Report Examines Mobile Ad Prospects

David Murphy

A report just published by analyst VisionGain looks at the prospects for mobile advertising and marketing over the next five years.
The report, Mobile Advertising and Marketing: Market Aanalysis and Forecasts 2006-2011, looks at the percentage of brand advertising and marketing budgets that will go on the mobile channel by 2011 and the associated revenues; where the biggest market opportunities lie;  how mobile advertising compares to online and traditional media;  what advertising models exist and which ones will account for the biggest market; what types of mobile advertising are most likely to succeed; and how operators and other companies in the value chain can best position themselves.

The increasing availability of multimedia content is opening a large opportunity for sophisticated forms of mobile advertising, the report says. As content that already incorporates advertising - like live TV programming - makes its way to mobile handsets, brands and entertainment content providers are beginning to see the value of presenting full multimedia ads with programs.
Operators in the U.S. and Western Europe are currently either testing various forms of advertising with 3G services, or allowing ads to be served on their portals. A number of multimedia companies will launch advertising in the first half of this year. Furthermore, the entry of large online search engines into the mobile world will opens up new advertising opportunities in the shape of context-based mobile search.
From 2005 when the nascent market garnered $255 million (142 million) in Europe and the United States, mobile marketing and advertising in these two geographical areas will grow to exceed $1 billion in 2009, provided certain elements fall into place, the report says. Issues to be resolved include business models and revenue share, the type, length and frequency of ads, consumer attitudes and many others. Operators will have to walk a fine line between maximising the revenue potential of advertising, while at the same time not risk alienating subscribers and increasing churn by doing so.
Based on interviews with key participants across the value chain, including operators, media agencies, software application providers, access providers, marketing specialists and trade association representatives, the 170-page report analyses the market drivers and barriers affecting mobile advertising and marketing. It discusses the main market trends and charts the market evolution in the US and Europe. The report examines mobile advertising opportunities presented by MMS, video, TV, Location-based services and contextual advertising, as well as other niche possibilities.
The report costs 1,499 for a single-user copy, 2,999 for a departmental (5-user) copy, or 4,999 for a company-wide license. For more information about the report, or to order a copy, email: ben.radford@visiongaingroup.com