Mobile video is rapidly becoming a significant new media distribution platform, with nearly 200 percent growth in first quarter US revenues compared with the year-earlier period, and more than 150 percent growth in the number of subscribers in the same period, according to Telephia, reports MarketingCharts.

Mobile video revenues in the U.S. totaled $146 million in Q1 2007, growing 198 percent year over year, while the number of mobile video subscribers reached 8.4 million (see table 1); moreover, mobile video penetration more than doubled since 1Q06, to nearly 4 percent of all mobile subscribers.

Telephia says its data shows that mobile video audiences are primed for seeing ads on their phones.

Video consumers had the highest recall of viewing ads on their phones as compared with all data service consumers, with 55 percent saying they recalled viewing a mobile ad in the previous 30 days (see table 2).

That's nearly three times the recall rate for mobile data consumers in general. Moreover, 41 percent of mobile video consumers recently responded in some way to an ad.

"Consumers are used to seeing commercials on their TV at home, which has created a learned behavior that is transferring to mobile TV and making advertising more acceptable," said Kanishka Agarwal, vice-president of mobile media, Telephia.

"Nearly half of mobile video users are willing to view ads on their phones in exchange for something, translating into a compelling opportunity for ad-supported mobile content where marketers can target customers with relevant advertising."