Reliance Communications, is pioneer of mobile advertising in the country, has effectively offered mobile advertising solutions for more than 20 clients over the past four years. In my understanding, the mobile advertising, started with LG during World Cup Cricket in 2003. Reliance Communications has also handled Cadbury’s, Coke, Maruti, Hyundai, ICICI, Kotak and HDFC. The mobile advertising in India is at nascent stage it is roughly INR 40 crore industry but advertisers in India are looking to cash in on the mobile advertising as potential tool of advertising. Experts predicts that advertising spend on this medium is expected to jump more than ten to twelve-folds to touch a size of INR 500 crore in next five years.
Mobile advertising can attract advertising spends from integration with below-the-line budgets, retail budgets and the digital budget. The bottleneck, however, is the unreasonable cost of Internet on mobile and also disproportionate sharing of revenue between telecom service providers and advertisers. The mobile advertising is demanding even playing field from internet and mobile providers. The operators, at present, are acting as a gatekeeper and commands control over the revenue distribution. Currently mobile advertising revenue is split at 70:30 ratio between operators and the companies, which gives very little scope for the growth of the mobile advertisers. Moreover, the operators have to stop acting as gatekeepers to the Internet and allow consumers to access content and services on the Internet easily and cheaply, using their mobile devices.
The mobile advertising market which is currently valued at INR 40 crore can grow more than nearly twelve times provided the telecom companies offer open Internet access at low rates along with standardization of regulations.
Reference: http://www.business-standard.com, Mobile ads to touch Rs 500 cr in 5 yrs: Experts, June 22, 2008.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment