In news that should surprise absolutely no one, Verizon Wireless is testing out advertising on their phones. The idea will be that users will have the option to get Verizon’s VCast service for one price without ads, or for a lower price with a set limit of ads as part of the programming. There is no word yet on how much of a discount the commercials will give users, or the numbers of ads users can expect.
There is currently about $100 billion spent each year on brand advertising. Verizon expects that 25 to 30 percent of that amount could find its way onto phones. It will be extremely attractive to advertisers because the demographic and geographic information available is more detailed than television advertising. Mobile content viewers will also be technological adapters and attractive for broad categories of users.
You can guarantee that this will not be the last we hear of this. As service gets better and more people get phones with video capabilities, you know that more companies will be clamoring for ways to spend their money on phone advertising and more providers will look for ways to take that money.