U.S. mobile search advertising revenues will grow to $1.4 billion in 2012 from $33.2 million this year, a 112% compound annual growth rate, according to market research firm The Kelsey Group. Mobile revenues include mobile search and display, ad-sponsored directory assistance and local ad-supported multi-modal applications.
While ad-sponsored directory assistance—such as Jingle and 1-800-Goog411—and mobile Internets ads account for the largest portion of mobile search ad revenues, multi-modal applications will become more important in the future, says Matt Booth, senior vice president and program director, Interactive Local Media.
With multi-modal applications, carriers opt to put voice-in and data-out products—such as Tellme of V-Enable—directly on mobile devices. “Carriers, rather than have their products cannibalized by people like Jingle or Google, will probably move to an all-you-can-eat, fixed-price directory assistance platform,” Booth says. “For example, for $2.99, $3.99 or $4.99, we’re going to give you all-you-can-use directory assistance, plus maps and directions and a whole host of other things.”
Other trends that will propel mobile advertising in the U.S. include an estimated $1 billion and $2 billion that goes unspent because Google click-through rates do not eat up all the dollars advertiser have allocated for online search campaigns, which will drive advertisers to seek other venues, according to the report.
In addition, the introduction of Apple’s iPhone will compel other manufacturers to develop more user-friendly mobile Internet devices, driving prices down and adoption up, Kelsey Group says. Mobile web users are expected to increase to 91.7 million in 2012 from 37.9 million this year, a 19% CAGR, it estimates.
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