Mobile gaming is increasing its presence in the advertising market, with video games and mobile phones set to collide and impact on the cultural relevance of marketing techniques and channels.
The increasing penetration and the depth of content available on mobile phones is forcing advertisers to identify new ways to reach audiences in order to take advantage of new technologies.
According to market research firm, In-Stat, by 2009 there will be more than 23.3 billion wireless subscribers worldwide, up from 1.5 billion in 2004. Informa Telecoms & Media predicts that the technology will reach 2.14 billion globally by the end of 2005 (see Global Mobile Subscriptions To Hit 2.14 Billion By End Of 2005).
Video games are also increasing in popularity, with US retail sales totalling nearly $10 billion in 2004. This trend is expected to continue, with a recent report by Kagan Research predicting US video game sales to rise to $16 billion by 2007, a 60% rise from $10 billion in 2004. The report also estimates that by 2010, 54 million US households will own at least one portable video game console (see Advertisers Devise Ways To Cash In On Games Industry).
In merging the two trends, a recent report from IDC notes that the US market for wireless gaming is “on track to become the single largest wireless data application category from a revenue perspective, over-taking ring tones in 2005 and rising to nearly $1.5 billion annually by 2008”.
Informa Telecoms and Media confirms this prediction, estimating total global revenues from games on mobile phones to reach $11.2 billion by 2010, increasing by a massive $8.6 billion from $2.6 billion this year (see Global Mobile Games Revenues To Hit $11.2 Billion By 2010).
The Mobile Game report predicts that downloads will account for around two-thirds of global revenues through 2010, with online multi player traffic forecast to start generating significant income for mobile operators.
Media research company, Screen Digest, reports that worldwide consumer spending on mobile game downloads totalled €778 million in 2004, more than doubling 2003’s figure of €380 million (see Mobile Phone Gaming Revenues Enjoy Strong Growth).
In the US, mobile game revenues rose to $72 million in 2004, up from $24 million in 2003, and are expected to reach $430 million by 2009, according to Jupiter Research.
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