• by January 29, 2001

Contributing writer for Direct Marketing News, Christine Blank points out that, though the current wireless ad market appears bleak, the future promise is capturing the attention of marketers. The article indicates that the Yankee Group, Boston, predicts a $6 billion wireless ad market in 2005, while London-based Ovum Inc. includes ads, e-commerce and content subscriptions to reach $42.5 billion in 2005.

According to Yankee Group senior analyst Adam Zawel tests are under way to determine the best ways to market to wireless customers in the future. But, because wireless advertisers are still building models and testing programs, he predicts they will not see revenues until 2004 or 2005. "The main question in our forecast is when these devices will be ready to support different types of ad models," Zawel said.

Early results from ad tests also show promise. Wireless interactive marketer Skygo Inc.’s preliminary results of its 1,000-consumer pilot project show that:

- 60 percent find wireless ads valuable
- 27 percent would switch wireless providers to receive ads in the future
- 90 percent of participants said it was easy to view and navigate the ads
- 65 percent used the phone to browse the wireless Web.

"These early findings present strong evidence that wireless customers appreciate the value of highly relevant, contextual advertising from both local and national merchants," said Mark Plakias, vice president of voice and wireless at The Kelsey Group.

However, in a four-month trial in conjunction with Procter & Gamble, Visa, Kinko’s, JCPenney, CompUSA and KFC, it was unclear whether consumers would be willing to view ads without incentives. And, in a recently completed WindWire study, a majority of those in the study responded "favorably" to wireless advertising by indicating their preference for free, ad-sponsored wireless content. The click-through rate on the ads was 15 percent, while the call-through rate was 12 percent.

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