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Mobile Search ad spend to reach $2bn by 2013

Mobile Search ad spend to reach $2bn 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, according to Juniper Research.

In two new reports, the researcher 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 ad spend of more than $1bn within five 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 that total mobile adspend will rise from $1.3bn in 2008 to more than $7.6bn in 2013 and that mobile search revenues (including data charges) will reach $4.8bn by 2013.

Both mobile search ad psend and total mobile ad spend are predicted to be the 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.

AJR
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