Aether Systems Inc. launched a $15 million national television and print advertising and branding campaign last week in support of its growing wireless data systems and services business.
The “Wireless Solutions for a Portable Planet” campaign that began with print ads earlier in the year debuted on broadcast and cable TV last week, airing first during Spin City and 20/20, and continuing to such shows as Frasier, Friends and ER. In addition to NBC and ABC prime time, spots will air during CBS and ABC late night shows and on cable networks like MSNBC, CNN and CNBC. Print ads will appear in Time, Newsweek, Forbes and other publications.
Aether, as a wireless application services provider, is just the latest systems provider turning to consumer advertising to hawk its non-consumer wares. Vendors like Nortel Networks, Cisco Systems Inc. and Lucent Technologies Inc., among many others, have engaged in mass-market media blitzes showcasing their non-consumer talent as well.
That Aether is entering this game represents a new stage in the company’s rapidly growing development. The week prior, it finalized a secondary public offering and debt sale that together raised $1.4 billion. It also completed its acquisition of Riverbed Technologies Inc. The latter resulted in the formation of a new software product division called Aether Software.
“The ad campaign is really the beginning. It’s really making a statement that Aether is here and that wireless data communications is a reality,” said Mitch Selbiger, Aether’s senior vice president of marketing. “It helps brand the company in terms of positioning, and also helps promote the industry itself … When you’re running ads on Friends and Frasier, you’re no longer a run-of-the-mill dot-com.”
Analysts say the tactic behind such mass-market advertising is twofold-first to reach the business decision-maker at home, and also to use advertising as one element in an overall integrated marketing strategy designed to raise awareness of a company in all circles. Many point to Intel Corp.’s “Intel Inside” campaign as perhaps the most successful example of this strategy to date.
“We’re not looking to sell a product. We are looking to say Aether is a top company to watch as an investment opportunity,” Selbiger said. “We are trying to help educate a larger community. The wireless data industry today is where the cell phone industry was five years ago.”
Although this news would make one think Aether is on a roll, its stock price has fallen steadily over the past month. From an all-time high of $315 on March 9, the stock has fallen more than $100 to $192.06 at RCR press time. Some speculate much of the drop is a result of the secondary stock offering devaluing shares. The offering sold 5.4 million shares at $205 a share. With existing shares trading in the mid-$200 range at the time, the fall may have reflected the market’s correction of existing stock prices to closer meet the share price of the secondary offering.
But this push into national branding and education represents a significant step for the company, which has been extremely busy lately forming partnerships, joint ventures and engaging in acquisitions to extend its technology and expertise further into the vertical space.
Each deal the company makes fills a particular niche. The Riverbed acquisition, for instance, brought much-needed synchronization and device management technology to Aether’s wireless application service provider expertise.
As a result, the new Aether Software division consists of Riverbed’s ScoutWare line of connectivity software as well as Aether’s Intelligent Messaging technology. Wayne Jackson, Riverbed’s former chief executive officer, was named president of the new group. The company named EverythingOffice, Papel Giftware and TOMRA as the division’s latest customers, specifically for ScoutWare software.
Meanwhile, Aether formed a strategic partnership with Videre L.L.C. to offer Internet-based solutions for the transportation and field service industries. Pop-A-Lock will pilot the new system in April.
Looking forward, Aether wants to add interests in the health care and bill payment and presentment industries, as well as delve into the government realm. Additionally, Aether hopes to extend further internationally. Its partnership with Reuters gives it a foothold in Europe, but Aether said it also wants to expand into other regions, like Asia.
