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Mobile Marketing Offers Small Boost to TV Nets

  • Forbes, Tuesday, July 14, 2009 11:30 PM
TV networks are migrating to mobile devices; CBS, ESPN, MTV and Disney recently launched programming specifically for phones. Some are live broadcasts that air the same commercials as seen on TV. Others are on-demand videos with pre-roll ads.

In the month of June, for instance, MSNBC's Rachel Maddow smartphone app pulled in $750,000 in revenue. Fans can watch 3-5 minute snippets of the show or the entire episode. Total revenue for the U.S. mobile TV broadcasting market, subscription-based and advertising-funded, was about $200 million last year and is expected to jump 50% in 2009, per Strategy Analytics.

Ford, Microsoft and other marketers are buying mobile spots to reach younger audiences. Other brands choose mobile ads because the phone is captivating and free of clutter -- screens are too small to have multiple ads on one page. Prices for the ads range from $5-$10 CPM for a banner ad and $30-$40 CPM for video.

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