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Written by Daniel   
Thursday, 14 September 2006 09:29
Advertising seeps into the cell phone
By Marguerite Reardon
Staff Writer, CNET
Published: September 14, 2006, 6:28 AM PDT

LOS ANGELES--If you thought your mobile phone was safe from the barrage of marketing messages that from big advertisers, think again.

After years of balking at the idea of opening up their networks to advertising, the four biggest mobile operators in the United States are edging closer to incorporating banner ads, text-message marketing and short video commercials into their business models in an effort to reduce the cost of offering new multimedia services to subscribers.
What's new:

As cell phone operators begin offering multimedia content over their new high-speed networks, they are turning to advertising to help generate revenue.
Bottom line:

Including ads in their multiimedia mix is seen as the only way network operators can afford to offer more content without increasing subscriber fees.

Experts at the industry's CTIA Wireless I.T. & Entertainment 2006 conference here this week said that the question is not if and when mobile advertising will happen, but how it will be implemented.

"Advertising is the only way that carriers can afford to add more content to their services," said Tom Burgess, chief executive officer for Third Screen Media, a company that manages mobile advertising for content providers and carriers. "They can't grow their content catalogs if they don’t support advertising, because they won't be able to keep increasing subscription fees."



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