Nielsen: Mobile To Outpace Internet Growth

cellphone

Mobile media will significantly outpace the Internet and other traditional media platforms -- especially in emerging and faster growth economies.

A new report from Nielsen Wire, with research from The Cambridge Group, says: "Defying classic economic models, the demand for communication (cell phones) leads traditional media growth, signifying a global, disruptive phenomenon." Growth for the Internet will continue -- but at more predictable growth patterns.

Strong mobile growth markets will be in those territories that have a rising financially strong middle class, so called BRIC countries -- Brazil, Russia, India and China.

Nielsen says this large economies are expected to grow on average by four or five percentage more than established economics for the next five years, 2010-2015 -- especially over G-7 nations, including the U.S., U.K., France, Germany, Italy, Canada and Japan.

advertisement

advertisement

Those BRIC nations -- and other countries -- are expected to see around a 7% growth rate in mobile versus developed countries 2% rise.

Mobile media platform growth occurs because access to mobile devices and services generally occurs at a lower household incomes levels. For example, Internet penetration in established economies generally requires a income threshold of around $20,000 of per capita GDP (Gross Domestic Product) to achieve a 50% penetration rate in a specific territory. But for mobile penetration, household income levels can be as low as $5,000.

Estimates are that over the next 5-10 years, mobile penetration will climb to roughly 140 phones per 100 inhabitants, even in poorer economies. That means the gap between developed and emerging economies will have largely disappeared.

For the industry, a different structure for marketers and advertisers will apply, when it comes to marketing campaigns. Mobile will lead other media platforms.

Given this development, the study adds: "A reverse innovation model is evolving, where effective mobile advertising platforms are identified first in emerging markets, then transferred back for further refinement in established markets.

"The implications of the disruptive growth associated with mobile technology in emerging markets also should readily transfer to other industry sectors."

Next story loading loading..