Cellphone Marketing Thellows Thedvertisers The Path Way To Your Mobile Phone
So far, most of the advertising on cell phones has been from phone companies themselves. But that could change soon, reports Fortune’s Stephanie Mehta.
NEW YORK (Fortune) — Who is marketing to mobile phones? Cell phone businesses. And mobile phone game designers. And creators of ring tones along with other software for cell phones.
No duh, you say: Of course creators of content for mobile phones would want to market to mobile-device makers. But the flip side of that obvious fact is who isn’t advertising there yet. For the cell phone to become the next great marketing medium – a platform akin to radio, television or the Internet – it will need to attract advertisers from outside the mobile industry.
Big marketers certainly seem enthusiastic about the chance Car makers, movie studios along with other deep-pocketed companies have started testing the waters of mobile marketing, and research firms estimate mobile advertising could be a $1 billion-a-year market in just a couple years. That revenue is going to have to originate from a lot more than firms hawking ringtones. (There’s a fascinating side discussion on whether advertising on mobile phones eventually can offset the price of telephone service, and even allow it to be delivered for free – more on that later.)
But for now, mobile marketing – a term that encompasses everything from ads to text-message voting campaigns seen on shows such as “American Idol” – remains both nascent and limited in its appeal to advertisers. AirG, a company that develops mobile communities for carriers such as Sprint and Canadian operators Robers and TELUS, says it generated more than 20 billion mobile advertising impressions (basically slots for advertisers) last year, and sold less than 2 percent of that inventory. Its biggest advertisers include Verizon (Charts), AT&T and Boost Mobile, a subsidiary of Sprint (Charts).
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