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Palo Alto, California - (Cheap Web Hosting Directory) - July 31, 2007 - According to a new Frost and Sullivan study, the adoption of mobile advertising by leading mobile operators, is driving growth within the industry. Leading U.S. mobile operators have started to embrace mobile advertising, as new, ambitious campaigns are being developed.

The U.S. Mobile Advertising and Search Markets study goes on to surmise that mobile advertising is likely to be used to subsidize the cost of content production and lower the cost of service usage. The new analysis further reveals, that the market earned revenues of $301.27 million in 2006 and estimates this to reach $2127.29 million in 2011.

Vikrant Gandhi, Industry Analyst at Frost and Sullivan offered, ”Major tier-I mobile operators are in different stages of enabling targeted advertising on the on-deck inventories, which serves the expectations of advertisers, mobile operators and subscribers. More and more subscribers are using mobile phones as an important tool for their informational, communication, and entertainment requirement. Mobile advertisers are likely to offer ads within the applications and services fulfilling the informational and entertainment needs of the mobile subscriber.”

For example, approximately 15 percent of U.S. mobile subscribers use Mobile Internet (WAP) regularly to access information through their mobile devices thus opening up new avenues for advertising. Similarly, mobile operators are reporting considerable uptake in usage of mobile video services that can include advertising messages. Off-deck mobile content market is playing an important role in demonstrating the possibilities and proving the business models. The biggest challenge in this market is to present mobile advertising to consumers in an unobtrusive manner. Unlike the online and the broadcast world, there is very little free content available for mobile phones. Unless some clearly perceived value is offered to the subscribers, mobile advertising may not be looked upon too favorably. In addition, limited screen sizes and slower network speeds pose hurdles to placing mobile ads on the phones in an unobtrusive manner.

Mr. Gandhi continued, ”The additional challenge is to deliver the advertising message in the most effective manner and according to the device capability and access options and a common and consistent reporting that spans multiple channels. The delivery of advertising message along with premium content on the same screen presents a challenge to the industry participants, but full-screen ads and paid listings are some options that offer a possible solution.”

U.S. mobile operators are expected to work with partners to ad-enable their own inventory as well as third-party inventory listed on-deck. This ad inventory is likely to be sold directly by the mobile operators as well as by their partners, which will lead to pooling of multiple resources and a better penetration into the advertiser segment. As a result, adoption of mobile advertising by leading U.S. mobile operators is a significant development that will be critical to the success of the entire industry. U.S. Mobile Advertising and Search Markets is part of the Mobile and Wireless Growth Partnership Service, and it provides comprehensive analysis of the various mobile advertising mechanisms. Detailed market forecasts, discussion of revenue shares, and market trends are offered. In this study, Frost and Sullivan’s expert analysts thoroughly examine the following on-deck and off-deck markets: mobile messaging, WAP-based display mobile, mobile video, in-application mobile and mobile search and other performance-based advertising. Interviews with the press are available.

Those interested, may obtain a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the U.S. Mobile Advertising and Search Markets, by sending an e-mail to Mireya Castilla, Corporate Communications, at mireya.castilla@frost.com with full name, company name, title, telephone number, city, state, country and e-mail address. Upon receipt of the above information, an overview will be sent by e-mail.

Frost and Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company’s industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost and Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics and demographics.

To learn more about the U.S. Mobile Advertising and Search Markets analysis, please visit: www.mobileandwireless.frost.com.

For more information about Frost and Sullivan, please visit: www.frost.com.