Advertising on Mobile Phones

Mobile Phone—The new medium of advertising

Submitted by

VINOD KUMAR

Roll No: 385 Batch: 2001-2003

Under the Supervision of

PROF. BEDABAL RA

Institute for Integrated Learning in Management Lodhi Institutional Area, New Delhi—110003. April- 003

Mobile Phone—The new medium of advertising

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Submitted by

VINOD KUMAR
Roll No: 385 Batch: 2001-2003

Under the Supervision of

PROF. BEDABAL RA

I%"t!t&t# +o$ I%t#/$at#) L#a$%!%/ !% Ma%a/#(#%t Lo)h! I%"t!t&t!o%al A$#a0 N#, D#lh!1110003. A*$!l-2003

A2KNO3LED.EMEN4

I would like to thank my eminent guide Mr.. Bedable Ray (Prof. IILM). Without whose guidance this ro!ect would not ha"e been so as it is. I also would like to thanks Mr. Ra!at #era (Prof. IILM)$ Mr. %an!ay and Mr. Bhaskaran (Profs. I&$ IILM)$ for encouraging me to undertake this Pro!ect. I am also grateful to members of Library Mr. #aurishankar$ the com uter lab Incharge Mr. Mishra$ Mr. 'a"in$ and Mr. &a esh and other members of staff who hel ed me to carry out the Pro!ect. I s ecially wish to thank my classmates without whose res onse this re ort would not ha"e been ossible.

V!%o) K&(a$ P.-2 Roll No-385 IILM

E5E2U4IVE 6UMMAR
&he ro!ect is about the emergence of the Mobile hones as the new mediums of

ad"ertising in world of ad"ertising ser"ice business. With mobile hone enetration reaching () ercent and o"er in many *uro ean

countries$ mobile marketing is becoming an im ortant channel for enter rises$ es ecially for those wishing to target the youth market. &he use of mobile marketing resents com anies with the o -d"ertising.. &he need for good media/channel in ad"ertising is growing. &he e"er declining click0 through0rates of banners and o 0u s ro"e that traditional on0line ad"ertising has become ordinary. 'ew methods to bring the brand to the customer and the customer to the brand must be de"elo ed to continue to rea the benefits of on0line ad"ertising. ma!or itfall of on0line ad"ertising is that$ historically$ the ma ings to a direct ayoff weren1t correctly linked. -fter a cou le false tries$ the user grows frustrated$ and ignores the easily recogni2ed on0line ad gimmicks. - ste forward may include owrking the ad"ertising into the content of the mobile/site so it doesn1t look like ad"ertising. If linked to te+t the user is interested in$ s/he may be more inclined to search further. %ince till 3445 the traditional ad"ertising media ruled the roads in India. Because of the decline in the reach of these channels the satisfaction le"el of com anies is going down continuously. &o change this situation so that we can romote the mobile hone as the effecti"e way of ad"ertising we ha"e to ro"ide them a few benefits like lower cost of call ser"ice and free %M% ser"ice. 6or the com anies ro"iding cellular ser"ices it would be !ust another method of generating re"enues. ortunity to build interacti"e relationshi s with customers. &o e+tent this relation one of the way mobile com anies ha"e ado ted now a days is ,Mobile

6or romoting this scheme first we ha"e to con"ince the eo le both the customers as well as the com anies which can ro"ide this kind of ser"ice about the benefits of this ser"ice. &his ro!ect thus deals with the direct interaction with eo le working in ad"ertising industry as well as the literature re"iews. &his includes the changing of the customer erce tion about the traditional ad"ertising channels.

64A4EMEN4 OF PROBLEM
In India com anies are still using the traditional methods of the ad"ertising that is reaching to the customer in the traditional ways while in rest of world$ which is far ahead using other interacti"e methods of the ad"ertising. 'ow a days after e"ery si+ months the methods and technology changed. In this fast changing scenario it is "ery difficult to ha"e e"ery bit of knowledge about the new technology. &he com anies ro"iding cellular ser"ices in this highly com etiti"e world$ cost of the ser"ice is the only factor$ which go"erns all the a rehensions. Increased com uting ower has ermitted the media to alter its "ery nature. With the ad"ent and accelerated dis ersion of technology through society$ media has become less of a mass institution$ where all efforts are aimed at ro"iding the most widely a ealing news$ entertainment and information$ to a highly customi2ed industry able to su ly "ery narrow windows into the "ast news and entertainment offerings now a"ailable. 'o longer do thousands of co ies of identical content create unbeatable economies of scale in roduction costs. %mall and large media firms can ro"ide selecti"e content to a selecti"e audience with reasonable efficiency. 'ew media ty es ha"e been created to satisfy the wants of select grou s of consumers. 7ld media ha"e been altered and re"am ed to meet new$ more e+acting$ consumer demands. &his has resulted in fundamentally different interfaces between media and consumers. %ome of the most startling changes ha"e occurred in the amount of interaction a consumer ha"e with media today. Both traditional media and the new media offer increasing o ortunities for communication with and feedback from audience members. &ele"ision news rograms are ro"iding hone numbers$ emails addresses and fa+ lines to learn what their "iews think and feel about e"ents that effect their li"es. &he Internet offers ad"ertisers and marketers to get intimate details$ such as urchase intention$ in real0time from real customers.

-nother fundamental change has been in the amount of effort consumers must e+ end in their search and ac8uisition of media content. - consumer must e+ end a great deal of effort to access "ery selecti"e$ and therefore interesting$ media and "ehicles$ !ust as the le"el of effort they must e+ end to rotect themsel"es from unwanted or intrusi"e media and "ehicle has increased. 9on"ersely and seemingly contradictorily$ consumers are also able to access a wider "ariety of entertainment and information with e"en less effort :5)) channel 9-&;<. More so histicated electronically controlled and micro rocessor rogrammed de"ices are utili2ed in ad"ertising the roducts and ser"ices. *n"ironment0friendly technologies and other electronic control methods are the bu22words. 6or e+am le Mobile cost0effecti"e ways. &his resents a "ery challenging situation for the com anies doing ad"ertising business and com anies ro"iding cellular ser"ices because the technology re8uirements change "ery fast. 'obody in India is com letely able to ser"e this roblem. &he roblems faced by the marketing managers of different com anies are> 0 3. What is the market otential for the new medium of ad"ertising? @. What are the characteristics of the target customers? A. What are the desirable characteristics of the new ser"ice? B. What methods should be used to romote the mobile hone as a new medium of customer interaction? 5. Cow to co e u with the new changing demands of the market? *tc. hones$ -rtificial Intelligence de"ices are the bu22words of today=s society. But these are "ery

OB7E24IVE
&he statement of roblem formulated "arious research 8uestions. &he ob!ecti"es of a ro!ect are always to find out the answers to the research roblems related to the field. &he ob!ecti"es of this ro!ect are gi"en below> 0 3. &o im ro"e the re"enue generation ca acity of cellular com anies by utili2ing cellular ser"ice as a new medium of ad"ertising. @. &o ca ture the targeted customers by effecti"e means. A. &o s read awareness about new ad"ertising medium among the business society.

ME48ODOLO.
6or this study the secondary method is ado ted to gather the information. % ecific literature and websites are used to collect the relati"e information. -lso the secondary data has been collected from the com any records. &o define the roblems e+actly what it is we ha"e to discuss se"eral oints with

Professors as well as the managers of different ad"ertising and cellular com anies. &his we can call is detailed robing method to gather all the related information.

4ABLE OF 2ON4EN46

-. B. 9.

Declaration of 7RI#I'-LI&E -cknowledgement *+ecuti"e %ummery. 3. Product Cistory. @. Introduction of Pro!ect. A. %tatement of Problem. B. 7b!ecti"es. 5. Methodology. F. -nalysis and Discussions. G. 9onclusion and Recommendations. (. Reference. 4. endices. 3

.ENERAL IN4RODU24ION
With mobile hone enetration reaching () ercent and o"er in many *uro ean

countries$ mobile marketing is becoming an im ortant channel for enter rises$ es ecially for those wishing to target the youth market. &he use of mobile marketing resents com anies with the o 9Mo'!l# A):#$t!"!%/;. 3hat !" Mo'!l# A):#$t!"!%/< Mobile -d"ertising is a new kind of ad"ertising through the use of mobile communication de"ices such as mobile hones$ PD-s etc. &hese de"ices make it ossible to get the message and/or ad"ertising=s across to your customers on the Hmobile wayH. &he new mobile ad"ertising channel enables a much more effecti"e business to customer communication. &he target grou is now reachable all the time and anywhere. ortunity to build interacti"e relationshi s with customers. &o e+tent this relation one of the way mobile com anies ha"e ado ted now a days is

O%-l!%# a):#$t!"!%/: th# %#, (#)!&( 7n0line ad"ertising ro"ides benefits s ecific to the medium. Inlike rint$ radio$ and tele"ision$ the o ortunities for @B0hour run0time$ interaction$ and tracking user interest to target a s ecific audience e+ist on the Internet. -dditionally$ Internet ad lacement marks a com any1s commitment to current technology and the com etition that lies within it. 7n0line ad"ertising e+ists in se"eral different forms$ namely$ banners and o 0 u ads$ s onsorshi s$ microsites$ and brand0based sites. &he rice$ moti"ation$ and success of each of these ad"ertising techni8ues "ary widely. %ome industry watchers redict that because of slow Internet connections and the

incon"enience of tele hone key ads$ the ad"ertising groundbreakers will link to sites that

offer information and ser"ices$ such as news headlines$ weather and flight schedules 00 as o osed to electronic 00 commerce sites.

Local ad"ertisers may ha"e the most to gain. %ince carriers will be able to monitor a user1s general location$ there are good ossibilities for target marketing$ say by offering a cou on to a restaurant that is near the tele hone user. But ad"ertisers also risk consumer backlash. HPhones are incredibly ersonal de"ices and in order not to u set users$ we ha"e to make sure that any ty e of ad they recei"e is rele"ant to them$H says Jamie Byrne$ director of emerging latforms at 'ew Eork0based Double9lick$ which could begin managing ads on mobile hones later this year. 9ontent ro"iders are figuring out how best to charge for these ads$ that is$ whether it should be a cost er im ression or click0through$ or collecting a ercentage of sales. Initially$ the rice is e+ ected to run between KA) and K3)) er 3$))) im ressions$ com ared with the K3)0to0K5) rate charged for banner ads. &he higher cost reflects the technology in"ol"ed$ but also the target marketing.

8!"to$- o+ th# a):#$t!"!%/
HI do not regard ad"ertising as entertainment or an art form$ but as a medium of informationH (7gil"y$ 34(A$ G) -nnual ad"ertising e+ enditures total o"er 3A@ billion dollars. It is im ortant to recogni2e$ howe"er$ that most of this money does not go to the ad"ertising industry. &he ma!ority of these funds are used to subsidi2e the communication1s media$ an industry which has become de endent u on these essential ad"ertising re"enues. 6or e+am le$ this is "irtually the only source of income that commercial radio and tele"ision stations ha"e$ and it constitutes about two0thirds of the income for news a er and maga2ine ublishers. Without this financial su ort$ the media communications industry would cease to o erate in the manner in which it e+ists today. -d"ertising informs current or otential customers about a brand or roduct through chosen media. Many disci lines come together to achie"e this goal including$ but not limited to$ com uter science$ design$ information architecture (I-)$ marketing$ and sychology. &his a er will deal rimarily with ad"ertising and I-1s resence within it. A):#$t!"!%/ (#)!a a%) h!"to$&echnological media and ad"ertising forge a de endent relationshi . -s each technological media marker emerges$ so does its ad"ertising counter art. In the early days of rint (c. 3(th century)$ ad"ertising was used rimarily for real estate and olitical ur oses (-dmuseum$ rint). &he rise of radio saw ad"ertisers combine rogramming with roduct$ e.g. Little 7r han -nnie with 7"altine. 4#l#:!"!o%=" +!$"t co((#$c!al $a% !% 1>?10 +o$ 10 "#co%)"0 a):#$t!"!%/ a "#:#%-)olla$ ,atch @4Vh!"to$-0 +!$"t co((#$c!alA. In 344B$ a law firm by the name of 9anter and %iegel osted an ad"ertisement for green card a lication assistance to o"er G$))) newsgrou s. &o this oint$ the Internet was a method for communication across geogra hical barriers only$ so 9anter and %iegel1s osting marked the birth of s am. &he law firm was 8uickly blacklisted across the Web

(Leff M -ronson$ 344G$ . 3F). H&he 9anter and %iegel s am wars occurred !ust before Wired maga2ine launched CotWired with an ad"ertising business modelH (Leff M -ronson$ 344G$ . 3G). -mong the forerunner ad"ertisers featured in banner ads were -&M&$ IBM$ M Pe si (Leff M -ronson$ 344G$ . 3G). CotWired1s success a"ed the way for the large0scale ad"ertising cam aigns of today1s Internet.

4$a)!t!o%al a):#$t!"!%/ :#h!cl#"
3. Print and broadcast ads. @. Packaging0 outer. A. Packaging inserts. B. Motion ictures. 5. Brochures and booklets. F. Posters and leaflets. G. Directories. (. Re rint of ads. 4. Billboards 3). Dis lay signs. 33. Point0of0 urchase dis lays. 3@. -udio"isual materials. 3A. %ymbols and logos. 3B. ;ideota es. -ll the abo"e methods are now a day ro"es to be denying their resence because they are most cost sensiti"e.

