Mobile advertising tiny, but a potential goldmine.
"Advertising on mobile phones is a tiny business. Last year spending on mobile ads was US$871m worldwide according to Informa Telecoms & Media, a research firm, compared with US$24 billion spent on internet advertising and US$450 billion spent on all advertising. But marketing wizards are beginning to talk about it with the sort of hyperbole they normally reserve for products they are paid to sell. It is destined, some say, to supplant not only internet advertising, the latest fad, but also television, radio, print and billboards, the four traditional pillars of the business." The Economist, October 6, 2007, p. 85.
The article goes on, commenting that text messaging is the dominant form for mobile advertising at the moment, but web pages, music, games and video are starting to appear with or as part of advertising.
The potential of mobile advertising is clear:
- Annual mobile advertising revenue could reach between US$11.4b and US$20b by 2010.
- The 2.5b phones can reach a larger audience than the 1b personal computers.
- Handset ownership is growing faster than PC ownership, especially so in poorer countries.
- People carry their phones with them everywhere.
- Relevance: network operator's customer information coluld make mobile advertising the most focussed.
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