…but cautions against ‘advertising overload' and personal data security concerns
Annual revenues generated by mobile search services are expected to reach $4.8bn by 2013, according to a new report from Juniper Research.
The report says that 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 yea as the relatively young mobile advertising market establishes itself. It also finds that local search services will be the most popular with advertisers, attracting 40% of mobile search adspend over the 2008-2013 period.
According to the report, adoption of mobile search services is likely to be driven by factors such 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!
The report found that 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, while there are continuing public concerns over search engine usage of personal data.