Mobile Advertising Growth Stunted by Mobile Carriers

Successfully targeted and privacy-centric mobile advertising, while inevitable, could very well be another 18 to 24 months away. Because mobile carriers are the keepers of subscriber information and behavioral data, it falls on the carriers to provide publishers and advertisers with information that enables users to be targeted in the most effective and nonintrusive way. In addition to the targeting data hurdle, publishers and advertisers must not think of mobile as merely an extension of Internet advertising (just as Internet is not merely an extension of print or video an extension of television).

Though the sizes of mobile screens may be getting larger, interactions on mobile devices remain brief and the opportunities to deliver nonintrusive ads may seem scarce. But the inherent long-term opportunities make it imperative that advertisers and publishers explore mobile media beyond the mobile web.

Tom Burgess, founder and CEO of Third Screen Media, (acquired last year by AOL Platform-A) dedicated to enabling advertising on mobile devices, always knew advertising would make its way to the mobile medium. “If you look at every other medium -- be it print, video, broadcast, Internet -- the fact is those media generate 50 percent of revenue from subscriber fees but the other 50 percent of the revenue comes from advertising,” says Burgess.

Mobile carriers had originally found the concept of mobile advertising absurd, Burgess acknowledges. In 2004, the beginning stages of Third Screen Media, mobile carriers were hesitant to participate. Burgess’ initial strategy was to make arrangements with carriers but they literally laughed at the prospect.

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This post originally appeared at JackMyers.com.

Comments

[Cathexis]

That crosses the line -- mobile phones aren't useful enough for me to be subjected to yet one more stream of people trying to sell me crap. I'll just go back to landline and people can contact me when I am available to be contacted.

[thinker&reader]

No offense, but if I have to deal with commercials or advertising on my cell, then I'm canceling my service. With the fees for cell service to begin with and add potential overages and cancellation fees (regardless of what the courts say, they will find a way to charge the 'fee'), I don't want advertising on my phone for anything. I already get spam text messages and that is infuriating in ways I can't describe. Greed needs to take a back seat to actual services- I'm tired of greedy jerks trying to figure out how to get me to spend the money I'm not spending on gas on them... On the other hand, I would like to see commercials and advertising in general become a little more intelligent if I have to see them at all... But thanks to Tivo and DVRs- I can skip them to my heart's content, and do- constantly!