4h# A%al-"!" a%) D!"c&""!o%"
4h# "t&)- $#:#al" that th# -With mobile hone enetration increasing day by day in India mobile marketing is ortunity to

becoming an im ortant channel for enter rises$ es ecially for those wishing to target the youth market. &he use of mobile marketing resents com anies with the o mobile com anies ha"e ado ted now a days is ,Mobile -d"ertising.. build interacti"e relationshi s with customers. &o e+tent this relation one of the way

N#, (#tho)" o+ a):#$t!"!%/
A. Ba%%#$" a%) *o*-&*" Banners and o 0u ads are erha s the most o ular ad"ertising techni8ues most likely due to their relati"ely small rice tag (Nania$ @))3$ . 3(3). - banner is Ha gra hic that holds the image for a site or an ad"ertiser$ usually e+tending across the entire width of a ageH (Whatis$ @))3$ Banner Web age). Banner ads originally a eared at the to of e"ery age following the rint media rinci le that the first item seen is gi"en the most attention (;een$ @))3$ . BA). Cowe"er$ the longe"ity and magnitude of banner use has conditioned users to sim ly ass o"er the to banner forcing the ractice of new lacement schemes (;een$ @))3$ . 34F). Po 0u ads are more difficult to ignore because they must be acti"ely dis elled. Po 0u s are small gra hical user interfaces (#II) that a ear when a user chooses a certain age or link. &hey are rogrammed using Ja"a%cri t$ allowing a se arate window to a ear in front of the "iewing window (Whatis$ @))3$ Po 0u web age). -lthough both banner and o 0u ads began as static images$ the o ularity of dynamic "ersions has grown. B. 6tat!c o%-l!%# ad"ertising consists of an image beckoning the user to click. #ood Iensures the destination age makes the same offer as the banner or o 0u in a manner clear to the user. HWeb ad"ertising studies ha"e found about @) to A) ercent of web users who click on a banner ad only to find out that they1"e been connected to a cor orate home age hit the Back button almost immediatelyH ('ielsen$ @)))$ . GG). - few bad

e+ eriences$ i.e. clicking an ad to a meaningless age$ teach the user not to trust banner and o 0u s ads as a whole$ regardless of any future ado tion of clean I-. &his being the case$ ad"ertisers ha"e turned to dynamic methods 0 Dynamic banners and rom ting the user to interact. o 0u s elicit a res onse from the user$ many times without

forcing him or her to lea"e the current age$ by means of fill0in and search fields. Dynamic ad"ertising ro"es more efficient for both the customer and ad"ertiser. &he customer does not ha"e to click through se"eral ages to meet an end and the ad"ertiser1s user data is a real re resentation of interest in the roduct or brand. Inicast1s Hsu erstitialH is a recent de"elo ment in dynamic ad cam aigns. H%u erstitials combine 6lash or other animation technology with Ja"a rogramming to deli"er "ideo0 like Web commercialsOwith a 1 olite1 cache0and0 lay deli"ery systemOdesigned to load in"isibly into the browser1s cacheOit doesn1t a ear until com letely downloadedH (Whatis$ @))3$ %u erstitial Web age). %u erstitials ro"e a great e+am le of the e"olution of on0line ad"ertising. Isers do not ha"e to wait for an ad to load$ a se arate window a ears$ and the finished roduct contains mo"ie08uality streaming media. -s one might e+ ect$ these high0tech ads run for high0 riced automobiles. 2. 6*o%"o$"h!*" 7n0line s onsorshi s consist of the integration of an established web resence with the s onsor1s brand or roduct (Nania$ @))3$ .3(A). &he site hosting the ad"ertising may be established$ the ad"ertiser may be established$ or they may both be established using the rinci le> two credible brands are better than one. &y ically$ the relationshi between site and s onsor is logical and H"ery effecti"e at building brand awareness and referenceH (Nania$ @))3$ . 4(). % onsorshi s deli"er successful ad"ertising in a seemingly non0 intrusi"e manner by mi+ing content with ad"ertising. Eahoo and 9laritin teamed u to resent allergen counts for the entire country on the Eahoo site (6orbes$ @)))$ . (A). In the com etiti"e market of allergy harmaceuticals$ 9laritin chose a s onsorshi with Eahoo 0 a hea"y traffic site. Eahoo benefited from the relationshi through its ability to ro"ide e+tensi"e allergy ser"ices to its audience. &he roducts$ i.e. lu+ury

direct ties between site and s onsor often ro"ide functionality to the user that would ha"e been lost if the two worked se arately. D. M!c$o"!t#"

-s mentioned re"iously$ effecti"e banners and o 0u ads should link directly to the romotion or roduct each ad"ertises instead of the cor orate home age. In some cases$ this means linking to a microsite. Microsites are smaller re resentations of a larger site that e+ist for s ecial romotions or roducts. H'ot only do microsites ro"ide dedicated romotional messages$ they can be used to track res onse to s ecific romotions$ because marketers can track and analy2e the traffic that is s ecific to the micrositeH (Nania$ @))3$ .3(5). #ood I- allows for the user to reach the home site from the microsite and "ice "ersa to accommodate all the aths that could lead him or her to the brand. E. B$a%)-'a"#) "!t#"

Many sites e+ist to ad"ertise by means of establishing a brand image. &he brand image is built u on the com any1s Hu front "alue ro ositionH and the customers or audience it ser"es. &he Hu front "alue ro ositionH identifies the com any1s "alue and differentiates it from com etitors (;anDuyne$ Landay$ M Cong$ @))A$ . @A(). H&ry to find a romise which is not only ersuasi"e$ but also uni8ueH (7gil"y$ 34(A$ . 3F)). &he differentiation and uni8ueness may be found in the intended audience$ itself. Conda and 9adillac owners are 8uite different$ so should the brand image of each. *"en if the com any HknowsH its audience$ it is best to conduct research and testing to account for demogra hic changes. &he style of the brand may de end on it. &he gra hic design of the site should ro"e consistent. HIse the e+act same fonts$ colors$ gra hics$ relati"e ositions$ and ro ortions for the brand image where"er it a ears. %tudies show that re etition hel s customers recall informationH (;anDuyne$ Landay$ M Cong$ @))A$ . A@)). -dditional considerations should be made with regards to the s eed of the site. Reusing gra hics is one o tion for fast loading (;anDuyne$ Landay$ M Cong$ @))A$ . A@)).

When designing a brand0based site it is im ortant to kee good I- rinci les in mind. 'a"igational flow and descri tors should not suffer because of flashy gra hics. &he site1s brand means nothing if it is not usable$ and conse8uently$ effecti"e.

&he burgeoning new market of ersonal digital assistants (PD-s) and smart hones bring new o ortunities for effecti"e ad"ertising "ia new methods of I-. Just as the Internet was once an Hunta edH resource$ so is wireless communication. H&he latest batch of handhelds indicates an ambitious re aration for the higher data s eeds and im ressi"e functionality that are su osed to characteri2e the wireless networks of the futureH (Rodgers$ Lachary$ @))@). Many of the new de"ices don color interfaces and Ja"a0 enabled browsers o ening the arena for more creati"e ad cam aigns.

A%al-"!" o+ Va$!o&" B!%)" o+ +&t&$!"t!c a):#$t!"!%/ t#ch%!C&#":
 3!$#l#"" a) ca(*a!/%" "ho, $#"&lt" Inlike the a"ersion to on0line ad"ertising at its start$ wireless ad"ertising has been well recei"ed thus far. -"esair Mobile Marketing 'etwork claims$ H5) ad"ertisers ha"e run hundreds of mobile cam aigns with e+ce tional results and res onse rates u to 5P$ almost 3) times higher than traditional online ad cam aignsH (6oreman M Bagley$ @))@). -dditionally$ Link Q Partner erformed market research for beamgate in late @))3$ Hit1s sur"ey showed that this new form of ad"ertising was not only well recei"ed$ but also had "ery high recognition "alue> the information tended to stick in the reci ients1 minds and generated a strong im ulse to make an actual urchaseH (Bluds2uweit$ @))@). &he ca"eat here is the bre"ity of the e+istence of wireless ad"ertising. &he results may be due to no"eltyR on0line banners and o 0u ads en!oyed much higher click0through rates at their launch than they do now. 7n the other hand$ the new functionality of wireless de"ices$ on both the front and back end$ renders com arison to the on0line en"ironment im ossible.  I%t#$act!:#

Placing an ad in the alm of the audience uts a new s in on Hinteracti"eH. -"esair$ alone$ ro"ides se"eral ad formats for lacement on the wireless network besides Wireless lication Protocol (W-P). H&hese formats include %hort Message %er"ice (%M%)$ instant messaging$ chat$ Multimedia Messaging (MM%)$ mobile email$ and Interacti"e ;oice Res onse (I;R) to all ma!or wireless de"ices including mobile hones$ PD-s$ and agersH (6oreman M Bagley$ @))@).  Locat!o%0 locat!o%0 locat!o% 7ne of the distinct differences between wireless ad"ertising and traditional on0line ad"ertising is a mo"ing target. &his affords ad"ertising new o ortunities for ersonali2ation. %iemens Information and 9ommunication Mobile #rou (I9 Mobile) has ado ted such strategies Hallow:ing< carriers and ser"ice ro"iders to take consumers1 resent whereabouts into account when ad"ertisements are sent o"er mobile honesH (Bluds2uweit$ @))@). %iemens offers an e+am le of a "acationer ato a ski slo e checking the local forecast$ knowing his or her location allows for direct ad"ertising about Hdiscothe8ues or s ort sho s in the areaH as well (Bluds2uweit$ @))@). -d"ertising ro"es more effecti"e because it is reaching a geogra hically targeted audience. Cowe"er$ ossessing the means to s ecifically target ads is only art of what makes the cam aign a success$ the other art lies in the I-.  Path+!%)#$ +o$ th# +&t&$# &he current state of the wireless market is a work in rogress. When dealing with a new medium$ new rules must be sought out and tested. 9a abilities are useless if the message is not deli"ered effecti"ely. *nter the Information -rchitect. &he miniature and mobile nature of the com uting de"ice magnifies the concerns of I-. %ome considerations include> the user1s mobile or stationary osition$ distractions$ the wide0range in de"ice functionality$ the absence of comforts like keyboards and mice$ users unfamiliar with de"ices and clients$ otential lack of color interface$ and slow connection s eeds (%mith$ @))@). HI-s must abandon notions of oint0and0click in fa"or of click0and0flowH (%mith$ @))@). Princi les of Internet I- must be ared down to su key ad while still roducing effecti"e ad"ertising. ort the smaller interface and

 IA a%) a):#$t!"!%/ &he need for good I- in ad"ertising is growing. &he e"er declining click0through0rates of banners and o 0u s ro"e that traditional on0line ad"ertising has become ordinary. 'ew methods to bring the brand to the customer and the customer to the brand must be de"elo ed to continue to rea the benefits of on0line ad"ertising. - ma!or itfall of on0 line ad"ertising is that$ historically$ the ma ings to a direct ayoff weren1t correctly linked. -fter a cou le false tries$ the user grows frustrated$ and ignores the easily recogni2ed on0line ad gimmicks. - ste forward may include owrking the ad"ertising into the content of the site so it doesn1t look like ad"ertising. If linked to te+t the user is interested in$ s/he may be more inclined to search futher.

Mo'!l# Pho%# Ba"!c"
&his segment ro"ides a brief introduction to the basic conce ts and technologies

associated with mobile communications. Wireless telecommunications can be di"ided into two broad categories> mobile communications and fi+ed wireless communications. *ach category has its own uni8ue market in terms of customer needs and technology re8uirements. &he mobile communications market re8uires mobility or non0tethered communications. &he goal of mobility is anytime$ anywhere communications. Mobile communications technology must be able to allow roaming 0 the ability to ro"ide ser"ice to a mobile hone users while outside their home system. 7n the other hand$ fi+ed wireless is sim ly an alternati"e to wired communications. &he fi+ed wireless user does not need mobility. Instead$ the fi+ed wireless user needs cost effecti"e telecommunications from fi+ed locations. Wireless is an alternati"e means of ro"iding ser"ice. It is sometimes the only means. When the customer is in a remote location$ satellite is the only alternati"e. 2#ll&la$ a%) P26 &he ersonal communications conce t arose after cellular networks were de loyed. ersonali2ed communications. P9% networks were de loyed

Personal 9ommunications %er"ice (P9%) technologies were designed to meet the needs of anytime$ anywhere utili2ing cellular R6 designs similar to cellular. Cowe"er$ many P9% carriers initially de loyed larger grou ings of smaller cell sites to co"er densely o ulated urban areas. P9% also uses a higher ortion of the R6 s ectrum (34)) MC2 in the I% "ersus ()) MC2 for cellular). Being de loyed after the initial cellular networks$ P9% networks also initially had more ad"anced technologies than P9%$ including %%G network infrastructure for ser"ices such as calling number identification. Cowe"er$ cellular would soon catch u due to com etiti"e ressures. In aggregate$ there are now no substanti"e differences between the initial HcellularH networks and HP9%H. In fact$ they both utili2e the same underlying technologies.

