European mobile search and display revenues will together reach €1.3 billion by 2012, according to a new report from JupiterResearch.
The
Mobile Advertising in Europe: Achieving Search and Display Revenues in the Long Term report says that beyond SMS marketing, most mobile marketing tactics are still in their infancy and will struggle to meet initial high expectations.
Consumers’ limited willingness to pay for mobile content coupled with convergence of the free Internet will foster the emergence of ad-funded business models.
It adds that thanks to more affordable multimedia handsets, enhanced networks and transparent data plans, 40 percent of mobile users will regularly access the mobile Internet in five years’ time.
Thomas Husson, senior analyst at JupiterResearch, said: “The mobile advertising market will grow significantly over the next few years and move from its current trial stage to a more mature business where stakeholders will leverage consumers’ uptake of mobile data services.”
However, according to the report the relatively small audience of mobile media users, coupled with the lack of critical mass of educated advertisers able to measure return on investment, will restrain mobile media’s potential in the midterm. Once stakeholders will have implemented interoperable and independent standards, mobile will increasingly be part of the marketing mix, it adds.
“Mobile advertising is destined to be a multi-billion euro industry,” said David Schatsky, president of JupiterResearch. “But the maturation of this industry could take a decade,” he continued. “Advertisers tend to be slow to react to consumers’ changing behaviours and will need more than encouraging trials and early click-through rates to begin to invest massively in this nascent medium.”
Recent research from the Mobile Marketing Association revealed that one in ten mobile users in the Western European markets is highly interested in mobile marketing and another three in ten indicate moderate interest (see Western European Consumers Ready For Mobile Marketing Growth).
The study surveyed 1,535 participants in the UK, Germany, Italy, France and Spain and provides insights into the region’s consumer mobile usage by demographic group and awareness.
In a separate forecast, mobile web company Bango said that mobile advertising is a huge opportunity with the potential to generate in excess of $10 billion in annual revenues by 2010 (see More People To Access Internet Via Mobile Than PC).
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