'UK consumers ok with online, mobile advertising'
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[April 06, 2009]

'UK consumers ok with online, mobile advertising'

Apr 06, 2009 (DMEUROPE via COMTEX) -- UK consumers do not mind advertising on the internet or mobile phones if this means they will get videos, music or other content for free, the Financial Times reported, citing a KPMG survey. About 60 percent of people polled said they would rather watch advertising on the internet in return for free content, rather than pay for it. Only 16 percent of consumers said they would rather pay for content and avoid ads.



Regarding mobile phones, 40 percent of respondents said they would watch adverts in exchange for free music, while 28 percent said they would do so in exchange for access to free instant messaging. The figures indicate that advertising, rather than subscription-based business models, are likely to work for internet and mobile content businesses in the UK. A number of advertising-supported internet music services have recently been struggling, as the economic downturn forces advertisers to retreat. SpiralFrog and Ruckus, two advertising supported music services based in the US, shut down earlier this year.

However, the KPMG study indicates that advertising on music sites would reach a willing audience. When consumers did pay for content on mobile phones, they were most willing to spend on music and navigation tools.



About 34 percent of UK consumers polled by KPMG had purchased music on their phones in the past year, the highest percentage in Europe. UK consumers were reluctant, however, to pay for online books, online photo storage or social networking tools for their mobile phones. The uptake of mobile banking services remained because of security concerns. Some 67 percent said they were uncomfortable using their phone for any financial transactions.

Distributed for DMeurope.com via M2 Communications Ltd (www.m2.com)

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