Report: Downturn will yield mobile ad opportunities

Mobile advertising prospects for the year ahead remain promising even in the face of the economic downturn according to global telecoms adviser Analysys Mason, which nevertheless stresses that the mobile industry must be realistic about just how much revenue ads will generate. Analysys Mason contends that with consumers spending more time at home and looking for free or cheap entertainment and information, advertisers will require media that is highly engaging and highly personal--while mobile content boasts the potential to address both demands, the current economic environment will limit investment in new technologies and services as well as hamper brands' willingness to spend on unproven channels, which could in turn constrain consumer spending on both mobile services tailored for ad subsidies and more sophisticated handsets that can support richer entertainment apps.

Analysys Mason notes that operators and advertisers should bear in mind four major trends:

• Search advertising will become a key platform on mobile. At least in the short term, traditional online search leaders like Google and Yahoo are better positioned to attract mobile advertising spend than new entrants or mobile-only players.
• Content producers will look to capitalize on popular brands by selling mobile advertising directly. Analysys Mason cites the example of U.K. pay-TV provider BSkyB, which began offering mobile display advertisements in November 2008, served on its mobile sports and news syndicated services.
• Developing markets and the 16 to 25 year-old demographics will be most responsive to mobile advertising. While the focus has fallen on targeting advertisements by subscriber interests or behavior, simpler metrics--e.g, consumer age--can still be effective as a lower-cost starting point.
• Ad-subsidized services and applications will experience dramatic growth. As consumers tighten their pursestrings, ad-funded games, music, video and messaging efforts offer a golden opportunity to reach targeted audiences.

Analysys Mason forecasts that by 2012, mobile advertising will account for more than 4 percent of total advertising spend in European nations offering relatively high mobile penetration and 3G network coverage. Emerging economies in Central and Eastern Europe will account for as much as 2 percent of advertising spend.

For more on the Analysys Mason report:
- read this release [1]

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