Funambol, a provider of open-source mobile messaging software, predicts that the Google-led Android platform will stimulate the mass market for mobile email.

According to a new Funambol report, adoption will be fueled by ad-funded mobile email, which should emerge next year due to Android-based phones that are subsidized by Google ads and perhaps by open source, ad-based mobile email solutions used by large service providers and carriers worldwide.

"The mass market consists of different user segments, such as consumers, who want mobile email but are not willing to pay much for it, and prosumers, who want work and personal email on one device and are willing to pay a small amount for a premium mobile email service that also syncs their contacts and calendars," said Hal Steger, vice president of marketing for Funambol, Redwood City, CA.

"Android will spur adoption by enabling device manufacturers to provide low-cost, iPhone-like devices," he said. "Their cost can be significantly less because they will be subsidized by Google advertising."

Android is a set of software for mobile devices that includes an operating system, middleware and key applications. Led by Google, the Open Handset Alliance -- a group of more than 30 technology and mobile firms -- is developing this open and free mobile platform.

Worldwide, there are now 3.3 billion people with mobile phones -- one market researcher claims 2.8 billion -- and 2 billion email accounts. Yet only 2 percent of consumers currently use mobile email, the Funambol report said.

In 2008, mass-market adoption of mobile email is projected to grow rapidly due to the "perfect storm" of low-cost mobile email-friendly devices and low-cost mobile data plans, Mr. Steger said.

Whereas Android provides the handset platform part of the equation, Funambol claims it has the technology -- for open-source push email, contacts and calendars -- to provide ad-based, mobile email. The goal is to make mobile email more affordable for the mass market through ads that will subsidize.

The Funambol report also highlights mobile email as "the ultimate sticky mobile app for an extremely desirable demographic."

Experiment with mobile email ads
Marketers should take note of email banner advertising opportunities, but also consider alternatives that are tailored to the mobile experience.

"Brands should plan to use 2008 to start getting experience and comfortable with mobile email advertising," Mr. Steger said.

"In some respects, it follows the same time-honored principles of all advertising, but in other respects, it is a completely new medium, with new rules and best practices that are just emerging," he said.

"Brands need to figure out how to best take advantage of this as there will definitely be advantages to those that figure it out first."

Google clearly wants to extend its desktop search ad business to mobile via low-cost ad-served phones using the Android system.

But there are challenges ahead. One facing mobile email next year is getting the price point low enough for mass-market adoption.

"Google needs to achieve a huge critical mass of mobile users, and as mobile email is perhaps the most underserved of all mobile apps today, it would be only natural for Google to provide a Gmail client on Android," Mr. Steger said.