Mobile Internet Advertising

With significant traditional advertisers reporting declining revenue in core advertising sectors, SMS Provider mediaburst take a look at how many previously sceptical players are now seriously watching the mobile channel.

The mobile channel is already used by a greater proportion of the population in many counties to access the internet than fixed access points, and is likely to become the global norm. Nokia estimates that by 2015 some 5 billion people will have access to an always on mobile internet connection and there will be an incredible 100 fold increase in mobile network traffic.

Within Western Europe alone Forrester Research predicts 125m will have access to mobile internet on their mobiles, with 1 in 4 utilising 3.5G enabled handsets. The challenge however facing mobile internet access will be the ability to provide search and discovery facilities comparable to that experienced for internet access via a PC and fixed line. The second challenge is then how to monetise mobile search and discovery, the answer will be mobile advertising.

The mobile advertising market is admittedly still in its infancy but it is being carefully studied by all participants engaged in the mobile value delivery chain: brands, agencies, mobile service operators, application service providers, content providers etc. Juniper Research is forecasting direct advertising revenue of some $1.5bn this year to nearly $5bn within 5 years.

The annual growth rate is forecast at an impressive 27%. Many industry watchers confuse Mobile Internet and its messaging derivate Instant Messaging (IM) and its relationship to SMS text messaging. Whilst IM will grow Text messaging will continue to grow regardless. Monthly person to person SMS traffic in Western Europe is set to climb form 190 billion messages seen last year to 233 billion again over the same 5 year period.

Mobile applications compliment, they rarely compete and let us not forget it is always the choice of the consumer that will drive the market.

Mediaburs are a leading SMS Provider based in Manchester.