Sunday, January 28, 2007

Mobile Ads

A recent Wall Street Journal article by Amol Sharma features AdMob's system for placing ads on content directed to mobile users. (Subscription may be required to view this article.)

AdMob connects content providers and advertisers. Since advertisers cannot negotiate with individual operators or content providers for ad placements, AdMob has a market position well-suited for growth.

Under AdMob's system, as with Google's on the Internet, advertisers pay
only when a user clicks on the link. Advertisers go to AdMob's Web
site, fill out a form, and make a bid for a click in one of several
categories, such as news, entertainment or communities. The bids for a
click generally range from five cents to a dollar.

Surveys show that reception to mobile ads remains mixed even when some benefits accompany an expressed willingness to view the ads. Consumer studies completed in August of 2006 show that some 51% of mobile users do not want to receive any ads at all even if they can get free applications for their mobile devices.

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