BOSTON – The Strategy Analytics Wireless Media Lab report, “US Consumers Willing to Accept Mobile Advertising Despite Concerns Over Hidden Charges,” looks at willingness to accept mobile advertising, and questions what consumers want in return, identifying preferred modes of delivery.

Strategy Analytics found that the majority of mobile users would accept some form of mobile advertising as long as:

* no hidden charges are associated with participation,
* they receive something in return, and
* the level of intrusion is limited.

“Mobile barcodes and mobile coupons were the most preferred advertising models,” commented Paul Brown, Senior Analyst in Strategy Analytics User Experience Practice. “These methods were most appealing as they give the user direct choice over when and where they receive advertising.”

Kevin Nolan, Vice President at Strategy Analytics added, “On the whole, users associate mobile advertising with junk email. Therefore, if providers give advance, exclusive information, as well as other incentives, mobile users would accept mobile advertising.”

About Strategy Analytics

Strategy Analytics, Inc. provides timely and actionable market intelligence focused on opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems and Virtual Worlds. Headquartered in Boston, MA, with offices in the UK, France, Germany, Japan, S. Korea and China, Strategy Analytics works with clients through annual multi-client services, management team workshops and custom consulting engagements. For more information, please visit http://www.strategyanalytics.com/

On a trailing twelve months basis, Strategy Analytics’ Digital Media Index grew 5.8% in Q2 2008 to reach 153, equal to a 53% increase from the index base year, as of December 31, 2006. Three companies managed to beat the quarterly index growth: Warner Music Group’s Digital Business, up 8.5%, Google, up 8.3% and Apple iTunes, up 7.3%.

“The global digital media economy continues to expand quickly with an annual growth rate of 31%,” said Martin Olausson, Director of Digital Media Research at Strategy Analytics, “but we are now seeing a considerable slowdown in quarter-on-quarter growth across the board.”

“It seems that not even an emerging sector such as digital media is immune to the global economic downturn,“ added David Mercer, Vice President and Principal Analyst at Strategy Analytics. “Companies relying solely on digital revenues for growth may struggle in the second half of 2008, as consumers and advertisers alike tighten budgets.”

Other findings from Strategy Analytics’ Digital Media Index (GDMI) Q2 2008 include:

* Fox Interactive Media (FIM) was the fastest growing digital media company on an annual basis in the index with an impressive 55.6% growth in the last 12 months;
* Apple iTunes was down 7.0% quarter-on-quarter. However this decline is consistent with seasonality for iTunes, and is in line with a 6.9% drop in the same period the previous year.

About Strategy Analytics

Strategy Analytics, Inc focuses on market opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems Implementation Strategies and High Frequency Market intelligence. www.strategyanalytics.com