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Mobile Advertising Will Be Worth USD 14 Billion in Four Years

A more optimistic perspective on mobile advertising's future

By Elena Balan, Communications News Editor

6th of June 2007, 07:56 GMT

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Advertisments might become something usual on the display screens of mobile phones
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Predictions and suppositions on the future evolution of mobile advertising have been going by for some time now. The latest comes from a Strategy Analytics report and says that advertisers hope on reaching more than USD14 Billion by 2011.

Still, just recently, debates have emphasized the fact that mobile advertising is considered by many companies as being rather risky and less profitable than the TV alternative. This comes from the fact that the video content they use is still in
a primary state and there is room for a great amount of improvement. The same people were hoping for mobile advertising to reach the profit sum of USD 3 billion until the end of 2007. When compared to this, the prediction of USD 14 Billion seems a bit too optimistic, even if it is built on a four year perspective.

One thing that might attract companies as to choose mobile phones for placing their advertisements is exactly the fact that this environment is yet little used. This means that it proves to be considerably easier for an announcement to stand out and be fully received by the handset users when there are no other adverts around to distract him from this specific one.

„The outlook for mobile advertising spend has significantly advanced in the past 12 months. The supply of advertising inventory is rapidly increasing as mobile publishers look to develop advertising as a revenue stream. Major mobile network operators like SprintNextel, Verizon Wireless and Vodafone have all accelerated plans to sell advertising within their mobile media channels and advertisers appear to be responding positively", said Phil Taylor, Director, Global Wireless Practice.

The Strategy Analytics report also regards game downloads, mobile broadcasting and video on demand, all used as spaces for mobile advertising. Even more, several advertising companies have teamed up with mobile software and service providers in order to better develop means of reaching high profit rates.

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mobile advertising | Strategy Analytics
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