Commentary

Incentive Based Advertising on Cell Phones a Possibility

Incentive Based Advertising on Cell Phones a Possibility

The results of a nationwide online survey of U.S. adults conducted by Harris Interactive in August, 2006, finds that 26% of current mobile phone subscribers say they would be willing to watch advertising on their cell phone, and 7% of wireless subscribers say they would be interested in receiving relevant promotional text messages, both under certain conditions.

Joe Porus, Vice President and Chief Architect for Harris Interactive, notes that "This seven percent 'coalition of the willing' represents a huge market given the fact that there over 200 million cell phones in the United States. Wireless Service Providers need to balance the value of advertising revenue with the potential of irritating their subscriber base..."

The survey found that 38% of wireless subscribers say they now consider wireless to be their primary form of communication and 36% believe that cell phone service is more personal and direct than land line telephone service.

Porus further comments, "Ma Bell could become a name for Trivial Pursuit as more and more consumers are cutting the cord and going wireless only..."

In April 2005, 9% of U.S. adults said that they had abandoned their "landline" telephone service completely in favor of using their wireless phone exclusively. At that time, another 5% said that they were seriously considering this and would switch within a year, and 47% said that they were somewhat considering it.

"so, targeted cell phone advertising seems a natural development in the wireless phenomenon..." concludes Porus.

However, when consumers were asked, in this study, if they would be interested in receiving relevant promotional text messages on their cell phone, 14% were "not very interested," and 78% were "not at all interested." Not a ringing endorsement for cell phone advertising. On the other hand, 26% of the respondents would be "willing" to view advertising in return for free cell phone applications.

Please find more on this report and additional tables here.

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