Wireless Commerce Revenue Coming Soon
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Wireless advertising and mobile e-commerce (m-commerce) revenues will soar in the next two years worldwide, but only a miniscule percentage of those revenues will come from the U.S., according to Jupiter Media Metrix.
In a new study, the company said that worldwide wireless advertising, commerce and content subscription revenue will be $7.5 billion by 2003. However, only $.7 billion of that revenue will come from North America. Europe will do somewhat better with $1.7 billion while about two-thirds of the projected revenue, or about $5 billion, will come from Asia.
Each Asian wireless user will generate about $37 in revenue using wireless m-commerce and content services, the study said. That includes revenue from Japan's already-popular i-mode service.
That bodes ill for mobile content vendors in the U.S., who will lose money in the near-term, the study said. That's because those content U.S. wireless operators are not offering those vendors either subscription or per-minute revenue sharing.
"Despite a growing wireless audience, the U.S. is a revenue wasteland for mobile phone content providers," said Jupiter analyst Dylan Brooks. "Although carriers garner revenue for incremental usage of the wireless Internet, they have failed to support a viable revenue model for content providers." That means content providers must think long-term, he said.
While U.S. and European consumers have largely snubbed Wireless Access Protocol (WAP) services, that will change over time, the study said. It said it expects far greater adoption of both WAP and i-mode in North America and Europe over time.