Revenues for mobile advertising in the U.S. and Canada are expected to grow from $208 million in 2009 to around $1.5 billion by 2013, according to a new report published by Parks Associates. The report, entitled “Mobile Advertising: Analysis and Forecasts,” notes that this growth in ad revenues will be due to adoption of smartphones, 3G network data plans—or newer wireless services—and downloadable applications.

Report predicts that this significant increase will begin in 2010. Additionally, Parks Associates reports that there were around 62 million smartphone users in North America in 2008. The report estimates this user penetration to reach 239 million in 2013. In addition, Parks Associates projects that U.S. 3G network data plans will reach 95 percent penetration by 2013, and Canada achieving 70 percent penetration. “Mobile advertising is poised to take advantage of opportunities presented by the diffusion of 3G networks and devices such as the smartphone,” said Heather Way, research analyst at Parks Associates. She believes that advertisers will begin to incorporate mobile into their media campaigns as this medium matures into a viable marketing space. However, he cautions that advertisers could encounter early resistance from consumers.

Parks Associates’ Mobile Entertainment (Second Edition) found that 38 percent of respondents do not want to receive mobile ads. And, around 37 percent of the respondents remained neutral to the idea of ads on their mobile phone. Way said that teens and young adults are more receptive to ad-supported mobile content, particularly in entertainment genres. She suggested that advertisers need to develop innovative ways to reach these consumers. Mobile Advertising: Analysis and Forecasts examines the current mobile advertising market. It includes a market overview and analyzes effective mobile ad formats and current pricing models.

From the article, "Mobile Advertising to Grow to $1.5 Billion by 2013 in U.S. and Canada" by Anshu Shrivastava

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