The world market for mobile marketing and advertising is expected to be worth about $3 billion by the end of 2007, according to a recent study from ABI Research.
ABI Research says that by 2011, the value of the market will reach $19 billion, including mobile search and video advertising.
The research firm adds that some of the highest levels of spending will come in the broadcast mobile video space, surpassing SMS as a source of mobile marketing spend by 2011, due in part to mobile broadcast networks’ presence in all major markets.
In 2011, ABI Research expects spending for broadcast mobile video advertising alone to reach $9 billion.
However, ABI says that for this market to reach its full potential, carriers, advertisers and marketing companies must utilize multiple technologies and business models to bring their messages to mobile consumers.
Judith Rosall, principle analyst at ABI Research, said: ” “Mobile advertising and marketing is a risky, albeit enticing business.
“Unlike the PC, a mobile device offers a uniquely personalized communications channel. Carriers worldwide have quite a bit of information about their end-users: name, sex, age, geographical location.
“And depending on the handset and plan their users have purchased, the carriers probably also know something about their economic status and credit record. But they don’t like to release this information to third parties because they want to protect and control their customers.”
Mobile marketing and advertising is also at varying levels of maturity, depending on the market or country, says Rosall. In Europe and Asia, mobile marketing is fairly well developed. In contrast to this though, early-adopting brands in the US are still in the process of testing the water.
A recent study from Harris Interactive found that 35% of US adult mobile phone users are willing to accept incentive-based advertisements (see Mobile Ads Becoming More Accepted In US).
Meanwhile, the Going Mobile: An International Content Use And Advertising On The Mobile Web report from the Online Publishers Association said that the mobile internet is a compelling platform for content and marketing, with strong growth and consumers watching and acting upon advertisements (see Mobile Internet Becoming Compelling Marketing Platform).
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