A recent report by Juniper Research forecasts that revenue from mobile search and discovery will nearly triple to $15 billion worldwide in the next five years. This growth will be partially driven by high click-through and cost-per-click rates for search & discovery, including web search, local search, augmented reality search and discovery apps. Since most of the users often search for a discrete set of products and services, they can be accurately targeted by advertisers.
Some of the key findings from the Juniper report are:
- Local search apps like Poynt, Qype and Yelp represent a bigger opportunity for advertisers than the Web-based mobile search because they provide more relevant ad results and a better user experience.
- 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)
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 Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.