Just about every major wireless phone network is planning on rolling out some form of "watch an ad in exchange for X" program in 2007. Some, like Verizon, Sprint and AT&T, are planning offering premium service or some form of content in exchange for the ads. Others are going more straightforward, offering reduced bills as an incentive to view ads. Because of the ubiquitous nature of cellphones in today's culture there was little doubt that advertising would come to the platform sooner or later. What has held it up for this long is the technology for delivering the ads - at least ads that companies would be happy with delivering. Now, though, with more phones being equipped for not just voice and text capabilities but also video and music, the technology is at a point where multimedia ads can be efficiently delivered. Still, the cost of the service to the consumer has been holding up the mass adoption of those multimedia services.
Compared to other regions of the world, adoption of cellphones in the U.S. is relatively low still, meaning that the cost of features such as email has not come down at the same rate as voice service has. Even though the young people sought after by advertisers might be leading that adoption charge, some marketers don't see the mobile audience as big enough to pour significant money into.









