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The US Wireless Advertising Market Landscape
Ovum, July 2006, Pages: 19
In the last few months in the US we have experienced a palpable and growing interest in wireless advertising coming from the different market stakeholders in very big industries:
- the cellular carriers, currently generating $120 billion annually in a healthy wireless market, have been trialling advertising services in recognition of the fact that that they have an important role to play. However, they also want to protect their subscribers and their business models
- the US media industry, governed by multi-billion dollar megaliths with traditional TV, print and Internet properties whose traditional advertising funded models are evolving with the growth of digital content, need to experiment and understand the market
- the advertisers, brands and retailers, which are spending $300 billion annually, also realise that there is fragmentation in the traditional advertising channels as broadband and wireless content take control of more and more eyeballs. They believe the wireless device can offer unprecedented techniques for personalised targeting and interaction
- the wireless user is eager for more exciting but affordable content, which could be funded through a non-intrusive advertising model.
To the large stakeholders, wireless advertising today represents small change in terms of investment. However, there has been a strong appetite for trials and small (but real) campaigns because these different players believe in the importance of wireless advertising in the longer term and the need to be involved now. Within the next five years wireless will be a serious, established channel for advertisers and a significant revenue earner for the different stakeholders in the value chain.
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