Advertising: Mobile's next big thing

The era of mobile advertising is upon us - according to new research, revenues from ads on phones will skyrocket by the end of the decade.

ABI Research predicts that by the end of this year advertising on mobiles will generate global revenues of $1.9bn. The analysts reckon that it will also achieve double-digit growth over the next five years.

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ABI Research believes that the click-through rates that mobile advertising promises - two to three per cent, compared to 0.2 per cent for internet ads - will generate enthusiasm for the model among advertising buyers, although it predicts that such rates won't last as the novelty wears off for consumers.

The advent of phone ads will present advertisers with both challenges - how to make sure consumer don't get annoyed with ads arriving on a very personal device - and opportunities to reach consumers in a more individual way.

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Among the operators already planning to trial advertising to handsets in the UK are Vodafone and O2.

A separate report by industry watchers Informa Telecoms and Media predicts that by 2011, mobile advertising will be worth $11.5bn, with mobile TV being the most lucrative vehicle.