The market for advertising on mobile phones will be worth more than £6bn a year within five years, according to industry experts Informa Telecoms & Media.
Informa’s report says consumers will be persuaded to accept ads on their mobiles with the offer of free content such as TV channels, games and music.
The company predicts the market will be worth $11.3bn (£5.9bn) by 2011 – a significant increase on the $871m (£457.3m) forecast for 2006. However, that will still only represent just 2% of worldwide advertising spend.
Mobile search advertising and display ads on mobile web pages will account for about $3.1bn (£1.6bn) by 2011, with text and picture messaging advertising worth $2.7bn (£1.4bn), according to Informa. But it says advertising over mobile TV will be the most lucrative and will be worth almost $4.4bn (£2.3bn) by 2011.
The author of the Informa report, Nicky Walton, says consumer acceptance is key to advertising on mobiles. At present, most mobile advertising is via SMS and MMS. Walton says messaging accounts for 72% of the revenues set to be generated this year, but that figure will fall to 24% by 2011 as mobile TV and WAP advertising take over.