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The Barriers and Opportunities in the Mobile-Ad Market

As tablet PCs and smart phones increase the share, the mobile-Ad market becomes more important for companies. According to the Wall street Journal, although there are barriers to make effective mobile ads, many companies try to develop the ads.

It seems to be clear from the actions made by big companies that the mobile-Ad market has big the potential to generate revenues. For example, Apple launched iAd that allows developers to make interactive ads for IOS devices. Also, In 2009, Google acquired AdMob that is a mobile advertising company.

Although the big companies are interested in the mobile-Ad market, it is still difficult for other companies to develop effective and productive advertisements for mobile devices. One reason for this is the different OS systems among the high-rich mobile devices such as Android, IOS, Windows phone 7, and Blackberry.  This difference makes developers and companies difficult since they need to develop mobile ads for each OS systems. Furthermore, because there are so many apps for the devices in the world, it is difficult for the developers to create mobile ads that can catch customers.

Despite the barriers, many companies still want to get in the mobile-Ad market because they can target customers easily by location-based services such as GPS. Moreover, by opt-in advertising that allows users to decide if they agree to get targeted ads, advertisers can get more information about the customers while keeping customers’ privacy. Also, in the future, the mobile-Ad market will interacts with the social networks services and apps to provide more targeted information, so companies can easily to target customers more and more.

Right now, the mobile-Ad market is still small compared to other advertising markets; however, it is expected to increase more than double by 2014 in the U.S. due to the appealing points. Sir Martin Sorrell, founder and chief executive of WPP PLC, the world largest advertising company by revenue, said that mobile advertising is the “Holy grail” of the industry.

As future business people, we cannot ignore this new trend and need to think about how we can develop the effective mobile ads. As the article stated, the mobile devices allow us to get more information about customers such as where they are, so we can provide more personalized and meaningful information to them.

However, although the mobile ads can be meaningful for users because of the personalization, the ads are still annoying for some people. In order not to make people uncomfortable, there is opt-in advertising, but I think majority of people do not know how they can set up not to receive personalized ads. Therefore, mobile advertising and IT companies should work together to provide an obvious notification of opt-in advertising for people. For example, IT companies can inform users about the opt-in advertising system when the users first use web browsers on smart phones. The companies might say that they would lose many potential customers if they do so; nevertheless, those who do not like the personalized ads just feel uncomfortable from the ads and might develop negative opinions toward the advertisers. Therefore, it should be better to let the customers who do not like the personalized ads to choose not to receive the ads.

If the companies do so, the mobile ads can be more effective and productive than right now.