The Mobile Internet Report Key Themes*

Mobile Online Commerce / Paid Services / Advertising
Outlook
Mobile Virtual / Digital Goods Growth Should Be Robust
If mobile trends in Japan / virtual goods trends in China hold for ROW,
virtual goods monetization should benefit from established mobile payment
models. Most virtual items support vast selection + sub-$5 price tags
Digital goods such as games / full-track music / books should sustain rapid
growth while decorative digital goods such as ringtones / wallpapers likely to
face declining sales owing to carriers losing control of the ‘walled garden’
Mobile Paid Services Have Room to Grow
Underdeveloped / fragmented mobile payment solutions reflect the need for
a unified / large-scale mobile payment solution
Location awareness should drive innovation / monetization of services such
as travel booking
Mobile Advertising Could Have Significant Upside
Advertising formula (search + display) proven to have higher ROI on
desktop Internet vs. traditional media
Mobile’s location-awareness + outsized time spent should translate into
improved ROI over time on mobiles
Source: Morgan Stanley Research. 372