Mobile Ad-Sponsored Content to Soar

Currently, mobile media is a mish-mash of subscription and ad-sponsored content, but that’s expected to change over the next several years.

According to a new study, mobile phone use in the U.S. is expected to hit a saturation point within the next six years, and this tipping point–combined with other converging marketplace factors–may finally unleash the advertising potential of the platform, MediaPost reports.

A new SNL Kagan study predicts that “by the year 2013, mobile phones–including consumer, business and dual users–will achieve 100% penetration in the U.S., when an estimated 322 million cell phone units in use will actually exceed the total U.S. population. Kagan estimates current U.S. cell phone penetration at 84%, or about 233 million units.”

When this happens, mobile ad revenues are expected to soar. “Analysts say the exponential growth of mobile data use–including text, Web browsing, games, music and video–is spurring carriers, [high-speed wireless] competitors and other key players to accelerate their pursuit of the ‘holy grail’ of market paradigm shifts: free mobile services fully subsidized by advertising.”

That’s an easier concept for consumers to grasp and essentially mirrors the model of the standard desktop Internet.

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Kagan: U.S. Cell Phone Saturation May Spur Mobile Ad Rush [MediaPost]