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BizReport : Mobile Marketing : November 02, 2007

Opus forecasts mobile ad revenue to reach $5 billion

A recent report from Opus Research indicates a bright future for mobile advertising. According to the report mobile advertising revenue will reach $5 billion by 2012. In 2007 mobile ad revenue is expected to reach more than $106 million.

by Kristina Knight

LocalMobileSearch, a subsidiary of Opus Research, predicts that by 2012 North American mobile ads will account for about $2.3 billion of the $5 billion total. European countries will likely account for the other half. The report forecasts an annual combined growth rate of more than 115% for the North American and European markets.

"The ad infrastructure and sales channels already exist," said Greg Sterling, senior analyst of the Local Mobile Search program at Opus (via MediaPost). "Unlike the early Internet, they don't have to be built or gain credibility with advertisers. The users just need to start showing up and the ads will follow."

Pay-per-call revenue will be part of the growth surge; the forecast also predicts that mobile click-through rates will grow from about 7% this year to 10% in 2012.

LBS (location based services) will also likely have an impact on the mobile spend. According to a recent Telephia report, LBS services already account for more than 50% of the mobile spend.

Tags: mobile ad revenue, mobile advertising

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