WiFi: Free or Ad-Supported?
The battle between free and paid wireless Internet access is starting to look fierce. However, I think there is going to be a draw, rather than a winner. Meet free WiFi with advertisements; everybody wins!
Wherever I go, I am notified of WiFi signals from everywhere. Personal, Airports, Businesses, Hotels, Parks, etc. All these places are now offering WiFi. Where some are free, others cost money. Why would one spend money to browse the net, when they can connect elsewhere for free? Many a person ponders that question. The answer is quite simple if you look at it closely - To continue having access to the internet. Nothing is free these days, but the battle between free WiFi and paid WiFi could meet up in the middle to provide WiFi with advertisements.
Travelers want to log on everywhere at no charge and they search for the closest “free’est” WiFi, while hotels, airports and coffee shops are looking for a way to pay for their Wi-Fi networks as visitors increasingly use greater amounts of bandwidth. The compromise that is emerging is to offer both free and paid options, with the free services increasingly requiring something in return, like viewing an advertisement or signing up for a loyalty program.
Starbucks is probably the biggest example. In February, the company announced plans to switch to AT&T from T-Mobile as the Internet provider in its U.S. stores. When AT&T takes over, customers who use their Starbucks card once a month will get two hours of free Wi-Fi access each day. Otherwise, that same time period will cost $3.99, or $19.99 for a monthly unlimited access plan.
I recently went on a trip to Indianapolis and stayed at the Hyatt Regency hotel. This hotel, which used to offer free Wi-Fi, switched to a dual pricing model, like so many hotels are doing today. I was able to get free in-room wireless access by signing up. An option appears on screen when guests try to log on. The alternative is to go to the hotel’s lobby and pay $9.99 for 24 hours of use.
Hotels also have greater costs associated with guests spending more time online. The typical Internet session is much shorter at cafes and airports, where free or ad-supported Wi-Fi is gaining more traction. At the airport in Indianapolis, there was a fee required. There was not an option, however from my airport in my hometown, I was greeted with free ad-supported WiFi.
No one is able to please everyone, but I would imagine that ad-supported WiFi would be a hit. Not only is a person able to browse the internet without paying (in most cases), but the company is still able to get money to keep these hotspots open for us to use publicly. What is your opinion on the subject? We would love to hear them; leave your comments!
AhTim | May 12, 2008 | Reply
Very good idea. But the question is WHO will be the advertisers? Not easy to find
Ian Kemmish | May 12, 2008 | Reply
The idea that large parts of the economy can be subsidised by advertising is as ridiculous as the idea that they can be subsidised by the taxpayer. Nobody wins, except the ad agencies. There is the lack of quality in the provision of the subsidised service, the cost in wasted CPU cycles of downloading and rendering the ads (it’s worth everybody installing an ad blocker just to discover how big this is), the cost in time and inconvenience of avoiding looking at them, and last but far from least the increased prices of the advertised goods in the shops needed to pay for the subsidy.
Everybody loses!
Herbert | May 13, 2008 | Reply
I have to admit that I thought it was a great idea, but that last comment really got me thinking.
I’m sure that people would enjoy free wi-fi, and companies would enjoy such a huge audience. Sure, you can consider it a lack of quality - but the quantity in numbers (I imagine that there would be plenty of people using the free wi-fi, depending on the range) would probably end up making up for it, wouldn’t it? Naturally, the idea would be to place it somewhere with a dense population.
I’m no economist, so I’ll take your word that product prices would increase - which makes sense because companies would spend more in advertising and have to recoup their losses somewhere (although if advertising is successful, they would end up selling more units). If prices go up, that wouldn’t be too great.
And honestly now, advertising models have worked quite well - especially for sites that have given it a try, such as SpiralFrog. Agreed - not everything can be subsidized by advertising - but I’m sure that we’ll all be surprised by what can if we let it have a try.
I think the ad-supported Wi-fi would be quite popular, too, if it goes public.
Jovan | May 13, 2008 | Reply
Yeah. After “AhTim’s” comment, I got to thinking myself. Not too many people look at it that closely. As mentioned, everything cannot be subsidized by advertisements, however, I think once it catches on, it’ll be popular. Popularity generates money.