Tuesday, January 29, 2008

Mobile Advertisement to unleash "huge revolution", says Google CEO [with predictions of mobile adverstising revenues]

Source : http://www.telecomtiger.com/fullstory.aspx?passfrom=vasstory&storyid=530
Technologies:
Google chief is bullish on mobile advertisement. He told a panel at the World Economic Forum in Davos that the a new generation of location-based advertising is set to unleash a "huge revolution".

"It'''s the recreation of the Internet, it's the recreation of the PC (personal computer) story and it is before us -- and it is very likely it will happen in the next year," said Google Inc CEO Eric Schmidt.

Forrester, a consultancy firm, has predicted revenues of under $1 billion for mobile advertisements by 2012. Schmidt, however, said this figure was too low and failed to take into account the fact the mobile Web was reaching a tipping point.

Google is one of the bidders for 700 MHz Spectrum auction in the USA.

Analysts have different opinion on the future of mobile advertising. Sterling Market Intelligence forecast mobile advertising revenues will reach $5.08 billion in North America and Western Europe by 2012. Thomson Financial predict Google's 2009 mobile ad revenue alone will reach $21.31 billion. Gartner predict that the worldwide mobile advertising market will grow from $895 million in 2007 to $14.6 billion in 2011, while the Kelsey Group forecast that the US mobile ad market will grow from $33.2 million to $1.4 billion in 2012. Forrester are the most conservative, predicting less than $1 billion in mobile ad revenue by 2012.

In a recent survey by Advertiser Perceptions in the USA, about 55 percent of marketers said that they plan to increase their budgets on mobile spending in the next 6 months, indicating that there is a healthy level of enthusiasm in the market.

However, less than half the participants in the survey, consider 'interactivity', which is a strength of mobile advertising, to be an important criterion when deciding their budgets for advertising. On the other hand, these advertisers consider 'reach', which is a weak point of mobile advertising, to be the number one criteria.

Mobile Internet usage needs to increase and attain levels comparable to other forms of media before platforms and publishers can expect advertisers to invest substantial sums in this medium

No comments: