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Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

April 10, 2007 at 10:34 AM

Mobile marketing big bucks

By the end of the year, the worldwide market for mobile marketing and advertising — something in its infancy — will be worth about $3 billion, according to a study released by ABI Research today.

In this story, I outlined how U.S. carriers have just begun to experiment with what mobile advertising may be.

I quote a Jupiter analyst as saying he estimated the market to be worth $1.3 billion last year.

ABI Research further projects that by 2011, the market will reach $19 billion, including mobile search and video advertising. (Here’s what some of the major mobile search players had to say at CTIA, the industry trade show two weeks ago.)

ABI Research said it expects some of the highest levels of spending to come in broadcast mobile video. By 2011, it projects video ads to surpass text messages as a source of mobile marketing spending, in part because of the current growth of mobile broadcast networks. That alone could hit $9 billion in 2011.

With such big dollars at stake, the money is enticing, but Judith Rosall, a principal analyst at ABI, offers this warning:

Mobile advertising and marketing is a risky, albeit enticing business. Unlike the PC, a mobile device offers a uniquely personalized communications channel. Carriers worldwide have quite a bit of information about their end-users: name, sex, age, geographical location. And depending on the handset and plan their users have purchased, the carriers probably also know something about their economic status and credit record. But they don’t like to release this information to third parties because they want to protect and control their customers.

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