Mo'!l# 2o((&%!cat!o%" P$otocol"
 Ra)!o F$#C&#%c- P$otocol" Interim %tandard 3AF (I%03AF) is a s ecific &ime Di"ision Multi le -ccess (&DM-) based radio fre8uency (R6) standard. I%045 is a s ecific 9ode Di"ision Multi le -ccess (9DM-) based radio fre8uency (R6) standard. With &DM-$ multi le+ing occurs within time slots within dedicated fre8uency band for each call or data session. 7n the other hand$ 9DM- is a Hs read s ectrum technologyH$ utili2ing all a"ailable fre8uency and time slots within an allocated ser"ice band. It is im ortant to be aware that &DM- and 9DM- are digital R6 rotocols. &here are "arious analog R6 rotocols that are still in commercial ser"ice$ but they are being re laced with &DM- and 9DM- as mobile o erators u grade their networks.  Mo'!l# N#t,o$B!%/ P$otocol" I%03AF and I%045 based networks both utili2e -'%I0B3 as a of -sia. #lobal %ystem for Mobility (#%M) is a global standard based on &DM-. #%M utili2es the #%M Mobile - lication Part (M-P) as a mobile networking rotocol.  Mo'!l# N#t,o$B!%/ 9ellular/P9% networks can use different ty e of mobile networking rotocols that allow for roaming S the use of a mobile hone while away from the home area S and ad"anced ser"ices. rotocol for mobile

networking. -'%I0B3 based networks are de loyed rimarily in the -mericas and arts

#lobal %ystem for Mobility (#%M) networks de loyed in *uro e and throughout the world utili2es a rotocol called the #%M Mobile - lication Part (M-P)$ standardi2ed by the *uro ean &elecommunications %tandards Institute (*&%I). 7ther &DM- based networks and 9DM- networks utili2e a rotocol called -'%I0B3$ a rotocol standardi2ed by the &elecommunications Industry -ssociation (&I-) and the -merican %tandards Institute (-'%I). Mobile networking entails communication between Come Location Registers (CLR) and ;isiting Location Registers (;LR) 0 databases used to store information about subscribers. 9ommunication between these databases allows roaming.  AN6I-?1 a%) .6M MAP #%M M-P and -'%I0B3 are key rotocols that utili2e %%G to allow roaming and

ad"anced as well as more ad"anced ca abilities. 9ommunication between the ;LR in the ser"ing system and the CLR of the home area is facilitated by these mobile networking rotocols and signaling based on a signaling rotocol called %ignaling %ystem number %e"en (%%G). In #%M networks$ the M-P rides on to of %%G$ allowing ;LR to CLR (and CLR to ;LR) communications. In non0#%M networks (such as many of those found in the Inited %tates)$ -'%I0B3 is de loyed (which also uses %%G) for CLR/;LR communications.  Mo'!l# IN +o$ .6M D AN6I-?1 While there are "arious ro rietary0based mobile intelligent network (I') technologies$ the standards based technologies are often of most "alue to the mobile network o erator and their customers. &hese standards based technologies are referred to as 9ustomi2ed lications for Mobile *nhanced Logic (9-M*L) and Wireless Intelligent 'etwork (WI') and are used in #%M and -'%I0B3 based networks res ecti"ely.

4-*#" o+ Mo'!l# N#t,o$B"  2.5.
9DM-@)))1s 3+R&& is the first technology for the e"olution of cdma7ne @# networks to @.5# networks. .PR6 re resents the first acket0based technology for e"olution from @# #%M networks to @.5# networks.-nother #%M @.5# acket technology$ *nhanced Data rates for #%M *"olution (*D#*). -nother @.5# technology that is circuit based$ Cigh % eed 9ircuit %witched Data (C%9%D). I(*#t&" +o$ 2.5. &he ma!or im etus for @.5# is the Halways0onH ca ability. Being acket based$ @.5# technologies allow for the use of infrastructure and facilities only when a transaction is re8uired$ rather than maintaining facilities in a session0like manner. &his tremendous infrastructure efficiency and ser"ice deli"ery im ro"ements. Ising #PR% as a bearer for W-P$ for instance$ will allow for the use of W-P on a er0 transaction rather than a er0minute0of0use basis. More im ortantly erha s is the ability for #PR% to allow for autonomous ser"ice reali2ation through the always0on ca ability. 6or e+am le$ a #PR% customer could recei"e content or ser"ices without actually manually in"oking a ser"ice or transaction. &his has significant im lications for mobile commerce and location based ser"ices. Data 6*##) .PR6 data s eeds are e+ ected to reach theoretical data s eeds of u to 3G3.@ Nb s. Cowe"er$ this is based on o timal conditions in terms of a"ailable cell/sector ca acity in terms of a"ailable time slots$ ma+imum coding scheme (9%0B) as well as moible hone a"ailability to su ort the ma+imum number of time slots 0 eight. ro"ides

More ractical data rates are currently in the order of B)0F) Nb s. 9DM-@))) 3+R&& data s eeds are a"eraging about G)0() Nb s. *D#* will boost data theoretical data rates to A(B Nb s if/when de loyed. *D#*

accom lishes these higher rates through introduction of a new modulation scheme known as *ight Phase %hift Neying ((P%N). (P%N ro"ides for u to A bits er symbol (rather than #PR%1s 3 bit er symbol)$ facilitating an u to A T1s im ro"ement o"er #PR%. C%9%D will mechanism. Prior to the introduction of these technologies$ 9ellular Digital Packet Data (9DPD)$ offered only u to 34.@ kb s on -MP% networks. 7ther current means of mobile data such as '&& Do9oMo1s PD9 network offer only 4.F k bs$ such as used for the highly successful iMode. 3. technologies such as 9DM-@))) (3+*;0D7 and A+) and W09DM- will theoreticaly ro"ide u to @ Mb s in a fi+ed location. &here will$ howe"er$ be some significant limitations to this theoretical ca acity. 2.5. A$ch!t#ct&$# a%) I""&#" #PR% re resents an o"erlay network de loyment to #%M$ thus new network elements are laced into the network while e+isting network elements$ such as the CLR$ sim ly re8uire a software u grade. 9DM-@))) also re resents an o"erlay network$ with 3+R&& first re8uiring new channel cards$ and later "ersions of 9DM-@))) re8uiring new 9ore 'etwork (9') infrastructure such as the AAA ser"er and Packet Data %er"er 'ode (PD%') as art of a Mo'!l# IP network infrastructure. ro"ide s eeds of u to FB Nb s. Cowe"er$ C%9%D er etuates the

inefficient use of s ectrum and transmission that is relegated by any circuit switched

 3.

&hird

generation

(A#)

networks

were

concei"ed

from

the

Ini"ersal

Mobile&elecommunications %er"ice (IM&%) conce t for high s eed networks for enabling a "ariety of data intensi"e a lications. A# systems consist of the two main standards$ 9DM-@))) and W09DM-$ as well as other A# "ariants such as '&& Do9oMo1s 6reedom of Mobile Multimedia -ccess (67M-) and &ime Di"ision %ynchronous 9ode Di"ision Multi le -ccess (&D0%9DM-) used rimarily in 9hina. Data 6*##) &he data s eed of A# is determined based on a combination of factors including the chi rate$ channel structure$ ower control$ and synchroni2ation. -n e+am le of calculating the theoretical A# data s eed is as follows> • W09DM- assigned code B))05)) N bs/code. F codes T B)) U @Mb s (IM&% target for A# data s eed in fi+ed location) • • • • • -ctual data s eeds will "ary in accordance with se"eral factors including> 'umber of users in cell/sector Distance of user from cell Iser is mo"ing or stationary 'etwork o erator ca acity and network o timi2ation re8uirements orting a theoretical data s eed of u to @.B5G orting a theoretical data s eed of u to

3+*;0D7 is a data0only solution$ su A.)G@ Mb s 67M- has two o erational modes$ su

Mb s. 3+*;0D; is a data and "oice solution$ su

orting a dedicated FB Nb s connection or a A(B

Nb s downlink/FB Nb s u link best0effort connection. &D0%9DM- can o erate in 3.F MC2 or 5 MC2 mode for @ Mb s or F M bs res ecti"ely

2o(*a$!"o% o+ 3-2DMA to 2DMA2000 Both use a coding scheme that se arates each subscriber from other subscribers.Both use control channels to manage the network W09DM- and 9DM-@))) are not com atible from the ers ecti"e that they ha"e

different chi rates 0 A.(B M9P% for W09DM- "s. 3.@((( M9P% for 9MD-@))). W0 9DM- uses a 5 MC2 channel. Initially$ 9DM-@))) uses only a 3.@5 MC2 channel$ but with 9DM-@))) A+$ three 3.@5 MC2 channels can be combined to form a su er channel structure. W09DM- is synchronous$ relying on mobile station time measurements between two base stations$ rather than using #P% as 9DM-@))) does. &here are three modes of o eration for W09DM-/9DM-@)))> • • • Direct %e8uence (D%) W09DM- (IM&%) for 6re8uency Di"sion Du le+ (6DD) W09DM- &ime Di"ision Du le+ (&DD) 9DM-@))) Multi0carrier 6DD

*ach of the three radio interface methods may be em loyed on either a #%M or -'%I0 based 9ore 'etwork (9'). I%0(AA is a standard$ de"elo ed by the A#PP@$ to su ort 9DM-@))) 3+R&& Radio

-ccess 'etwork (R-') to interface with a #%M 9'. R-' u grade re8uired includes 9DM- base station and B%9. 9' u grade re8uired includes 9DM- PD%' and --ser"er.

I(*#t&" +o$ 3. &he ma!or im etus for A# is to ro"ide for faster data s eed for data0intensi"e

a lications such as "ideo. In addition$ A# to ro"iding faster data s eeds on a er0user basis$ A# is also hel ful to ro"ide greater o"erall ca acity for "oice and data users. 6or e+am le$ '&& Do9oMo1s lan to migrate iMode users from the @# PD9 network to 67M is dri"en by o"erall ca acity concerns$ as a osed to indi"idual user data s eed re8uirement. 3. A$ch!t#ct&$# W09DM- uses the same 9' as #PR%$ utili2ing e+isting infrastruture such as the ##%' and %#%'. W09DM-$ howe"er$ does re8uire new R-' infrastructure such as the 'ode B$ which re laces the B&%$ and the Radio 'etwork 9ontroller (R'9)$ which re laces the B%9. Iltimately$ the W09DM- 9' will e"ol"e to com rise a full Mo'!l# IP infrastructure including Media #ateway (M#W) and Media #ateway 9ontroller (M#9) e8ui ment for ;oIP and other new e8ui ment such as the C%% and 9%D6. 9DM-@))) starts with new channel cards and then migrates to a full Mo'!l# IP infrastructure re8uiring new 9ore 'etwork (9') infrastructure such as the AAA ser"er and Packet Data %er"er 'ode (PD%').

4h# 4#ch%olo/- &"#) '- Mo'!l# Pho%#"  AAA
%ometimes referred to as Htri le0-H or !ust ---$ authentication$ authori2ation$ and accounting re resent the Hbig threeH in terms of IP based network management and olicy administration. -uthentication ro"ides a "ehicle to identify a client that re8uires access to some system and logically ser"er. -uthori2ation follows authentication and entails the rocess of determining whether the client is allowed to erform and/or re8uest certain tasks or o erations. -uthori2ation is therefore at the heart of olicy administration. -ccounting is the rocess of measuring resource consum tion$ allowing monitoring and re orting of e"ents and usage for "arious ongoing olicy management. --- is a fundamental as ect of IP networking. -s mobile IP technology e+ ands to enable a multitude of mobile$ Internet0enabled de"ices$ --- ser"ers will ro"ide the means of administering olicy to ensure ro er use and management of resources. In a s ecific e+am le$ #%M location ser"ice (L9%) standards s ecify that the #ateway Mobile Location 9enter (#ML9) must administer --- olicy towards any L9% client that re8uests location information. In a more generic I& e+am le$ a --- olicy ser"er would interact with network access and gateway ser"ers$ databases$ and directories to ro"ide olicy direction to any mobile ur oses including billing$ analysis$ and recedes authori2ation. &he mechanism for authentication is ty ically undertaken through the e+change of logical keys or certificates between the client and the

IP de"ice that re8uests access or information within a "irtual en"ironment.

ri"ate network

AAA 6ta%)a$)" a%) A)(!%!"t$at!o% --- may be administered based on the agreed u on standards for communication and rocessing. In the receding e+am le$ the L9% client must send the a ro riate information o"er the -PI$ allowing the #ML9 to a ly --- olicy. In a more generic I& e+am le$ many remote com uter access ser"ers utili2e the R-DII% (Remote -uthentication Dial0In Iser %er"ice) rotocol. Cowe"er$ with the otential ort the mobile IP en"ironment. multitude of remote com uting de"ices enabled by mobile IP$ a new rotocol called DI-M*&*R is being de"elo ed by the I*&6 to better su

 3!$#l#"" E(#$/#%c- 6#$:!c#"
Wireless *mergency %er"ices (W*%) refers to the use of mobile ositioning technology to in oint mobile users for ur oses of ro"iding enhanced wireless emergency dis atch ser"ices (including fire$ ambulance$ and olice) to mobile hone users. While W*% is a ty e of location0based ser"ice (LB%)$ it is a mandate in the Inited %tates where 433 is the official dialing emergency ser"ices. attern for fi+ed and mobile network access to

 3AP D !Mo)#
Wireless lication Protocol (W-P)$ a rotocol used to ro"ide mobile data ser"ices$

and iMode$ a com lete mobile Internet ser"ice. &he ur ose of this a er is to briefly

discuss some of the technical differences between W-P and iMode rather than commercial as ects of either technology. W-P uses a s ecial language called Wireless Marku Language (WML) for

communication between a s ecial rotocol con"ersion de"ice called a W-P #ateway (#W) and content on the Internet. &he W-P #W con"erts between WML and C&ML$ allowing deli"ery of W-P based content to a W-P ca able mobile de"ice. In most network today$ the connection between the M%9 and the #W is circuit switched as indicated in the illustration abo"e in which the M%9 must utili2e the Public %witched &elecommunications 'etwork (P%&') to connect to the #W. -s mobile network o erators de loy ne+t generation acket0data technologies such as #eneral Packet Radio %er"ice (#PR%)$ the connection between the M%9 and the W-P #W will be u graded to le"erage the faster acket connection facilitated by the #PR% network. In contrast to W-P$ iMode utili2es an o"erlay acket network for direct communications (no gateway needed) to the content ro"iders on the Internet. While W-P uses WML$ iMode uses a deri"ation of C&ML called com act C&ML (c0 C&ML). Being a sub0set of C&ML$ c0C&ML is easier to learn and a ly than WML. It is likely that both W-P and iMode will e"ol"e at some oint to incor orate TML. W-P de"ices must su ort a W-P browser whereas iMode ca able de"ices must be able orts na"igation between

to dis lay information from c0C&ML.W-P de"ices dis lay only te+t information whereas iMode de"ices dis lay multi0color images.W-P su layered menus whereas iMode su orts na"igation through hy erlinks. ort the same market

While W-P and iMode ha"e technical differences$ they must su for mobile data ser"ices.

