Global Mobile Advertising Market Experiencing Dramatic Growth
   2011-06-20 12:24:42      Web Editor: Xu

This photo shows a text message on a mobile phone which contains a coupon. [File Photo:]

"The great hopeful of mobile advertising is the location-based advertising, because so many tablet or mobile computers now have GPS, which can basically track your location, it means advertisers can now target you based on where you are."

"But you have to remember every year for the last decade media experts have been saying that we were poised for a mobile ad boom but it hasn't yet happened. So it's too early to say that TV or Radio are dead."

The worldwide mobile advertising market is expected to double this year and maintain rapid growth through 2015.

A new report from Research firm Gartner predicts that driven by expanding consumer adoption of smartphones and tablet computers, global mobile ad revenue will reach 3.3 billion U.S. dollars this year, up from 1.6 billion dollars in 2010.

According to Gartner's projections, global mobile ad revenue will jump to 20.6 billion dollars by 2015.

Hong Kong Bureau Chief of Reuters Breakingviews, John Foley, said that new location-based advertising is likely to result from the growth in the mobile advertising market, since so many handsets or mobile computers now have GPS which makes it easy for advertisers to target handset users based on their location.

"So you can get a coupon offering money off a restaurant across the road. And, of course companies like this, too because it means they can be more targeted, so only people in the vicinity see their banner ads. And this is growing really fast. We saw a statistic that two thirds of iPhone users use some kind of map service once a week so the growth in maps and location-based services is really driving this quite hard," Mr Foley said.

Meanwhile, sources said that mobile coupons have a redemption rate of 15% to 40%. Compared to traditional print coupons, which have a redemption rate of less than 2%, the text message marketing market is becoming an attractive option for marketers.

Aside from sales-oriented advertising like coupons, there are various types of advertising that have the potential to use smartphone advertising platforms, including soft drinks, food, tourist attractions and flight ticket discount information. Advertisements could reach handset users after advertisers signed deals with mobile manufacturers, which could lead to certain marketing information being embedded in phones when they are sold.

As mobile phones outnumber TV sets more than 3 to 1, and PC-based internet users outnumber TV viewers 4 to 1, advertisers in many markets have recently rushed to these forms of media, arousing concern that the trend may pose a threat to traditional media sources that obtain significant revenue from advertising, such as Radio, TV and even some other internet businesses.

However, Mr Foley said it's too early to pronounce TV or Radio dead.

"And if you look at the overall ad spend in markets like the US, TV is still 34 percent of advertising in the US and that share is growing. China is different, where online is growing extremely fast, about 60 percent in 2010. But even in China, TV makes the vast majority of advertising spend. That's because people still watch a lot of TV, and TV is the great way to build your brand. So it won't kill off other kinds of advertising just yet but it will grow very fast alongside them."

In China, mobile advertising is still in the early development stages. Consumer acceptance of mobile advertising is lower than with other advertising methods which utilize SMS, and it is widely considered as spam.


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