Nielsen: Mobile to outpace other media platforms, including the Internet

Posted by Erina Lin on August 18, 2010 at 3:57 PM

"Defying classic economic models, the demand for communication (cell phones) leads traditional media growth, signifying a global, disruptive phenomenon," states a new report by Nielsen Wire, with research from The Cambridge Group, Media Post reported.

The Internet will continue to grow, but "at more predictable patterns," the report added.

Photograph: Alamy

Mobile growth will be significantly strong in BRIC countries - Brazil, Russia, India and China, which have a rising financially strong middle class.

BRIC countries, according to Nielsen, are expected to grow on average by four or five percentage more than established economics during 2010 to 2015, especially over G-7 nations, which are the U.S., U.K., France, Germany, Italy, Canada and Japan, Media Post reported.

Those BRIC economics, along with other countries, are forecasted to have around a 7 percent growth rate in mobile, compared to developed countries' 2 percent increase.

Nielsen said the significant mobile growth occurs because access to mobile devices and services become acceptable at lower household incomes levels. For example, in a specific territory of established countries, Internet penetration in general requires an income threshold of about $20,000 of per capita GDP (Gross Domestic Product) to achieve a 50 percent reach. But for mobile penetration, the levels can be as low as $5,000.

The report estimated that in the next five to 10 years, mobile penetration will reach 140 phones per 100 inhabitants, even in poorer economies, and the gap between developed and emerging countries will have largely diminished.

Regarding marketing campaigns, mobile will beat other media platforms as the leading power.

"A reverse innovation model is evolving, where effective mobile advertising platforms are identified first in emerging markets, then transferred back for further refinement in established markets," the report added.