A):a%c#) M#""a/!%/ 4#ch%olo/!#"
-d"anced messaging technologies will ro"ide ad"anced ca abilities beyond those

ro"ided by %M%. In fact$ many belie"e that messaging is the single most im ortant a lication to e+ loit the ca abilities of A# (and beyond) networks.

 Short Message Service
%hort Message %er"ice (%M%) is a mobile data ser"ice that allows al hanumeric messaging between mobile hones and other e8ui ment such as "oice mail systems and email. 4#ch%olo/%M% is a store0and0forward system. Messages are sent to a %hort Message %er"ice 9enter (%M%9) from "arious de"ices such as another mobile hone or "ia email. &he %M%9 interacts with the mobile network to determine the a"ailability of a user and the user1s location to recei"e a short message. Because %M% uses the control channel (rather than the "oice channel)$ a uni8ue feature of %M% is that the user can recei"e a %M% whether or not a call is in rogress 0 the hone need only be turned on. If the hone is not turned on$ the %M%9 will wait until the hone is turned on to send the message. - Hmessage recei"edH is sent to the %M%9 from the M%9 u on deli"ery to the mobile de"ice$ allowing the %M%9 to ro"ide confirmation of recei t to the sender u on re8uest. 7ne of the issues with %M% is intero erability between different technologies such as 9DM- and #%M. &o accom lish messaging between these different technologies$ Inter0 carrier Messaging technology must be de loyed to mobile o erators with different technologies. ro"ide for messaging between

B&"!%#"" I""&#" %M% first a eared in #%M in about 3443. %M% later a eared in 9DM- and &DMnetworks. Mobile 7rigination (M7) 0 a key feature of %M%$ allowing the user to originate %M% messages from the handset 0 has only became a"ailable to non0#%M users in @))). %M% has become a key ser"ice for mobile o erators$ generating tremendous usage$ articularly among the youth market segment. With the ad"ent of technologies such as W-P and the introduction of #PR% and A#$ some 8uestion the future of %M%. It is clear$ howe"er$ that %M% will ha"e a long life as a low0bandwidth messaging ser"ice$ a"ailable on all ty es of hones.

B#%#+!t" o+ 6M6 %M% increases the amount of "oice calling by ro"iding a mechanism for "oice mail notification to the handset. %M% ro"ides a con"enient$ low0cost mechanism for non0"oice communication. %M% ro"ides a mechanism for enabling "arious other a lications such as re aid.

6M6 E%a'l#) A**l!cat!o%" %M% can be used for a "ariety of uses in con!unction with mobile re ay including notification of low balance and balance in8uiry$ short codes used in con!unction with re aid roaming$ and e"en %M% itself can be ro"ided on a re aid basis by the mobile network o erator. When used in con!unction with the %IM &oolkit$ %M% can be used as the "ehicle for a "ariety of secure transaction0oriented ser"ices such as mobile banking.

 EMS

*nhanced Messaging %er"ices (*M%) S an enhanced "ersion of %hort Messaging %er"ice (%M%) is com rised of se"eral te+t messages that are clustered together. *M% ro"ides ca abilities for more rich messaging features such as sending/recei"ing ring tones and other melodies/sounds$ ictures and animations$ and modified (formatted) te+t. 6urthermore$ all of these could be sent/recei"ed as one integrated message for dis lay on an *M% com liant mobile de"ice. *M% is designed to work with any network that already offers %M% using the same store0and0forward infrastructure as %M%. 7ne of the o erational issues of *M% is how to bill. Many o erators will likely charge for the combined message rather than charge for each indi"idual message com rising the *M%. *M% is intended to be an e"olutionary ste towards MM%. Cowe"er$ some belie"e that *M% will be sur assed as MM% is de loyed as an o"erlay ser"ice to %M%.

 MMS
Designed for A# (and beyond) networks$ Multi0media Messaging %er"ices (MM%) ro"ides a technical solution of e"en richer media including te+t$ sounds$ images and "ideo to MM% ca able handsets. While *M% will er etuate the rather ro rietary architectures and interfaces$ MM% will instead be the first mobile messaging ser"ice to utili2e o en Internet standards for messaging. Inlike *M%$ which utili2es e+isting %M% ca able terminals$ MM% will re8uire new mobile de"ices. Messaging e"olution toward MM% is tightly cou led with and de endent on su Mobile %tation su systems. - key com onent of MM% is what is referred to as the MM% relay function$ which is the con"ersion of a hone number to an IP address. Inlike with %M%$ MM% bearers (such as .PR6) ha"e an IP address associated with the hone. &he MM% relay function allows the sender of a MM% message to address it to the hone number$ while the system con"erts to an IP address for routing to the Multi0media Messaging %er"ice 9enter (MM%9) and end0user. It is im ortant to note that %M% is Hnot going away any time soonH. In addition to the fact that MM% ca able hones must be ro"ided to the end0 orting technologies such as Ja"a$ lication *+ecution *n"ironment (Me+*)$ and Bluetooth. 7ther

orting technologies include location based ser"ice systems and ad"anced billing

users$ %M% will be used as an alert mechanism 0 to tell customers that they ha"e some MM% content waiting for them at the MM%9. 7"er time$ MM% will also need to integrate with unified messaging and communications systems.  Other Messaging Technologies &here are other as ects of ad"anced messaging$ including mobile instant messaging and inter0carrier messaging. Messaging will most certainly e"ol"e to take many forms within mobile communications. 7ne thing is certain to not change 0 that mobile messaging will remain a "alue0added ser"ice.

 Inter operator Messaging
Inter0carrier Messaging (I9M) 0 sometimes referred to as inter0o erator or inter0network messaging 0 refers to the ability to transmit messages between mobile communications networks regardless of technologies in"ol"ed (9DM-$ #%M$ iDen$ PD9$ or &DM-) and regardless of %M%9 rotocols de loyed (9IMD$ %MPP$I9P). 3h- !" I2M I(*o$ta%t< I9M functionality enables messaging between networks in which otherwise would be constrained to only allow for intra0network messaging between subscribers belonging to the same network. &his ca ability is of articular im ortance for countries and regions of the world such as the -mericas and -sia0Pacific$ which contain mobile o erators that em loy "arious technologies. I9M enables mobile o erators in those areas to en!oy the same benefits of inter0network messaging en!oyed throughout *uro e on the homogeneous #%M networks. 8o, to D#*lo- I2M I9M may be de loyed by the o erator (within its on network) but the more effecti"e solution is to utili2e a third0 arty solution. &his is due to economies of scale issues and

the administrati"e im)act of ro"isioning and administration of information$ articularly in a country em loying mobile number ortability. &he third0 arty or ser"ice bureau a roach is e+em lified by leading com anies in this area such as the I% based Illuminet (www.illuminet.com)$ a ;eri%ign (www."erisign.com) com any$ through their artnershi with I9M a lication ro"ider Mobile% ring (www.mobiles ring.com). &he basic function of I9M is to first determine the termination network based on e"aluation of the destination address of the MD' (-'%I) or M%I%D' (#%M)$ with ancilliary #&& su ort ro"ided to resol"e destination addresses that reside within orted line ranges. 7nce the termination network is identified$ the I9M function erforms rotocol con"ersion and reformating of message as necessary. I(*o$ta%t F#at&$#" o+ I2M -long with su ort for basic %M% feature such as segmentation and concatenation$ the ort additional features such as message re ly$ message

successful I9M function must su

confirmation$ s am controls$ message acti"ity monitoring and re orting ca abilities. 4h# F&t&$# o+ I2M &he future is bright for I9M as wireless carriers in the -mericas and -sia Pacific as %M% mobile origination ca ability is now ubi8uitous across all digital networks. &he ability for mobile o erators to send al ha0numeric te+t messages amongst themsel"es will ro"e crucial in su orting geometric growth cur"es in messaging as e+ erienced in *uro e with #%M. 9arriers across international boundries will likely inter0connect to leading ser"ice bureau ro"iders of I9M ser"ices to enable truly global messaging. %M% is !ust the beginning. -s mobile networks e"ol"e to su erson te+t messaging. ort more -d"anced

Messaging ca abilities$ end0users will begin to engage in more than merely erson0to0 *+change of multi0media information and interacti"e information and entertainment will become more of the rule than the e+ce tion.

6#$:!c# I%+o$(at!o%
I" Mo'!l# A):#$t!"!%/ al$#a)- *o""!'l# to)a-< Mobile -d"ertising is already a useable ad"ertising techni8ue today. With a mobile technology$ which is im ro"ing at a fast ace$ Mobile -d"ertising will soon become a ma!or ad"ertising channel for many businesses. *"en regular &;0 commercials will be shown o"er mobile de"ices. 'e"ertheless$ Mobile -d"ertising can already hel your business today. &here are many ossibilities for ser"ices which you can offer your customers such as s ecial communication latforms$ customi2ing content$ Mobile 9ommerce$ remote access to databases or s eech enhanced ser"ices. With tools like these$ the customer not only recei"es your ad"ertising message$ but also a bonus ser"ice which he is likely to a reciate. &hese other ser"ices increase the ower of your ads tenfold$ because a strong kind of customer bonding is likely to ha en and they are likely to be using your ser"ices again.

8o, ca% Mo'!l# A):#$t!"!%/ '# !(*l#(#%t#)< &oday$ we can already reali2e so0called Push0 and Pull0a lications for your business. It is im ortant that communication latforms are used to gi"e a business the ossibility to gi"e the target grou s e+actly the messages they desire and not !ust Hs amH them with ad"ertisings they are not interested in. - s ecial communication latform which enables to communicate with the target grou o"er mobile channels$ makes it ossible to create an inno"ati"e$ e+actly timed$ money0 sa"ing and 0abo"e all0 an efficient communication with the customer. %e"eral studies and tests ha"e underlined this statement with "ery clearly.

Mo'!l# A):#$t!"!%/ - Mo'!l# E%t#$ta!%(#%t &he steadily im ro"ing mobile communication technology is already so histicated enough to make the dream of mobile entertainment a reality. Mobile ad"ertising and Mobile *ntertainment can be used together to create e+tremely effecti"e customer0 bonding systems. &hrough the combined use with other ad"ertsing channels your business can create customer0relationsshi s that last a lifetimeV 6eedback from both reci ients and early ado ter com anies has been encouraging. Mobile hone owners are "ery tolerant of ad"ertising deli"ered "ia te+t messagesR the information corres onds with the user rofile$ is in conte+t$ ro"ides entertainment$ and adds some "alue. &e+t messaging is a cost0effecti"e way of informing customers of rele"ant offers by su lying ersonali2ed$ time0sensiti"e$ interacti"e communication to an interested audience. &he o t0in functionality and 8uality subscriber database ha"e been found to be "ery im ortant elements when using wireless ad"ertising. - sur"ey last year indicated that the te+t messaging habit is beginning to take hold with the o"er A5s. - @) ercent increase in adults using te+t messaging was identified$ along with a 3B ercent rise in the number of o"er 55s. -fter re"iously being a communication tool for the younger generation$ te+t messaging is now a medium that is becoming acce ted by all the o ulation. -n indication that the market lace is beginning to mature can be seen with the creation of a global trade association. &he merger of the Wireless -d"ertising -ssociation (W--) and Wireless Marketing -ssociation (WM-) has formed the new Mobile Marketing -ssociation (MM-). &hese two organi2ations ha"e combined to create a united forum$ romote further industry growth$ and ensure continued ri"acy and consumer rotection. &he merger brings together W-- members such as Inile"er$ -7L$ 7gil"y Interacti"e$ Double9lick and 'okia$ with WM-1s *uro ean affiliates including 7range$ mm7@$ ;odafone$ 'ews International$ 6reeser"e$ Lycos$ 6lyt+t and Diageo.

R#l#:a%t EEa(*l#" +$o( th# +!#l)
6lyt+t$ a ro"ider of mobile marketing ser"ices$ has masterminded a number of recent marketing cam aigns using interacti"e te+t messaging for com anies such as %mash Cits$ 9adbury$ and IN &; 9hannels B and 5. -nother ser"ice %mirnoff Ice$ %cottish and 'ewcastle$ and Debenhams. ro"ider in this s ace is 'ightfly$ a subsidiary of Diageo$ which has created a wireless media channel for

Mr. Rutanen concedes that1s an e+aggeration. But he and other ad"ertisers$ ad agencies and content ro"iders agree that the ne+t wa"e of digital ad"ertising ha"e hit in @)))$ in the I.%. as well as *uro e$ and it will be on handheld wireless de"ices$ the most o ular of which is e+ ected to be the mobile hone. 9han %uh$ chief e+ecuti"e of interacti"e ad agency -gency.com$ based in 'ew Eork$ says se"eral clients are asking about ad"ertising on interacti"e mobile hones. Mobile0 hone messaging His going to ha"e to be art of an o"erall interacti"e marketing scenario$H Mr. %uh says.

Motorola and 6inland1s 'okia and other hone manufacturers late last year began rolling out hones that can access the Internet. %ales of these de"ices$ which use Hwireless a lication rotocolH technology and are known as W-P hones$ are e+ ected to take off in *uro e during the first half of @))) and catch on in the I.%. by the third 8uarter. -nalysts estimate W-P hones will be the standard mobile hone by @))A with () million users in the I.%.$ e"en though they currently cost between K5)) and K3$))). But mobile ad"ertising is still embryonic$ and there are a lot of 8uestions about what the ads will look like on the tiny screens$ which Hdot0comsH might find them beneficial and how anyone will make money. Initially$ such ads will afford "ery limited branding o ortunities. &he screen on a W-P hone is about the si2e of a business card$ so it1s too small for more than a few lines of te+t. &he ads will either take the form of a s onsorshi $ or resemble the eW ad$ which carried the name of the com any$ its slogan and its Web address in a short te+t message. 7"er the ne+t one to fi"e years 00 estimates "ary widely 00

ads may feature color gra hics$ audio and "ideo$ offer cou ons and e"en o u when users fli on their hones.

