Ad-funded Mobile Entertainment
According to a survey of members conducted by the Mobile Entertainment Forum (MEF), the mobile entertainment industry is overwhelmingly enthusiastic about introducing advertising as another revenue stream for mobile content, with mobile TV/video deemed the most suitable content for ads.The consultation is the first step in a new MEF initiative on ad-funded mobile entertainment, led by MEF members Alcatel, Fathom Partners and Upsteed.
Eighty-one percent of executives feel advertising is a growth opportunity for the industry - only 19% said it was disruptive, while none thought it was a threat that would decrease revenues.
Ad-funded mobile entertainment is especially good news for content providers (including both traditional media owners and mobile content providers), whom the respondents expect to claim the largest share (42%) of revenues from mobile advertising. Operators are expected to get 27%, according to the respondents.
It should also be encouraging news for consumers - 81% of respondents expect successful advertising models to either cut mobile content prices or provide free mobile content.
MEF Executive Director Rimma Perelmuter commented, "We are encouraged by the industry's enthusiasm for identifying ad-funded business models which will support the uptake of mobile entertainment. At the same time, the consultation highlights the clear need for cross-industry collaboration to tap into this new revenue stream."
"The advertising inventory that mobile entertainment has the potential to offer is extremely interesting to advertisers. With the right systems in place, consumers could be targeted very precisely and the mobile phone also provides a response path. We believe that these benefits will drive significant ad-spend in future - and that's good news for end-users since advertising will cut prices for mobile entertainment," says Jessica Sandin, Head of Mobile Practice at Fathom Partners."
Posted to the site on 7th April 2006
