Thursday, March 27, 2008
Mobile Ads Still Largely Text Based
Global mobile advertising will grow from $2.7 billion in 2007 to $19.1 billion in 2012, mainly on the strength of text-message campaigns, according to a new eMarketer report.
Mobile spending in the U.S. market will jump from $878 million in 2007 to $6.5 billion by 2012, but will be eclipsed by the more mobile-centric Asia-Pacific market by then.
U.S. mobile spending is projected to nearly double to $1.7 billion in 2008.
Because text-messaging will remain the dominant non-voice mobile service over the next several years--especially in big markets like China and India that lack 3G networks--that's where most ad dollars will flow, eMarketer argues.
Advertising linked to SMS and MMS text-messaging, mobile instant messaging, and mobile e-mail will collectively account for more than $14 billion of the $19 million total projected in 2012--up from $2.5 billion in 2007.
Display and search advertising will lag because those formats work best on higher-speed broadband networks. But $99 smart prices and unlimited use mobile plans are going to expand market potential in North America.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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