A new report from Juniper Research titled “Mobile Search & Discovery: Opportunities & Markets, 2008-2013” suggests that annual revenues generated by mobile search services are expected to reach $4.8bn by 2013.
According to the report, while revenue generated by data charges associated with mobile search is significantly higher than that generated by mobile advertising at the present time, the gap will close over the next five years along with the establishment of the relatively young mobile advertising market. In addition, the report also finds that local search services will be the most popular with advertisers, attracting 40% of mobile search ad spend over the 2008-2013 period.
Adoption of mobile search services is likely to be driven by such factors as:
- Enhancements to the user interface resulting in an improved user experience while searching;
- The gradual decline of the operator “walled garden” approach;
- Reduction in data costs and increasing availability of flat rate data tariffs; and,
- The impetus provided by major search brands such as Google and Yahoo!
Not surprisingly, the China/Far East region will generate most revenues from mobile search services over the next five years, followed by Western Europe and North America.
However, the report cautioned that an “advertising overload” might act as a disincentive to consumers and might ultimately limit adoption… More information is available on Juniper’s website.