The often-promised and highly anticipated success of wireless marketing and advertising will be greatly dependent upon the rollout of 2.5 and third-generation networks, according to a new study by Frost & Sullivan.
The consulting company said that today’s technologies fall short and interested brands and companies are limited. Despite this, Frost & Sullivan believes that once 2.5G and 3G become prominent in the industry, wireless marketing and advertising will embrace its great potential. “Before wireless will be used as a mainstream marketing channel, a number of issues must be resolved,” said Allison Webb, a Frost & Sullivan research analyst. “These include complementary technologies, next-generation mobile networks, new wireless devices, privacy and data protection legislation, consumer acceptance, forms of wireless ads and pricing structures.”
According to the study, opportunities for direct, personalized, location-based ads and campaigns as well as real-time monitoring and exchange capabilities will help companies enhance customer loyalty and reduce churn. In fact, Frost & Sullivan believes that by 2006 revenues generated in the Western European wireless ad sector will rise to $464.7 million, up drastically from the $51.5 million generated in 2001.
