ABI Research: Mobile Advertising - Small Today, Huge Tomorrow

By the end of 2006, advertising delivered via mobile phones will have a turnover of $1.9 billion worldwide, according to a new study from ABI Research. Compared to the $60 to $70 billion spent annually on broadcast television advertising in the United States alone, it is insignificant.

However ABI Research sees the compelling benefits of well-executed mobile advertising and expects that over the next five years this market is set to enjoy double-digit growth rates.

"There are very good reasons to use the mobile phone to reach consumers," says senior analyst Ken Hyers. "

  • Unlike a TV or a PC, a mobile device is truly unique to the end-user. and allows a more customized relationship with the recipient of the advertisement. 
  • The typical click-through rate for a regular Internet banner ad is about 0.2%, while the rate for mobile banner ads is in the range of 2-3%. 

ABI Report "Mobile Marketing and Advertising: Mobile Messaging, Short Codes, Web Browsing, Video, Games, LBS, Search, and Social Networking as Vehicles for Emerging Business Models" examines the value chain for marketing and advertising-related messaging to mobile subscribers. It covers topics including the types of companies engaged in or supporting mobile marketing and advertising, specific services that are most effective for mobile campaigns, the underlying technologies that support them, and global and regional forecasts of spending. 

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