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Advertising on Mobile Devices – $2 Billion Market by 2012?

Improving Portable Media Players Will Expand Reach and Opportunity for Mobile Marketing, Says JupiterResearch

JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, has found that introducing portable media players (PMP’s) with internet browsing capabilities are likely to stimulate significant growth among those accessing wireless web and will create additional opportunity for advertisers, who are expected to spend $2.2 billion on mobile messaging, display ads, and search via mobile technology by the year 2012.

Adoption of internet browsing on cell phones is expected to climb from 16 percent at the end of 2007 to 19 percent at the end of 2008. These findings are outlined in a new report published by JupiterResearch, “Mobile Internet: Adding Portable Media Players to the Mix to Drive Up Audience Size and Revenue.” The study was completed in cooperation with mobile advertising service provider AdMob. According to the report, the majority of page views and advertising impressions on cell phones and portable media players are on a small screen with a mini-browser. Impressions and click-through rates (CTR) per device, however, are higher for devices with full browsers.

“Mobility is adding a time and space dimension to media and advertising that has the potential to drive up CPM’s significantly. We are finding ads with location tags are selling at five to tenfold premiums over basic ads,” said Julie Ask, Vice President at JupiterResearch and lead author of the report. “The ability to tag users with location, demographics, and behavioral data complemented by devices that support rich media to avoid having their role in the advertising value chain made obsolete must continued to push forward.”

In order to be truly successful, mobile carriers must continue to enable access with affordable portable media players and innovative business models while protecting their stake in the value chain by adding information layers to user profiles.

“New devices such as portable media players available on the market with dramatically improved user interfaces and capable of fully rendering HTML web sites are driving consumer demand for Internet access on portable devices,” said David Schatsky, President of JupiterResearch. ” “Carriers should continue to enable consumers by rolling out more devices that look like portable media players at affordable prices – perhaps even as a second device – and continue to break down economic barriers of pricing and application restrictions to consumer adoption.”

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The complete findings of this report are immediately available to JupiterResearch clients online at http://www.jupiterresearch.com. For details on JupiterResearch’s methodology, visit http://www.jupiterresearch.com/bin/item.pl/methodology or email press@jupiterresearch.com to request a detailed methodology statement. For additional information on this report or JupiterResearch’s News & Information research service, visit http://www.jupiterresearch.com or contact Kieran Kelly, Senior Vice President of Global Sales and Client Service, at 1-800-481-1212 or researchsales@jupiterresearch.com.

About JupiterResearch
JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit http://www.jupiterresearch.com.

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