How Will Advertising Influence Mobile Web Growth?

 

Advertising will clearly play a major role in the growth of the mobile web, both in terms of consumer demand and in terms of who are the competitive suppliers. Targeted advertisers like Phorm have already helped businesses advertise on the Internet, and it won’t be long before the mobile web starts growing in advertisers as well. Some are very bullish about the likely growth. For example in an upbeat article in the Bangkok Post, Jeff Teh, a senior research analyst at Frost & Sullivan, is quoted as follows, ”Mobile advertising has the potential to become more successful than internet advertising as the delivery medium is more immediate and personal. ‘The mobile audience in Asia is indeed larger and more immediately reachable than the online users, and with the increasing ubiquity of Internet access over mobile handsets, the web browsing experience is available to a large new audience.”

On the other hand as eMarketer points out, mobile users are easy to annoy and don’t want mobile advertising (hat-tip to Kate Trgovac). According to a study by Web Visible and Nielsen//NetRatings, nearly three-quarters of US Internet users think they are overexposed to advertising. That perception is carrying over into mobile marketing. Almost two-thirds of respondents to a Maritz Research survey of Generation Y consumers said they were unlikely or definitely unlikely to subscribe to texted retail offers sent to their handsets.

This may explain why Bena Roberts finds that Google Adsense for the mobile web does not seem to be attracting advertisers. She also points out that as of now Google is being somewhat cavalier in the way it treats its AdSense mobile advertisers. Thanks to William Slawski for bringing my attention to this expert blogger.

The present structure for mobile advertising does not seem to satisfy any of the stakeholders. Forbes has an interesting take on this in asking the question, “Will Google Crush The iPhone?” The article suggests that it is dissatisfaction with the ability of today’s phones to carry targeted advertising–rather than a thirst for software-licensing revenues or desire to build cool gadgets–that is pushing Google to take on the mobile-phone market according to industry sources. Google’s mission now is clearly to be a publisher of advertising. With its own Gphone, it will clearly be in a position to maximize revenues from mobile advertising.

 

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Comments

How Will Advertising Influence Mobile Web Growth? — 19 Comments

  1. I’m not looking forward to a development in mobile ads. As long as they stay out of the way (like Google text ads), it won’t be so bad.

    Looking forward to seeing increased development of Google in this direction.

  2. I was actually talking on my channel a few weeks ago that a serious internet marketer needs to start gaining as much experience as possible on the mobile technology and to make sure their sites are compliant as no doubt the market share will keep growing and not the same competition as our traditional virtual world. THose of us that get a jump on this have a serious opportunity to cash out on it.

  3. Speaking of mobile advertising. My country, Malaysia is doing something called mobile voucher. Where some companies are gathered to provide discount for certain products and services when people shown their SMS voucher in their cellphone. It’s a pretty good marketing strategy though.

  4. Great article. I think we will see a lot from Google and the GPhone over the next few years. However, I think the Apple is off to a fine start and the momentum will certainly be in their favor for the short term.

  5. I have a feeling that advertising will really contribute to the growth of the mobile web. I am not sure if adverising will necessarily be a good thing but more money means expansion.

  6. You know I’ve thought about how the world of mobile advertising would evolve, and even if I would like to receive ads to my mobile devices (I don’t think I would)… I have to disagree. I can’t imagine mobile advertising being bigger than Internet advertising. In fact, I believe Internet advertising will be the largest medium in the not too distant future.

  7. I’m one of those that feels overexposed to advertising already. I would never respond to a mobile ad. That is almost an invasion of privacy. If you sit down at your TV or computer you know what to expect and that there will be ads. But to have ads come through on something that is in your pocket like a phone is a bit too much.

  8. Mobile Advertising will be the wave of the future for guys like us. With Mobile technology advancing it will be a great place to make money.

  9. I have to say I’m all for using mobile advertising to drive qualified traffic, but I haven’t gotten my head around how best to implement it for ‘real’ markets.

    Seems like a good solution for targeting a younger crowd…

  10. this is the time to invest in .mobi domains.

    it’s gonna be the next “i can’t understand how we could live our lives without cellphones”

  11. I'm really not convinced that .mobi domains are worth anything. Mobile devices are too small to browse the web in an enjoyable way, and if they are any bigger then they are not a good mobile device. Certainly some things that are more applicable to mobile use will take off, but I don't expect the big land rush that some people are predicting.

  12. Solid post. I just dug through the rest of your blog there is some good stuff in here.

    Advertising will play major role in mobile web growth and I feel its impact is vital.

    I just added this to my newsreader. You should check my blog out sometime too – we seem to have simliar interests.

    -Freddie Laker
    Digital Strategist / TakeMeToYourLeader.com

  13. I don’t think that the mobile advertising module is really all that effective in terms of actually making money. I mean it’s good for companies who want to get their name out there, but not so good for actually advertising a product or service and expecting to make a lead / commission off the click. Great Post by the way, I haven’t read anything on Mobile Web Growth yet…

  14. Mobile advertising is gaining ground. Almost everyone owns a mobile phone. Now if mobile contents are good (and not solely SMS), it could be a good medium for advertising. I think MMS has a good potential where ad insertion can be considered.

  15. That’s a great point to bring up. There are certainly a lot of details like that to take into consideration. I offer the thoughts above as general inspiration but clearly there are questions like the one you bring up where the most important thing will be working in honest good faith. I don’t know if best practices have emerged around things like that, but I am sure that your job is clearly identified as a fair game if you are commenting as an individual.