Visiongain, a media research company, announced the release of "Mobile advertising and marketing: Market analysis and forecasts 2006-2011," a report that charts the mobile ad market in the United States and Europe.
The report forecasts $1 billion plus growth in the European and U.S. mobile advertising industry by 2009 with emerging sophisticated technology, such as 3G technology, spurring the growth.
"The mobile phone is a very personal device that most people carry with them 24 hours a day. It affords advertisers an opportunity to present very targeted and time-sensitive information that is of interest to the user. That is a key advantage. With customer permission, advertisers can collect valuable demographic and behavioral information to hone the marketing message," says Visiongain analyst and the report's lead author Marcia Kaplan.
As major brands shift from simple SMS mobile marketing to more sophisticated multimedia advertising, Visiongain expects mobile advertising to become mainstream by 2008.
"The Visiongain report reinforces the belief by many interactive marketers that we are heading into the next-generation of advertising-- mobile marketing 2.0," says Joyce Schwarz, iMedia contributor.
Challenges include creating the best business models and innovative advertising campaigns because, according to Schwarz, users expect subsidized services and content that's at least partially underwritten by ads.