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MultiMedia Intelligence projects ‘call to action’ advertising model will generate $419 million in ad revenues by 2012

The conjunction of mobile TV and the mobile phone’s built-in return channel are creating a new category of advertising that simply didn’t exist before. Referred to as "call to action" specialty advertising by MultiMedia Intelligence researchers, it's a market that's expected to grow to $419 million in worldwide advertising revenue by 2012.

Call to action advertising’s can enable prospective customers to get more information or communicate with the advertiser while the ad is playing. With, for instance, a mobile car ad, pressing the call to action button would trigger a text message offering to connect the customer with the nearest dealer.

"The cell phone is inherently an inferior entertainment platform when compared to other media devices like TVs," said Frank Dickson, chief research officer for MultiMedia Intelligence. "However, the cell phone is inherently a superior portable communications platform. It allows the possibility for TV advertising outside the home as well as creating a new form of advertising, call to action advertising. Call to action leverages the built-in return channel of the handset to deliver advertising beyond the capabilities of the existing living room TV experience."

The research report, "Mobile TV and Video: Premium Content and Advertising Elevate the Phone Away From Just Voice," also provides revenue, ARPU and subscriber forecasts for mobile TV and mobile video services, including:

  • Total mobile TV and video advertising revenue, including call to action advertising, will exceed $1 billion by 2012.
  • Call to action advertising will be driven by the North American and Asian market regions. Asia leads in driving new applications where North America leads in driving advertising.
  • Consumer demand for more personalization and entertainment on their mobile phones drove mobile TV and video subscription revenue to almost $3.5 billion in 2008. By 2012, mobile video and mobile TV will exceed $14 billion.
  • Mobile TV ARPUs are much higher in North America and Europe than Asia because of the lack of free-to-air alternatives.
  • The combination of a large wireless subscriber base and free-to-air alternatives gives Asia the vast majority of all mobile TV subscribers. By 2012, Asia will account for two-thirds of all mobile TV subscribers.

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