Feeds

Mobile ad spend to skyrocket

$11.35bn by 2011, report says

3 Big data security analytics techniques

Worldwide advertising spend will reach $11.35bn by 2011 on mobile channels alone, according to a new report.

A strategic report released by Informa Telecoms and Media, entitled "Mobile Advertising Services: Generating revenue through subsidised content", predicts the next 12 months will mark the beginning of a sharp upturn in mobile advertising spend. It says this will be aided by the proliferation of cheap, high-quality multimedia handsets and the widespread availability of high-speed mobile networks.

The report forecasts that there will be over 2.1bn mobile subscribers globally by the end of the year, rising to nearly 4bn in 2011.

"Mobile advertising is not new; it's been around in some form since 2001," said Nicky Walton, principal author of the report and senior research analyst with Informa.

"In the last 18 months there have been a number of developments that are encouraging interest in the medium. There are now more users with advanced multimedia handsets and the number of subscribers who connect to mobile broadband via 3G and HSDPA is growing significantly," he said.

Walton said consumer interest in multimedia mobile content, such as mobile TV, was growing, indicated by Virgin announcing plans to launch the first mobile television service in Britain.

The Informa report said greater consumer interest in the technology whetted the appetite of major advertisers. Coca-Cola and car manufacturer Peugeot have experimented with WAP and SMS advertising in recent years. The report forecasts mobile advertising spend to be over $1.5bn in 2007.

The report stated that a survey conducted as part of the research found consumers were open to mobile advertising in some forms, but not via SMS text message. The report stated that customers would be more willing to accept advertising in return for free media and applications on their handsets.

"As operators push for new revenue streams and advertisers search for more immediate, intimate access to consumers - and the technology becomes more effective for advert delivery - we'll see dramatic growth in this space," said Walton.

"With advertising spend on the internet increasing, while more traditional means such as TV and radio are on the decline, advertising agencies are looking for more creative and innovative ways of pushing their clients' brands," said Nick Lane, head of the mobile content and applications research division within Informa.

"The mobile phone represents a direct channel to the consumer, surpassing that of the internet, but will only achieve significant levels of success if it can be seamlessly integrated with existing advertising strategies using traditional media," he added.

Copyright © 2006, ENN

Top three mobile application threats

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.