MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERMobile MediaGLOBAL MOBILE ADVERTISINGSPENDINGMobile ad sp<strong>en</strong>ding is predicted to reachUS$13.9 billion in 2011, with mobilemultimedia ads taking share from g<strong>en</strong>eralmobile ads.Global mobile ad sp<strong>en</strong>ding will grow rapidlybetwe<strong>en</strong> 2006 through 2011, from US$1.5billion to nearly $13.9 billion, according toeMarketer.G<strong>en</strong>eral mobile ad sp<strong>en</strong>ding, includingsp<strong>en</strong>ding on text message promotions and adsupportedvoice minutes, will garner thelargest share throughout the six years, growingGlobal Mobile Ad Sp<strong>en</strong>ding2006 – 2011US$ million16,00014,00012,00010,300 11,74610,0001,2956,8908,000749 9,0064,7366,0002,710421 6,1414,0001,541 215 4,3162,0001092,4961,43202006 2007 2008 2009 2010 2011Note: Numbers may not add up to total due to rounding.* Includes sp<strong>en</strong>ding on text message promotions and ad-supportedvoice minutes.** Includes sp<strong>en</strong>ding on ad placem<strong>en</strong>ts around mobile video cont<strong>en</strong>t.Source: eMarketer, Jan. 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Global Mobile AdvertisingForecast, 2011: US$11.35 billionMobileTV39%Mobile multimedia ad sp<strong>en</strong>ding*G<strong>en</strong>eral mobile ad sp<strong>en</strong>ding**Other10%Text, picturemessaging24%Source: Informa Telecom© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200813,8622,116Searchanddisplay27%from $1.4 billion to $11.7 billion. Meanwhile,mobile multimedia advertising sp<strong>en</strong>ding,including sp<strong>en</strong>ding on ad placem<strong>en</strong>ts aroundmobile video, mobile music, mobile TV andmobile social networks, is expected to increasefrom $109 million in 2006 to $2.1 billion in2011.Overall, the mobile multimedia ad sp<strong>en</strong>dingshare is actually gaining over the g<strong>en</strong>eralmobile ad share. In 2006, multimedia onlyaccounted for sev<strong>en</strong> perc<strong>en</strong>t <strong>of</strong> the mobile adspace, but is predicted to claim a 15 perc<strong>en</strong>tshare in 2011. On the other hand, g<strong>en</strong>eralmobile ad sp<strong>en</strong>ding dropped eight perc<strong>en</strong>t <strong>of</strong>the overall share, from a 93 perc<strong>en</strong>t hold to an85 perc<strong>en</strong>t hold on the mobile ad market.According to a forecast by Informa Telecom,in 2011, the global mobile ad market willreach $11.35 billion. The biggest chunk (39perc<strong>en</strong>t) comes from mobile TV, while another27 perc<strong>en</strong>t is g<strong>en</strong>erated by search and display and24 perc<strong>en</strong>t is from text and picture messaging.The remaining 10 perc<strong>en</strong>t is from other formats.MOBILEADVERTISING INWESTERNEUROPEAccording to eMarketer, mobile ad sp<strong>en</strong>dingin Western Europe will increase from $454million in 2006 to $3.46 billion in 2011.Just like global mobile ad sp<strong>en</strong>ding, g<strong>en</strong>eralmobile advertising also accounts for the largestshare <strong>of</strong> overall sp<strong>en</strong>ding in Western Europe,growing from $370 million to $2.83 billionfrom 2006 to 2011. Meanwhile, the mobileMobile Ad Sp<strong>en</strong>dingin Western Europe, 2006 – 2011US$ millions4,0003,500Mobile multimedia ad sp<strong>en</strong>ding** 3,462G<strong>en</strong>eral Mobile ad sp<strong>en</strong>ding*6343,0002,7222,500457 2,8292,0001,9673092,2651,5001,321 1,6581,000782 206454 132 1,115500 84 65003702006 2007 2008 2009 2010 2011Note: includes BeNeLux, France, Germany, Italy, Spain, Scandinavia,UK; numbers may not add up to total due rounding.* includes sp<strong>en</strong>ding on text message promotions and ad-supportedvoice minutes; ** includes sp<strong>en</strong>ding on ad placem<strong>en</strong>ts around mobilevideo cont<strong>en</strong>t, mobile music, mobile TV and mobile social networks.Source: eMarketer, January 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200850
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS¥ in JPY billionMobile vs. PC Online Advertising Exp<strong>en</strong>ditures, Japan25,00010,00020,00010,00015,00010,00010,0005,0000Mobile searchadvertisingMobile fixedadvertisingOnline searchadvertisingOnline fixedadvertising(Traditional vs. Search-based)Mobile search advertisingMobile fixed advertisingOnline search advertisingOnline fixed advertising2005 2006 2007e 2008e 2009e 2010e 2011e28,85919339932318,746,9124,6273,3Source: Infinita, “The Japan Mobile Internet Report”/D<strong>en</strong>tsu Inc., April 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200816,757,6153,7315,426,266,5180,4347,237,173,6204,7374,449,478,9226,5400,9multimedia ad sp<strong>en</strong>ding share is expected torise from $84 million to $634 million duringthe same period.MOBILEADVERTISING INTHEUNITEDSTATESU.S. Mobile Advertising2006 – 2008US$ million Mobile advertising%250Annual growth929120090.9%90194 891508887861001058584.8% 845055838202006A 2007E 2008E81Source: MAGNA Global© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In the United States, mobile advertising is upfrom $55 million in 2006 to $194 million in2008, according to a study from MAGNAGlobal. The annual growth rate from 2007 and2008 is steep, at 90.9 perc<strong>en</strong>t and 84.8 perc<strong>en</strong>t,respectively.MOBILE ADVERTISING IN JAPANAccording to data from Japan-basedadvertising ag<strong>en</strong>cy D<strong>en</strong>tsu, mobile advertisingin Japan is expected to grow from ¥28.8 JPYbillion in 2005, to reach ¥128.3 billion in2011. Compared to online advertising, it is stilla niche market, but one that continues to grow.Mobile fixed ads, which totalled ¥28.8 billion in2005, will reach ¥78.9 billion in 2011.Mobile search ads, on the other hand, did notev<strong>en</strong> exist before 2007, but is expected to growfrom ¥8.7 billion in 2007 to ¥49.4 billion in2011. If the growth continues to be this strong,it is expected to exceed mobile fixedadvertising in the near future.MOBILE CONTENT REVENUES IN JAPANAccording to “The Japan Mobile InternetReport,” a study by Japanese mobile marketresearch firm Infinita Inc. and Tokyo-basedpublisher Mobikyo KK, mobile cont<strong>en</strong>trev<strong>en</strong>ues in Japan reached more than ¥180billion in 2003, but rose to more than ¥350billion in 2006, according to data provided bythe Mobile Cont<strong>en</strong>t Forum.In 2003, all the rev<strong>en</strong>ues were from51