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Mobile Ad Market to Grow, Despite Consumer Concern

Wireless ad spending will surge in the next five years, but consumers will likely put up resistance to this form of marketing, a new study by Jupiter Research predicts.

The Jupiter study predicts that wireless ad spending (SMS and display) will reach $2.1 billion by 2011, up 50 percent from present levels - mainly driven by the mass-market penetration of cell phones, ClickZ reports. Jupiter also forecasts that mobile display advertising will grow from $56 million in 2006 to $224 million in 2011; an increase in supply is expected to result in average CPM rates' declining from $41 in 2006 to $23 in 2011.

Among the 78 percent of mobile subscribers who are aware of commercial SMS messages, 28 percent are concerned about getting charged for them and 21 percent are concerned about receiving SMS spam. Consumers who are unfamiliar with commercial text messages are 28 percent more likely to say that they never want to receive one, Jupiter said.

The constant interruptions that would likely come from mobile marketing, as well as the issues of costs and privacy, will also present challenges, according to Jupiter, which suggests that carriers and advertisers create campaigns to facilitate consumers' openness to receiving ads.

Related Topics

online ad market
wireless marketing
ad buying & planning
signs of what's to come
alternative marketing
media convergence
telecom
ad targeting

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