Thursday, May 31, 2007

Mobile Advertising Market Expecting more Mergers

The global mobile advertising market is estimated to reach US$9.5 billion in gross revenues by 2011, according to the just released report from EJL Wireless Research. The United States mobile advertising market is expected to reach US$2.3 billion, roughly 25% of the overall market by 2011.

The largest segment is expected to be mobile couponing reaching almost USD $4 billion by 2011 or 42% of the overall market. "We believe that the recent transaction involving Third Screen Media and AOL is the tip of the M&A iceberg for the mobile advertising industry and anticipate and recommend a significant consolidation of the industry to create market efficiencies that will eventually lead to explosive growth" says EJL Wireless founder and President, Earl Lum.

"However we note that issues regarding 3G services, data plan pricing, ARPU, personal behavior and negative advertising stigma remain significant market barriers for the mobile advertising industry."

- Alan Johnston, Cellular-News

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