Mobile search and discovery rises


Market to generate $15 billion by 2017 driven by high value clicks

Revenue from mobile search and discovery will reach $15 billion by 2017, nearly three times the revenue that should be generated by these markets in 2012, according to a new forecast.

Juniper Research stated that ad space in these markets represents prime real estate for advertisers. The report found that click through and cost-per-click rates for search and discovery, including web search, local search, augmented reality search and discovery apps, are some of the highest in mobile advertising due to the fact that users are in the market for a discrete group of products or services, and can therefore be accurately targeted by advertisers.

Major search engine providers, including Google and Microsoft, say a large percentage of web searches on mobile are localised, but the report highlights that local search apps arguably represent a greater opportunity for advertisers because of more relevant results and better user interface optimisation.

According to the report author, Daniel Ashdown, analyst at Juniper: 'Web search results, by their very nature, are more generalised, despite the local parameters search engines offer. Furthermore, the websites linked-to in search results are often not optimised for mobile devices.'

However, Google's domination of the mobile web search space means other players need to find ways to differentiate their products in a largely commoditised market. Adoption of discovery services for apps is driven by the high number of applications on leading storefronts, but these face challenges from big brands (with Apple acquiring Chomp, and Facebook launching app centre).

Juniper's report notes that with local search apps like Poynt, Qype and Yelp, the search experience is mobile-optimised from end to end, which is crucial if the user is to be led through the whole process, to reaching a purchasing decision.


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