Mobile-Ad M&A Frenzy May Continue

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asp?symbol=MS'>MS) analyst Mary Meeker said in a recent report.

Mobile ads may also be more effective, researchers say. Mobile ads have a higher so-called click-through rate, a measure of the rate at which an ad is clicked on by a person who views it. The rate for mobile ads is 2% to 5%, compared with 0.2% for PC-based online advertising, according to Chetan Sharma, an independent wireless industry analyst. Mobile ads are also less expensive, costing as little as $1 to $6 per 1,000 impressions, while a PC Web banner costs closer to $10, Sharma says.

Exponential Growth

Coca-Cola (KO), Honda (HMC), Intel (INTC), Motorola (MOT), and National Geographic are among companies now advertising on mobile phones. "The number of advertisers doing mobile programs has grown exponentially," says Paul Kultgen, a director at Nielsen. The researcher's November survey showed that more than 1,000 advertisers now put out mobile display ads, a fivefold increase over a year earlier.

AOL (AOL), Microsoft (MSFT), Yahoo! (YHOO), and Nokia (NOK) have acquired mobile-ad companies in the past several years and may make more purchases, analysts say. Representatives of all four companies declined to comment for this story. Handset makers such as Samsung and Motorola may also join the buying, analysts speculated. Representatives of both companies declined to comment. Online retailers Amazon (AMZN) and eBay (EBAY) are also potential acquirers, says Olschwang of Jumptap. An eBay representative declined to comment, while an Amazon representative declined to comment.

Meantime, even potential targets are turning into acquirers. On Jan. 13, Amobee bought London-based RingRing Media for an undisclosed sum. Bayle says Amobee may make other purchases.

Kharif is a reporter for Bloomberg BusinessWeek in Portland, Ore.

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