Sunday, March 25, 2007

US Mobile Video Advertising

Interpublic Group's media-buying agency, Initiative, last year surveyed the U.S. and found that out of 213 million cell-phone users, only 12 million watched video clips, 6 million watched live TV, and just 3 million signed up for some kind of video-subscription service.

In the U.S., thanks to the spread of broadband, home PCs, and other factors, we have a PC-based culture. That's why Web video took off here: Moving pictures on a TV-size screen are a familiar entertainment media.

However, mobile video is a whole new beast-the ill-fated Sony Watchman mini-TV from the '80s aside-and small-screen video was unknown before the advent of the Video iPod. Exactly how huge it will get remains uncertain. Exactly how ads will get placed around mobile video is even fuzzier, which is why some big marketers are approaching Mobile Video advertising cautiously.

Web video is not yet a huge part of the media mix. According to eMarketer, advertisers in 2006 spent $775 million USD on Web Video, while the total U.S. ad market is approximately $280 billion USD.

In some form, video on the cell phone is an obvious development. However, something spectacular and bizarre will have to happen before a true and robust mobile medium is closer than several years away.

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