TAMPA, Fla. – The most recent Business Confidence Index, released last week by the Mobile Entertainment Forum, predicts an average revenue growth rate of 33 percent for the coming year, an increase of 6 percent over what was predicted for 2009. Currently, revenues stand at about $32 billion globally.“The economic downturn has proved challenging for us all, but despite this, overall confidence in the growth of the [mobile] market remains steady,” Andrew Bud, global chair of MEF, said. “A 6-percent increase in the predicted growth of the market since the beginning of the year shows that despite a general downturn and a degree of belt-tightening in some areas, any remaining uncertainty is offset by a sense of optimism within the industry looking forward. This quiet confidence and positive outlook suggests that we are going to see some exciting opportunities developing within our industry.”
Webmaster Central President Andy Alvarez certainly echoes that sentiment. He said mobile traffic to WC’s offerings has increased from 2 percent in January to 8 percent of the company’s total traffic.
“We are seeing a shift in users that is growing faster than anything we’ve seen to date,” Alvarez said. “If you’re a webmaster and you’re not using iPhone-compatible content, you are about to miss the boat. Websites that clearly advertise mobile content inside get more sign-ups.”
MEF Executive Director Rimma Perelmuter said the upswing in mobile traffic globally, while modest, indicates non-traditional world markets — primarily in underserved nations — are beginning to catch on.
“The results [of the MEF study] point to a divide between the established and emerging markets,” Perelmuter said. “Our members in the established markets such as Western Europe and North America are forecasting relatively stable revenues but see emerging markets such as Central and Latin America, as well as India, driving proportionately larger revenue increases for the coming year. With the majority of respondents also telling us that their actual performance for the last quarter was either in line with or better than budgeted, the industry has demonstrated resilience and confidence of heading in the right direction.”
Content, not services, will continue to drive revenues, according to an analyst with KPMG, the company that performed the study for MEF.
“Paid-for content is still a big revenue generator for the mobile media sector, with respondents predicting that 63 percent of their revenue over the next quarter will come from both subscription and one-off purchases,” KPMG Director of Digital Content Mark Harding said. “Games, video, music, social networking and infotainment continue to lead the way.
“The survey results also show that the well-publicized growth of applications is developing into tangible revenue streams,” he added. “Fourteen percent of all revenue is now projected to come from applications, with an expectation that over half of this revenue will be generated through consumers buying them. This is a new and fast-growing revenue stream for the industry. These results demonstrate what can be achieved through a positive consumer experience and that consumers are willing to pay for content they value.”
Alvarez said that’s what his company specializes in: converting content from traditional digital media to mobile-compatible material consumers desire.
“We decided to convert all our theaters to be iPhone-compatible the day [the iPhone] was released,” he said. “For years we were being told by our European clients to start making the move [to mobile delivery], but it wasn’t until we saw the iPhone that we knew this was going to be the device for the American market.
“We now have over 50 theaters in various niches that are 100-percent iPhone-compatible,” he added. “We plan on converting all Webmaster Central content by the end of this year.”
Free demos of WC’s straight and gay mobile products are available. For more information, email the sales staff or visit WebmasterCentral.com. Alvarez said prices start at $29 per theater.
