Catching the European Mobile Market

Catching the European Mobile Market

AUGUST 22, 2007

European mobile customers may speak many different languages, but marketers everywhere are getting the message.

European mobile market starts with two big advantages: a widespread,
high-speed infrastructure and handset manufacturers that are among the
best in the world," says John du Pre Gauntt, eMarketer Senior Analyst
and author of the new report, Mobile Europe. "So it’s no wonder that European mobile consumers are accustomed to switching easily between voice and data services."

A recent receptivity among carriers, regulators and brands is
opening up new opportunities for mobile marketing on the Continent.

eMarketer estimates that mobile advertising spending in Western Europe alone will grow from $382 million in 2006 to $3.46 billion in 2011, roughly a ten-fold jump.

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According to the European Information Technology Observatory (EITO), the mobile market in Europe will total 850 million subscribers in 2007 and grow to 920 million by 2010.

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"These are huge numbers," says Mr. Gauntt. "Of course, when compared
to Asian juggernauts such as China, where one operator, China Mobile,
alone will serve more than 400 million subscribers in 2007, they seem
slightly less overwhelming."

According to an Exane BNP Paribas and Arthur D. Little
study, on a per-capita basis, Europeans in 2007 will spend an average
of €30 ($41.48) per month on mobile voice and data services, and growth
is expected to be slow.

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"One of the primary reasons the red carpet is rolling out for
marketers is that the mobile industry has exhausted almost all other
avenues for monetizing its mobile Internet and 3G investments," says
Mr. Gauntt. "Marketing revenues stand out as one of the few new sources
of income in this relatively mature market."

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