Mobile: Small Screens, Small Revenue

• Posted: Saturday, May 03, 2008
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• Author: pradhana
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• Filed under: Mobile Advertising

US marketers skeptical on mobile media ads

US advertising spending on mobile media will total more than $700 million by 2012, up from nearly $88 million in 2008, according to Screen Digest's "Mobile Media Advertising Opportunities: The Market for Advertising on TV, Video and Games" report.

The research company predicted that the far-more developed mobile markets in Japan and South Korea would each have higher ad revenues this year for mobile TV, gaming, user-generated content and video on demand than the US.

"Data pricing structures, handset and mobile web usability, content quality and the lack of audience metrics to measure effectiveness are preventing mobile advertising from reaching its market potential," said Julien Theys, who wrote the report for Screen Digest.

"Although we expect these hurdles to be overcome in the coming years, mobile media advertising will have to compete with search, display, messaging advertising as well as many innovative uses of mobile in marketing campaigns," Mr. Theys said.

Another reason the US lags in mobile media ad spending is that Japan and South Korea both have free-to-air mobile TV broadcasts. Such content usually requires a paid subscription in North America and most of Europe, and this makes for slower audience growth.

Read more - eMarketer

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