May 12, 2007

Would you watch ads for a free phone?

Mobile advertising will generate $2.3 billion in revenues in the US by 2011, according to EJL Wireless Research's "Global Mobile Advertising Market Analysis 2006-2011."

The firm expects mobile couponing to be the largest ad segment, accounting for 42% of the overall market by 2011.

Earl Lum of EJL said, "We believe that the recent transaction involving Third Screen Media and AOL is the tip of the M&A iceberg for the mobile advertising industry and anticipate and recommend a significant consolidation of the industry to create market efficiencies that will eventually lead to explosive growth."

eMarketer's own projections for the US mobile ad market made in January 2007 covered spending, not revenues, and had the market passing $2.3 billion in 2009.

While mobile couponing may be the secret for global mobile marketing, giveaways are the ticket in the US, according to an April 2007 AirG study. Nearly half of respondents said that they would accept ads on their phones in exchange for a free service or chance to win a prize.

More than a third of said they would watch more than 10 ads a day to get a free phone.

Number of Ads that US Internet Users Would Watch Every Day to Get a Free Phone, April 2007 (% of respondents)

Although a free phone or free phone service may be alluring, individual phone applications had less appeal to respondents in a Harris Interactive poll conducted in October 2006. Just over half were not at all willing to watch ads in exchange for applications. The remaining 49% had a slightly negative to neutral reaction to the proposition.

Courtesy of http://www.emarketer.com

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