Telephia: Mobile Video Popularity Reaching New Heights With Triple-Digit Growth in Revenues and Subscribers

(c) Telephia

Mobile Video Consumers Primed for Advertising

After another quarter of impressive subscriber growth, mobile video is rapidly becoming a significant new media distribution platform. According to Telephia, the world's largest provider of syndicated consumer research to the telecom and mobile media markets, mobile video revenues in the U.S. totaled $146 million in Q1 2007, growing 198 percent year-over-year (see Table 1). There were 8.4 million mobile video subscribers last quarter with penetration doubling to nearly four percent since Q1 2006.

Table 1: Quarterly Mobile Video Revenue Share, Subscriber Size and Penetration Rate (U.S.)

                                                       Q1      Q1    YOY
Measurement                                           2006    2007  Growth
Mobile Video Quarterly Revenues (in millions)          $49    $146    198%
# of Subscribers (in millions)                         3.3     8.4    155%
Penetration (as proportion of all mobile subscribers)  1.6%    3.6%

Source: Telephia Mobile Video Report, Survey and Bill Panel Analysis, Q1 2007

"Within a very short time, the number of mobile video subscribers has grown to over 8 million, comparable with the average audience size for an episode of 'The Sopranos' this season," said Kanishka Agarwal, vice president of mobile media, Telephia.

"As the world's leading provider of video on the handset, MTV Networks recognizes the vast opportunities at hand for the mobile industry, from the sheer number of handsets out there, to the limitless potential for innovation the technology provides," said Greg Clayman, senior vice president, MTVN Mobile Media. "By cultivating an even deeper understanding of consumer behaviors and usage patterns, the industry will continue to build momentum and meet the growing demand for content on the handset."

Mobile Video Consumers More Receptive to Mobile Advertising

Telephia data shows that mobile video audiences are primed for seeing ads on their phones. Video consumers had the highest recall of viewing ads on their phones as compared to all data service consumers, with 55 percent saying they recalled viewing a mobile ad in the last 30 days (see Table 2). This is nearly three times the recall rate for mobile data consumers in general. Even more promising, forty-one percent of mobile video consumers recently responded in some way to an ad, an encouraging sign for advertisers.

"Consumers are used to seeing commercials on their TV at home, which has created a learned behavior that is transferring to mobile TV and making advertising more acceptable," continued Agarwal. "Nearly half of mobile video users are willing to view ads on their phones in exchange for something, translating into a compelling opportunity for ad-supported mobile content where marketers can target customers with relevant advertising."

Table 2: Mobile Data Consumer Recall Rates for Ads Viewed (U.S)

Consumer Type               Recalled Viewing an Ad
All Data Users                                 21%
Mobile Video Users                             55%
Downloaded Application Users                   43%
Mobile Internet Users                          34%
Mobile Game Users                              31%
Mobile Audio Users                             26%
MMS Users                                      24%
SMS Users                                      20%