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Mobile Ads Not Showing the Money (Yet)

Written on
May 22nd 2008
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by Kathleen  |
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canspam2.jpgADOTAS – Good luck making bank on mobile advertising any time soon. That’s the word from advertising and telecom executives, at least. Predictions tossed around at the Reuters Technology, Media and Telecoms summit on mobile advertising weren’t all dire though: the potential is there to garner significant revenue and use mobile phones as a powerful targeting platform – but the fulfillment of the potential is years away.

Executives are watching traditional voice revenue take a nosedive and they do see mobile advertising as a way to drag them into the black as brands come up with increasingly sophisticated targeting methods, Reuters reports.

“If you look at the long horizon, I think that advertising on mobile phones is going to be very, very significant, simply because there are going to be 5 billion mobile phones and they are always with you,” Hamid Akhavan, the head of Germany’s T-Mobile, told Reuters.

Some executives fret about the “spam” aspect of mobile advertising – even as they venture into the space. “A cell phone is an intimate device,” Virgin Mobile’s chief executive Dan Schulman told the wire service. “We pay a service provider to have that service and we don’t want to be spammed, quite frankly.” Virgin is currently using AOL’s mobile ad system exclusively to send banner ads to people who use their phones to surf the Web.



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