• The New York Times , Monday, January 22, 2007 11:15 AM

2007 could be the breakout year for the mobile phone advertising industry. Consumers don't like to pay for their media, and while all those mobile Web and video services are cool, a monthly fee usually stands in the way.

Enter mobile advertising. If mobile ads can take away those fees--and even better, lower their cell phone bills and improve service--consumers will be all over them, analysts say. All the biggies, Verizon, Sprint, and the new AT&T, are widely testing ads on mobile phones; by next year, they say mobile ads should be common.

The question is, how long will video commercials be, and how much will the user experience be detracted by banners and other formats?

Some examples of new services: Amp'd, the popular mobile virtual network operator that aims its services at the 18-to-24 market, is set to rollout an opt-in ad plan that lets customers gain free access to ad-supported shows and other content. Xero Mobile, a startup, plans on distributing a million free cell phones to college campuses this year, offering new customers 40% off their calling plans if they watch four commercials a day. In the UK, startup Blyk goes a step farther: a completely free service paid for by ads.

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