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Mobile advertising revenues in the US and Canada will grow from $208 million in 2009 to $1.5 billion by 2013, despite possible early consumer resistance to mobile ads, according to new research from Parks Associates.


The report “Mobile Advertising: Analysis and Forecasts,” says that the adoption of smartphones, 3G network data plans (or newer wireless services), and downloadable applications will spur this growth in ad revenues, with significant increases beginning in 2010.

Parks Associates estimates there were 62 million smartphone users in North America in 2008, with user penetration expected to reach 239 million in 2013. The firm predicts that US 3G network data plans will reach 95% penetration by 2013, with Canada achieving 70% penetration.

“Mobile advertising is poised to take advantage of opportunities presented by the diffusion of 3G networks and devices such as the smartphone,” said Heather Way, research analyst, Parks Associates. “Advertisers will begin to incorporate mobile into their media campaigns as this medium matures into a viable marketing space.”

Way cautions, however, that advertisers may encounter early resistance from consumers. Previous research from Parks Associates’ found that 38% of respondents do not want to receive ads on their mobile phone, while 37% remain neutral to the idea.

Perhaps not surprisingly, mobile ads are more welcome among younger age groups. “Teens and young adults are more receptive to ad-supported mobile content, particularly in entertainment genres,” Way added.

About the research: The report examines the current mobile advertising market, includes a market overview, analyzes effective mobile ad formats and current pricing models and examines opportunities driving overall growth and inhibitors to continued expansion.

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