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BizReport : Mobile Marketing : April 12, 2007

Will mobile users accept commercials?

This is the question many companies are asking. With more users downloading and listenting to music on their phones, advertisers wonder if downloading commercials with music is the right way to monetize the medium.

by Kristina Knight

According to a new study from Telephia and Arbitron, 65% of mobile users download music over-the-air and 58% use subscription based radio services via their mobile devices. 36% listen to free FM based radio and 32% sideload or transfer audio to their phones. Obviously, music is very much on the minds of mobile users.

However, advertisers have not yet found the best way to monetize the market. Subscription fees for downloads is one option, but offering actual commercials may be the better way to go.

More than 75% of study respondents say commercials are preferred to subscription fees for music downloads and radio options. Wayman Leung, senior product manager, Telephia said, “Most current mobile audio users prefer the ad-supported model over paying a subscription fee. And this group is a very attractive demographic for advertisers to target as it’s comprised mainly of affluent, tech-savvy early adopters.”

71% of mobile users are between 25 and 44 years of age, and 63% are male. Mobile audio users spend more time on entertainment and media activities than traditional mobile users.

Tags: mobile advertising, mobile marketing, mobile music

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