Skip to main content

Mobile Phone Ads Generate $1.9B in Revenue

By the end of 2006, advertising delivered via mobile phones will generate revenue of $1.9 billion worldwide. Compared to the $60 to $70 billion spent annually on broadcast television advertising in the United States alone, it is insignificant.

However the clear benefits of well-executed mobile advertising are so compelling that over the next five years this market is set to enjoy double-digit growth rates, according to a new study from ABI Research.

"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. That allows a more customized relationship with the recipient of the advertisement. Advertisers can obtain a lot of information about end-users, through the websites they visit and the purchases they make, helping them construct tightly targeted campaigns."

There is another reason advertisers love the mobile format: the typical click-through rate for a regular Internet banner ad is about 0.2 percent, while the rate for mobile banner ads is in the range of 2-3 percent. "I think that performance will go down over time as the novelty wears off," says Hyers, "but for now, it represents sensational performance."

However, mobile advertising must be done well to be effective. The last thing advertisers, or mobile service operators, want is a consumer backlash. That means ad creative that fits the format, and no spamming. Hyers believes that "Sending SMSs to customers that are either obnoxious due to their frequency, or because people didn't opt in, or because they are poorly targeted, is counterproductive."

To that end, the Mobile Marketing Association has developed 'codes of conduct' to which the major, reputable mobile marketing firms and brands are signing on.

Popular posts from this blog

Securing the Future of Cellular IoT Apps

The Internet of Things (IoT) continues to expand. According to the latest worldwide market study by Juniper Research, they forecast a 90 percent growth in cellular IoT devices by 2028, with the global number reaching 6.5 billion. This exponential rise presents both exciting opportunities and significant challenges. While the growth of cellular IoT unlocks a vast potential for innovation in smart cities, industrial automation, and remote monitoring, it also requires device management and security advancements. Cellular IoT Market Development Juniper's research highlights the critical role of intelligent infrastructure management solutions. These platforms will empower the users to automate critical tasks such as device configuration, real-time security management, and optimized wireless connectivity. The surge in cellular data usage, projected to reach 46 petabytes by 2028 compared to 21 petabytes today, further underscores the need for automation. This is where federated learning i