Keith Vera
Account Manager
Mobile advertising is the next generation of online advertising that will eventually rival the search advertising market. According to EMarketer Inc., the mobile advertising market is predicted to reach $16.2 billion globally by 2011. However unlike current online advertising and unfortunately for the search giants, there are a few hurdles that may keep mobile advertising from the mainstream in the US for quite some time.
US wireless carriers are presenting a significant obstacle for Google, Yahoo, and Microsoft, as they try to tap into the growing mobile advertising market. Currently, mobile web access is very restricted in the US due to high subscription costs from service providers. Wireless carriers are wary to give up any control over their mobile phone users, and are approaching this emerging market very carefully as to not lose out on new revenue streams. The main concern for US wireless carriers is that inexpensive web access would allow mobile search users to go directly to Google or Yahoo mobile, avoiding their own revenue-generating mobile services.
Of course there are other small obstacles, such as a clumsy mobile experience from most presently available mobile-ready phones; however the main mobile advertising barrier remains between US wireless carriers and the search engines.
So what’s your opinion? Will the search giants come to an agreement with wireless carries to bring mobile advertising to the mainstream US in the near future, or will the two groups have a much longer wait to capitalize on this up-and-coming revenue stream?