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The biggest challenge in making ads for handheld computers, said Rick Boyce, Wired Digital's senior VP-advertising sales and commerce, is "you're dealing with very small-screen real estate."

Wired Digital tries to lick that problem today in ads designed just for PalmPilots and other Windows CE-compatible handheld computers. The first is for Hilton HHonors Worldwide, the hotel chain's affinity program. Text ads are integrated into Wired News Channel content.

Clicking on the ad takes users to a page with more information about the affinity program and Hilton's Web address ( AvantGo, San Mateo, Calif., makes software that lets users download Internet content to their handheld computers and read it offline.

International Data Corp. estimates handheld computer sales will surpass 13 million units annually by 2001, which Mr. Boyce says is a very desirable audience. "When I look at a PalmPilot, it begins to feel like the newspaper of the future," Mr. Boyce said. Wired Digital and AvantGo created the ads.

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