New technology may seem to be where advertising dollars should be invested; however, sometimes it’s best to wait to see how successful that platform can become.
According to MediaPost, The Nielsen Company recently released a report about the usage of mobile video in the United States.
Only about 7% of the mobile phone owners were found to be active mobile video users during second quarter. This is about 15.3 million people, which is an increase of 70% from 2008. This is still a relatively low number when compared to the 220 million users.
Fifty-two percent of US mobile subscribers carry phones that do not have the capacity to view video. In addition, about 78% of current users are first year subscribers. The research company found that first year users are most likely “testing” the service and then discontinuing before the second year. Nielsen did attribute some of the findings as the outcome of a weak economy.
Nic Covey who is the director of insights at The Nielsen Company summarized mobile video as “a transformational technology that will require real changes or additions to the consumer media diet. As such, it may have a long way to go before making a dramatic impact on our media economy.”
If the report is any indication, it will be a long road considering that customer satisfaction has actually declined to 65% during second quarter from 74% in second quarter 2008.
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