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INSIGHTanalysis: Media Healthcheck – April 2008

INSIGHTanalysis: Media Healthcheck – April 2008

It was mostly mobile in April, with Juniper Research forecasting that total annual adspend on mobile will exceed $1 billion for the first time in 2008, reaching $1.3 billion by the end of the year.

Mobile streamed and broadcast TV services will become the most lucrative delivery channels for mobile advertising by 2010, said Juniper (see Annual Mobile Adspend To Pass $1 Billion In 2008).

ABI Research forecast that total search-related mobile advertising expenditure will grow from $813 million in 2008 to $5 billion in 2013 (see Mobile Search Adspend To Reach $5bn In 2013).

Michael Wolf, ABI Research director, said: “We are seeing strong growth of mobile search services within an on-portal and off-portal context.

“However, given the constraints of mobile platforms and the specific needs of mobile users, mobile search services – and the integration of advertising – need to be thought out carefully by branded providers, white-label search vendors, and carriers.”

There was also a report from the Nielsen Company, which revealed that 23% (58 million) of all US mobile subscribers say they’ve been exposed to advertising on their phones in the past 30 days.

Half (51% or 28 million) of all data users who recall seeing mobile advertising in the previous 30 days said they responded to a mobile ad in some way (see 28 Million US Mobile Subscribers Responded To At Least One Mobile Ad).

M:Metrics, meanwhile, unveiled research which found that mobile advertising is an ideal method for reaching young men, with 36% of 18-34 year old men accessing mobile media in February (see Mobile Advertising Ideal Way To Reach Young Men).

Men in this age group are also highly receptive to SMS advertising, said M:Metrics, with 9% responding to an SMS advert they received, versus a 4% market average.

However, mobile instant messaging is set to cannibalise texting and eventually email from PC, according to a survey from TNS Technology.

The TNS Global Telecoms Insight study, which interviewed 17,000 respondents across 30 countries, found that once mobile users adopt mobile instant messaging (MIM) it overtakes other messaging tools with potentially dramatic consequences for service and network providers’ revenue (see Mobile Instant Messaging To Takeover From Texting And Email).

Towards the end of the month, there was good and bad news for mobile companies, with Nokia warning that the mobile phone market is set to decline for the first time (see Mobile Phone Market To Decline Says Nokia).

On a brighter note, Strategy Analytics said that global demand for mobile phone handsets remains strong at the moment, with 282 million handsets shipped worldwide in the first quarter of 2008, up 14% year on year (see Mobile Handset Demand Remains Strong).

It added that the growth was driven by rising demand in markets such as Africa and Asia.

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