For mobile advertising gain a foothold, it needs to overcome the annoyance factor and the perception of unsolicited content, according to Frost and Sullivan.
In its report “Sizing-up the Mobile Advertising Opportunity in Asia-Pacific,” Frost foundthat mobile advertising across 13 Asia-Pac countries pulled in revenue of $807.8 million in 2007 and projected that figure to grow 37.8% to $4 billion by 2012.
Although mobile advertising is expected to account for only 5.8% of the total regional mobile data revenue by 2012, it will account for nearly 3% of the total area advertising expenditures, noted Frost.
“The struggle is proper monetization and establishing a profitable value chain for all players within the mobile eco-system including operators, ad agencies, content providers, technology or solutions vendors, and even subscribers,” said Frost & Sullivan industry analyst Jeff Teh.
The notes a further challenge is that mobile advertisements need to deliver value and be presented in an unobtrusive manner to subscribers.
“As mobile users pay for services, they are unlikely to be receptive to ads and promotions unless there is a perceived value from receiving such ads,” said The, in a statement. “Currently however, there remains very little free content available over mobile unlike over the Internet or in broadcast.”
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