Thursday, August 30, 2007

Can Ads Save Free Wi-Fi?

The frenzy to build free city-wide Wi-Fi has begun to fizzle, but perhaps advertisers can still save the day. San Francisco has just bailed on its Wi-Fi plan as a result of EarthLink's implosion, and similar projects in Chicago and Springfield, Illinois have also died.

EarthLink is pulling out because it found it too expensive to maintain WiFi networks and too few customers signed on. Municipal WiFi needs the backing of major brands that can pay the hefty sponsorship fees needed to generate sufficient revenue to offset the cost.

Google can not generate enough money alone through search, so it's time to bring in targeted ads from companies such as Coca Cola, Wal-Mart and Dell. The folks that would use free Wi-Fi tend to be middle to lower income, and these companies certainly know how to make a buck from a diverse audience. Google should work with these advertisers on tracking behaviors to develop targeted ads that are more effective for advertisers and consumers.

The other limiting factor is the "digital divide" that eliminates a portion of the audience from going online. Developing a free PC service based on advertising would take some creative marketing schemes.

Posted By John Gartner at 09:15 AM
Permanent Link: Can Ads Save Free Wi-Fi? | Comments (0)

Post a Comment

Name:
Email:
WebSite:
Comment:
Remember Me
Subscribe