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Forecast: Mobile Ad Revenues to Top $1.89B by 2012

By Jason Ankeny

Mobile advertising revenues in the U.S. are expected to top the $1.89 billion mark by 2012, galvanized by the ubiquity of mobile services and increasing consumer uptake of a variety of mobile data services and applications, according to a new forecast issued by market research firm Frost & Sullivan.

Citing mobile penetration rates closing in on the 85 percent mark and a consumer base of almost 250 million U.S. subscribers, Frost & Sullivan reports operators are developing ambitious new campaigns for both on-deck and off-deck advertising, seizing on advertising's abilities to subsidize content production costs and reduce service usage costs.

In particular, the wireless industry is paying particular attention to in-application mobile advertising off-deck. Frost & Sullivan adds that operators must be cautious in shielding subscribers from overzealous marketing efforts if providing advertisers with data on consumer demographics, location, handset and related parameters. [ABI Research]

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