14 DAY TRIAL // Verizon Wireless have announced that in 2007 they will allow the placing of ads on various Internet sites their users visit, including news, weather and sports.
Up until now, the growth of advertising on mobile phones has been limited by most carriers. Sprint was the first major carrier to allow ads to appear with the content listed on its menus, and it appears that now Verizon is following its lead, although cautiously at first, by limiting where ads can appear and excluding certain types of video content.
But Verizon's decision to allow ads is only logical while mobile advertising is expected to grow rapidly and give wireless carriers an opportunity to earn significantly more money. U.S.' largest wireless carrier, Cingular has - for the time being - refused to comment on whether it will allow advertising as well.
For advertisers, mobile advertisement is not the most efficient or affordable solution, but it could prove to be a way to create an intimate bond with consumers. Verizon's extensive tests, meant to determine if and how to run ads, have pointed out that some users have not had the best of opinions of short stand-alone video advertisements displayed on sites, but did seem to accept a single banner at the top of a page. For wireless carriers to run ads would be a smart and profitable step to take.
"We know we can make significant dollars in mobile Web advertising in 2007," said John Harrobin, vice president of marketing and digital media for Verizon Wireless. "That said, we likely will not - we want to take it carefully and methodically, and enable the right experience." More generally, he added, "Mobile advertising is going to take off in 2007."