Decreased consumer spending calls for ad-supported content

September 24, 2008

Nic Covey is director of insights at Nielsen Mobile

By Nic Covey

The mobile phone is no longer a luxury for the American consumer – it’s a staple of daily life.

As financial markets shift and individuals feel any economic tightening in their own lives, it’s unlikely that mobile would be seen as a disposable element of their lives.

From a mobile content perspective, any reduction in consumer spending further underscores the need for advertising-subsidized mobile content. 

A $15 subscription for mobile content is a big pill to swallow, but all the more so as gas tops $4 and home prices decline. 

That’s not to suggest those who presently subscribe may ditch their services as the economy softens.

Mobile data services are like broadband in the home: once you have them, it’s very hard to go back.

From a device perspective, sales of the Apple iPhone and comparable devices and the buzz around new devices such as the HTC Dream and BlackBerry Bold suggest that consumers are just as eager to upgrade their devices as ever. 

In fact, mobile device upgrade intention is today the highest it has been in 31 months. 

New device acquisition this summer was softer than last, but our research of upgrade cycles and intent suggests that this holiday season could still be even stronger than 2006 or 2007, in spite of challenges to the economy.

Nic Covey is Chicago-based director of insights at Nielsen Mobile, the mobile research arm of Nielsen Co. Reach him at .