Yahoo! Tests Graphic Mobile Ads

The online giant said it will begin initial testing in the U.S. later this week. The test phase will include smaller versions of banner ads, which is key to this phase. "The challenge is that because cellphone screens have limited real estate, ads have to more relevant," said Julie Ask, an analyst with Jupiter Research (via Reuters).

Displaying banner ads on cell phones is not a new concept, but advertisers are still unsure how the majority of mobile users will react to advertising on their screens. Online marketers, however, are hungry for new markets and increased revenue and are willing to risk the chance as more U.S. mobile phone users upgrade to phones with fast Internet access and become more familiar with options like texting and local search.

Jupiter Research estimates that as much as 10% of U.S. mobile users browse the Web via phone, however, only about 3% do so at least five times each week.

Yahoo! is the largest provider of brand advertising and the number two supplier of online search advertising behind rival Google. Yahoo! began testing relevant text ads through phones in the U.S. and Britain last month.

Tags: mobile ads, mobile marketing, mobile text messaging, Yahoo