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Mobile Ad Revenues Expected to Reach $5.08 Billion by 2012

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Local Mobile Search, an advisory service of Opus Research, has released research forecasting that U.S. and Western European mobile advertising revenues will reach a combined USD5.08 billion by 2012, up from an estimated USD106.8 million at year end 2007. The USA is anticipated to drive roughly $2.3 billion of the total, while European markets will see revenues approaching $2.8 billion within the forecast period. The figure represents a compound annual growth rate (CAGR) of 116 percent for the combined regions.

"The industry has been talking about the mobile market's potential for almost a decade," said Greg Sterling, Senior Analyst with Local Mobile Search. "We're now entering a period where hope and hype turn into reality as mobile subscribers find dramatic improvements in the user experience and a greater ability to obtain information on the go."

The projections incorporate growth in ad revenues driven by each of the now relatively distinct segments of voice-based search, text/SMS, WAP and application downloads. The forecast also includes estimates for CPM-driven displays or banners, pay-per-click and pay-per-call advertising. Over time, however, the distinctions between segments will blur or disappear as sales of bundled, "multi-modal" promotions become the norm and consumer experiences become more integrated.

"Major search providers and portals such as Google, Yahoo!, Microsoft and AOL are pouring considerable resources into mobile," said Senior Analyst Dan Miller of Local Mobile Search. "Mobile operators and their vendors are racing with them to offer a better mobile experience and increase monetization moments."

The forecast is based on consumer research and empirical findings from proprietary and third-party sources, as well as data from and discussions with mobile search providers, portals, operators and industry vendors in the U.S. and Europe.

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Tags: microsoft  mobile advertising  wap  aol