As advertising increases on mobile phones there is some discussion as to whether it will be a “silver bullet” for advertisers, the final invasion of consumers privacy, or both. On one side of the equation is a general idea that mobile advertising has the chance to be done well enough to gather consumer acceptance, given extra weight by the carriers’ reluctance to jeopardise their relationship with their customers, and this is counteracted by the natural urge of the marketing industry to push the boundaries and get the attention of as many people as possible. Whether this equation will equal a silver bullet or another spam channel to be ignored remains to be seen…
So far mobile advertising in the form of banner ads is seeing more progress than the internet: “The click-through rate is around 4 percent on phones, compared with 1 percent on the Internet”, although I assume there is still a lot more banner ads on the internet than on mobile phones. “Mr. Burgess attributes the higher response rate to a greater ability to aim ads at particular consumers based on factors like time of day and the kind of handset they are using.”
Budgets for mobile advertising are also increasing, with Thomas J. Burgess, the chief executive of Third Screen, claiming his customers’ mobile ad budgets had risen from an average of $20,000 for a campaign a year ago to $150,000 to $250,000 today. “He said the company had just signed its largest deal ever, a $1.6 million contract for a one-year campaign with an entertainment industry advertiser that he declined to name.”
Related stories:
–Mobile Game Market Growing – Into Advertising Opportunity
–Google Applies For Single-Click Mobile Ad Patent
–Mobile Marketing Info
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