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Mobile Ad Spending to Double by 2011, JupiterResearch Predicts

6:00 am on November 20, 2006 | Category: Business, Corporate, Wireless

Advertisers will more than double their mobile advertising budgets over the next five years, according to a recent report by JupiterResearch.

Spending on wireless messaging and display ads is expected to reach $2.9 billion in 2011, compared to a projected $1.4 billion this year, the research firm said.

So far, about 22% of companies that advertise online have also tried mobile marketing. Early adopters of this marketing method include wireless providers, media enterprises, and companies within the automotive, financial services, food services, and consumer packaged goods industries. The ads tend to be targeted towards a younger audience, although this is by no means a rule.

A recent study by Harris Interactive found that about 25% of U.S. cell phone users would be willing to view ads on their phones, in exchange for free mobile software, and 7% would be open to receiving promotional text messages, so long as they were relevant.

“This 7 percent coalition of the willing represents a huge market given the fact that there over 200 million cell phones in the United States,” commented Harris Interactive vice president, Joe Porus, in a statement.

Porus goes on to warn, however, that carriers need to balance their advertising efforts, so as to avoid annoying, and ultimately driving away paying subscribers.

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