Wireless Ads Don’t Add Up in U.S.

If there were an Olympic competition for cell phone advertising, the United States would be lucky to place, much less bring home a medal. In a new report released by New York-based Jupiter Media Metrix, by the time 2003 rolls around, $7.5 billion will be spent globally on wireless advertising, commerce and subscription revenues. But U.S. cell phone ads will account for only $300 million of that total.

If you want to experience a healthy wireless market, you’re going to have to travel half way around the world: JMM analysts predict that Asia will produce the most revenue during this period, $5 billion or 66 percent of the total amount spent globally.

Data Points:
It’s a little better if you add Canada:
North America will account for $0.7 billion of global wireless revenues; still, less than 10 percent.

Maybe you should try Paris or London:
Western Europe will account for $1.7 billion.

ROI D.O.A. for content providers:
Nearly all U.S. mobile content providers will produce a negative ROI in the near-term. The reason for this is a lack of direct revenue sources, such as subscriptions.

Source: Jupiter Media Metrix

Publish date: March 30, 2001 https://stage.adweek.com/brand-marketing/wireless-ads-dont-add-us-47898/ © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT