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The attempts of using the wireless network as a new advertising media are rapidly increasing. This paper proposes a framework for understanding the characteristics of advertising through mobile phones. The paper discusses the traits of online advertisements and comparison to other advertising media. It also presents the overview of different conceptual models for advertising and suggests a conceptual model for mobile phone advertising. A review is presented on the factors affecting the effect of mobile advertising and three groups of factors are suggested; advertisement; audience; and environment. A total number of 53 case studies is collected and categorised based on product category, business object, target audience and advertisement type. Four observations are made from the case studies in the viewpoint of the three factor framework.