5 Predictions For Mobile Advertising

• Posted: Friday, November 14, 2008
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• Author: pradhana
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• Filed under: Business Analysis

Berg Insight, the telecoms analyst firm, has released a new report that makes five predictions for the mobile advertising market. The predictions cover ad-funded MVNO’s, smartphones, idle-screen advertising, mobile innnovation, and venture financing.

The world of mobile advertising has always been a fast moving business, with new technologies, new approaches, and new advertising concepts being tried all the time. Add to that the current problems in the global economy, and the result is a lot of uncertainty about how the market will develop. Berg Insight spends a lot of time thinking about the what is likely to occur in the telecoms area, so here are their 5 predictions for the mobile advertising market.

1 - Ad Funded

Ad-funded business models will become a new paradigm in the discount MVNO segment of the mobile communications market. Price sensitive young consumers with low income will be most inclined to accept ads in exchange for voice minutes or text messages. Incidentally this group is also highly interesting for major advertisers.

2 - Smartphones

Smartphones will boost traditional Internet advertising revenues. A significant proportion of mobile advertising revenues will actually derive from mobile Internet users accessing conventional web sites. Internet advertisers are going to need to adapt by creating campaigns that work with multiple devices and display sizes.

3 - Idle-screen advertising

Idle-screen will eventually become the largest mobile advertising channel. Virtually all consumers carry a mobile handset wherever they go and check out things on the display many times per day. Embedded advertising on the idle-screen and in the user interface would provide an unmatched exposure.

4 - Innovation

The current economic downturn will hold back revenue growth but not innovation. New unproven channels such as mobile media will see a negative effect from cutbacks in marketing budgets. However there is still going to be much innovation in the mobile space that will create new channels for advertisers to reach out to consumers.

5 - Financing

Size will matter in the race for market leadership. Financial strength will be especially important if the market develops more slowly than previously anticipated. Existing digital and mobile industry players will have a major advantage over venture capital funded start-ups, many of which will have difficulties to find financing. [MobiAdNews]

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