proximity to the Dentist's office, and of course I do have teeth. The targeting is unmistakable, but are consumers really ready for these types of intrusions into their personal lives? If your phone rang every 300 feet with a "targeted" ad based on your proximity to a local business of "interest," would consumers continue to answer the phone? Most likely they would become annoyed and start to ignore the phone more often than not. Sound familiar? It sounds eerily similar to the way in which e-mail has been utilized and over-extended.

The Future of Wireless Advertising

Wireless technology will certainly have a great impact on the future. As an advertising medium, it has the potential to be the single most personal method of reaching consumers. In an increasingly ad cluttered world however, there is also great potential for backlash. Consumer concerns with regards to unsolicited interference such as spamming, threats to security, and privacy loom large. That being said, it is my opinion that wireless advertising will overcome these obstacles and ultimately be successful.

Companies are still struggling with the downfall of the online advertising market and the collective chance for sample of goods and services for free, after the mass-markets adopt the Internet. Wireless carriers in the United States should prepare for the proliferation of mobile advertising, because it will certainly play a crucial sponsorship role in the financing of mobile data services. Mobile marketing is coming along at a time of cultural shift in American society. Consumer relationships with brands are changing; Generation Y consumers are showing significant buying power; and early adopters of wireless are regarding wireless as a symbol of their lifestyle choices. Knowledge of the cultural context is critical, as carriers, agencies, and advertisers start to try mobile marketing. According to Cahners In-stat Group, there are about 4.4 million wireless Web and messaging subscribers in the U.S., but this figure is expected to grow to almost 71.1 million in 2005 (Kotch,2001).

Wireless computer networks have great potential to act as a tool for democratization. In places like Parkersburg, Iowa and throughout rural America they are helping to close the digital divide. It is true that security of wireless networks will continue to be a concern in the future, but one must admit that there is something almost Robin Hood like about groups like War Drivers, ever on a quest for free Internet access, always questioning the authority of large corporations and other entities who attempt to maintain control and domination over the Internet.

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