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According to Informa’s report titled “Mobile Advertising: Cutting through the Hype,” the mobile advertising industry has become consumed by short term hurdles and must focus on long-term strategic issues if it is to become a truly multi-billion dollar industry.
Informa forecasts that the global mobile advertising market will be worth $12.09 billion by 2013. By the end of this year, it will be worth $1.72 billion, with 80% generated by the mobile content providers.
Report author Nick Lane says that the big brands remain sceptical about the return on investment that will justify the premium rate card already associated with this emerging medium. “The situation will change, but the plethora of companies looking to get a slice of the revenues must remain patient. Releasing the big brands’ spend is key to unlocking the potential of mobile advertising,” he added.
The report further claims the majority of early-adopter big brands are yet to transfer more than 0.5% of their advertising budget onto mobile. Although short-term, the problems are reflected in the non-existent measurement and premium pricing associated with early formats of mobile advertising. The mobile advertising industry would be better served concentrating on educating the consumer and providing a visible and measurable ROI to the brands.
Lane continued to say: “True mobile advertising does not exist today; what we are referring to is ‘advertising on mobile’. When mobile advertising combines user profiling, location and communication with unique mobile inventory, the industry can justify charging a premium rate over existing immeasurable advertising channels.”
More information is available on Informa’s website.
About The Author
Dusan Belic
Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.
