Guide mechanism and method for axially directing an annular transponder unit segment by segment to an adhesive application station for subsequent attachment of the annular transponder unit segment by segment to an annular tire surface, the transponder unit being of a type having a sensor housing coupled to an annular antenna. The guide mechanism includes opposed fingers proximately positioned adjacent to an adhesive application station. The opposed fingers pivot to capture the annular assembly therebetween and slideably direct the assembly segment by segment to the adhesive application station. The guide mechanism is adjustable to a preferred proximal height from the annular surface of a tire and presents the annular transponder unit to the adhesive application station at a specified diameter and height above the tire surface.