Mobile ads set for big leap, touch Rs500 cr in 5 yrs

Mobile ads set for big leap, touch Rs500 cr in 5 yrs
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First Published: Sun, Jun 22 2008. 02 37 PM IST
Updated: Sun, Jun 22 2008. 02 37 PM IST
PTI
New Delhi: With over 270 million users in India, advertisers are looking to cash in on the mobile phone’s potential as a campaign tool, with spending on this medium is expected to jump more than 10-12-folds to touch a size of up to Rs500 crore in the next five years.
Industry experts said that the mobile advertising market currently valued at Rs40 crore can grow more than nearly 12 times if telecom companies provide open Internet access at low rates along with standardization of regulations.
“In the next five years we are expecting the mobile advertising sector to reach a turnover of Rs500 crore,” digital and mobile entertainment firm, Mobile2Win corporate development and strategy head Gopala Krishnan told PTI.
“This money can come from integration with below-the-line (BTL) budgets, retail budgets and the digital budget,” mobile phone advertising firm, Telibrahma CEO Narasimha Suresh said.
The bottleneck, however, is the prohibitive cost of Internet on mobile and also disproportionate sharing of revenue between telecom service providers and advertisers.
“Operators have to stop acting as gatekeepers to the Internet and allow consumers to access content and services on the Internet easily and cheaply, using their mobile devices,” Krishnan said.
Currently mobile advertising revenue is split at 70:30 ratio between operators and companies. He, however, said that telcos’ position was understandable as they have little or nil influence for advertisement carried on third party media that is accessed over the mobile Internet. “They will, however, have significant influence when the media is owned by it,” Krishnan added.
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First Published: Sun, Jun 22 2008. 02 37 PM IST