Mobile Ads to Hit $2.9 billion in 2011; 14 million Interested in Ad Text Messages

Total advertiser spending on mobile messaging and display advertising will grow from $1.4 billion in 2006 to $2.9 billion in 2011, according to a new report, "US Mobile Marketing Forecast, 2006 to 2011" from JupiterResearch.

A substantial number of online advertisers utilize mobile tactics as part of their marketing mix, or plan to do so in the next 12 months. Currently, 22% of online advertisers are engaged in mobile marketing. Early adopter industries include media, wireless carriers, automotive, financial services, consumer packaged goods, and food services. Brands leveraging mobile marketing tend to be youth oriented, but not exclusively so.

Educating consumers, protecting their privacy, and mitigating their concerns about the cost of commercial text messages and SPAM, will be key to driving consumer interest and adoption of mobile marketing executed with SMS and advertisers will benefit from working with established mobile agencies and aggregators who can help them understand the mobile environment.

With more than 220 million mobile subscribers in the United States, there are new opportunities for companies looking to reach consumers in a highly targeted manner on a personal device, according to the report.

Some 26% of current mobile phone subscribers say they would be willing to watch advertising on their cell phone if in return they were to receive free applications for their phone, according to a nationwide online survey of 1,125 U.S. adults conducted by Harris Interactive in August 2006. 

Only 7% of wireless subscribers say they would be interested in receiving promotional text messages if they were relevant. However this 7% represent a good 14 million of the total 200 million cell phones subscribers in the United States. 

The survey found that 38% of wireless subscribers say they now consider wireless to be their primary form of communication and 36% believes that cell phone service is more personal and direct than land line telephone service.

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