MOBILE ADVERTISING REVENUES TO CAPTURE 2% OF ONLINE AD SPEND

APEJ

Strategy Analytics' Sponsored Video Downloads Claim 17% Of $1 Billion Mobile Advertising Spend. Wireless Internet Applications service concludes that although momentum is building many barriers remain before the muscle of mobile advertising and marketing can be fully flexed.

SMS based mobile marketing activity has been dominated by companies within the FMCG sector, like Cadburys and McDonalds to date. Yet, as the availability of mobile multimedia content grows we expect greater participation from large advertising brands in the entertainment industry and those that have products targeted at the Young, Active and Fun, consumer segments, such as Nike.

However although there is growing interest in wireless from parts of the marketing community, take up will be tempered by weak consumer response rates, skepticism about the effectiveness of mobile advertising vis-à-vis traditional channels, (like TV and direct mail), and carriers' reluctance to compromise their position as the premium content delivery channel. Advertising over wireless is more complex than TV, radio, and the Internet, because of the fragmentation caused by handset diversity and the uncertainty of take-up rates of different mobile technologies like video and Java. We expect sponsored video and audio services to grow strongly over the next five years capturing 17% of total spend by 2010, while browser based advertising will claim the greatest share with 44%."

Total mobile subscribers in APEJ to grow at 11% CAGR reaching 901.1 million in 2009, with mobile service revenues growing 9.4% CAGR to US$109.3 billion. APEJ's aggregate mobile service penetration is projected to rise to 32.5% in 2009, largely on the back of huge net subscriber additions in the two most populous markets of India and China. India will continue to have enormous potential given its low penetration and huge latent demand. In the mature markets where low single-digit subscriber growth is expected, full-blown competition in 3G services over the forecast period, to move 3G from niche to mainstream. IDC forecasts tTat by 2009, 3G subscribers will represent 14% of total mobile subscribers in the region. With increasing usage of advanced high-speed networks, this will aid non-voice mobile service revenues to rise in significance from 13% in 2004 to 21% in 2009. Advertising on the Fourth Screen: Opt-In To Dominate Mobile Marketing Spend Publ 20050613