&he first hurdle will be getting users to buy the high0 riced hones. Many "enture that ad"ertisers will be willing to ick u the cost. &he ne+t may be consumer acce tance of the ads. -t least one direct marketer$ -d"ertising.com in Baltimore$ lans to ay users for acce ting targeted itches0offering between one cent and 5) cents an ad$ which can be a lied to airtime charges.

A):#$t!"!%/ (#""a/#" t$a%"(!tt#) '- 6M6 o% th# o*#$ato$F" o,% '#hal+
 &heir de"elo ment is ercei"ed as ,high or "ery high. by all the eo le consulted. %e"eral s ecialists add the numerous "ocal a lications "ia the terminal=s message system.  *uro ean telecommunications o erators are almost all in a financially recarious situation. In "iew of this$ modes of action that aim to retain the loyalty of the customers will remain in lace from now until the end of @))5.  &he 'o&%)a$- between information from a telecommunications o erator about his own ser"ices and roducts and a ure act of ad"ertising is not clearly drawn. &y ically$ some actions resemble a informati"e one.  A):#$t!"!%/ (#""a/#" t$a%"(!tt#) '- 6M6 o% '#hal+ o+ a th!$) *a$t- @a):#$t!"#$A  Messages and cam aigns of this ty e will meet with increasing success.  &he financial fragility of the o erators mentioned earlier will also moti"ate them to increase their income by the ,tem orary rental. of their subscriber lines$ in the form of ad"ertising re"enues similar to the selling of ,media s ace..  Eoung eo le are likely to be a fa"ourite target of ad"ertising agencies and ros ecti"e and commercial cam aign$ not an

ad"ertisers "ia this techni8ue.  P#$(a%#%t o$ t#(*o$a$- a):#$t!"!%/ "t$!*" o% th# t#$(!%al "c$##%  &hese show messages roduced by the o erator or for a third0 arty com any. &he intrusion of ,e+ternal. ad"ertising may be the ob!ect of a reduced communication

tariff (,cross0subsidiation.)$ of airtime on offer (free minutes) or of game com etitions.  &his ad"ertising techni8ue is ercei"ed as less wides read$ with less de"elo ment otential than the %M% actions described earlier$ because of the inade8uacy of users= e8ui ment in the short term. It will only be able to e+ and in arallel with the de"elo ment of a ro riate terminals and it is therefore too early to e"aluate this tendency.  A""#""(#%t o+ th# "#l+-$#/&lat!o% o+ th#"# a):#$t!"!%/ t#ch%!C&#"  &hese modes of action are regarded as , rogressi"ely regulated. or ,sufficiently regulated.. In all the *uro ean Inion countries the legal frameworks ro"ide serious to ,"ery sustained. rotection of ersonal information$ and an elementary rotection of res ect for ri"acy. &hose two frameworks sufficiently delimit the ossible de"elo ment of such ad"ertising techni8ues.  Moreo"er$ the rofessionals start from the rinci le than an o erator will ne"er wish to dis lease his subscribers$ since he wants to retain their loyalty. Besides obligatory res ect for the legal framework$ the ,7 t0in. or ,7 t0out. method (coined for interacti"e ad"ertising techni8ues on the Internet) will be systematically a lied in order to a"oid irritating the consumer$ who could otherwise discontinue his subscri tion contract as soon as he e+ erienced a feeling of ad"ertising saturation.  Cowe"er$ numerous cases are mentioned in which the details of consumers are used without rior warning$ such as recourse to e0mail addresses "ia the Internet. %elfregulation and the legal frameworks will again encounter technical difficulty in the detection of abuses.

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&he study ad"ocates that mobile marketing should be seriously considered for inclusion in the marketing mi+ of an organi2ation. HIsers will be willing to ut u with :the ads< if ad"ertisers make it free for them to do what they want to do on the hones$H suggests Mr. %uh of -gency.com. Cowe"er$ study cautions businesses against indiscriminate s amming of customer1s mobile hones. It is "ital$ if mobile marketing is to become a successful communication channel$ that reci ients ha"e agreed to be sent te+t messages and the content matches their rofile. Just as the wireless channel can be a uni8ue means of adding "alue$ there is the otential to alienate eo le if used incorrectly.

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Inderstand how to make mobile work as a marketing tool 0 %M%$ MM%$ and games to ma+imise customer ac8uisition and loyalty whilst building M strengthening brand 9a ture the imagination of the consumer 0 learn ho, to )#:#lo* a%) )#l!:#$ c&tt!%/ #)/# ca(*a!/%" o:#$ (o'!l# )#:!c#" Re licate the success of mobile marketing ioneers 0 leading case study

resentations from> %mirnoff$ *M-P$ 9hannel 5$ Lastminute.com$ 7@$ %onera$&IM 'etwork with s eakers from all sectors of the mobile marketing "alue chain 0 ad"ertisers$ ad"ertising agencies$ o erators$ manufacturers and ad"ertising solution ro"iders Mobile marketing M ad"ertising networking dinner lus MM- award for HWireless 9am aign of the EearH

R#+#$#%c#"
3. -dmuseum. (n.d.). &he american ad"ertising museum ad"ertising timeline. Retrie"ed %e tember 3($ @))@$ from @. htt >//www.admuseum.org/museum/timeline/timeline.htm A. Bluds2uweit$ M. (@))@$ March). Location0based mobile marketing 0 more than ad"ertising on mobile hones. Retrei"ed 7ctober 3F$ @))@$ from B. htt >//www.siemens.com/inde+.!s ?sdcXrhYnullMsdc... 5. 9ronin$ M. J. (3445). Doing more business on the internet. 'ew Eork> ;an 'ostrand Reinhold. F. 6orbes$ &. (@)))). Webworks advertising. #loucester> Rock ort Publishers. G. Nania$ D. (@))3). Branding.com. 9hicago> '&9 Business Books. (. 'ielsen$ J. (@)))). Designing web usability. Indiana olis> 'ew Riders Publishing. 4. 7gil"y$ D. (34(A). Ogilvy on advertising. 'ew Eork> 9rown Publishers$ Inc. 3). Rodgers$ L. (@))@$ June). Candhelds in the summertime. WirelessAdWatch. Retrei"ed from 33. htt >//www.wirelessadwatch.com/news/@))@/news@))@)F3G.shtml 3@. %mith$ %. (@))@$ 7ctober). Mobile> &he state of the art. Boxes and Arrows. Retrie"ed from 3A. htt >//www.bo+esandarrows.com/archi"es/ rint/))@44F. h 3B. &;history. (n.d.). 34B3 rices. Retrei"ed on %e tember 35$ @))@$ from

htt >//www.t"history.t"/34B3P@)W6.htm

35. ;anDuyne$ D. N.$ Landay$ J. -.$ M Cong$ J. I. (@))A). The design of sites. Boston> -ddison Wesley. 3F. ;een$ J. (@))3). The art & science of web design. Indiana olis> 'ew Riders. 3G. Whatis. (@))3). Retrie"ed %e tember @A$ @))@$ from htt >//www.whatis.com 3(. Leff$ R.$ M -ronson$ B. (344G). Advertising on the internet. 'ew Eork> John Wiley M %ons$ Inc. 34. Jennifer Rewick for the Wall %treet Journal Interacti"e Di"ision 6ebruary B$ @)))

-

endices

A**#%)!E A

L!"t o+ c#ll&la$ co(*a%!#" !% I%)!a

 A!$4#l I%)!a 0 offers cellular hone ser"ices$ o erators.  A!$4#l 0 offering cellular hone ser"ice$o erators.  BPL 2#ll#l&$  BPL Mo'!l# 2o((&%!cat!o%" 0 India1s 'o. 3 mobile Nerala$ &amil 'adu (e+ce t 9hennai)$ Pondicherry and #oa  BPL Mo'!l# 0 mobile hone ser"ice M e8ui ment ro"ider$cellular o erators  BPL 4#l#co( 0 offers telecom roducts M ser"ices  Bha$at 6a%cha$ N!/a( L!(!t#)0 Na%)#) 0 information on 'anded &elecom 'etwork$ online directory of 'anded district.  Bha$t! B4 0 satellite communication ser"ices.  Bha$t! 2#ll&la$ L!(!t#) 0 World class network$*rror free ser"ice deli"ery$ Inno"ati"e roducts and ser"ices$ %tate0of0the0art distribution system  2#l+o$c# Fa"c#l L!(!t#) 0 mobile ser"ice 9elforce in #u!arat$ India  E""a$ 2#ll*ho%# 0 ro"ider of basic telecom and cell hone ser"ices  .6M I%)!a 0 offers satelite roaming ser"ices for mobile hones. hone ser"ice with o"er

($))$))) wirefree citi2ens s read across 34@ cities co"ering Mumbai$ Maharashtra$

 8#Eaco( I%)!a L!(!t#) 0 7 erating as the leading cellular ser"ice ro"ider of the largest state of India S we are 7-%I% 9*LLIL-R S&he ;oice of Ra!asthan  8&tch!"o% E""a$ 6o&th L!(!t#) 0 Wa and other technologies$ ser"ices$ cor orate  8&tch!"o% E""a$ 4#l#co( L!(!t#) 0 9ellular network which cellular ser"ice ro"iders.  8&tch!"o% E""a$ 4#l#co( L!(!t#) 0 cellular o erator Q 43 @@ BA3 3@43/4  IDEA 2#ll&la$ L!(!t#) 0 cellular o erator$ licensee for the state of -ndhra Pradesh  Ko"h!Ba 4#l#co( Lt). 0 Ishafone cellular ser"ices in Bihar$ IP M 7rissa with tariffs$ user info  M4NL0 D#lh! 0 telecommunications M internet ser"ices from Mahanagar &ele hone 'igam Ltd.  Maha%a/a$ 4#l#*ho%# N!/a( L!(!t#) 0 offers I%P ser"ices in Delhi$ Mumbai and &hane.  Mat$!E 2#ll&a$ 6#$:!c#" P:t. Lt). 0 offers mobile connecti"ity to cor orates$ foreign missions and indi"iduals.  Mo)! 4#l"t$a P:t. Lt). 0 ro"iding cellular hone ser"ices.  Mo)! 4#l"t$a 0 mobile/cellular hone ser"ice ro"ider in 9alcutta  M&"Ba$a" 0 mobile net showroom. 7ffering cellular hone ser"ice.  Oa"!" 2#ll&la$ 0 mobile hone ser"ice from Ce+acom India Ltd. in Ra!asthan cellular o erators  O$a%/# 0 mobile hone o erator M ro"ider of digital cellular networks$ celluluar o erators. ro"ided su erior

co"erage$ Cutch is brought to you by Cutchison &elecom$ one of the world=s leading

 R#l!a%c# 4#l#co( l!(!t#) 0 9ellular %er"ices 7 erator in se"en circles 0 Bihar$ 7rissa$ Madhya Pradesh$ Cimachal Pradesh$ West  6B-2#ll 2o((&%!cat!o%" Lt). 0 leading cellular ser"ice ro"iders in 9hennai  6*!c# 2#ll Lt). 0 cellular hone ser"ices in 9alcutta  6*!c# 4#l#co( 0 cellular ser"ices with auto roaming facility$ "oice mail etc.  6*!c# 0 mobile hone ser"ice ro"ider in Pun!ab1s ma!or cities.  4ata 2#ll&la$ 0 offers e0mail access through mobile in -ndhra Pradesh  U"ha Ma$t!% 4#l#Bo( 0 ro"iding cellular hone ser"ices

A**#%)!E B

4ho&/ht" a'o&t th# F&t&$# o+ A):#$t!"!%/ A 3h!t# Pa*#$
by 4h# Fac&ltD#*a$t(#%t o+ A):#$t!"!%/ December 3445

9ollege of 9ommunication &he Ini"ersity of &e+as at -ustin -ustin$ &e+as G(G3@ 53@0GB3033)3 6-T> 53@0BG30G)3( Internet> htt >//www.ad"ertising.ute+as.edu/P@)a P@)email>P@)ZaP@)hrefP@)YH mailto>ad"ertising[mail.ute+as.edu? htt >//ad"ertising.ute+as.edu/inde+.htmlUhtt >//www.ad"ertising.ute+as.edu/P@)aUZbrU P@)email>P@)ZaP@)hrefP@)Y

Fo$#,o$) &his document is the result of brown0bag discussions held by the 6aculty of the De artment of -d"ertising at &he Ini"ersity of &e+as at -ustin during the % ring of 3445. &hese discussions were held for the ur ose of clarifying the osition of the 6aculty with res ect to the dynamic e"ents taking lace in the fields of ad"ertising$ marketing and communication. Eou will see that the 6aculty$ as re resented by the thoughts in this White Pa er$ do not underestimate the im ortance of the im act of technological change on the field of ad"ertising. But you should also learn that the 6aculty does not acce t$ generally$ the materialist "iew of e"ents as the only e+ lanation of the changes now taking lace. %uch one0dimensional determinations undoubtedly o"er0sim ly the role of men and women in building and changing social institutions$ ad"ertising being one such rominent institution. -n institution e+ists to satisfy some need of society. &he 6aculty in these ages ha"e attem ted to clarify historically what needs of society ad"ertising has fulfilled and which needs are likely to endure00technological change or not. 6urther$ the 8uestion is raised as to whether ad"ertising or alternati"e$ yet0to0be0de"ised or constructed institutions$ is likely to meet these needs more com letely for the society. &he 6aculty has re ared this material to briefly ro"ide some "iews on this matter for students$ interested colleagues at other institutions$ and$ im ortantly$ ractitioners and ublic olicy makers gra ling with some "ery difficult issues which will ine"itably affect the institution of ad"ertising as it e+ists today. It is our ho e you will find the "iews e+ ressed here to be thought0 ro"oking. Eou will find an o timism in this a er which can only arise from a ositi"e oint of "iew. -nd this ositi"e "iew takes into account the changes taking lace now and likely to take lace in the future. &he 6aculty "iews these changes as a challenge for ad"ertising that should ser"e to energi2e students$ rofessors and ractitioners alike in the months and years ahead. ('ote> &his document was constructed using email transmittal among the 6aculty.)

