Wireless Marketing Will Struggle - Strategy Analytics Report Says

The wireless advertising market will be hard-pressed to generate $1 billion per annum by 2007, according to a study released today by research and consulting firm Strategy Analytics.

The report states that plummeting CPMs and a 10 percent opt-in rate by users will hamper wireless advertising progress. "Wireless marketing revenues will represent less than 1 percent of cellular service revenues," says Nitesh Patel, senior industry analyst and author of the report. 

The report also states that mobile marketing success will be achieved by devising effective strategies that convince users to "opt-into" permission-based advertising programs. The report's also calls for network operators to play a more important role in the process by attracting potential advertisers with effective wireless marketing platforms and opt-in customer lists of superior quality. "Unless operators proactively focus on wireless marketing, they are likely to see even less of this revenue, as media companies and marketers continue to collaborate and launch campaigns without operator participation," says Patel.

Cliff Raskind, a director in the Strategy Analytics global wireless practice, adds, "Successful opt-in strategies will tempt users by tapping into brands or affinity groups that people are passionate about such as entertainment and sports. Offering direct rewards and/or incentives will be also required to sufficiently entice consumers."