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BizReport : Research archives : October 26, 2006


Mobile Market Set To Explode?

A new study from Jupiter Research points to a surge for mobile advertising in the next five years. This, even though the research firm expects users to be resistant to the new medium for the next few years.

by Kristina Knight

As more and more users become familiar with cell phones, mobile texting and local search options most will grow to utilize mobile Internet functions, which should drive up demand for advertising. The study is predicting that mobile advertising will jump 50% by 2011 to $2.1 billion. Jupiter counted both SMS and display advertising in the study. They indicate the jump in online ad sales will mainly be driven by the penetration of cellular phones, according to Clickz.

This year mobile display advertising is expected to be $56 million, but by 2011 this form of advertising is predicted to jump to $224 million. The largest user concern at this point is how fast mobile spam will rise and how that will effect their bills. According to the study, 21% of consumers are worried about receiving SMS spam; another 28% of users are concerned about being charged for SMS spam messages.

Other challenges for mobile marketers include costs, user privacy and interruptions. Jupiter suggests that carriers and advertisers create campaigns to help consumers' become open to receiving mobile ads as a way to facilitate the change.






Tags: mobile ads, mobile marketing, mobile search








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