Local Search to Push Mobile Search and Discovery Adspend to Nearly $17bn by 2018
Published on: 2nd Apr 2014
Note -- this news article is more than a year old.
The total advertising spend on mobile search & discovery is expected to reach $16.8 billion by 2018, up from an estimated $6.4 billion in 2013, according to Juniper Research. While mobile web search will continue to account for the lion's share of adspend, advertising in local search apps will be the fastest growing market segment.
According to the report, growth in local app adspend is being fuelled by improvements to, and wider deployments of, location-based technologies such as GPS and smartphone map apps. It argues that this makes it easier for advertisers to target nearby users, who are typically further along the purchase funnel if they are performing a local search.
Augmented Reality Search, a subset of local search, will also see strong growth as awareness of the technology grows, albeit from a very small base.
Converting Mobile 'Taps'
Nevertheless, optimisation for mobile devices remains a key concern for users, search engines and advertisers alike. The report highlighted the issue where potential conversions have been frustrated by sites which are ill-equipped for mobile browsing or purchase. It stressed that not only is the advertising then wasted, but that a single poor experience can cause a brand or retailer to lose a customer to a competitor.
Other Key Findings Include:
North America recognised the greatest adspend on mobile search in 2013, however it will be surpassed by the Far East & China in 2018.
Both search engines and device manufacturers will work to develop natural language search solutions, leading to increased usage of intelligent personal assistants such as Apple's Siri.
Tags: mobile advertising