4ho&/ht" a'o&t th# F&t&$# o+ A):#$t!"!%/ I. 3hat Fo$(" 3!ll A):#$t!"!%/ 4aB# !% th# F&t&$#< II. Eco%o(!c I""&#" III. 6oc!al a%) L#/al I""&#" IV. 4h# M#)!a a%) A):#$t!"!%/ V. A):#$t!"!%/ 2$#at!:!t- a%) It" R#!%:#%t!o% VI. 2$o""-2&lt&$al I""&#" a%) I%t#$%at!o%al A):#$t!"!%/ VII. R#co%c#*t&al!G!%/ 2o%"&(#$ R#"#a$ch VIII. D#+!%!%/ th# HN#, A):#$t!"!%/H

4ho&/ht" a'o&t th# F&t&$# o+ A):#$t!"!%/ %ke tics who forecast the demise of ad"ertising ignore the fact that business and other enter rises ha"e an innate need to communicate with their ublics. Cence$ the real 8uestion is not will ad"ertising continue to be an im ortant tool of business communication (the answer to that 8uestion is yesV) but sim ly$ 3hat Fo$(" 3!ll A):#$t!"!%/ 4aB# !% th# F&t&$#< #ranted$ there are a host of sub0issues such as the relati"e im ortance of the "arious ty es of ad"ertising o"er time$ who will ay for what$ what controls might be a ro riate in light of the changed media alternati"es o en to ad"ertisers$ and so on. It is ine"itable that certain ad"ertising media decline o"er time (e.g.$ network tele"ision) and others flourish (e.g.$ data base marketing communication). %uch ebb and flow in terms of the media a"ailable to ad"ertisers is redictable and healthy !ust as the e"olution of a s ecies is in the natural world. -s the means or media through which ad"ertising messages are con"eyed e"ol"e$ it is im ortant to stress that the fundamentals of effecti"e communication sim ly need to be ada ted and e+ anded to fit these new forms. 6or e+am le$ the fundamental rinci les of effecti"e ersuasion articulated by -ristotle @$A5) years ago can be a lied !ust as directly to selling high tech gadgetry "ia interacti"e ad"ertising on the Internet as they can to a ublic debate in ancient -thens. &he rinci les first codified using %tarch readershi scores in 34@A regarding effecti"e layout and design ha"e rele"ance to de"elo ing an effecti"e home age on the world wide web. Rather than dreary$ the future of ad"ertising is bright and unlimited. -s unlimited as the imaginations of the marketing communication rofessionals who are constantly seeking more effecti"e and efficient means to romote the brands and com anies they re resent. -d"ances in com uter and communication technologies are o ening u an un recedented o ortunities for ad"ertising eo le. 'ow is a time of great e+citement and o ortunity for the ad"ertising industry.

Eco%o(!c I""&#" &he function of the economic system is to su ly roducts and ser"ices for the use and en!oyment of the consumer. - substantial ortion of our economic system is de"oted to the fulfillment of wants and desires which go well beyond the basic necessities of life. -d"ertising is an integral art of this acti"ity and one of the most "isible elements of the mass distribution system. 7ne of the rimary roles of ad"ertising is to ro"ide information about roducts or ser"ices to otential buyers. &he classified sections in news a ers re resent ad"ertising in this most basic form. &his ty e of ad"ertising effecti"ely im ro"es the o eration of market lace and can therefore be regarded as laying a useful role in the economy and to society.

-nnual ad"ertising e+ enditures total o"er 3A@ billion dollars. It is im ortant to recogni2e$ howe"er$ that most of this money does not go to the ad"ertising industry. &he ma!ority of these funds are used to subsidi2e the communication1s media$ an industry which has become de endent u on these essential ad"ertising re"enues. 6or e+am le$ this is "irtually the only source of income that commercial radio and tele"ision stations ha"e$ and it constitutes about two0thirds of the income for news a er and maga2ine ublishers. Without this financial su ort$ the media communications industry would cease to o erate in the manner in which it e+ists today. -s com anies attem t to reach their consumers more effecti"ely$ database marketing$ home sho ing channels$ infomercials$ and electronic cou oning are emerging as the most cost effecti"e way to deli"er their message. &hese new channels of information distribution offer "ariety$ con"enience$ fle+ibility$ and customi2ation. While traditional rint and broadcast are becoming more customi2ed too$ they ha"e not mo"ed at the ace of these new technologies. &he fastest growing new information channel today is the Internet. Inlike interacti"e cable tele"ision which seems to be getting more e+ ensi"e and com licated all the time$ the Internet offers two0way$ gra hical$ worldwide communication with technology0 oriented early ado ters. &hese users are well0educated$ u scale indi"iduals who ha"e chosen to access information from a worldwide web. &his is the first medium to deli"er an almost instant global audience. It is the new form of mass communication and ro"ides users with a new economy of information distribution and ac8uisition. -d"ertising on the Internet has become the most significant new de"elo ment within the industry. Much of the interest is being fueled by small entre reneurial com anies who are able to take ad"antage of change much faster than their larger cor orate com etition. -s this new information deli"ery system grows and is able to effecti"ely and efficiently deli"er information to a mass market$ ad"ertising will be a art of the future for two reasons. 6irst$ the fact is that for roducts and ser"ices directed to mass markets$ ad"ertising is the most cost effecti"e means of romotion. %econd$ the financial subsidy that ad"ertising will ro"ide this new mass medium will be as im ortant as it was for the traditional media that o erate today. -d"ertising will ro"ide the rimary source of income for the future e+ ansion of the Internet. -d"ertising will continue to be an economic fact of life in a mass distribution economy because it has consistently worked better and cost less o"er the long run than other alternati"es.

6oc!al a%) L#/al I""&#" 7"er the decades since its ince tion$ the 6ederal &rade 9ommission (6&9) has assed through se"eral cycles of relati"e aggressi"eness. In the ast A) years we ha"e seen the 6&9 critici2ed for being a H a er tigerH in the late 34F)s$ because it was deemed ineffectual. - decade later it was labeled a Hnational nanny$H in res onse to ercei"ed

o"er0regulation. -nd then in the mid 34()s it was again condemned for its a arent assi"ity. -t that time one obser"er remarked that the 6&9$ Honce accused of being a a er tiger$ is now acting more like a dead cat.H #i"en the regularity of this 3) 0 35 year cycle from 2enith to nadir$ one might e+ ect that o"er the ne+t few years the marketing communications field will e+ erience an increasingly o ressi"e regulatory atmos here. &his e+ ectation is reinforced by the a ointment of a new 9hairman$ who re"iously ser"ed on the 6&9 during a time of heightened regulation$ along with the agency1s renewed authority to romulgate regulations based on Hunfairness.H But times ha"e changed. &he 34()s saw at least three fundamental changes in the regulation of ad"ertising and related romotions> (3) state in"ol"ement in national ad"ertising regulation$ (@) a se"ere downsi2ing of the 6&9$ and (A) the influ+ of 9hicago %chool economists into the 6&9. &hese three factors seem to ha"e had something of a stabili2ing effect on the 9ommission1s e+treme swings. In res onse to de0regulation during the 34()s many state -ttorneys #eneral ste ed0u their regulatory acti"ities concerning ad"ertising$ including attacks on national ad cam aigns$ to fill what they belie"ed was a ga created by 6&9 inacti"ity. &his resulted in increased regulation$ since ad"ertising now was oliced by a large number of go"ernment agencies. It also ut olitical ressure on the 6&9 to take a more aggressi"e stance$ to a"oid being u staged by the states. While state in"ol"ement hel ed to shift regulation into higher gear$ the other two changes may ha"e ser"ed to su ress it. Reduction of the 6&9 staff by nearly 5) ercent laced definite limits on its caseload. -nd the economists ushered in during the Reagan -dministration ha"e retained an influential role in the agency. &heir free0market orientation continues to affect the 9ommission1s case selection and olicies$ thereby adding some internal ressure to a"oid regulatory actions that may harm consumers more than hel them. &he net effect of these changes is that new forces$ both internal and e+ternal$ ha"e been added to the mi+ that traditionally resulted in radical swings in regulatory "igor. &hese new forces a ear to act as counterweights$ thereby diminishing the e+tent of those swings. &hroughout the 344)s$ so far$ the 6&9 has e+ erienced little$ if any$ ublic criticism. Cowe"er$ new technologies and the e"er0e+ anding number of media "ehicles threaten to alter this balance. - larger number of "ehicles with which to con"ey marketing messages translates into more otential work for the 9ommission. Perha s more im ortant$ howe"er$ are the added com le+ities of monitoring$ in"estigating$ and ro"ing illegalities in this high0technology en"ironment. 6or e+am le$ as romotional techni8ues become e"er0more inter ersonal and interacti"e in nature$ the message recei"ed from a single Had"ertisementH can "ary from consumer to consumer. Where the 6&9 traditionally would look at an ad"ertisement and determine

what message or messages are con"eyed to reasonable consumers who "iew the ad$ these new HtailoredH messages offer the otential of one ad resenting nearly an infinite number of messages. -nd it is e"en concei"able that no two consumers will see the same message. In such cases$ the 9ommission1s task will be far more difficult that with con"entional ad"ertising. -dditionally$ new means for decei"ing consumers may be disco"ered in these new technologies. -nd the relati"ely low cost of ad"ertising "ia the Internet now allows relati"ely small ad"ertisers to reach a national audience. 9onse8uently$ new layers less familiar with or less concerned about 6&9 regulations$ and less likely to ha"e their work re0screened by a legal staff$ are becoming national ad"ertisers. &his romises to attract a significant amount of the 9ommission1s attention. -s regulation becomes more demanding and roblematic$ the amount of time and e+ ense dedicated to many cases will$ naturally$ increase. #i"en the agency1s finite resources$ and the current reluctance of 9ongress to e+ and those resources$ this resents a fair robability that the 6&9 may again find itself critici2ed for offering inade8uate consumer rotection. Oth#$ L#/al I(*l!cat!o%" Just two decades ago the %u reme 9ourt$ in ;irginia Pharmacy$ announced that commercial s eech deser"ed rotection under the 6irst -mendment. But during the ast 35 years the 9ourt1s commitment to that rinci le has wa"ered. -lthough the 9ourt established a test in 34()$ designed to erect a significant barrier to legislati"e infringement on such s eech$ in some later cases it "irtually ignored the test and in some others it e"en weakened the test. In some of its o inions the 9ourt seemed to retreat from ;irginia Pharmacy$ but in others it seemed to fully endorse that decision. &he only certainty to emerge from these cases was that commercial s eech is less rotected than most other forms of s eech. In art this a arent inconsistency resulted from changes in the 9ourt1s com osition. But in art it stems from a failure of the 9ourt to ade8uately define commercial s eech$ and to e+ lain why such s eech holds second0class status. Cowe"er$ the 9ourt1s generally low regard for commercial s eech is consonant with the "iew of the ublic0at0large. &he ublic is wary of mass media$ because of uncertainty and sus icion about their effects on society. 9onse8uently$ the media are blamed for growing "iolence in society$ altering our "alue system$ corru ting our children$ and any number of other ercei"ed social ills. 9ommercial ad"ertising$ as a class of messages carried by those media$ creates articular misgi"ings because of the rofit moti"e behind it. -d"ertising is blamed for e"erything from romoting materialism to biasing the news and entertainment content of media. %et against this background it is redictable that new media$ and new ad"ertising techni8ues made ossible by those media$ are rife with otential for wides read distrust and acrimony. &heir effects are unknown$ and we are naturally dis osed to fear the

unknown. - common res onse to such fear is> H&here ought to be a lawVH 'ew technologies undoubtedly will lead to numerous cries for regulation. -s we continue to de0massify (or inter ersonali2e) ad"ertising$ one of the rimary concerns will be infringement on consumers1 ri"acy. -s ad"ertisers become more intimate with$ and knowledgeable about$ indi"idual consumers$ those same consumers can be e+ ected to grow increasingly sensiti"e to the use and abuse of ri"ate facts. -nd as ads are thrust in the face of consumers$ such as when they are na"igating the Internet$ they will become annoyed with these intrusions on their ri"acy$ !ust as they now fre8uently react to telemarketing. %o ri"acy is the central area that can be e+ ected to foster regulatory ro osals targeted s ecifically at those new technologies$ but it is robably not the only area. In other words$ new o ortunities for marketing communication are not cost0free. &here are risks that consumers might de"elo negati"e attitudes toward the marketers$ and that the go"ernment may inter"ene. &raditional mass ad"ertising$ by com arison$ will be relati"ely risk0e+em t$ because it is already well entrenched in our social system.

