Carriers Use Mobile Advertising to Supplement Wireless Revenues

7:00 am on November 11, 2006 | Category: Business, Cell Phones, Telecom Services, Wireless

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As cell phone carriers seek to supplement revenue from wireless services, advertising is becoming an increasingly familiar sight to the average North American mobile phone user.

One popular MVNO, Virgin Mobile USA, has even gone so far as offering users the opportunity to “earn” free airtime for viewing advertisements, and replying to them via SMS. It remains to be seen whether this “get paid to read” business model (long popular with email) will prove successful in the world of wireless, but there is little doubt that advertising of some kind will be commonplace on the third screen in the near future.

Some analysts predict that the annual mobile advertising market could be as big as $1.3 billion by 2009, and almost all agree that the sector is in for significant growth in the years to come.

“This is very likely to happen if you look at the history of other media,” says Lewis Ward, an IDC research manager who specializes in wireless communications.

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    Edited by Jeremy Maddock