Mobile advertising to become $10b business by 2010 - report

14 Jul 2006
00:00
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For marketers, mobile marketing and advertising has great promise - it combines the wide reach of television with the precision of direct marketing and the tracking potential of the Internet.
Mobile marketing campaigns using SMS, and more recently MMS, have already helped to open up the eyes of the media world to the power of the mobile channel.
Interactive TV and radio, product promotions using coupons and competitions, even charitable giving, have exploited this medium.
But things are set to change as Internet style advertising, in the shape of display advertising (banner ads) and search, and even TV-style advertising, come to mobile.
Consequently, the opportunities for marketers to reach and engage with consumers through this medium will expand even further.
Now, more than ever, marketers are looking for alternative ways to reach customers. Traditional channels for advertising, like TV, radio and print, are becoming less effective because consumers now consume information and entertainment very differently than in the past, due largely to the digitization of content and the increasing ease of access to the Internet.
This is especially true of the highly coveted 'youth' demographic - the 18 to 34 year olds with high disposable income, high brand awareness, and short attention spans.
According to a new study published by The Shosteck Group, mobile marketing and advertising could be an important driver of growth for mobile operators too.
This would be due to its strong influence on the future development of the mobile Internet and the subsequent growth in demand for mobile content.
'Without a robust mobile marketing and advertising market, the prospects for the mobile Internet and in particular, mobile content - a potentially significant source of revenue for mobile operators - will be limited,' according to Jane Zweig, CEO of The Shosteck Group. 'A robust mobile advertising market could subsidize many mobile services (as advertising supports many TV and online services today), encouraging take-up and usage of mobile Internet services such as games, music, video and even TV. It should also attract important content providers.'
The study predicts that under the most optimistic scenario, the global market could grow to $9.6 billion by 2010.
But, the study argues, mobile operators must act now to ensure that the mobile marketing and advertising market prospers, and that they can fully exploit the opportunities it affords them. It warns that the robust and profitable development of this market will only be possible if the major players - operators, handset vendors, content providers, advertisers and Internet portals - collaborate effectively.
It also predicts that the extent of this collaboration may be limited, as the motivations and objectives of some of the key players will inevitably conflict.
'Given the immaturity of this market, the fickleness and impatience of consumers, and the complexities and politics of the telecoms industry, we believe the next two years will be critical as other technology and market trends could prove to be barriers to the anticipated growth of this market,' said Darnbrough. 'For example, a damaging consumer backlash against intrusive and unsolicited mobile marketing could occur if over zealous marketers fail to respect consumers' right to privacy and inundate them with unwanted and irrelevant mobile marketing messages.'-cellular-news.com

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