REFILE-Global ad industry eyes boost from mobile devices

(Repeating to correct date, May 14, not May 13)

By Maria Kiselyova

MOSCOW, May 14 (BestGrowthStock) – The global advertising industry
is eager to capitalise on booming use of mobile phones for
Internet access as more enhanced devices are coming to the
market to get more consumers reachable online.

The trend is promising bumper returns in future years
especially in markets like Russia where Internet usage is
growing rapidly and is forecast to do so for years to come as
people’s incomes find support from oil-based economic growth.

“I think mobile is a fantastic opportunity,” Nikesh Arora,
Google (GOOG.O: ) President of Global Sales, said on the sidelines
of an International Advertising Association conference.

“The advent of the iPhone, the Android devices and the
Blackberry have finally given people reason in the western world
(to) start using the mobile data. And as you see that go up, you
begin to see the relevance of advertising in those
applications,” he told Reuters Insider Television.


For Reuters Insider interview,


Data is seen as the main driver of mobile companies’ future
revenue streams as new-generation technologies develop to allow
the transfer of large amounts of information at a high speed.

Top global advertising and marketing chiefs, gathered in
Moscow for the two-day IAA Congress to consider growth
strategies for the $450 billion industry, have called for a new
approach to consumers, based on a deeper understanding of their
needs and the context they are living in.
The mobile phone has become an essential tool for the vast
majority of people in the developed world and is moving fast on
this path in developing countries like Russia and China, and as
the handsets are increasingly used to access the Internet, the
advertising has to catch up, industry players said.

Google, the online search global leader, announced a $750
million deal in November to buy AdMob, which controls about
one-third of the market for putting ads on mobile applications
and Web pages.

And last month Apple (AAPL.O: ) announced a new advertising
platform for the iPhone and iPad, dubbed iAd, showing the
potential large players believe the market has. Google said
Apple’s move was evidence of a highly competitive market.


“Mobile offers unique opportunities in targeting,
understanding a customer behaviour, not only what the customer
does but where the customer is … at this particular moment,
and this allows to give the customer a very relevant message,”
Mikhail Gerchuk, Chief Commercial Officer of Russia’s top mobile
phone operator MTS (MBT.N: ), told the conference.

Gerchuk said the Russian mobile advertising market could
grow to $100 million by 2013 from $15 million now, and forecast
that this type of advertising will surpass some other ways of
advertising in a few years time.

Advertisers are in general bullish on Russia where consumer
markets are expected to boom again as strong oil prices are
helping the country out of recession.

“We are seeing growth in early stage markets where more
people are going on the internet, and markets with large
populations are wonderful places,” Google’s Arora said.

The number of Internet users is expected to rise to 5
billion worldwide over the next 10 years from about 1.8 billion
now, Arora said.

“I think in the next 5 to 8 years 30-50 percent of the media
is going to be consumed on the web, and if you look at the
advertising proportion of the Internet versus the overall ad
market, we are still under 10 percent.”

From the mobile perspective, it means booming growth of
content including advertising distributed via portable devices.

“I believe that for communications the content experience on
the mobile is very important. Mobile is a very important
platform for content distribution,” Emilio Azcarraga, CEO of
Mexico’s top broadcaster Televisa (TLVACPO.MX: ), told Reuters.


For Reuters Insider interview


Televisa has been expanding into mobile services and after
buying a 30 percent stake in Nextel Mexico, a unit of NII
Holdings Inc (NIHD.O: ), it aims to bundle together fixed-line
telephone, wireless, Internet and video, becoming the first
provider of so-called quadruple services in Mexico.

Stock Market Investing

(Editing by David Cowell)

REFILE-Global ad industry eyes boost from mobile devices