Wireless phone advertising has promise

September 22, 2005

Though consumers aren't wildly enthusiastic about mobile advertising, about 20% of wireless phone users in a recent survey would find some form of advertising on their mobile handsets to be acceptable, reports In-Stat. Of that group, roughly half were open to having advertisers subsidize the cost of premium services such as directory assistance, ringtones and messaging, the high-tech market research firm says. Location-based ads and opt-in advertising will also find some acceptance, the survey revealed.

Wireless users were most favorable toward "opt-in" advertising. Over a third of respondents indicated they would be willing to provide their carrier or advertisers with personal preferences in order to receive targeted advertising messages. In addition, nearly a third of respondents cited high prices as a reason they did not use premium services, making them ripe targets for advertisers who wish to subsidize the cost of picture messaging, ringtones, directory assistance and other premium services.

A recent report by In-Stat found the following:

- The most important categories of brands for consumers were musical artists (most spending was in the form of ringtones) and the general category of sports.

- Survey respondents indicate an increasing acceptance of the mobile handset as a device used to access voice and non-voice information services.

- The survey found that 40% of mobile users are paying for non-voice communication services such as text messaging, picture messaging and mobile email as part of their wireless phone service.

The report, "Mobile Advertising, Brands and Affinity Marketing", covers the US market for mobile phone advertising and related services. It includes the results of a June 2005 survey of mobile phone users concerning their use of, and willingness to accept, mobile advertising and advertising-supported premium services. Data includes demographic breakdowns of these areas.