Travelling Soldier

October 1, 2006

Ads are going to be streaming on your Mobile

Filed under: Posts, MBA

The reason is simple: Carriers need the revenues. As mobile operators merge, produce less-expensive phones, build faster networks and, due to competition, charge less for voice service, the pressure on their bottom lines increases. They have to begin exploring new ways to generate revenue, and advertising-subsidized content is hard to overlook.

Informa estimates that worldwide advertising spending on mobile devices will rise from less than a billion this year to $11.35 billion in 2011.

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Informa is also forecasting that there will be over 2.1 billion mobile subscribers worldwide by the end of 2006, rising to nearly four billion in 2011.

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