More consumers are watching video on cell phones and they show signs of being receptive to advertising, according to a new report from telecom research firm Telephia Inc.
The number of mobile video subscribers in the U.S. grew from 3.3 million in the first quarter of 2006 to 8.4 million in Q1 2007, while mobile video penetration increased from 1.6% to 3.6% over the same period. Revenue from mobile video nearly tripled to $146 million in Q1 2007 from $49 million in the year-ago quarter, Telephia says.
In terms of advertising, consumers who watch video on their mobile phones recalled ads at a rate of 55%, higher than any of the other categories of consumers surveyed, which included those who downloaded applications, played games on their mobile phones or searched the Internet from cell phones. In addition, 41% of mobile video consumers responded in some way to an ad, and 45% agreed with the statement “I would be willing to have advertising on my mobile device in exchange for something.”
“Consumers are used to seeing commercials on their TV at home, which has created a learned behavior that is transferring to mobile TV and making advertising more acceptable,” says Kanishka Agarwal, vice president of mobile media at Telephia. “Nearly half of mobile video users are willing to view ads on their phones in exchange for something, translating into a compelling opportunity for ad-supported mobile content where marketers can target customers with relevant advertising.”
The Telephia report is based on behavior and attitudes of nearly 1,200 mobile video users and data from Telephia’s panel of 35,000 mobile subscribers. There were 232 million mobile subscribers in the U.S. in the first quarter, Telephia says.
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