Mobile ad market rings true
(Shanghai Daily)
Updated: 2006-08-29 10:09
Mobile phone advertising in China will generate nearly 500 million yuan
(US$62.5 million) in revenue this year - double last year's market value,
according to an industry report.
The market, which includes ads delivered to mobile users through short
messages or integrated in handsets, will continue to grow rapidly in the next
four years, with a compound annual growth rate of 38 percent, thanks to the
large number of mobile users, said iResearch, a leading research company in
China.
"The market potential for mobile phone ads is huge, as advertisers are still
trying out new publicity methods and their investment is still limited," said
Hou Tao, vice supervisor of iResearch.
The market value is expected to rise to 710 million yuan (US$89.10 million)
next year and hit 1.8 billion yuan in 2010. Mobile phone ads come in the form of
short messages, videos and pictures sent by the network operator or integrated
in the handsets during production.
The ads work best for wireless products such as new features from mobile
service providers and mobile network operators, and digital products. The target
audience is handset users between 18 and 28 years old, the report said.
The company's research found that 91.3 percent of mobile users have received
ads in short messages and nearly 40 percent of them said they are willing to try
the advertised products or services.
By the end of last year, China has 390 million mobile phone users and more
than 80,000 independent Wireless Application Protocol service providers such as
KongZhong Corporation, whose Kong.net Website had more than 20 million daily
visits on average.
(For more biz stories, please visit Industry Updates)
|
