Mobile Advertising In The US Starting Take-Off

Analyst Ovum claims the revenue from mobile advertising in the US this year is set to jump to $150 million from $45 million last year, which is tiny compared to the overall advertising US market ($274 billion) but is growing fast, with Yankee Group predicting mobile ad revenue could “total $2 billion, or nearly 1%, of US ad sales by 2010 and up to 5% by 2015″.
According to this article, the main thing holding back mobile advertising is a disagreement between the carriers and the content owners on how revenue from advertising should be split…”Carriers will likely start accepting advertising within eight months, after they resolve battles with content providers over how to split revenue, says Jeff Janer, an executive at Third Screen Media…A similar standoff has stalled the full-scale rollout of banner ads on the wireless Web. Carriers want 40% to 50% of ad sales when users reach sites from their menus; content providers are offering less.”
There’s a fair bit of variety in the mobile ad market, with text messages, wireless web ads and video ads, as well as ad-supported free content.

Comments have been disabled for this post