U.S. Mobile Media Advertising Behind Japan and Korea, but Increasing

By May 02, 2008

A Screen Digest report forecasts that while mobile advertising spending in the U.S. will grow to over $700 million by 2012, the U.S. will still spend far less than Japan and Korea in 2008.   In the April 2008 report "Mobile Media

Advertising Opportunities: The Market for Advertising on TV, Video and Games", media analyst Screen Digest expects Americans will spend more than $700 million by 2012, up from nearly $88 million in 2008, on mobile media advertising.  Mobile markets in Japan and South Korea, however, will achieve higher ad revenues this year for mobile TV, gaming, user-generated content and video on demand, far more than the U.S. One reason is that "data pricing structures, handset and mobile web usability, content quality and the lack of audience metrics to measure effectiveness are preventing mobile advertising from reaching its market potential," said Julien Theys, who created the report for Screen Digest. "Although we expect these hurdles to be overcome in the coming years, mobile media advertising will have to compete with search, display, messaging advertising as well as many innovative uses of mobile in marketing campaigns," Theys said. Another reason U.S. mobile media advertising is not being adopted faster is that a paid subscription is generally required for this type of content. Japan and South Korea, meanwhile, both have “free-to-air mobile TV broadcasts” as purported by eMarketer.com. The potential for mobile advertising revenue growth exists in the U.S., especially with the millions of iPhones and other gadgets currently engaging Americans. Nonetheless, the process will remain slow as the technology is improved upon. "There remain clear growing pains ahead for mobile advertising," said John du Pre Gauntt, senior analyst at eMarketer. "There are sticky disagreements concerning mobile customer information among mobile operators, Web portals, brands and agencies. "All agree that better contextual targeting (for example, location, time, history) is a prerequisite for mobile advertising to succeed. But how to get there in the short-term remains an open question." By Kathleen Clark   FEEDBACK For comments on this article, email us at editorial@atelier-us.com

Legal mentions © L’Atelier BNP Paribas