Thursday, May 22, 2008

Mobile search adspend to top $2B by 2013

Annual adspend on mobile search will reach $445m in 2008 - representing more than 34% of total mobile adspend - before rising to more than $2bn by 2013. In two new reports, Juniper Research has highlighted the key role of mobile search applications and services within the mobile advertising environment.

The reports - Mobile Search and Discovery and Mobile Advertising - found that as operators abandon the "walled garden" model, consumers were increasingly searching for content both on and off-portal, thereby providing a substantial target audience for advertisers.

However, the reports note that there are significant opportunities for advertising across a host of mobile applications and delivery mechanisms, with nascent channels such as MMS and idle-screen advertising attracting a combined annual adspend of more than $1bn within 5 years.

According to Juniper Research's Principal Analyst, Dr Windsor Holden, "While mobile advertising was historically dominated by campaigns conducted almost exclusively via SMS, the mass adoption of 2.5G and 3G handsets - combined with the development of applications enabling targeted, instant measurement and frequency capping - mean that we now have a situation where consumers can receive personalised advertising across a variety of rich media delivery channels."

Other findings from the reports include:
  • Total mobile adspend will rise from $1.3bn in 2008 to more than $7.6bn in 2013
  • Mobile search revenues (including data charges) will reach $4.8bn by 2013
  • Both mobile search adpsend and total mobile adspend will be highest in the Far East/China region, followed by Western Europe and North America
Juniper Research observed that a single advertising campaign may well utilise a number of different channels within the mobile environment, including idle-screen, mobile TV campaigns, display advertising and SMS.

Furthermore, the most successful campaigns will not merely utilise these different channels, but will integrate mobile within a campaign across multiple media to increase brand awareness. While initial mobile advertising campaigns were largely ad hoc affairs, advertisers are increasingly moving towards incorporating mobile advertising within a planned campaign as they become more comfortable with the medium and - crucially - as the potential reach of mobile advertising increases.

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