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October 26, 2006

Mobile ads on the rise

Posted by Tricia Duryee at 1:25 PM

In September, I reported that wireless operators and content owners had started to roll out advertising campaigns to subsidize the cost of doing business.

A study released today by Jupiter Research said with more than 76 percent of the U.S. population owning cellphones, marketers are seeing mobile as an attractive highly personalized platform to target consumers.

Furthermore, it estimated that spending on mobile messaging and display ads will grow from $1.4 billion in 2006 to $2.9 billion in the U.S. in 2011.

Something isn't adding up. Another firm estimates that worldwide revenues for mobile ads will be much smaller this year than in the U.S. alone, and that by 2011, the numbers will be much higher.

Does that mean, the U.S. will make up a much larger percentage of mobile advertising to start?

In September, I reported from the CTIA wireless trade show that total mobile advertising market is expected to be $871 million, or 0.2 percent of the overall advertising industry by the end of this year.

In 2011, the research firm Informa estimates, it will reach $11.35 billion.

Still, even at that figure, mobile ads only represent 2 percent of the whole industry, said Informa analyst Nick Lane, who sees a majority of mobile ads coming in the form of mobile TV ads and text messages.

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Tricia Duryee
Tricia Duryee
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Angel Gonzalez
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Kristi Heim
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