Reports: Mobile Search Ad Spending to Hit $2 Billion by 2013

HAMPSHIRE, England - Annual spending on mobile search advertising is expected to reach $445 million in 2008 and rise to more than $2 billion in 2013, according to two reports Juniper Research released Wednesday. 

The 2008 estimate represents more than 34 percent of total spending on mobile advertising. 

The reports "Mobile Search and Discovery" and "Mobile Advertising" highlight key roles mobile search applications and services play in the mobile advertising environment.

The reports state that as operators abandon the "walled garden" model, consumers increasingly seek content on- and off-portal, providing a substantial target audience for advertisers.

However, the reports note that there are significant opportunities for advertising across various mobile applications and delivery mechanisms, with new channels such as multimedia messaging service (MMS) and idle-screen advertising expected to combine to attract more than $1 billion in annual advertising spending within five years.

"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 personalized advertising across a variety of rich media-delivery channels," said Windsor Holden, Juniper Research's principal analyst.

The reports also predict that total mobile advertising spending will rise from $1.3 billion in 2008 to more than $7.6 billion in 2013, mobile search revenue (including data charges) will reach $4.8 billion by 2013, and both mobile search advertising spending and total mobile advertising spending will be highest in the Far East, followed by Western Europe and North America.  

Juniper Research observed that a single advertising campaign may use a number of channels in the mobile environment, including idle-screen, mobile TV, display and short message service (SMS) advertising. The company said the most successful campaigns also will integrate mobile channels into campaigns across multiple media to increase brand awareness. 

Juniper Research assesses the mobile search and mobile advertising markets and makes predictions based on interviews, case studies and analyses by representatives of leading organizations in the mobile search and mobile advertising industries. The company provides research and analytical services to the high-tech communications sector, providing consultation, reports and industry commentary. 

Visit to download white papers and more details of the studies "Mobile Search and Discovery: Opportunities and Markets 2008-2013" and "Mobile Advertising: Delivery Channels, Strategies and Forecasts 2008-2013."