Plan Ahead, Mobile Marketers: Why It’s Now or Never to Map Out 2007 Mobile Ad Budgets


The mobile internet has matured. Timing, pricing, and new ROI models are allowing everyone from Big Brands to Startups get on board and leverage the explosion in consumer usage of the mobile Internet.

In line with the mobile Internet’s surge in popularity comes new research from Jupiter Research which predicts that total advertiser spending on mobile messaging and display advertising will grow from $1.4 billion in 2006 to $2.9 billion in 2011.

Specifically, Jupiter analyst Julie Ask states that over the next 12 months, online advertisers will use mobile as part of their marketing mix and even more importantly, 22 percent of U.S. online advertisers are engaged in mobile marketing.


Advertising on the mobile Internet is already well established. Mobile ad networks are serving more than 750 million pages per month on a worldwide basis. And worldwide really means worldwide — the US is not lagging behind Europe and Asia. In fact, more than 50% of the pages reside on U.S. mobile Internet sites.


Right now, mobile Internet advertising networks offer very affordable CPM rates as well as pay-per click models that only previously existed on the web. In addition, mobile internet advertising is seen only by mobile internet users — so every click is targeted. Experts predict that as more and more advertisers wake up to the mobile Internet, rates will increase — so smart advertisers are locking down their rates now.

Pay-per-click and CPM models are the reason that mobile advertising networks including AdMob have taken off, since marketers who were previously frustrated by gambling $100,000 of their discretionary budgets on unfocused mobile advertising can now run a focused mobile ad campaign for budgets under $100. Akin to a Google AdWords for mobile, any marketer can now build a mobile audience within their own budget, and zero in on targeting countries, handsets, and even types of sites.

The market is definitely evolving.


Today, typical mobile web advertisements are generating almost a tenfold increase in conversion rates vs. traditional online advertising. Mobile browsers are fascinated with the simplicity of many mobile websites and are often interested in relevant ads, even though they take up much less real estate on the screen (in percentage times and physical size alike) in comparison to skyscraper and banner PC ads. Screen size isn’t stopping the average mobile web browser from clicking on an average of 3% of ads served, clearly presenting an opportunity for marketers.

Marketers have grasped the value of on-the-go commerce opportunity. Recently the mobile web domain sold for $200,000.

Whether or not .mobi will be the standard for mobile website domains, marketers are hedging their bets. According to the industry specialists, individuals and businesses in more than 100 countries registered more than 200,000 .mobi domains in the first two months of the domain’s general availability, demonstrating a strong demand for the next evolution of the Internet. In contrast, it took ten years for the general public to register 100,000 PC-based domain names in the early days of the PC-based Internet.



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