Adding cost to “free” Wi-Fi networks – commercialized access!
Jan 23, 2007

RFDesign

A recent announcement by JiWire caught my eye this week. They are enhancing their Wi-Fi hotspot network with “Ultramercials.” Ultramercial ad units are premium interactive online commercials that Wi-Fi users choose to watch as “payment” for receiving access to a Wi-Fi network. The commercials must be viewed in their entirety before access to a Wi-Fi network is granted, enabling advertisers to efficiently reach an attractive audience at known venues and enabling hotspot operators to enhance the returns on their Wi-Fi infrastructure investments.

JiWire has received an exclusive license from Ultramercial LLC to use the advertising format and its associated technology to provide network access control to Wi-Fi network operators.

Ultramercials have proven to be seven times more effective than Web advertising. When used to gate access to premium content on the Internet, Ultramercial averages a 7% click-through rate, which compares extremely favorably with industry-average Web advertising click-through rates of less than 1%.

Even better click-through performance is expected when Ultramercial’s format is used to gate access to Wi-Fi Internet connections.

Ultramercial, the company, had this to say about their ads:

“In partnership with JiWire, we’re helping to create a fascinating new economy that enables individuals to purchase things of real value – Wi-Fi Internet access, in this case—simply by watching brief, engaging ad segments,” said Paul Grusche, senior vice president, sales and marketing, Ultramercial. “JiWire’s unique assets make them an ideal partner to deliver Ultramercials in Wi-Fi environments. Their unique Wi-Fi database, as well as their unmatched experience in helping WISPs to monetize their Wi-Fi investments, will be critical to the success of the Ultramercial format.”

Ultramercials are customizable depending on location and customer attributes.

“The combination of the Ultramercial format and our ability to deliver advertisements based on the location and other attributes of the hotspot at which the Ultramercial will be viewed, creates an incredibly powerful tool for marketers seeking to connect with mobile businesspeople and other Wi-Fi users,” said Kevin McKenzie, chief executive officer, JiWire.

As much as we dislike commercials, it does provide a reasonable business model for the proliferation of “free” wireless networks. It’s not a new concept at all. Don’t forget that “free” over-the-air TV and radio are paid for by commercials—even cable and satellite TV have commercials. I guess we pay twice for those—enter the DVR— exit commercials. Well, maybe someone will invent a DVR application for Wi-Fi. Hmmm, how would that work? In any case, I guess I don’t mind watching a short commercial for free network access. Oh – wait – I wonder if they cut you off every five minutes to show you another commercial? Yikes!

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