Advertising Revenues on Mobile Still Remain Low as Usage Grows
November 30th, 2009
Mobile broadband usage has been increasing day by day. This makes the medium an ideal one for the promotion of advertising. However, if industry figures are anything to go by, the channel is yet to pick up the kind of advertising revenues it has the potential to generate.
Every day newspapers carry reports of increasing popularity of mobile broadband networks. The usage rate has gone up to such an extent that analysts are now concerned if the current network capacities will be sufficient to bear the load. Recent predictions indicate a forty-fold increase in mobile broadband usage by 2017. Other analysts talk of exponential growth, while some have raised the fears of network chaos as utilization levels reach saturation, causing the networks to choke.
It is also believed that if network chaos happens before new technology arrives, users will face considerable problems with their networks.
With growth levels of usage, the medium should be there on every marketer’s radar. The channel has a major advantage in terms of its reach, and it provides a cost-effective medium to spread advertising messages. Some of the service providers have experimented with putting up and renting out advertising space on their login page, which subscribers can see the moment they connect to the network. However, the returns so far have not been anywhere close to expectations.
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