Yahoo Launches Mobile ads

Yahoo launched its mobile Web service in 18 countries today. The Yahoo Mobile site at the top of the search results page now contains ads. Currently the platform allows for click-to-call or simple links to other mobile sites.

Yahoo! first tested mobile banner ads in the U.S. with Pepsi in November 2006. Since that time Nissan, Procter & Gamble, asia Pacific and Singapore airlines have joined Pepsi in the beta launch. In an article for Media Post, Elizabeth Harz, vice president, category strategy for Yahoo Media Sales said, "The mobile environment can be frustrating for marketers, so this global platform is just really easy and allows marketers to advertise on most phones around the world."

For all the hubbub over the last several years about mobile being the next big thing, the mobile ad market remains small at only $1.4 billion this year. JupiterResearch expects the market to expand to $2.9 billion by 2011. While that is expansion, it's not worthy of all the attention the mobile space gets in the press. Today the mobile advertising market is centered on text-based ads. Jupiter forecasts that mobile display ads will only increase to $224 million by 2011, with CPMs declining to $23 from $41 in 2006 on increased inventory.

Yahoo Go for Mobile 2.0's new test version also launched today. This package of Yahoo applications includes e-mail, search and Flickr photo-sharing for handheld devices. With this version users can search directly for local businesses from interactive maps and share search results and news stories with friends. The upgraded Yahoo Go will also test display advertising for the first time.