Mobile TV To Be Biggest Ad Revenue Generator By 2010
Although the vast majority of mobile advertising is currently based on SMS, Juniper Research predicts that streamed and broadcast mobile TV services will become the most lucrative channels for mobile ads by 2010. Juniper predicts that spending on mobile TV advertising will grow from $335 million in 2008 to more than $2.5 billion in 2013.
"There are already cases whereby mobile TV is doing very well in advertising. Last year 3 Italia was ... making something like 10 percent of its revenue from advertising," Windsor Holden, principal analyst at Juniper Research, told mocoNews. "Clearly advertisers are seeing the potential of TV coming to mobile and the personal nature of that service."
Holden said the benefits will come not just with replicating the TV service with simulcast, but with the ability to target key demographics and individuals?which is very attractive for advertisers. He also said that people are accustomed to advertisements in video and are thus less irritated by it than other forms of advertising, especially compared to SMS. However, the ad format will obviously need to be changed because of different viewing habits, and the ads are likely to have a greater amount of interactivity.
Total annual global spending on mobile advertising will hit $1.3 billion in 2008, rising to $7.6 billion by 2013 according to Juniper Research. This is at the lower end of predictions, and Holden said "there are lots of very, very overly sanguine forecasts lying around about mobile advertising", adding that major brands are still not committing significant money to mobile advertising because they're yet to be fully convinced of the efficacy of the channel. However, he said he was confident that will change as time goes by. Perhaps the biggest percentage growth is predicted to be in idle-screen advertising, tapped to rise from $7 million in 2008 to $500 million in 2013.
China and the Far East will remain the largest regional market for mobile advertising, because it includes the massive population of China and the advanced mobile markets of Japan and South Korea. Revenus there will rise from $414 million in 2008 to more than $2.1 billion by 2012, according to Juniper. Holden said that although the ad-supported mobile TV network in Sth Korea isn't making near the amount of money it needs to be economically viable the figure is still quite significant. Mobile TV there also suffers from having two competing technologies and issues like one network not being able to use the content of the other, he said.
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