Forecast: U.S. mobile ad revenues to reach $229M in '09

The U.S. mobile advertising sector is poised to grow from $169 million in revenue in 2008 to $229 million in 2009 according to global media forecasting and investment firm Magna. Although the projected 36 percent increase represents a downward revision from Magna's mid-2008 forecast, the company said it expects the mobile ad market will re-accelerate in 2010 as the emerging mobile applications market organizes to more effectively support the sustained growth of ad-supported apps.

Magna credits the expected revenue growth to the increasing number of U.S. wireless subscribers adopting text messaging (and attendant text-based ads) as well as expanded access to the mobile web, adding that continued smartphone adoption is central to mobile advertising's evolution. The forecast anticipates that SMS advertising will perform strongly, with long-term growth rates similar to ad networks, and argues that text messaging platforms represent the best near-term potential for advertisers who want to use mobile devices to support broad-reaching marketing campaigns.

Magna also cites Apple's iPhone and App Store as key drivers, noting the heightened interest among consumers, marketers and carriers alike for the core product, translating to exponentially higher levels of data (and mobile web) consumption. In addition, the firm contends that the creation of an endemic ecosystem of developers and consumers capable of performing "closed-loop" marketing promises to generate increased demand for marketing services inside of the platform.

For more on the Magna mobile ad forecast:
- read this release

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