Chat to Drive Mobile Adult Revenue Growth

October 18, 2010

An increase in video chat revenue will drive 55% growth in global mobile adult content and services revenue between now and 2015, according to a new white paper from Jupiter Research.

Chat, Download Follow Opposite Trends
In 2010, global revenue from mobile adult content and services is projected to be $1.8 billion in “Monetizing Adult Mobile Content.” By 2015, Jupiter predicts that figure will increase by more than 50%, to about $2.8 billion.

Currently, mobile adult download is the leading revenue driver in the segment, followed by subscription, chat and text. However, by 2015, Jupiter expects adult video chat revenue to substantially increase until it becomes the leading revenue driver, followed by subscription, which will grow less dramatically.

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Download will lose a sizable portion of its current revenue to slip to third place in terms of global adult mobile revenue produced, with text losing a small portion of its revenue to maintain fourth place.

In 2009, adult download and text services combined to account for 56% of all adult mobile revenue, by 2015 together they will represent less than 20%. Meanwhile, adult video chat will grow from 17% of total revenue to more than 50%.

Key Trends in Adult Mobile Content & Services
Jupiter Research has identified the following key trends in the global adult mobile content and services market:

  • Rise in Consumer Smartphone Adoption: Increased popularity of sophisticated smartphone interfaces has led to a dramatic rise in adult mobile traffic, particularly to off-portal branded sites.
  • Reduction in Traffic to On-portal Sites: The above noted increase in off-portal branded site traffic has led to a corresponding reduction in traffic to on-portal sites, resulting in lower mobile adult revenue for network operators.
  • Far More Freely Available Content: Many thumbnail gallery posts offer free teaser posts, which satisfy the needs of many mobile users. Thus adult sites have to deliver more content to obtain the same revenue today they did a few years ago.
  • Online pornography is illegal in many markets in sub-Saharan Africa and much of the Asia-Pacific region.
  • Adult traffic is up, but conversion rates are down.

Mobile Gambling Has Good Chance for Growth
Mobile gambling, which is considered the “other” adult form of adult mobile content and services, will also see a substantial increase in global revenues, according to another recent white paper from Juniper Research.

“Good Odds for Mobile Gambling” findings indicate total global wagers on mobile gambling services will reach about $48 billion USD by 2015. Steady growth in the vertical has been occurring in the past two years despite the worldwide economic downturn, mainly in the mobile betting niche.

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