For example, approximately 15 percent of U.S. mobile subscribers use Mobile Internet (WAP) regularly to access information through their mobile devices thus opening up new avenues for advertising. Similarly, mobile operators are reporting considerable uptake in usage of mobile video services that can include advertising messages. Off-deck mobile content market is playing an important role in demonstrating the possibilities and proving the business models.
The biggest challenge in this market is to present mobile advertising to consumers in an unobtrusive manner. Unlike the online and the broadcast world, there is very little free content available for mobile phones. Unless some clearly perceived value is offered to the subscribers, mobile advertising may not be looked upon too favorably. In addition, limited screen sizes and slower network speeds pose hurdles to placing mobile ads on the phones in an unobtrusive manner.
"The additional challenge is to deliver the advertising message in the most effective manner and according to the device capability and access options and a common and consistent reporting that spans multiple channels," says Gandhi. "The delivery of advertising message along with premium content on the same screen presents a challenge to the industry participants, but full-screen ads and paid listings are some options that offer a possible solution."
U.S. mobile operators are expected to work with partners to ad-enable their own inventory as well as third-party inventory listed on-deck. This ad inventory is likely to be sold directly by the mobile operators as well as by their partners, which will lead to pooling of multiple resources and a better penetration into the advertiser segment. As a result, adoption of mobile advertising by leading U.S. mobile operators is a significant development that will be critical to the success of the entire industry.
