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Mobile Search Adspend to Reach $2 Billion by 2013

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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 says two new reports from Juniper Research. The reports 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 adspend 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:

  • Total mobile adspend will rise from $1.3bn in 2008 to more than $7.6bn in 2013
  • Mobile search revenues (including data charges) will reach $4.8bn by 2013
  • Both mobile search adspend and total mobile adspend will be 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.

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Tags: mobile tv  mms  juniper research  walled garden  mobile advertising  mobile search  display