Going Local

Brandweek, July 10, 2000 by Ann M. Mack

GeePS.com's location-based ad-serving technology reaches consumers on the go.

Strolling down 34th Street in Midtown Manhattan, a connected consumer picks up her cellular phone and surveys the scene. Just then, Macy's, the venerable department store giant, serves the potential customer a can't-resist promotion--a price cut on summer selections--on her Internet-enabled device. Without hesitation, the savvy shopper races through the revolving door and picks up sundresses, swimsuits and sandals. To the consumer goes summer style and super savings. More importantly, though, for Macy's, the transaction means a stroller turned shopper.

Miracle on 34th Street? One might call it that.

Just a possibility now, this scenario eventually could be played out through a new location-based advertising service from GeePS.com, a wireless technology company that delivers targeted ads to users of cell phones and handheld computers using wireless application protocol (WAP) and pocket query application (PQA).

The Cranbury, N.J.-based startup employs global positioning system (GPS) satellites to identify a user's location and send them ads for nearby merchants over a wireless Internet connection. The service promises to enable brick-and-mortar businesses--from large retail chains to small mom-and-pop" restaurants--to acquire new customers with personalized, locale-sensitive shopping announcements.

"Think of GeePS as a local market, a one-mile circle of energy around a potential customer, which moves with him or her, providing local information that fits individual needs," explains Arshad Massod, GeePS president and co-founder. "This information is dynamic and controlled by the merchants, communities and establishments in that radius."

Initially, GeePS CEO Andy Goren expects "GeePSters" to be primarily business travelers and executives using wireless devices, followed soon after by younger early adopters, making the service an attractive customer acquisition vehicle for restaurants, hotels and car rental companies.

With a hard launch expected in late Q3, GeePS.com introduced its beta version in New York and San Francisco in April.

Starting this month, the test market expands to New Jersey. Under an agreement with Advance Internet, a network of community-based Web sites, GeePS.com will provide wireless delivery of content and advertising from New Jersey Online (NJO) to Garden State residents with Internet-enabled handheld devices. "GeePS marks Advance.net's first steps in bringing our services, both local and national, to the new world of mobile," says Jeff Jarvis, president and creative director of Jersey City, N.J.-based Advance Internet. The mobile version of NJO will offer local news headlines, weather forecasts, sports scores and stock quotes, as well as location-based shopping information. Eventually, the GeePS-powered services could be rolled out by the nine other affiliates of Advance Internet, a subsidiary of Advance Publications, owner of 22 daily city newspapers.

GeePS.com marks yet another contender in the wireless space, as more and more tech companies anticipate the demand by retailers, content providers and advertisers for mobile commerce, content and promotions. In response to this boom, other tech companies like New York-based Vindigo offer similar applications. Developed for the Palm OS, Vindigo's free personal navigation download allows users to get updates and information on their handheld devices.

For advertisers, the wireless explosion represents a new way to reach a growing audience. According to Dataquest/Gartner Group, a San Jose, Calif.-based research firm, the North American mobile wireless data market will grow to 70 million subscribers by 2004. And a recent report by the Kelsey Group, a Princeton, N.J.-based research company, predicts that wireless advertising revenues will reach $17 billion in 2005, with local advertisers accounting for $6 billion of that total. "M-commerce solutions have a promising future due to the convenience they offer customers, as well as the capability to do price comparison between different e-tailers and traditional retailers," reports Tole Hart, an analyst for Gartner Group.

GeePS.com will give advertisers or merchants the ability to create a wireless Web site for free. The service plans to earn money by charging $50 to $80 CPM for coupons and promotions served. GeePS also expects to collect a 5- to 15-percent share of revenue generated from purchases originating from the wireless incentives.

Should merchants worry about consumer backlash over ads served via their personal devices? With GeePS.com, they shouldn't be, says a company rep. GeePS is an opt-in technology, so users only receive personalized messages by registering at the GeePS.com Web site.