About One-Quarter of Current Mobile Phone Subscribers Support Incentive-Based Advertising, According to a Survey by Harris Interactive

ROCHESTER, N.Y. – October 23, 2006 – About one-quarter (26%) of current mobile phone subscribers say they would be willing to watch advertising on their cell phone if in return they were to receive free applications for their phone. Smaller numbers (7%) of wireless subscribers say they would be interested in receiving promotional text messages if they were relevant.

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

These are some of the results of a nationwide online survey of 1,125 U.S. adults conducted by Harris Interactive® between August 9 and 14, 2006.

Advertising on cell phones is yet another sign that wireless communications is changing the nation’s social fabric and the way people communicate. The survey found that 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 land line telephone service.

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

Joe Porus further comments, "Ma Bell could become a name for Trivial Pursuit® before you know it as more and more consumers are cutting the cord and going wireless only. Ultimately consumers see wireless as a more convenient, cost effective and personal form of communication. So, targeted cell phone advertising seems a natural development in the wireless phenomenon."

TABLE 1

VIEWING ADS ON CELL PHONE IN RETURN FOR INCENTIVES

"How willing would you be to watch advertising on your cell phone if in return you were to receive free applications for your cell phone?"

Scale of 1 to 7 with 1 being "Not at all willing" and 7 being "Very willing"

Base: Current mobile phone subscriber (n=857)

 

Total

%

Top 3 Box (Net)

26

(7) Very willing

10

(6)

7

(5)

9

(4) Neutral

12

Bottom 3 Box (Net)

63

(3)

6

(2)

6

(1) Not at all willing

51

Note: Percentages may not add up exactly due to rounding.

TABLE 2

INTEREST IN RECEIVING PROMOTIONS ON CELL PHONE

"Would you be interested in receiving promotional text messages to your cell phone (assuming they are relevant to you)?"

Base: Current mobile phone subscriber (n=857)

 

Total

%

Extremely interested

1

Very interested

1

Interested

5

Not very interested

14

Not at all interested

78

Note: Percentages may not add up exactly due to rounding.

TABLE 3

CELL PHONES AS PRIMARY FORM OF COMMUNICATION

"Please indicate how much you agree or disagree with each of the following statements: Cell phones are now my primary form of communication."

Scale of 1 to 7 with 1 being "Do not agree at all" and 7 being "Completely agree"

Base: Current mobile phone subscriber (n=857)

 

Total

%

Top 3 Box (Net)

38

(7) Completely agree

16

(6)

8

(5)

14

(4) Neutral

19

Bottom 3 Box (Net)

44

(3)

8

(2)

10

(1) Do not agree at all

25

Note: Percentages may not add up exactly due to rounding.

TABLE 4

CELL PHONES AS PERSONAL FORM OF COMMUNICATION

"Please indicate how much you agree or disagree with each of the following statements: Cell phones are ultimately a more personal, direct form of communication as compared to traditional phone service."

Scale of 1 to 7 with 1 being "Do not agree at all" and 7 being "Completely agree"

Base: Current mobile phone subscriber (n=857)

 

Total

%

Top 3 Box (Net)

36

(7) Completely agree

12

(6)

8

(5)

16

(4) Neutral

24

Bottom 3 Box (Net)

40

(3)

6

(2)

9

(1) Do not agree at all

26

Note: Percentages may not add up exactly due to rounding.

TABLE 5

2005 SWITCH FROM TRADITIONAL TO WIRELESS PHONE EXCLUSIVELY

"Since wireless phones have become more reliable and coverage has improved as well, would you consider disconnecting your traditional phone and using a wireless phone exclusively?"

Base: All Adults (n=1,008)

April 2005

Total

 

%

I have already switched

9

I am considering it seriously. I plan to switch within one year

5

I am somewhat considering it

47

I would never switch

39

Methodology

This online survey was conducted within the United States between August 9 and 14, 2006 among 1,125 adults (aged 18 and over), of whom 857 currently subscribe to wireless telephone service. Figures for age, sex, race, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

All surveys are subject to several sources of error. These include: sampling error (because only a sample of a population is interviewed); measurement error due to question wording and/or question order, deliberately or unintentionally inaccurate responses, non-response (including refusals), interviewer effects (when live interviewers are used) and weighting.

With one exception (sampling error) the magnitude of the errors that result cannot be estimated. There is, therefore, no way to calculate a finite "margin of error" for any survey and the use of these words should be avoided.

With pure probability samples, with 100 percent response rates, it is possible to calculate the probability that the sampling error (but not other sources of error) is not greater than some number. With a pure probability sample of 1,125 one could say with a 95 percent probability that the overall results would have a sampling error of +/-4 percentage points. Sampling error for results from sub-samples would be higher and would vary. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

These statements conform to the principles of disclosure of the National Council on Public Polls.

About Harris Interactive Technology Research

The Harris Interactive Technology Research group doesn’t just monitor and measure the industry. It interacts with the thought leaders who drive technology, telecom and e-business everyday and provides insights from a variety of vertical perspectives. Using the group’s unique knowledge, experience, and expertise in both the telecommunications and information technology sectors, Harris Interactive asks the right questions, confirms business issues, and designs and implements studies to provide clients with actionable results.

About Harris Interactive

Harris Interactive is the 12th largest and fastest-growing market research firm in the world. The company provides research-driven insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods. The company has built what could conceivably be the world’s largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly-owned subsidiary Novatris in France and through a global network of independent market research firms. The service bureau, HISB, provides its market research industry clients with mixed-mode data collection, panel development services as well as syndicated and tracking research consultation. More information about Harris Interactive may be obtained at www.harrisinteractive.com.

Press Contact:

Michelle Soto

Harris Interactive

585-214-7665

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