Nov 1, 2006 6:01 AM, PROMO Xtra, By Andrew Scott

About a quarter (26%) of current mobile phone subscribers would watch cell phone ads in exchange for free applications, according to a study conducted by research firm Harris Interactive.

A smaller number (7%) said they would be interested in receiving promotional text messages if they were relevant, the study finds.

"This seven percent coalition of the willing represents a huge market given the fact that there are over 200 million cell phones in the United States," said Joe Porus, VP and chief architect for Harris Interactive. "Wireless Service Providers need to balance the value of advertising revenue with the potential of irritating their subscriber base, which could potentially increase churn."

Ultimately, consumers see wireless as a more convenient, cost effective and personal form of communication, Porus said. "So, targeted cell phone advertising seems a natural development in the wireless phenomenon." (PROMO, October 2006)

Still, some consumers are leery of the idea of ads appearing on their mobile devices. In response to how they felt about advertising on cell phones, 12% of consumers were neutral to the idea and 63% didn't like the concept. Meanwhile, 78% indicated they were "not at all interested" and 14% were "not very interested" in promotional messages on their phones even if relevant.

The study also provided some additional insight on the growth of cell phone usage. Some 38% percent of wireless subscribers say they now consider wireless to be their primary form of communication and one in three (36%) believes that cell phone service is more personal and direct than landline telephone service.

Of note, in April 2005, one in 10 (9%) U.S. adults said that they had abandoned their landline telephone service completely in favor of using their wireless phone exclusively. At that time, another 5% said that they were seriously considering this and would switch within a year and 47% said that they were somewhat considering it.

Rochester, NY-based Harris Interactive conducted the survey online in August among 1,125 adults (aged 18 and over), of which 857 currently subscribe to wireless telephone service.

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