Mobile Adspend Set to Soar

08 September 2006

LONDON: Advertising via cellphones is expected to become an $11.35 billion (€8.87bn; £6.02bn) global business within five years, claims a new report by researcher Informa Telecoms & Media.

The London-headquartered firm says the proliferation of cheap, high quality mobile handsets together with high-speed networks will trigger a sharp upturn in mobile ads.

This year, forecasts Informa, the market will generate $871 million, rising to $1.5bn by the end of 2007.

Mobile's share of adspend is also expected to grow, from 0.5% this year, to 2% by 2011 as consumers are persuaded to accept ads on handsets in exchange for free content such as television, games and music.

Informa expects the mobile TV market will be most lucrative, with worldwide adspend reaching around $4.4bn in five years. In the UK both Virgin Mobile and ITV are at the forefront of TV on the move, although both are currently charging subscribers for the service.

The researcher believes, however, this model will change as "people do not want to pay for something they can already watch at home for free".

The rapidly shifting sands of the mobile market are likely to provide a challenge to the telcos who will need to persuade broadcasters and music companies to cut them in on ad revenues as customers become less willing to pay for content.

Data sourced from; additional content by WARC staff