By: Martha L. Stone Wireless Technologies Quickly Consume Content, Advertising
No matter where news junkies roam, they can get their fix. Be it a
pager, personal digital assistant (PDA), or mobile phone, media
companies are jumping on the 'news anywhere' bandwagon.
Just in the last two weeks, at least half a dozen wireless deals
involving news companies were announced around the world. Mobile portals
were conceived of or launched; deals were made between telcos and news
providers; and plans for better wireless technology were mapped.
The announcements follow new reports that wireless application protocol
(WAP) phone and PDA sales are reaching a fever pitch in Japan and
Europe, and are ramping up in the U.S. That makes the market ripe for
wireless online news and advertising.
A survey by Cap Gemini America, New York, and Corechange, Boston,
predicts that WAP phone penetration will rise from 3% to 78% in the U.S.
this year. If the survey is correct, then 72 million WAP phones will be
sold in North America in 2000, compared with an estimated 45 million PC
sales.
Forrester Research, Cambridge, Mass., projects that by 2004, one third
of all Europeans (more than 219 million consumers) will regularly use
their mobile phone to access the Internet for e-commerce, news, mapping
information, and banking.
Web-capable phones will represent 79% of Internet appliance volume in
the next several years, according to Semico Research, Phoenix.
Chasing the money
Media companies are busily making deals with telcos and cellular phone
manufacturers to distribute via wireless networks. There's even a new
word for wireless e-commerce: m-commerce. (The M stands for mobile.)
'Everyone is banking on these [m-commerce] transactions,' says Lem
Lloyd, director of wireless services for KnightRidder.com, San Jose,
Calif. 'Right now it's not happening.'
But m-commerce is available through wireless providers. Buy a book or CD
on barnesandnoble.com through AT&T PocketNet service. Buy a bouquet for
mom at FTD.com or trade some baseball cards on eBay. Trade stocks
through Schwab.com on Sprint PCS.
'To make money is to be the preferred provider,' Lloyd says. 'We or our
partner in each city are right there. We are right in the gateway ... If
you talk to [the telcos], they say they control the gateway. If you talk
to manufacturers, they say they own the gateway. Ultimately, the user
will demand a quality, enriching experience. If we package information
and service, whoever controls the gateway will be the winner because
people want to make the best use of their device.'
Wireless content cannot live by m-commerce alone, however. As with other
content, advertising is key. The organizational and technological
infrastructure is being built to distribute miniature banner
advertisements and geographically targeted ads via WAP. The Internet
Advertising Bureau (IAB) and other prominent organizations recently
announced the formation of the Wireless Advertising Association, which
will develop worldwide standards for wireless-based advertising.
Bluetooth technology is being
developed for release in several years to enable an ultra-personalized
wireless experience. A wireless device equipped with Bluetooth
technology will alert you if a friend is nearby, or will alert the local
merchant that you are nearby. With your prior permission, merchants can
then send you a special offer to entice you to come into the store for
the deal. If you're walking past Sal's Pizzeria, your phone might alert
you that Sal if offering two-for-one slices.
Geographically targeted technology can also be used for editorial
purposes, like alerting wireless consumers of traffic hot spots or the
latest storm watch.
Wireless advertising could take several forms, including miniature
banners and audio. Advertisers may also pay premiums to have their
listings come up first in any directory search; a restaurant might pay
to be the featured listing in a search of local eateries.
Peggy White, director of sales and business development for MSNBC.com,
Redmond, Wash., sees wireless as the ultimate in personalization and
portability. Already, MSNBC.com has sold sponsorships for its mobile
channel.
At KnightRidder.com, Lloyd reports that advertisers are beginning to ask
about handheld and mobile users. 'We will probably start [wireless
advertising] in the next few months,' he says. 'Cost per thousand (CPM)
rates that publications are getting are high. [On] national vertical
sites like Salon.com, you can go as high as $100 CPM because that user
is so well defined demographically.'
A plethora of deals
Both KnightRidder.com and
MSNBC.com say they will soon announce deals with major wireless players.
'We have just signed a few weeks ago with the leading wireless
manufacturer that would make Real Cities the 'go local' site for their
device,' Lloyd says. KnightRidder.com started providing pager content
two years ago and has since served 10 million pages, Lloyd says.
MSNBC is already transmitting content
to SkyTel pagers. The company is now hammering out partnerships with
Hewlett-Packard for its Danada PDA, and will soon announce a deal with a
major telco.
Other recent deals include:
? U.K. mobile phone giant Vodafone Airtouch, French media conglomerate
Vivendi, and broadcaster Canal+ have introduced Vizzavi, which they call
Europe's first multi-access Internet portal. Vizzavi will be the default
portal for more than 70 million European customers, and will provide
computer, WAP, and interactive TV e-commerce capabilities.
? Europe's second biggest mobile phone operator, Telecom Italia Mobile
(TIM), announced a partnership with Yahoo! Europe to provide WAP
services to TIM clients. TIM has 19.2 million clients in Italy and 15.8
million elsewhere.
? Nando Media, The McClatchy Co.'s interactive media division, launched
a 24-hour wireless news service for Web-enabled cellular phone and pager
users. The service offers headlines from The Nando Times, McClatchy's
online news source.
? Yahoo! announced an agreement with AT&T to provide content and
services, such as Yellow Pages, driving directions, and news to AT&T WAP
customers.
? Oslo-based Schibsted.com, with media holdings in Norway, Sweden, and
Denmark, will roll out a special portal just for mobile this summer. A vast
menu of news information, services, and m-commerce content is planned
for access by PDAs and smart phones, according to Knut Falchenberg, who
is heading the project.
Related Stories:
U.S. CELL PHONE TECHNOLOGY LAGS JAPAN, EUROPE
SO FAR, WIRELESS CONTENT IS LIGHT
HOW WILL THE JETSONS GET THEIR NEWS?
Steve Outing: What Will Wireless Ads Look Like? (05/31/00)
Steve Outing: Wireless Content Publishing: A Second Chance At
Greatness? (05/17/00)
Comments
No comments on this item Please log in to comment by clicking here