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Mobile Services to Capture More Advertising Revenue in Emerging Markets, Finds Pyramid Research

Posted on: Thursday, 5 March 2009, 12:14 CST

CAMBRIDGE, Mass., March 5 /PRNewswire/ -- As market penetration rates for mobile services continue to soar in emerging markets, advertisers are expected to dramatically increase their spending on "third-screen" ad campaigns targeted specifically to users of mobile data services, providing a potentially huge new revenue stream for operators of mobile networks, according to the latest report by Pyramid Research (www.pyr.com), the telecom research arm of the Light Reading Communications Network (www.lightreading.com).

"Mobile Advertising in Emerging Markets" examines mobile advertising initiatives and the revenue potential in emerging markets, with a particular emphasis on Brazil, China, Indonesia, Mexico, Romania, Russia, South Africa, and Turkey. This 84-page report puts Pyramid Research's findings in context by making comparisons with global trends and developed markets, such as the U.S. and the U.K. Download an excerpt of this report here: http://www.pyramidresearch.com/downloads.htm?id=1&sc=PR030509_MOBAD

Pyramid predicts that mobile advertising will boost mobile data service revenues by 10 percent within the next five years, as mobile service adoption rates grow worldwide. Mobile data services are expected to account for more than 33 percent of operators' service revenues at the global level by 2013, making any driver of this market a strategic component.

The expected growth in mobile data subscriptions will make mobile advertising a robust growth area despite an expected overall downturn in advertising spending over the next two years, notes Jan Ten Sythoff, manager of Mobile Content at Pyramid Research and co-author of the report. "Fixed-line Internet and mobile platforms will take market share away from traditional formats in the short term and grow in line with economic recovery from 2011 onward," says Sythoff. "Mobile and Internet platforms combined will account for roughly 12 percent of overall advertising spending in emerging markets and 30 percent in developed countries by 2013."

The Pyramid report identifies eight developing markets in which mobile advertising initiatives are gaining ground. Combined, these markets will account for more than 35 percent of mobile subscriptions worldwide by 2013. "South Africa and Indonesia stand out as markets where the mobile sector's share of overall advertising spending will surpass that of the Internet medium as early as 2009," says Sythoff.

"The development of mobile advertising is favorably affected by mobile networks' evolution to 3G, but even basic services, such as sponsored messaging and alert systems, are enabling brands to reach a wider audience and make the most of the mobile channel. For example, SMS-based approaches can help companies reach more than 60 percent of the mobile audience across emerging markets immediately and close to all subscribers in five years."

"Mobile Advertising in Emerging Markets" is part of Pyramid's research report series. A blend of primary research and qualitative analysis, Pyramid's research reports offer comprehensive coverage of the fixed and mobile communications space and enable those in the communications industry to stay ahead of changing market dynamics.

Download an excerpt of this report here: http://www.pyramidresearch.com/downloads.htm?id=1&sc=PR030509_MOBAD

Mobile Advertising in Emerging Markets is priced at $2490 and can be purchased online here (http://www.pyramidresearch.com/store/RPMOBILEADVERTISING0902.htm?sc=PR030509_MOBAD) or through Dave Williams via email at dave.williams@pyr.com or telephone at +1 858-485-8870.

About Pyramid Research

Pyramid Research (http://www.pyr.com) offers practical solutions to the complex demands our clients face in the telecommunications, media, and technology industries. Our analysis is uniquely positioned at the intersection of emerging markets, emerging technologies, and emerging business models, powered by the bottom-up methodology of our market forecasts for over 100 countries -- a distinction that has remained unmatched for over 25 years. As the telecom research arm of the Light Reading Communications Network, Pyramid Research works with Heavy Reading, providing the communications industry's most comprehensive market data, trusted research, and insightful technology analysis.

About Light Reading

Founded in 2000, Light Reading (http://www.lightreading.com) is the leading online media, research, and focused event company serving the $3 trillion worldwide communications market. Lightreading.com is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading's research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as focused one-day events tailored for cable, mobile, and wireline executives. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.

About TechWeb

TechWeb (http://techweb.com/aboutus), the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events, Interop, Web 2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street & Technology magazines. TechWeb also provides end-to-end services including next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

*13.3 million business decision-makers: based on number of monthly connections

About United Business Media Limited (http://www.unitedbusinessmedia.com)

United Business Media Limited (UBM) is a global media and marketing services company that informs markets and brings the world's buyers and sellers together at events, online, in print, and with the information they need to do business successfully. UBM serves professional and commercial communities, from IT professionals to doctors, from journalists to jewelry dealers, from farmers to pharmacists around the world. UBM employs more than 6,500 people in more than 30 countries. UBM's businesses operating in the US include CMPMedica, Commonwealth Business Media, Everything Channel, PR Newswire, RISI, TechInsights, TechWeb and Think Services. UBM is listed on the London Stock Exchange (UBM.L) and has a market capitalization of $2.5 billion.

Press contact: Jennifer Baker +1 617 871-1910 jbaker@pyr.com

SOURCE Pyramid Research

Source: PR Newswire

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