Yahoo Moves on Mobile Ads

BARCELONA -- 3GSM World Congress -- Yahoo Inc. (Nasdaq: YHOO) gave a boost to the mobile advertising market with the launch of its display advertising platform for its mobile Website at the 3GSM conference here in Barcelona. But analysts say this market won't really take off until mobile operators change their data charging ways and offer flat-rate packages.

Some of Yahoo's top advertisers are participating in the new mobile platform, including Intel Corp. (Nasdaq: INTC), Hilton's Embassy Suites, Infiniti, Nissan, Pepsi, Procter & Gamble Asia Pacific, and Singapore Airlines. Ads will run at the top of Yahoo's mobile Web home page, and users can click on an ad to call the advertiser directly. The service will be available in 19 countries.

Even with such big global brands on board, Yahoo's advertising platform is just one small step for mobile advertising.

The mobile advertising market is in its infancy. Advertisers are not interested now, because they are put off by the small screens and don't see a big enough mobile media audience. And mobile operators have yet to work out the right charging model for mobile media. But Internet giants like Yahoo and Google (Nasdaq: GOOG) are eager to extend their advertising-based models onto mobile phones.

What's holding the market back?

Get the whole story at Unstrung.

— Michelle Donegan, European Editor, Light Reading

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