Five trends for mobile advertising: Berg

11 Nov 2008

A new report from the telecom analyst firm Berg Insight predicts that advertising-funded business models will become a new paradigm in the discount MVNO segment of the mobile communications market. Price-sensitive, young consumers with low income - which is also highly interesting for major advertisers -- will be most inclined to accept ads in exchange for voice minutes or text messages.

A second forecast says smartphones will boost traditional internet advertising revenues, a significant proportion which will come from mobile internet users accessing conventional web sites. Third is that idle-screen will eventually become the largest mobile advertising channel since virtually all consumers carry a mobile handset wherever they go and check out things on the display many times per day.

Fourth is that the current economic downturn will hold back revenue growth but not innovation. Lastly, existing digital and mobile industry players will have a major advantage over venture capital funded start-ups, many of which will have difficulties to find financing.

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