All the latest UK technology news, reviews and analysis

Mobile advertisers treading a fine line

by Ian Williams

27 Sep 2007

Be the first to comment

  • Tweet this
Mobile phone
Mobile advertising could provide an additional revenue stream for operators

Mobile operators stand to gain by investing in mobile advertising, but only if it is implemented correctly, according to a new report from Analysys.

The analyst firm's Mobile Advertising and Marketing Revolution report follows news of major mobile advertising deals in Europe and the US.

Nokia recently announced the acquisition of mobile advertising firm Enpocket, while Google has launched a version of its AdSense programme for mobile phones.

A new mobile service called Blyk aimed at 16 to 24 year-olds offers users a monthly allowance of minutes and texts in return for receiving up to six MMS adverts a day.

"Mobile advertising could provide an additional revenue stream for operators, but it must be implemented carefully," said report author Martin Scott.

"Flooding mobile phones with advertising would destroy consumer confidence and the potential value of the mobile advertising market.

"If operators and advertisers focus on delivering mobile ads that are unobtrusive and relevant to the target audience, they may be able to create a mutually beneficial cycle of revenue and reward."

The motivation for operators to develop mobile advertising has been limited so far, as voice services have historically yielded the quickest return on network investment.

However, core voice revenues in mature markets are no longer delivering the growth they once did.

Analysys forecasts that mobile voice revenues in western Europe will grow at a compound annual growth rate of only 2.3 per cent between 2006 and 2012.

This means that mobile operators will need new sources of revenue to provide future growth, and mobile advertising is being seen as one such source.

"Obstacles to mobile advertising are now beginning to fall, making it more feasible for operators, handset manufacturers and advertising agencies to exploit the revenue potential," explained Scott.

The report concludes that operators, handset manufacturers and content providers will need to work hand-in-hand to realise the full potential of the market.

Do you agree?

 

Add your comment

We won't publish your address
By submitting a comment you agree to abide by our Terms & Conditions. Your comment will be moderated before publication.

Poll

The workplace of the future poll - in association with IBM

What will be the biggest change to corporate technology in the future?

89%

6%

1%

3%

1%

Connect with V3.co.uk

Sign up to our daily or weekly newsletters

Riso

Colour printing: why the bill keeps outstripping the budget

The wrong printers, for the wrong tasks on the wrong contracts

Qlikview

Magic quadrant for business intelligence platforms

Who leads the BI pack and who should we be watching out for?

Head of Compliance

Head of Compliance My client is currently seeking...

Financial Reporting

THis role is working for a multi national Financial organisation...

Professional Services Consultant - Data Protection, Backup - £105k+

Professional Services Consultant - Data Protection, Backup...

Web Support Analyst (Drupal, Joomla or Wordpress, CMS, HTML)

Web Support Analyst (Drupal, Joomla or Wordpress, CMS...

Keep up to date with the latest products, services and technologies from the world's leading IT companies. IThound.com brings you over 2,000 white papers, case studies and analyst reports.

To send to more than one email address, simply separate each address with a comma.