Forecast: Demand for apps will trump resistance to mobile ads

Consumers' growing appetite for mobile applications will ultimately wear down their resistance to in-app advertising efforts according to a new forecast issued by market research and consulting firm Parks Associates. Anticipating that North American mobile application profits will reach $2 billion by the end of 2010, Parks Associates anticipates that number will more than double by 2014, with in-app advertising revenues topping $860 million, boosted by new digital technologies enabling the development of more creative and personalized ads. The firm cites Apple's (NASDAQ:AAPL) fledgling iAd platform as an example of how to use novel and engrossing ads to more effectively reach customers, noting that at least one iAd partner, automaker Nissan, has already reported improved engagement with its interactive ads.

Consumer resistance is already breaking down: A recent Parks Associate report indicates that 46 percent of adults between the ages of 18 and 34 are either indifferent to in-app ads or willing to endure ads in free mobile apps. "Right now, consumer demand for mobile devices and applications shows no sign of abating, and the big players are responding," said Parks research analyst Heather Way in a prepared statement. "Research In Motion (NASDAQ:RIMM) recently acquired Cellmania in order to expand the BlackBerry App World storefront, and we will see more acquisitions in this market as companies seek to enhance their offerings and their ad platforms."

For more on the Parks Associates forecast:
- read this release

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