Advertising spend on mobile phone messaging will reach around $7.4 billion (£4.6 billion) by 2017, according to the latest data from Juniper Research.

The growth will be driven by a dramatic upsurge in the use of location-based SMS messaging in order to deliver relevant adverts to consumers.

Opt-in messaging schemes are likely to become more commonplace as operators attempt to look for new revenue streams beyond voice and data.

SMS ads can be of significant benefit for marketers as they are very familiar with consumers and as such have a higher chance of being opened.

Author of the research report Charlotte Miller said adding location technologies to messages is a "powerful proposition" for companies, especially if consumers have opted in to receive them.

"Sending adverts using mobile messaging gives advertisers a simple, cheap and effective way of reaching consumers. Knowing the recipients will in all likelihood open it is also particularly attractive," she continued.

Posted by Samantha Green

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