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Mobile Search & Discovery Market to Generate $15bn by 2017

A new report from analyst firm Juniper Research forecasts that revenue from mobile search & discovery will reach $15 billion by 2017, nearly three times the revenue it expects to be generated by these markets in 2012, with ad space in these markets representing prime real estate for advertisers.

The report found that clickthrough and cost-per-click rates for search & discovery, including web search, local search, augmented reality search and discovery apps, are some of the highest in mobile advertising due to the fact that users are in the market for a discrete group of products or services, and can therefore be accurately targeted by advertisers.

Local Search: Web versus Apps

Leading search engine providers, including Google and Microsoft, say a large percentage of web searches on mobile are localised, but the report highlights that local search apps arguably represent a greater opportunity for advertisers because of more relevant results and better UI (User Interface) optimisation.

According to report author Daniel Ashdown: “web search results, by their very nature, are more generalised, despite the local parameters search engines offer. Furthermore, the websites linked-to in search results are often not optimised for mobile devices.”

Juniper’s report notes that with local search apps like Poynt, Qype and Yelp, the search experience is mobile-optimised from end-to-end – which is crucial if the user is to be led through the whole process, to reaching a purchasing decision.

Other key findings from the report include:

• Google’s domination of the mobile web search space means other players need to find ways to differentiate their products in a largely commoditised market.
• Augmented reality search is increasingly being deployed as an add-on feature, rather than a stand-alone product.
• Adoption of discovery services for apps is driven by the high number of applications on leading storefronts, but faces challenge from big brands (with Apple acquiring Chomp, and Facebook launching app centre).

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