Marketers should be wired on wireless

October 9, 2000

BY MICHAEL KRAUSS

Just before takeoff, pilots routinely ask passengers to turn off all mobile electronic devices for the first 10 minutes or so of the flight. Then they issue the reminder that certain electronic devices, such as cell phones and two-way pagers, are not to be used for the flight’s duration.

If this message doesn’t apply to you when you’re traveling—if you’re not carrying a mobile device or two (or three)—you may not be doing your job as a marketer. And if you haven’t a clue about wireless Internet access, you may be missing a significant opportunity for you and your company. Marketers must always ask, “Where is the value? How can I turn a profit on this newproduct or service?” And interactive marketers must always add, “Where’s the value in this new or unproven technology?” They have to explore, and perhaps personally experiment with, the new technology to see its potential.

And so it is with wireless or mobile technology, yet too many marketers see wireless as simply a lesser version of existing Internet technology, or worse, they may consider this new trend irrelevant to their industry. Those that ignore the wireless phenomenon may miss out on their chance to capitalize on a valuable, emerging disruptive technology that will affect all businesses and industries. They may miss out on the profits and future career success as well.

You probably have a cell phone, but do you have a personal digital assistant (PDA) like a Palm VII? Is your laptop equipped with a wireless modem? Can you collect your e-mail while sitting in Central Park? If not, go buy yourself some of these expensive toys.

To get more familiar with wireless technology, I equipped my old Palm V PDA with an OmniSky wireless modem for about $150 (after the $100 rebate) and a monthly connection charge of about $40. To be honest, compared to my office Internet connection, the service isn’t all that good; I frequently can’t get Internet access because I’m out of range. The service was difficult to install, and when I tried to add software from San Mateo, Calif.-based Avantgo.com, I crashed the system—something about not enough memory in my wireless device.

(Avantgo.com provides software that turns a PDA into a wireless content aggregator. With Avantgo, you can receive information channels specially configured for a wireless device, which may typically include news from The New York Times or The Wall Street Journal as well as up-to-the-minute sports scores, stock quotes and even reports from The Weather Channel. Of course, the system has to work first.)

Compared with my computer, my handheld device is truly inferior. The screen is smalland hard to read, the Web navigation is difficult, there’s no color and it’s slow. Many sites simply fail to load. And pretty soon, advertisers will beam me ads over my cell phone and PDA, increasing the clutter.

So as a marketer, should you bother? Absolutely. In several critical ways, wireless Internet connectivity is superior to line-based Internet connections. And with the arrival of the next generation of wireless capability (known as 3GL), we’re going to begin to see high-speed digital Internet access over wireless devices.

Four criteria make wireless a potentially valuable technology for marketers:

• Presence: Wireless devices will be ubiquitous, constant companions to consumers who are always connected to the Internet.
  
• Time: You’ll be able to reach customers anytime.
  
• Location: You’ll be able to tailor information based on customer’s physical location.
  
• Interest: Customers with similar interests will be able to reach one another.

When thinking about presence, ask yourself if your products or services should be near the consumer at all times. Does the consumer gain an advantage if they are? Are there new products or services you can develop because of the presence of wireless devices? For example, Visa and Nokia are working in Sweden ona phone that will become an e-wallet used to make purchases at all times. Rather than put money in a vending machine, consumers there will be able to wave a PDA at a sensor in the machine to buy their Coke, and the PDA will debit the e-wallet account via the wireless Web.

When thinking about time, ask how consumers’ demand for your product or service varies during the day or night. Can wireless alter consumer perceptions and product use? Is there a time-value trade-off? In the United Kingdom, Vodafone is working on a rollout of anywhere, anytime banking. Apparel manufacturers are planning to advertise rain gear on stormy days via cell phone ads. Or consider the value of medical counsel provided day or night via mobile technology from a credible, centralized source.

When thinking about location, ask if consumer demand varies by physical location. Can you customize your service based on customer whereabouts? Mobile phone users in the United Kingdom are able to use their mobile devices to locate the nearest Visa ATM. Looking for a service station or fast food restaurant? Soon, you’ll click a button on your cell phone or PDA for directions and maybe even a purchase incentive in your e-wallet.

When thinking about interest, ask if the consumer’s social environment alters demand. Can we build stronger consumer relationships by enabling consumers to interact with one another in wireless communities? In Japan, telephone giant NTT DoCoMo signed up some 9 million subscribers and profited by enabling Japanese teens to beam messages over their cell phones.

Still skeptical? Consider how powerful your relationships with your customers are through existing communications channels. Could a new competitor intrude on your relationships using wireless technology? Why take the risk? You should be exploring and experimenting with this technology today.

No new technology is flawless, and mobile Internet technology has its drawbacks; it’s technically complex andaccess is expensive, and understanding how consumers will relate to the technology will be difficult. There will be plenty of trial and error, with heavy emphasis on error. Still, today’s savvy marketers know that speculation and experimentation is what makes the difference between winning and losing.

Next time you’re on a plane, look around for the folks with two or three mobile devices strapped to their belts or in their briefcases. One of them just might be the future CEO of your company.

Michael Krauss is a partner with Diamond Technology Partners in Chicago.
He can be reached at news@ama.org.