Commentary

Mobile Video Popularity Suggests Significant Advertising Potential

Mobile Video Popularity Suggests Significant Advertising Potential

Telephia recently announced the latest research from the Mobile Video Report, showing that mobile TV/video subscription revenues grew 198% year-over-year to $146 million in Q1 2007. There were 8.4 million mobile video subscribers last quarter with penetration doubling to nearly four percent since Q1 2006.

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In Q1 2007, revenues for mobile audio music totaled $239 million (including realtones, ringtones and full track music). There were 27 million mobile subscribers who downloaded audio on their phones in Q1, as compared to 19 million during the same time last year. Moreover, nearly 29 million mobile video consumers logged onto the mobile Web in March 2007, a penetration rate of about 12 percent.                      

With the latest news surrounding the iPhone features, and another quarter of impressive subscriber growth, mobile video is rapidly becoming a significant new media distribution platform, concludes the report.

Quarterly Mobile Video Revenue Share, Subscriber Size and Penetration Rate(Q1 2007 vs Q1 2006 U.S.)

Measurement 

2006

2007

Growth

Mobile Video Quarterly Revenues (in millions)

$49

$146

198%

# of Subscribers (in millions)

3.3

8.4

155%

Penetration (as proportion of all mobile subscribers)

1.6% 

3.6%

 

Source: Telephia Mobile Video Report, June 2007

Greg Clayman, senior vice president, MTVN Mobile Media, says "... MTV Networks recognizes the vast opportunities at hand for the mobile industry, from the sheer number of handsets out there, to the limitless potential for innovation the technology provides... "

 In addition, the Telephia data shows that mobile video audiences are primed for seeing ads on their phones. Video consumers had the highest recall of viewing ads on their phones as compared to all data service consumers, with 55 percent saying they recalled viewing a mobile ad in the last 30 days. This is nearly three times the recall rate for mobile data consumers in general. Even more promising, forty-one percent of mobile video consumers recently responded in some way to an ad.

Mobile Data Consumer Recall Rates for Ads Viewed(Q1 2007 U.S)

Consumer Type

 Recalled Viewing an Ad

All Data Users

21%

Mobile Video Users

55%

Downloaded Application Users

43%

Mobile Internet Users 

34%

Mobile Game Users

31%

Mobile Audio Users

26%

MMS Users

24%

SMS Users

20%

Source: Telephia Mobile Advertising Report, June 2007

Kanishka Agarwal, vice president of mobile media, Telephia, said

"Consumers are used to seeing commercials on their TV at home, which has created a learned behavior that is transferring to mobile TV and making advertising more acceptable. Nearly half of mobile video users are willing to view ads on their phones in exchange for something... "

And, who's looking at the Apple iPhone website, according to Hitwise? US searches for the term "iphone" increased 583 percent in the four weeks ending June 23rd, leading up to the June 29 launch date.

US Demographic profile of Visitors to Apple iPhone Website for the Four weeks ending June 23, 2007

Age

Traffic share

18-24

32.22%

25-34

21.45%

35-44

22.05%

45-54

15.35%

55+

8.92%

Income

Traffic share

< $30,000

20.83%

$30,000 - $59,999

27.47%

$60,000 - $99,999

27.02%

$100,000 - $149,999

13.18%

> $150,000

11.50%

Gender

Traffic share

Male

51.51%

Female

48.49%

 Source: Hitwise, June 2007

 

For more information, please visit Telephia here.

 

 

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