Cell phone to be sell phone
Ads may soon be 'in your face,' but some fret about customer loss
By Matt Richtel
NEW YORK TIMES NEWS SERVICE
January 16, 2006
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Television-style advertising is coming to a mobile phone near you. It is part of a broader push by marketers to create a new generation of "up close and personal" ads by delivering video, audio, banner displays and text clips over a device carried by most American adults.
Marketers said they were particularly excited about the prospect of eventually using cell phones, many of which are equipped with global positioning systems, to send ads to consumers based on their location. With that information, marketers could, in theory, send pitches from retailers to cell phone users who might be in the vicinity of a store.
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But ads on cell phones pose serious concerns, say consumer advocacy groups. Critics argue that Madison Avenue, having plastered ads on all kinds of empty spaces – such as billboards, building facades and the sides of buses – may soon be intruding on a gadget that has become as common as a wallet.
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The wireless carriers say the risk of losing customers is a strong incentive to keep down the marketing noise. It is illegal for carriers to sell phone numbers to telemarketers. And in their contracts with content providers such as CBS Sports and other channels, the wireless carriers can keep out advertisers who send unsolicited messages.
By law, carriers are not allowed to divulge information on a subscriber's location unless that individual gives permission. One idea being floated by carriers and advertisers is to offer consumers incentives, such as reduced monthly phone fees, if they agree to receive ads.
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