• by Wayne Friedman , June 3, 2008

Cash-strapped young mobile phone users don't mind ad-supported content--but there is a price tag. They want it for free--or nearly free.

A study by the U.K.-based Mobixell Networks, an mobile advertising network, says 35% of 16- to-35-year-olds would use more ad-funded multimedia messaging services (MMS) if those services were offered for free or at a discount. Twenty-nine percent also say they would use more video services if offered for free or at a discount.

Mobixell Networks notes that the 18-35 demographic group currently consumes 56% of mobile media content. That group makes up 29% of TV viewers.

The company says many advertisers intend to increase mobile spending in the next year. According to a report from Jupiter Research, 58% of European advertisers plan to use MMS images as a part of their marketing plans; 56% will use in-stream video ads, and 50% have plans for MMS video campaigns.

Mobixell also reports that all age groups for mobile-phone users had positive reactions in using ad-sponsored content in video services. The study surveyed 832 mobile phone users.