iPhone to trigger mobile ad explosion

The rapid uptake of new 3G handsets such as the Apple iPhone could be set to drive a massive 300% increase in mobile advertising revenue in Australia next year.

The rapid uptake of new 3G handsets such as the Apple iPhone could be set to drive a massive 300% increase in mobile advertising revenue in Australia next year.

Technology analysts Frost & Sullivan predicts the $2.5 million Australian advertising market will grow rapidly as consumers embrace increasingly cost effective 3G mobile data services.

The success of early mobile advertising campaigns and improving quality of mobile content becoming available will help bring the customers to support increased advertising revenue.

A proliferation in the number of people in Australia with 3G handsets will also help, with the combination of new technology – led by the 3G iPhone – and natural attrition as older phones are replaced behind the change.

These factors combined will mean the current six million 3G handset subscribers in Australia is likely to take off over the next two years, according to Frost & Sullivan.

The firm says that 2007 “marked a watershed year in mobile advertising with the medium achieving a successful proof-of-concept stage.

“Indeed, advertisers which have adopted mobile advertising show a clear propensity to increase their spend with the medium. They are organisations which typically have large advertising budgets overall and have been wowed by the rich campaign ROI metrics available from mobile.

“At the same time,” senior research manager Darryl Nelson says, “they typically have a strong commitment to digital advertising and are now looking for even more sophisticated mobile inventory.”

Vodafone was the market leader in 2007 for mobile display and search advertising, capturing nearly 40% of Australian market share.

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