Mobile search dials into mega-growth

Flat rate data tariffs are helping to drive the use of mobile search

Mobile search services are expected to generate annual revenues of $4.8bn by 2013, according to analysts.

A new report from Juniper Research looked at the progression of the mobile search market over the next five years, taking into account changing trends in the mobile arena and the obstacles faced by stakeholders.

Revenue generated by data charges associated with mobile search is significantly higher than that generated by mobile advertising at the present time.

But the gap will close over the next five years as the relatively young mobile advertising market gains acceptance.

Juniper Research believes that local search services will be the most popular with advertisers, attracting 40 per cent of mobile search advertising spend over the 2008-2013 period.

The reduction in data costs, and increasing availability of flat rate data tariffs, is expected to be one factor driving the adoption of the mobile search market.

The gradual decline of the operator "walled garden" approach, as well as an improved experience through enhancements to the user interface, are also expected to be important.

Geographically, the report found that China and Far East will generate most revenues from mobile search services over the next five years, followed by Western Europe and North America.

However, the report warned that an "advertising overload" might act as a disincentive to consumers and could ultimately limit adoption.

There are also continuing public concerns over the use of personal data by search companies.

• Juniper Research report: Mobile Search & Discovery: Opportunities & Markets 2008-2013