4h# M#)!a a%) A):#$t!"!%/ 4h# M#)!a &his term refers to the entire set of channels through which it is ossible to deli"er messages to arts or all of the ublic. &he form of the channel :broadcast$ rint or electronic< is a less defining characteristic than its1 function. If a channel is used to distribute the same message to many eo le simultaneously it is considered a mass medium. If the channel is only able to transmit a message to one erson at a time it is not a considered a mass medium$ rather it is a carrier :traditional tele hone use<. -nother difference between carriers and media is the interaction ermitted by the channel. Parties can conduct interacti"e dialogue on carriers such as tele hones and the internet. &here is no interaction between transmitters/message ro"iders and their mass media audiences. 'ew media often e+hibit traits of both carriers and media because they are often able to reach many eo le almost simultaneously and ro"ide a high le"el of interaction. *+am les of new media include> ersonali2ed grocery store checkout cou ons$ electronic information kiosks$ grocery store aisle signs$ the internet and in0flight ersonal "ideo screens. &here are at least two to ics that must be e+amined by eo le who interested in the nature of the relationshi s among ad"ertising$ business$ the media$ society and the economy. &he first to ic concerns methods of audience measurement for new media. &he second concerns the dynamics of how consumers react to and relate with the new media and new ermutations of traditional media. M#)!a a%) A):#$t!"!%/ &he intrinsic relationshi between ad"ertising and media e+tends beyond the format and deli"ery of an indi"idual ad. &he I% media industry is almost com letely reliant on ad"ertising for its e+istence. -nd$ without a media system to con"ey ads$ the modern ad"ertising industry would robably ne"er ha"e come into being. &his industry is com osed not only of large$ medium and small ad"ertising agencies$ but includes businesses engaged in all as ects of ad"ertising creation and distribution. &he nature of these industries assures the ma!or forces acting in one will necessarily effect the other. &he ast 35 years ha"e witnessed ma!or changes in both the media industry as well as the ad"ertising agency industry and its attendant businesses. Cundreds of mergers and ac8uisitions ha"e hel ed de0stabili2e the industrial organi2ational structure of the agency industry. -gencies seem to ha"e gi"en u their role as the artner of business and many ha"e become merely ro"iders of ala carte ser"ices. &his changed the client to agency relationshi . 9lients are no longer as loyal to their agencies as they once were. &his is e"idenced by the increasing number and fre8uency of account re"iews. &hese changes ha"e also induced/ romoted changes in the agency0to0em loyee relationshi . -n ad"ertising !ob is e"en less stable than it used to be. &he agency is no longer family. &hese factors$ as well as technological inno"ations$ fueled an e+ losion in

the number of small businesses engaged in ma!or ad"ertising work. Cowe"er$ as momentous as these changes in the ad"ertising industry ha"e been$ their effects on the media industry are not as ronounced or as er"asi"e as the effects er etrated on ad"ertising by changes in the media realm. 4h# E++#ct" o+ A):#$t!"!%/ o% M#)!a IM#)!a M#a"&$#(#%tJ While the ad"ertising industry as embodied in the ad"ertising agency has been in a state of transition for some time now as signaled by the arri"al of Martin Mayer1s book on Whate"er Ca ened to Madison -"enue? in 344@$ it was not until the s ring of 344B that the issues in the media end of the institution of ad"ertising reached a high decibel. -t the annual meeting of the -merican -ssociation of -d"ertising -gencies in #reenbrier$ ;irginia$ Mr. *dwin L. -rt2t$ 9hairman of Procter M #amble$ the largest national ad"ertiser in the I%$ sounded the alarm to ad"ertising agencies. Ce directly stated they had better get in"ol"ed with the Hnew mediaH or lose their businesses$ lain and sim le. 7f course$ agency media lanners had for some time been watching the changing nature of the Hold mediaH scene. 'etwork tele"ision dro ed from ty ical abilities to deli"er 4) ercent of the I% o ulation to something a roaching F) ercent by 3445. &his has been caused largely by a combination of circumstances$ not the least of which is the de"elo ing Hnew mediaH scene. But this meeting ro"ided a Hwake0u H call to ad"ertising agency eo le and media eo le in those agencies in articular. Cistory shows that agencies originated in their ability to ro"ide a ser"ice to ad"ertisers through their connection with the media$ notably news a ers. It was the news a ers agreement to ro"ided agents a commission for selling their a er to otential ad"ertisers which ro"ided the im etus for the beginning of the agency conce t. -rt2t suggested it was time now for agencies to establish relationshi s with the e"ol"ing Hnew mediaH in order to continue their traditional role of Hser"ice organi2ationH to the media and ad"ertiser. 7ne of the most im ortant contributions of ad"ertising agency media eo le has been to hel establish definitions of audience measurement and romote such measurement through third0 arty organi2ations. It is this system which ser"es as the foundation of media ricing by media com anies as well as media buying by ad"ertising agencies and media buying com anies. It was 3(F4 when one of the first agents$ #eorge P. Rowell$ issued his first rate directory of news a ers with their rate cards and his own estimate of their circulationR this was the first attem t by anyone to systematically define audience le"els of a medium and ro"ide estimates of such audience le"els. %ome ha"e made the argument that audience definition and measurement is the com elling as well as controlling feature of the media industry in general. #igi &aylor (3445)$ doctoral student in the De artment of -d"ertising at &he Ini"ersity of &e+as at -ustin has re"iewed these arguments based u on the work of Peter Miller (HMade0to0 7rder and %tandardi2ed -udiences> 6orms of Reality in -udience Measurement)$ Beth Barnes and Lynne &homson (HPower to the Peo le (Meter)> -udience Measurement &echnology and Media % eciali2ationH)$ and Muriel 9antor (Hthe Role of the -udience in the Production of 9ulture> - Personal Research Retros ecti"eH) which a ears in the book -udiencemaking> Cow the Media 9reate -udience. In her a er entitled$

HInstitutionali2ed Reality> Cow Media Institutions (Measurement 9om anies$ Media$ -d"ertisers$ and Producers) 9reate -udiences$H she oints out that although each of these institutions uses the conce t of HaudienceH in somewhat different ways reflecting each institution1s ur oses$ they all share a common need for definition and measurement of that audience. -rt2 was leading with agencies to become in"ol"ed with making definitions and constructing measurement systems for the Hnew mediaH as a ser"ice to ad"ertisers. In his reference to the new media$ he said$ these are designed to carry Hno ad"ertising at allH -s a result$ mass marketers like PM# Hwill ha"e a hard time achie"ing the reach and fre8uency we need to su ort our brands.H (-D -#*$ May 3F$ 344B$ .3). In the ast year$ many think as a result of his strong stance on this matter$ a task force of the B-1s and the -ssociation of 'ational -d"ertisers called 9oalition for -d"ertising0%u orted Information and *ntertainment (9-%I*) was formed. &his committee has now made recommendations (-D -#*$ March F$ 3445$ . @)) regarding legislati"e/regulatory issues (su orting uni"ersal access to the so0called information su erhighway)$ research (urging new0media com anies to work with third0 arty research com anies such as -.9. 'ielsen to ro"ide accountability in audience measurement) and technology standards (lack of standards is one of the main reasons why ad"ertisers ha"e not rushed to embrace some of the new media technologies). 9learly$ the issues of audience definition and measurement and who will ro"ide them are of fundamental im ortance in sha ing the nature of media lanning in ad"ertising agencies of the near0term future. -n e+am le of !ust one such new medium may oint out the roblems in"ol"ed. - new com any called Product ;iew Interacti"e (-D -#*$ - ril 3G$ 3445) has been formed in 3445 to ro"ide the new medium of Helectronic mailH to consumers. 6or those who do not ha"e access to the internet through go"ernment0related agencies$ email is not uni"ersally a"ailable free of cost or at minimal cost like the Hold mail.H 7ne must ay a monthly fee to Prodigy or similar on0line ser"ice$ as well as a er0 minute fee in many cases$ to get access to email ri"ileges. Product ;iew lans to ro"ide email to anyone who subscribes for free to the subscriber. &his ser"ice will be subsidi2ed entirely by ad"ertisers$ as is almost the case in old media of news a ers$ maga2ines and the like. *ach iece of email going through the system will be tagged with an ad"ertiser1s Hstam H or logo. -dditionally$ buttons will a ear on the screen for access to ads and additional information about the roduct whose stam a ears. - different stam will a ear on each iece of email o ened by the consumer. But ad"ertisers are already com laining about some of the cost structure (es ecially for business referrals). 9learly$ ad"ertisers must ha"e e"idence of the rational relationshi of cost structure of the medium to the otential audience of this medium. Cow will H otential audienceH be defined for this email medium? Cow will audience be measured? Who will do the measuring? Will this measuring com any be audited? By whom? &hese 8uestions need addressing now in order for the medium to sur"i"e if the thesis regarding the im ortance of Haudience measurementH stated abo"e is correct. 7nce the audience is defined and measured for this new medium$ how will this information be used by media lanners in ad"ertising agencies? Reach and fre8uency

ha"e e"ol"ed since the 345)1s$ largely at the behest of media eo le in ad"ertising agencies$ into fundamental conce ts which form the basis of most media lanning schemes in use today (John D. Leckenby and Cee!in Nim$ HCow Media Directors ;iew Reach/6re8uency *stimation> 'ow and a Decade -go$H Journal of -d"ertising Research$ %e tember/7ctober$ 344B). It is clear ad"ertisers will continue to want to know how much money to ut into a new medium such as email$ and this decision can be based u on the estimated reach and fre8uency of so many HbuysH in this medium. 7nce the HratingH or a"erage audience of email through Product;iew is measured$ this rating can be used in traditional reach/fre8uency models to estimate the reach/fre8uency of any number of buys in that medium. If$ for e+am le$ the definition and measurement for this medium are such that one could know the a"erage number of eo le who HclickH o en at least one email message in a week for a gi"en amount of H lacementsH of one ad"ertisers stam on email going through Product ;iew1s system$ then the cost can be set rationally for this unit of measurement and lacement as the basis for a unit of Hbuy.H 6urther$ this unit and resulting measurement can then ser"e as the basis for ro!ection to any number of HbuysH in this medium for the ur ose of estimating the reach/fre8uency of that number of units of Hbuy.H &his would ser"e as the basis$ as in all media$ for the calculation of cost er thousand eo le reached one or three times$ cost er oint eo le reached$ gross rating oints$ reach$ a"erage fre8uency and the truncated fre8uency distribution of e+ osure. 'otice ad"ertising media eo le$ at least in this medium$ according to the definition offered here$ would still be faced with the enduring issue of e+ osure to the medium as o osed to e+ osure to the message of the ad"ertiser in the medium. &his deals with the conce t of effecti"e reach/fre8uency which is currently of such great interest to ad"ertising media eo le. &he o ortunities for dealing with this issue through such new media as internet home ages which are the ads (the medium is the message) will be great for agency media eo le as well as academicians. 'iran!an Raman$ doctoral student in the De artment of -d"ertising at &he Ini"ersity of &e+as at -ustin$ is currently working on a dissertation recisely in this area of in8uiry. 4h# E++#ct" o+ M#)!a o% A):#$t!"!%/ IN#, M#)!aJ Increased com uting ower has ermitted the media to alter its "ery nature. With the ad"ent and accelerated dis ersion of technology through society$ media has become less of a mass institution$ where all efforts are aimed at ro"iding the most widely a ealing news$ entertainment and information$ to a highly customi2ed industry able to su ly "ery narrow windows into the "ast news and entertainment offerings now a"ailable. 'o longer do thousands of co ies of identical content create unbeatable economies of scale in roduction costs. %mall and large media firms can ro"ide selecti"e content to a selecti"e audience with reasonable efficiency. 'ew media ty es ha"e been created to satisfy the wants of select grou s of consumers. 7ld media ha"e been altered and re"am ed to meet new$ more e+acting$ consumer demands. &his has resulted in fundamentally different interfaces between media and consumers. %ome of the most startling changes ha"e occurred in the amount of interaction a consumer ha"e with media today. Both traditional media and the new media offer increasing o ortunities for communication with and feedback from audience members. &ele"ision news rograms are ro"iding hone numbers$ email addresses and fa+ lines to

learn what their "iews think and feel about e"ents that effect their li"es. &he Internet offers ad"ertisers and marketers to get intimate details$ such as urchase intention$ in real0time from real customers. -nother fundamental change has been in the amount of effort consumers must e+ end in their search and ac8uisition of media content. - consumer must e+ end a great deal of effort to access "ery selecti"e$ and therefore interesting$ media and "ehicles$ !ust as the le"el of effort they must e+ end to rotect themsel"es from unwanted or intrusi"e media and "ehicle has increased. 9on"ersely and seemingly contradictorily$ consumers are also able to access a wider "ariety of entertainment and information with e"en less effort :5)) channel 9-&;<. 7ne classification system for describing the relationshi between media and consumers has been based on the le"el of cogniti"e acti"ity consumers must engage in to ac8uire information from different media. -ccording to Nrugman (34FF) it is more cogniti"ely challenging to get information from rint than from broadcast media. -nother categori2ation scheme deals with the hysical effort or search which is necessary. 6or e+am le$ broadcast is thought to be a fairly easy medium to access because only a little effort :turning on the tele"ision or radio< is re8uired to be e+ osed to the content contained within. More effort is re8uired to be e+ osed to maga2ines$ and no effort is re8uired to be e+ osed to outdoor ads. &remendous effort must be e+ ended to gain e+ osure to the Hnew mediaH. &hink of all the ste s in"ol"ed in accessing your email> first you had to get access to an on0line ser"er$ either ay for it or wait for the bureaucrats to authori2e it and then figure out what software to use$ how to configure it and then how to get other eo le1s addresses. -nd email is one of the friendliest of the totally interacti"e Hnew mediaH. &hese changes ha"e had serious and er"asi"e effects on the ad"ertising industry. *+amining how different media HscoreH on these im ortant dimensions :effort of e+ osure and degree of interacti"ity< may ro"ide a useful guide for understanding the more com licated interface between media and consumers which ad"ertisers must now take into consideration. &he number of new media$ the e+ losion of "ehicles within the traditional media and the resulting fragmentation of the audiences are making it increasingly more difficult to lan media buys. More and more time is taken u by identifying new media alternati"es$ e+amining the efficiencies in each manner of reaching the target audience. Due to this increased need for analytical skills and accountability$ media lanning has become an e+ecuti"e osition where it once was clerical. -ncedotally 0 Recently$ at a rofessional conference regarding the nature and future of the ad"ertising industry$ a number of clients and ad"ertising agency re resentati"es sat down and tried to figure out how to roceed in the "ery confusing en"ironment of media roliferation and agency reengineering. &he clients ke t saying Hwe need you to lead us through this "ery confusing mine0field of media o ortunities and gi"e us direction so we know what to in"est in for the futureH. &he agency eo le seemed inca able of

res onding with anything other than Hyou need to tell us what you want and then we1ll in"est the time and money to see how you should do it.H Both wanted the other to be the risk0taking guide. It seems that one of the im ortant 8uestions is who1s res onsibility is it to understand how to use the new media strategically. &he Hnew mediaH re resent$ then$ the future for ad"ertising agency media eo le. -nd they re resent a challenge to academic rograms in ad"ertising education. %tudents will need to be ointed in the direction of new a lication of e+isting media lanning conce ts in ad"ertising. &hey will need to understand how these conce ts fit into the new en"ironment. &hey will need to be in"ol"ed in de"elo ing new ideas about definitions$ conce ts$ measurements and im lementations in ad"ertising media. But one thing is clear00the Hnew mediaH re resent o ortunities for growth of ad"ertising rather than its demise if ad"ertising history is any indicator at all of the future. Inderstanding ad"ertising1s role in the de"elo ment of the media system of today is key to understanding the de"elo ment of that media system tomorrow.

