• Brandweek, Monday, May 21, 2007 10:45 AM

It's almost baffling how bad the mobile Web experience is. The explanation is a long one, but suffice it to say that the mobile carriers' dictatorial position over the mobile Web doesn't help. But despite its being a challenge for users, Web companies and thus, advertisers see big potential in the mobile market.

For advertisers, navigating the complicated landscape requires middlemen like Third Screen Media, purchased last week by Time Warner's AOL, and ScreenTonic, acquired a few weeks ago by Microsoft. These companies have spent years building publisher and carrier relationships, and the addition of AOL and MSN just made them a whole lot bigger. Mobile networks like Third Screen enable advertisers to reach a broader swath of consumers, and analysts say they have serious potential. As eMarketer analyst John Gauntt says, "They've hacked through the jungle already," in terms of working out all the advertising kinks. The AOL and Microsoft acquisitions mirror the spate of ad network and ad-serving acquisitions online. Gauntt says the time is now to snap up these kind companies before the price shoots up.

EMarketer believes--and this is very optimistic--the mobile Web will command $4.8 billion in ad spending by 2011. To reach that figure, growth would have to yield far greater investment in mobile Web technology, and then innovation would make it an easier place to do business.

Read the whole story at Brandweek »