Good News For Sprint (S) And AT&T (T): Mobile Ads

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More and more mobile phone users are open to seeing mobile ads, especially if they offset the cost have of their calling and data plans. Reuters writes that a study by Nielsen shows "almost a third of people who use data services such as text messaging or Web surfing are open to advertising if it lowers the overall bill."

Over the last 30 days, the study showed that 28% of US mobile phone users recall seeing an ad. That total hit 58 million people.

As cell phone subscriber numbers grow more slowly due to saturation, US mobile operators like Sprint (NYSE: S) and AT&T (NYSE: T) are looking for new sources of revenue. Advertising could be critical to profit margins in the industry and, fortunately, the trends are good because people are cheap.

Douglas A. McIntyre