A):#$t!"!%/ 2$#at!:!t- a%) It" R#!%:#%t!o% -s our increasingly technological world mo"es beyond mere age and screen media$ ad"ertising will continue to lay a "ital role in the e"olution of consumerism. -d"ertising messages will be "ital conduits for social change$ as they ush and ull a world culture down a "irtual ath where communication has ne"er before tra"eled. It will be a market lace in and of itself$ as well as a roadma for those seeking immediate information. -d"ertising will call to its ranks those who are in"entors of new technology and those who rein"ent "isual$ "erbal$ and aural forms in order that messages become much different than they ha"e been in the astR a writer1s or an art director1s knowledge base$ creati"e rocess$ and imagination will be reformed and re"itali2ed often. &he realities for industry and academe are many. 'ew forms of technology and interacti"e communication will e"ol"e at a furious ace$ as the com uter continues as tool and rocess for the ad"ertising creati"e. 9once tual strategies will be shar er$ honed for s ecific consumers as the demand for crystalli2ed messages becomes e"ermore im ortant. -udiences will see forms and "isual sets differently$ they will read and s eak in new languages in both literal and figurati"e terms. &he consumer1s "ery intuition as to the how and why of a message will be more so histicated. &hus$ the re"olution in ad"ertising communication 00 in essence fueled each time e"ol"ed technology touches the consumer at a ersonal le"el 00 will mean the marrying of old and new artistic$ cultural$ and communicati"e forms. &he ad"ertising industry and its constituencies must be ready for continual creati"e rein"ention of the form. &hat rein"ention 00 in great art fueled by the com uter and its cultural milieu 00 will be found in the design$ language$ and conte+t of the ad"ertising message.

4h# 2o(*&t#$ a" R#:ol&t!o%a$- 4ool Like the once0feared camera$ the com uter was first dis araged$ and then firmly embraced as the latest technological inno"ation in both the fine and a lied arts. -s a result$ it is now the tool/medium of choice for artists$ designers$ and 00 of articular interest to the ad"ertising industry 00 art directors. Because of this ongoing technological re"olution$ the com uter is now one of the ma!or de"ices used in conce tuali2ing$ de"elo ing$ and roducing materials for both the rint and electronic mass communication media. With its e"er0increasing ca abilities$ the com uter changes fore"er the "isual communication industry. &he technological re"olution has become a ermanent art of the ad"ertising industry. 9o ywriters ha"e grown accustomed to the s eed and ease of com osing on machines which allow erfunctory editing and roofreading and some thematic de"elo ment. &he art director in the ad"ertising agency is becoming more broad0based as a multimedia resource and$ as such$ shifts to a different le"el of communication with clients. 9onsider the new systems em loyed by creati"e rofessionals. -rt directors now generate their own ty e and final high0resolution gra hics$ sa"ing the time and e+ ense of using ty esetters and hoto houses. 6inished Hcom sH are roduced 8uickly and in final form using a "ariety of designs and colors for clients1 re"iew and a ro"al. In0house agencies generate so histicated business gra hics including ad"ertising$ resentation slides$ re orts$ trans arencies$ animated "ideos$ newsletters$ and a "ariety of other useful and cost efficient materials. %lides$ color com s$ and animatics ha"e almost com letely re laced traditional methods of resentation. 9reati"e teams use com uter roduced Hcom sH to show clients more 8uickly resol"ed roughs and com rehensi"es. Eet the com uteri2ed creati"e en"ironment does ha"e its drawbacks. -rt directors must beware the dangers of sterile creati"e strategy and design which relies too much on the functional arameters of com uteri2ed rocesses or software. -lso$ ossessing the a ro riate hardware and software suggests to some that anyone with access to same can design$ when in actuality$ the designer still must ha"e the basic aesthetic knowledge and intuiti"e skills for the task. &his syndrome translates into oor design roduced well technically. &he com uter$ most wonderful inno"ation$ is still but a tool for the art director and designer. Moreo"er$ the hiloso hical foundation of com uter usage in the work lace is a nontraditional aradigm$ as young rofessionals often come to the industry with higher le"els of awareness and defined skills than some of their middle management counter arts. In many instances$ younger generations of ad"ertising creati"es are a t to guide their industry elders in the use of the com uter$ e"en setting the tone in an emotional sense for the embrace of inno"ation. &herefore$ the com uter alters many work0a0day ers ecti"es> shifts in workload and rofessional relationshi s with cohorts are and will continue to be o"erwhelmingly affected by these new tools. -t the most basic of le"els$ com uters are res onsible for the blurring of lines between what se arates writer from art director$ since both become ca able of in"enting "isually and "erbally because of this tool.

&his technology 00 with its "ast ossibilities and burdens 00 is changing established rocedures in all areas of the industry. Many agencies ha"e created new$ technically s ecific ositions in their creati"e de artments with the title of Hcom uter managerH. Incoming art directors and gra hic designers are re8uired to ha"e com uting skills to stay in ste with changing !ob re8uirements. Ini"ersities and design schools can no longer teach traditional design and roduction methods to re are students for entry into any of the "isual communications industries. 2o(*&t#$" a%) 2$#at!:# P$oc#"" &hose teaching creati"e thought to art directors must stay abreast of the methods by which thought rocesses work and change in tandem with technological inno"ation. Just as the com uter has taken o"er some erfunctory duties in art direction and writing$ so too the image0generating station can take o"er calculations for the designer and art director. It can 00 with the use of software 00 think. In this light$ the com uter enters into an ideal symbiotic relationshi with the art director$ allowing her to s end more time on high0end conce tual tasks such as designing$ defining$ and refining a gi"en image. -t this le"el of higher functioning these machines actually enter into the creati"e rocess. &he storage ca acity of the machine allows an art director to make many changes in a work$ sa"ing each change in color$ scale$ or te+ture$ se arately$ thereby offering a more rela+ed and di"erse a roach to decision making. &his fle+ibility will ha"e a far greater im act on the art director than the word rocessor has had on the writer$ in that the writer still usually ends with one main document and the art director can end with many "ariations of a articular image. &hese issues significantly alter the design rocess. With increased fle+ibility in the end stages of roduction$ the art director might well delay or lengthen the final decision making rocesses that generally occur earlier in the creati"e stages. &hough it is surely substantial in sco e$ technology1s full im act on the creati"e rocess is as of yet unknown. 4h# 2ha%/# !% V!"&al Fo$(" a%) P$oc#"" -rt directors ha"e owerful conce tual tools at their dis osal. &heir craft embraces semiotics$ understands consum tion symbolism$ and makes e+ ert use of "isual communication arameters. 9ombining a keen sense of their socio0cultural en"ironment$ their audiences$ the elements of design$ the use of color$ and an understanding of ad"ertising as art form$ the art director holds e+citing o ortunity for e+ ression of client offering and consumer needs. 9ontinual study of a culture1s codes and e"er0e"ol"ing tenets of design romises to enrich the art director1s ability to orchestrate the age or screen to offer a message. In such an inno"ation laden world as the 344)s$ cultural codes are enriched and rewritten 8uicklyR new connections are made constantly with attention to number and 8uality of ideas$ offering art directors a lethora of conce tual images from which to choose. -d"ertising art directors ha"e fashioned a new style o"er the last half decade. &he most drastic changes are ob"ious during the last two years. %ome credit M&;$ some credit the

general multisensory information saturation of young adults now entering the work force$ some oint to the com uter as generator of change and its reconfiguration of how we rocess and create. Whate"er the influence$ this new shift is rein"enting years of traditional ad"ertising design constructs. &ele"ision ads mo"e at the s eed of light. %tories are told in a heart beat. Messages are deli"ered with a new language of iconogra hy. 9once tually$ messages must be more a licable to the consumer than to the roduct. -udiences must learn new ways of reading$ new ways of inter reting social icons and imagery to ada t to the new ad"ertising. &he long held rules of ad"ertising design which include s ecific layouts and word counts for rint ad"ertising are relics. In this new era$ images and ty e are layered$ recariously balanced and si2ed$ ghosted$ running hither and yon around the age and generally deconstructed$ sometimes beyond recognition but with full intent as to how the rein"ented image reads. &y e becomes image and image ty e. Product shots and logos and taglines dance around the age and the screen$ no longer comfortable with redictable lacement and scale. Increasingly$ images o erate ur osefully in dissonant atterns. &y ical$ comfortable "isual balance is more often than not absent. In essence$ tradition is brokenR a recedent is set for far0reaching inno"ation at e"ery turn$ forcing great lea s in ers ecti"es rather than the gentler e"olutionary changes of the ast. &he future focuses on this constant rein"ention. &hat is not to say there is no room for con"entional design or any of its well0studied conditions. It is only to say that 00 and this is the heart of the craft1s new form 00 one can no longer learn or teach formulaic solutions to ad"ertising design. &ruly creati"e solutions 00 inno"ation re8uiring conte+tual bra"ery and an ability to wed medium to medium 00 re8uire art directors and creati"e rofessoria know traditional design rinci les$ new technology$ and ra idly e"ol"ing culturally0based images around them. &heir task is to meld the old and the new in strategic and inno"ati"e ways$ a !ob which re8uires them to reach further for creati"e "isual solutions than their earlier counter arts. A):#$t!"!%/ La%/&a/# a%) th# L&E&$- o+ 6t-l# -s "isual and conce tual forms e"ol"e$ so too does the language of ad"ertising. 7nce$ there e+isted a discernible wall between roduct / medium and consumer / audience$ one constructed of o"erblown language$ stereoty ed characters$ redictable headline and tagline words$ and body co y stee ed in the correctness of grammar and olitics. 'ow$ the tendency in new ad"ertising is for earthiness$ sim licity (e"en in com le+ form)$ multiculturalism$ and / or language which often shakes and sur rises the audience. In rint ad"ertising$ communication has long been built u on the headline. 'o longer do headlines look or beha"e like the lines of old$ few rules now constrict lacement or si2e. If long headlines work for conce t and strategy$ then as many words as necessary can be used. Likewise$ if using no headline in the ad is a conce tually strong o tion$ that decision is easily reached. In the most a"ant garde of ads$ headlines yell$ curse$ 8uash tradition and grammar with easy disregard. Interestingly$ e"en for more con"entional roducts$ a feeling of circum"enting traditional ad"ertising s eak is a arent. %elf0 refle+i"eness 00 in this case$ that tendency for an ad"ertising headline and co y to

acknowledge that it is ad"ertising$ that ad"ertising can be hy erbolic and unbelie"able$ but that you and I are beyond all that 00 is a trademark of the new cynicism that generations raised on ad"ertising ha"e culti"ated. &his tendency$ grown from a youth culture but filtered into many messages aimed at dis arate audiences$ reflects a gradual change toward two dichotomous oints on the ad"ertising co y continuum> it means ad"ertising stee ed in hea"y hy erbole and therefore easily understood as that sort of e+aggeration$ or it becomes ad"ertising language structured around honest straightforward communication geared to fight the audience1s reaction to re"ious o"erblown claims and half0truths. In either case$ ad"ertising has changed its "oice from ads eak to con"ersation. Indeed$ ad"ertising language$ at its best$ will continue to be wo"en from real notions of who is out there listening. -s media "enues e"ol"e and one0to0one interacti"ity becomes a real o tion for a wide range of ad"ertisers$ the message written will be more a ersonal one$ crafted with a desire to resent roducts and ser"ices in commodious fashion. Writers of co y will be less rone to the !argon of ad"ertising (HintroducingVH Hnew and im ro"edH and$ in general$ the HVH of ast erformances)$ and more a t to em loy writerly !udgment to s in the writer / reader relationshi . &his$ after a long tradition of relati"e anonymity from writers$ signals a certain stylistic signature occurring in some ads. &he best ad"ertising writers$ always searching for methods of mi+ing tone with strategic thinking$ will use this trend to create a body of work recogni2ed as good writing$ as well as good strategic ad"ertising. 2$#at!%/ M#""a/#" !% th# N#a$ F&t&$# With changes in the way ad"ertising words and ictures are being rocessed and created$ the conte+t of ad"ertising is also charged with re"olutionary changes. %ites on the world wide web stretch design$ language$ and conce tual skills by "irtue of their si2e and mo"ement "ariables. 9once tual themes and ersonality dri"en ages demand the art director and writer rein"ent the ad"ertising baselineR no longer is ersuasion and awareness of sole im ortance. Instead$ the two mi+ with entertainment$ inno"ation for inno"ation1s sake$ and a high end consumer curiosity to establish a new medium. Playfulness becomes art of the consumer rofile. 9reation of a home age means engaging the consumer in an interacti"e iece of informational entertainment. 9lick oints must be inno"ati"e yet easily understood$ designs re8uire not only color and image be communicated$ but add the "ariables of "ertical and hori2ontal mo"ement to the designer1s task.