Verizon Wireless has decided that ads on cell phone are the next big way to make money in the wireless business.
Advertising on mobile devices is in its infancy. Revenue from the marketing source was only $45 million in 2005, and is expected to be $150 million this year. But, Ovum Research believes that the figure could hit $1.3 billion by 2010.
Unilever ran its first significant campaign on wireless recently placing banner ads on mobile versions of websites including The Weather Channel.
But, cellular has the "HBO" problem. If consumers are paying for a service, do they want advertising as well. Most cell service programs charge extra for access to the internet, so the consumer may recoil for the practice of putting advertising onto their screens.
Cell phone advertising my seem like a good idea at first blush, but over the long haul, it could backfire.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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