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Mobile Advertising Revenues To Capture 2% Of Online Ad Spend

Sponsored Video Downloads Claim 17% Of $1 Billion Mobile Advertising Spend

Boston, MA - June 13, 2005 -- Strategy Analytics, the global research and consulting company, today released a new report entitled "Advertising on the Fourth Screen: Opt-In To Dominate Mobile Marketing Spend." This report from Strategy Analytics' 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.

Credit Pacific Service Union However, Senior Analyst Nitesh Patel notes "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--vis traditional channels, (like TV and direct mail), and carriers' reluctance to compromise their position as the premium content delivery channel."

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Credit First Service Union David Kerr, Vice President of the Strategy Analytics Global Wireless Practice, adds, "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%."

US online ad spend up 19% in 2007 Overall advertising spend in the US rose by 0.6% last year, but online ad revenue continues to rise, growing by 18.9% compared with 2006.

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"However", continues Serpa, "more newspapers need to embrace modern technology to succeed % especially since readers, and advertisers alike, have been turning to the Internet for some time." Based on May 2007 data from the Newspaper Association of America, online advertising revenue made up a larger percentage of ad revenue in Q1 versus the same period a year ago. The Classified Concepts Online Locator 2.0 provides a way for newspapers to bridge the gap between print and online classifieds, by enhancing the online component to compliment their print program and take advantage of the monetary potential of Internet advertising."

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