Mobile ads to touch Rs 500 cr in 5 yrs: Experts

Industry experts said the mobile advertising market currently valued at Rs 40 crore can grow more than nearly twelve times if the telecom companies provide open Internet access at low rates along with standardisation of regulations.

"In the next five years we are expecting the mobile advertising sector to reach a turnover of Rs 500 crore," digital and mobile entertainment firm, Mobile2Win Corporate Development and Strategy Head Gopala Krishnan told PTI.

"This money can come from integration with below-the-line (BTL) budgets, retail budgets and the digital budget," mobile phone advertising firm, Telibrahma Chief Executive Officer Narasimha Suresh said.

The bottleneck, however, is the prohibitive cost of Internet on mobile and also disproportionate sharing of revenue between telecom service providers and advertisers.

"The operators have to stop acting as gatekeepers to the Internet and allow consumers to access content and services on the Internet easily and cheaply, using their mobile devices," Krishnan said.

Currently mobile advertising revenue is split at 70:30 ratio between operators and the companies.

He, however, said it the telcos' position was understandable as they have little or nil influence for advertisement carried on third party media that is accessed over the mobile Internet.

"They will, however, have significant influence when the media is owned by it," Krishnan added.