Advertising to Fuel Mobile Video Growth

7:55 am on March 27, 2006 | Category: Business, Mobile Devices, Telecom Services

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According to a new report from web researcher, eMarketer, the market for mobile video is set to grow significantly in the next few years, from a small niche group of early adopters to a major part of the wireless industry.

Mobile television and video services haven’t yet had a breakthrough in the US market, where only about 3 million users watch any video on their phones, and less than 400,000 have paid subscriptions to mobile video services.

But eMarketer’s report predicts that 36 million users will use mobile video by 2009, although the majority of these will be casual viewers, unwilling to subscribe to a paid service. This means that a large portion of the income from mobile video could ultimately come from advertising, a sector that has so far failed to take off.

It appears that, before wireless TV and video services can really take off, carriers will need to interest marketers in mobile advertising opportunities.

Marketers are gradually being convinced that mobile advertising is solid, but there are still many hurdles to be overcome. Advertiser enthusiasm and consumer acceptance of mobile marketing will need to gradually reinforce each other, which will gradually boost the availability of TV and video services for cell phones.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock