Five predictions on mobile advertising

1. Ad-funded business models will become a new paradigm in the discount MVNO segment of the mobile communications market. Price sensitive young consumers with low income will be most inclined to accept ads in exchange for voice minutes or text messages. Incidentally this group is also highly interesting for major advertisers.

2. Smartphones will boost traditional internet advertising revenues. A significant proportion of mobile advertising revenues will actually derive from mobile internet users accessing conventional web sites. Internet advertisers are going to need to adapt by creating campaigns that work with multiple devices and display sizes.

3. Idle screen will eventually become the largest mobile advertising channel. Virtually all consumers carry a mobile handset wherever they go and check out things on the display many times per day. Embedded advertising on the idle-screen and in the user interface would provide an unmatched exposure.

4. The current economic downturn will hold back revenue growth, but not innovation. New unproven channels such as mobile media will see a negative effect from cutbacks in marketing budgets. However there is still going to be much innovation in the mobile space that will create new channels for advertisers to reach out to consumers.

5. Size will matter in the race for market leadership. Financial strength will be especially important if the market develops more slowly than previously anticipated. Existing digital and mobile industry players will have a major advantage over venture capital funded start-ups, many of which will find it difficult to attract financing.

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