Astounding Predictions For Mobile Search
For the last three years or so, our cell phones have been getting smarter and smarter. Researchers at the Kelsey Group forecast that people are finally catching up with the SmartPhone. As the trend of smarter cell phone usage continues, the spending on local search is predicted to increase dramatically. According to The Kelsey Group’s latest forecast, U.S. mobile ad revenues will grow from $160 million in 2008 to $3.11 billion in 2013.
We believe local is going to be a big beneficiary because of the inherent qualities of mobile devices,” said Michael Boland, program director for Kelsey’s mobile local media unit. “Things like form-factor, location-awareness, and being close to the point of sale.”
Those specific qualities of mobile searching on a smartphone will ultimately lead to more marketing efforts and mobile applications tied to local shopping and commerce. Already, companies such as Kadrillion, GPShopper and NearbyNow offer local product search via cell phone. About 15% of all iPhone apps are geared toward local search.
According to Kelsey’s study, an estimated 54.4 million–or about 20% of U.S. cell subscribers–are on the mobile Web, with only 5.2 million doing searches of any kind, while the majority of cell phone use at present is dedicated to text messages. But in five years, Kelsey expects that proportion to be flipped. During that period, local search volume is projected to grow from 28% to 35% of all mobile searches.
As this trend continues, local mobile advertising is expected to boom into a $500 million business by the time the economy rebounds in 2011. Look at your calendar – the local mobile paid ad business hit $20 million by 2008 and is expected to quadruple in 2009 alone…
Here’s your red flag. If you are operating a business with a physical location, and you’re not 1) in every internet business listing available and 2) targeting mobile web with your PPC, you’re missing your opportunity to catch the next wave of Internet driven commerce, where transactions will take place in storefronts, not in a browser.
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