Given the targeting capabilities and the immediacy, marketers could expect to pay more than the average banner ad rate for reaching the wireless audience. With an ad serving system like the one Clickadeal is working toward, advertisers would pay a nominal insertion fee and then be charged on a system similar to the CPM method used with Web banners. Once transactional capability is fully developed, advertisers could be charged on a system that takes into account a portion of transactions. The demographics of PDA users allow AvantGo's content partners to sell their ads for a higher price than regular Web ads. The PDA ads, which are smaller versions of Web banners in most cases, also get a better response than traditional Web banners.
Click rates are much higher on devices.
Rice also said that once PDAs and other mobile devices become more prevalent, and the demographics appear more mainstream, the prices for a basic banner ad will probably mirror those on the Web. AvantGo delivered the first PDA ad on content from Wired more than one year ago, and Rice said the company has received no backlash from consumers to date. AvantGo users always have the option of switching to another content channel offered by the company that does not sell advertising if they find the ads intrusive. People know the content is free and these guys have to make money somehow. Just as it is with desktop Internet advertising, the collection of data that makes targeting possible is bound to raise red flags with consumers concerned about their privacy.