Released on = March 17, 2006, 3:32 am

Press Release Author = visiongain

Industry = Telecommunications

Press Release Summary = San Francisco, CA and London, UK; 16 March 2006: As
advertisers and operators seek out the best business model, 2006 will be a year of
experimentation for the emerging mobile advertising market. The next five years will
see a shift by major brands from simple SMS mobile marketing to more sophisticated
multimedia advertising. By 2007, brands will know what works, and mobile advertising
will become mainstream by 2008. These are some of the key findings from visiongain's
new report, entitled "Mobile advertising and marketing: Market analysis and
forecasts 2006-2011".

Press Release Body = From 2005, when the nascent market garnered $255 million in
Europe and the United States, mobile marketing and advertising in these two
geographical areas will grow to exceed $1 billion in 2009, according to visiongain.

The increasing availability of multimedia content is opening a large opportunity for
sophisticated forms of mobile advertising. As content that already incorporates
advertising - like live TV programming - makes its way to mobile handsets, brands
and entertainment content providers are beginning to see the value of presenting
full multimedia ads with programs.

Players across the value chain are developing their strategies and positioning
themselves in this space. Operators in the U.S. and Western Europe are currently
either testing various forms of advertising with 3G services or are allowing ads to
be served on their portals. A number of multimedia companies will launch advertising
in 2006 within their multimedia offering. Furthermore, the entry of large online
search engines into the mobile world opens up new advertising opportunities in the
shape of context-based mobile search.

"The mobile phone is a very personal device that most people carry with them 24
hours a day. It affords advertisers an opportunity to present very targeted and
time-sensitive information that is of interest to the user. That is a key advantage.
With customer permission, advertisers can collect valuable demographic and
behavioural information to hone the marketing message," says visiongain analyst and
the report's lead author Marcia Kaplan.

"3G technology enables the delivery of richer content to mobile phone users, but
there is a limit to how many additional charges and subscriptions mobile phone users
will accept. At some point, content will have to be sponsored or partially subsidised by advertising. We are also seeing the emergence of ad-subsidised MVNOs, which plan to offer free airtime in exchange for targeted advertising to subscribers," adds Kaplan.

The report notes that certain elements need to fall into place before mobile
advertising can establish itself as a viable medium. Issues to be resolved include
business models and revenue share, the type, length and frequency of ads, consumer
attitudes and many others. Operators will have to walk a fine line between
maximising the revenue potential of advertising, while at the same time not risk
alienating subscribers and increasing churn by doing so.

Based on interviews with key market participants, including operators, vendors,
media agencies, software application providers, access providers, marketing
specialists, and trade association representatives, this 170+ page report analyses
the market drivers and barriers affecting mobile advertising and marketing. It
discusses the main market trends and charts the market evolution in the US and
Europe. The report examines mobile advertising opportunities presented by MMS,
video, TV, LBS, as well as contextual advertising. Regional forecasts are provided
up to the year 2011.

ENDS

Notes for Editors
If you are interested in a more detailed overview of this report, including the
Executive Summary, charts and images, please email sara.peerun@visiongain.com or
phone Sara on +44 (0) 20 8767 6711.

About visiongain
Visiongain is one of the fastest growing and most innovative independent media
companies in Europe. Based in London, UK, visiongain produces a host of
business-2-business conferences, newsletters, management reports and e-zines
focusing on the Telecoms, Pharmaceutical and Defence sectors.

Visiongain publishes reports produced by its in-house analysts, who are qualified
experts in their field. Visiongain has firmly established itself as the first
port-of-call for the business professional, who needs independent, high quality,
original material to rely and depend on.

For more information on visiongain, please visit the website:
www.visiongainintelligence.com



Web Site = http://www.visiongainintelligence.com

Contact Details = visiongain
40, Tooting High Street
London SW17 0RG

Tel: +44 (0)20 8767 6711
Fax: +44 (0)20 8767 5001

sara.peerun@visiongain.com