Mobile advertising in India will be a $100 million market soon

With over 270 million mobile users, India is considered probably the hottest mobile phone market in the world. With this being the case, mobile advertisers are trying to cash in on the opportunity, as expected. As we’ve already seen, Indian operators are excited about mobile advertising and they see it as a potential long term revenue generating model. So, it’s only a matter of time before mobile advertising takes off big time in India.

Industry experts have predicted that mobile phone advertising in India would be worth more than $100 million in just a few years from now. Considering the market is currently valued at a measly $1million, it looks like quite a prediction. But experts firmly believe that the Indian market has the potential to become one of the top players in the world as far as mobile advertising is concerned. However, there are a couple of issues which need to be addressed to make this happen.

First, the cost of mobile web should be brought down. Though data plans in India are pretty much affordable, mobile web is one area where they can bring down the cost furthermore to attract more users to use the mobile internet facility regularly.

Second, the issue of revenue sharing between advertisers and mobile operators is an area of concern. Right now, the ratio is 70:30 with 70% of the revenue going to mobile operators and 30% going to advertisers. Understandably, advertisers are not exactly happy with this disproportionate sharing and they want this ratio to be revised.

Experts say that if mobile operators and advertisers could address these issues, the market may reach the $100 million mark sooner than later.

I actually think the issues mentioned here are common for markets all over the world. Even in the U.S., not everyone with a web-enabled phone is enthusiastic about surfing the web regularly, as the data plans are pretty costly. And the issue of disproportionate revenue sharing is not unheard of either, as the spat between Verizon and Google is well known. So, it’s basically an inherent flaw in the system. Unless people address this issue, there will always be hurdles in the path.

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Categories: Cell Phone Advertising, All things mobile phones.

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Mobile social networking rapidly gaining popularity

Social networking is the in-thing now and it’s evident from the number of people who access MySpace and Facebook dutifully every day. In fact, people are so much into these sites that they want to be connected all the time. However, you can’t carry a laptop all the time and you can’t go to a browsing center ten times a day to update your status in your Facebook profile and to catch up with your friends. So, what do you do? Simple – you access these sites in your mobile phone.

The practice of accessing social networking sites on mobile phones, called mobile social networking, is becoming more and more popular with mobile users these days. The biggest reason is the iPhone. It literally changed the way people perceived mobile phones and now iPhone users top the chart in mobile internet usage.

According to statistics, more than 85% of iPhone users access the internet from their phones. This is an incredible number, to say the least. Smart phone users come second in this list. People, especially young ones, who have internet facility in their phone, access social networking sites regularly.

A report from Nielson says that 1.7% of all mobile users in the U.K. visited social networking sites on their cell phones regularly. It’s 1.6% in the U.S., 0.8% in Spain, 0.6% in Italy, and 0.2% in Germany. Experts predict that these numbers will more than double in about two years and mobile social networking will become popular big time.

MySpace, followed by Facebook, is the most accessed social networking site on mobile phones. In December 2007 alone, the site had close to 3 million visits from mobile users. In the U.S. and all over Europe, there are tens of thousands of regular mobile users who log into MySpace regularly. We’ve already seen how popular MySpace can be, but still these numbers are incredible.

I think these numbers will have a significant impact on mobile service prices in the coming days. Thanks to this overwhelming popularity of mobile social networking and other similar things, operators might be tempted to cut down the rates for data plans. One example for this would be Vodafone UK. In its latest monthly plans, it has added unlimited internet access as a standard feature. We might as well see other companies follow suit.

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Categories: Apple iPhone, All things mobile phones, Mobile Social Networking.

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