More Than Half of Consumers are Open to Accepting Wireless Advertising On Their Handheld Devices

Telephia Study Finds That Interest in Receiving Ads Increases When Users are Provided Incentives and Some Control

More than half of the individuals who use their wireless devices to access the Internet or to send and receive data express some degree of interest in receiving advertisements for products or services on their devices, according to a recent survey conducted by Telephia, Inc., the leading provider of competitive market intelligence for the wireless industry.

Moreover, many of those who are initially not open to accepting ads change their minds when presented with the opportunity to obtain some sort of compensation and/or control of the advertisements in exchange. These findings indicate that there is a significant opportunity for advertising to play a vital role in the future of the wireless industry.

When asked how willing they were to receive advertising for products or services on their wireless devices, 53 percent of Telephia's exclusive panel of phone, personal digital assistant (PDA), laptop and 2-way pager users -- the largest dedicated panel of wireless data consumers in the country -- were at least somewhat enthusiastic. The remaining 47 percent of respondents were resistant to accepting ads on their devices.

Telephia subsequently asked only those who described themselves as "somewhat," "not very" or "not at all" willing to accept advertising whether the opportunity to obtain discounts on products or services in exchange for receiving ads would change their mind. This possibility of tangible compensation convinced 19 percent of this subgroup of respondents to join either the "extremely willing" category (five percent) or the "very willing" category (14 percent).

Telephia further isolated a smaller subgroup, comprised of those who still weren't "very" or "extremely" open to the idea of receiving ads, and asked if the ability to limit which companies had permission to send these discounts would influence their decision. Indeed, when presented with the chance to have greater control over the flow of such information to their devices, an additional 17 percent of users changed their response to either "extremely willing" (two percent) or "very willing" (15 percent). -0-


Willingness to Receive Advertising Without Control or Compensation,

According to a Telephia Survey of Wireless Data Users

Willingness to Receive Ads Percentage of Respondents

Extremely Willing 6

Very Willing 13

Somewhat Willing 34

Not Very Willing 26

Not At All Willing 21

* Source: Telephia's wireless data user survey, Q4 2000 Results.

"The jury is still out with regard to wireless advertising, but we are pleased to see already such a high level of consumer interest, which increases significantly when consumers are offered compensation and other incentives," said John Dee Fair, vice president of research and development for Telephia. "Among the possibilities for the future is location-based advertising, and the day may soon arrive when your device will inform you about a sale at a nearby clothing store or discounted room rates for a hotel at the next highway exit."

Representing the largest wireless data consumer-based panel in the country, Telephia's nationwide, quarterly wireless data user survey tracks the usage habits and attitudes of a standing panel of more than 3,600 actual wireless data and Internet users in the United States. The panel is comprised of PDA, wireless laptop, wireless data-enabled phone and 2-way pager users. The advertising numbers are just some of the conclusions about wireless trends that Telephia has gleaned from its ongoing wireless data and Internet survey.

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