Europe And US Will Generate $1 Billion In Mobile Advertising By 2009: Study

While 2006 will be a year of experimentation for the fledgling mobile advertising market, the next five years will see the industry shifting gear from a simple SMS-based marketing to a more sophisticated multimedia advertising, according to the latest study by visiongain. The report entitled, Mobile advertising and marketing: Market analysis and forecasts 2006-2011, says mobile advertising will become mainstream by 2008, since by then brands will know what works and what doesn’t.

“3G technology enables the delivery of richer content to mobile phone users, but there is a limit to how many additional charges and subscriptions mobile phone users will accept. At some point, content will have to be sponsored or partially subsidised by advertising. We are also seeing the emergence of ad-subsidised MVNOs, which plan to offer free airtime in exchange for targeted advertising to subscribers,” says visiongain analyst and the report’s lead author Marcia Kaplan.

In 2005, mobile marketing generated $255 million in Europe and the United States, but that figure is expected to bulge to $1 billion in 2009, according to visiongain. Another trend is that the entry of large online search engines into the mobile world will open up new advertising opportunities in the shape of context-based mobile search.

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