• by Mark Walsh  @markfwal, October 13, 2008

Mobile content Web site Myxer today is launching a program offering $5,000 worth of free online advertising to 1,000 independent cell phone stores, for a total of $5 million over the next year.

Its $5 Million Giveaway Campaign is the first in a series of programs Myxer says it will launch to help wireless carriers and cell phone retailers to increase mobile data plan subscriptions.

Through the giveaway effort, the company will run banner ads on behalf of participating retailers on Myxer.com. The ads are geo-targeted so site visitors will see ads for cell phone outlets in their local area.

There is a catch, however. In exchange for a year's worth of Web ads, retailers will promote Myxer in their stores via countertop displays for a year.

Stores will be selected on a first-come, first-serve basis until 1,000 stores have joined the program. Given the high response to the recent beta rollout, it is expected that all of the allocated campaign dollars will be claimed by Dec. 1.

Myxer says its catalog of ringtones, wallpapers, videos and games has attracted more than 14 million--mostly teen and twenty-something users--and generated 22 million downloads.

As of the second quarter, 177 million U.S. mobile subscribers--or 69%--use at least one mobile data service, according to Nielsen Mobile. Most prevalent was SMS text messaging, at 53%. Nearly 20% downloaded ringtones, 11% downloaded wallpapers and screensavers, 9% downloaded games and 4% watched videos.

The major wireless operators have already seen an uptick in mobile data subscriptions this year following the rollout of various unlimited, flat-rate plans.