LOCATION-BASED ADVERTISING REACHES CONSUMERS ON THE GO

By: Ann M. Mack Advance Publications' New Jersey Online Tries Technology



(Adweek IQ)
Strolling down 34th Street in Midtown Manhattan, a connected consumer
picks up her cellular phone and surveys the scene. Just then, Macy's, the
venerable department store giant, serves the potential customer a can't-resist
promotion - a price cut on summer selections - on her Internet-

enabled device. Without hesitation, the savvy shopper races through the
revolving door and picks up sundresses, swimsuits and sandals. To the
consumer goes summer style and super savings. More importantly, though, for
Macy's, the transaction means a stroller turned shopper.



Miracle on 34th Street? One might call it that.



Just a possibility now, this scenario eventually could be played out through a
new location-based advertising service from GeePS.com, a wireless
technology company that delivers targeted ads to users of cell phones and
handheld computers using wireless application protocol (WAP) and pocket
query application (PQA).



The Cranbury, N.J.-based startup employs global positioning system (GPS)
satellites to identify a user's location and send them ads for nearby merchants
over a wireless Internet connection. The service promises to enable brick-and-

mortar businesses - from large retail chains to small 'mom-and-pop'
restaurants - to acquire new customers with personalized, locale-

sensitive shopping announcements.



'Think of GeePS as a local market, a one-mile circle of energy around a
potential customer, which moves with him or her, providing local information
that fits individual needs,' explains Arshad Massod, GeePS president and co-

founder. 'This information is dynamic and controlled by the merchants,
communities and establishments in that radius.'



Initially, GeePS CEO Andy Goren expects 'GeePSters' to be primarily
business travelers and executives using wireless devices, followed soon after
by younger early adopters, making the service an attractive customer
acquisition vehicle for restaurants, hotels and car rental companies.



Advance Internet runs test in New Jersey



With a hard launch expected in late Q3, GeePS.com introduced its beta
version in New York and San Francisco in April. Starting this month, the test
market expands to New Jersey.



Under an agreement with Advance Internet, a network of community-based
Web sites, GeePS.com will provide wireless delivery of content and
advertising from New Jersey Online (NJO) to Garden State residents with
Internet-enabled handheld devices. 'GeePS marks Advance.net's first steps in
bringing our services, both local and national, to the new world of mobile,'
says Jeff Jarvis, president and creative director of Jersey City, N.J.-based
Advance Internet. The mobile version of NJO will offer local news headlines,
weather forecasts, sports scores and stock quotes, as well as location-based
shopping information. Eventually, the GeePS-powered services could be
rolled out by the nine other affiliates of Advance Internet, a subsidiary of
Advance Publications, owner of 22 daily city newspapers and Conde Nast
magazines.



GeePS.com marks yet another contender in the wireless space, as more and
more tech companies anticipate the demand by retailers, content providers and
advertisers for mobile commerce, content and promotions. In response to this
boom, other tech companies like New York-based Vindigo offer similar
applications. Developed for the Palm OS, Vindigo's free personal navigation
download allows users to get updates and information on their handheld
devices.



For advertisers, the wireless explosion represents a new way to reach a
growing audience. According to Dataquest/Gartner Group, a San Jose, Calif.-

based research firm, the North American mobile wireless data market will
grow to 70 million subscribers by 2004. And a recent report by the Kelsey
Group, a Princeton, N.J.-based research company, predicts that wireless
advertising revenues will reach $17 billion in 2005, with local advertisers
accounting for $6 billion of that total. 'M-commerce solutions have a
promising future due to the convenience they offer customers, as well as the
capability to do price comparison between different e-tailers and traditional
retailers,' reports Tole Hart, an analyst for Gartner Group.



GeePS.com will give advertisers or merchants the ability to create a wireless
Web site for free. The service plans to earn money by charging $50 to $80
CPM for coupons and promotions served. GeePS also expects to collect a 5%
to 15% share of revenue generated from purchases originating from the
wireless incentives.



Should merchants worry about consumer backlash over ads served via their
personal devices? With GeePS.com, they shouldn't be, says a company rep.
GeePS is an opt-in technology, so users only receive personalized messages
by registering at the GeePS.com Web site.









(c) Copyright 2000, Editor & Publisher