OCTOBER 29, 2007
Ads may be growing common on YouTube, but there's no mobile equivalent.
Eight million US mobile users watched video on their handsets in August 2007, according to M:Metrics.
Nearly seven million of them watched viral videos, representing a 36% increase since January.
Programmed mobile video, delivered on-deck by carrier networks, drew 2.7 million viewers.
Music videos, movie trailers, weather and sports were the most popular types of on-demand mobile TV content.
Nearly one in ten 18-to-24-year-olds watched mobile video, making them more than two and a half times more likely to view it than other groups.
“Clearly, there is the foundation of a market for premium paid video content, which underlies the potentially much more substantial opportunity for free ad-supported material," said Seamus McAteer, M:Metrics, in a statement.
Mr. McAteer's use of the words "foundation," "potential," and "opportunity" are key. Ad-supported mobile video growth is an enticing proposition, but the full picture is still unclear, according to John du Pre Gauntt, senior analyst at eMarketer.
"It is still too early to predict accurately the portion of the total mobile video and/or mobile TV market that will be ad-supported or subsidized by marketers," Mr. Gauntt said.
"As well as the scarcity of marketing-relevant customer analytics, there are also some marketing-related technology hurdles yet to be overcome," he said. "For example, although potential solutions are in the works right now, there is currently no workable solution for dynamic ad insertion into mobile TV/video content."
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