Google sees dramatic drop in mobile search ad revenue share

Google is seeing a steady decline on mobile search ad revenue as a result of market fragmentation and rise of mobile apps, according to the latest stats from eMarketer.

Google's share of mobile search ad revenues is forecast to decline to 65.7 percent this year, from a dominant 82.8 percent in 2012. The "other" category, which includes Yahoo and Bing, is expected to jump to 27.3 percent this year from an abysmal 5.4 percent in 2012.

Google still dominates mobile browser-based searches, but niche search apps--such as Kayak, Indeed and Shazam--are wearing away the search giants overall mobile search position. In addition, Yelp is expected to see a 136 percent increase in mobile search revenue this year.

"App-based searching is a new phenomenon that pales in comparison with the longstanding practice of querying a search engine, and the degree to which mobile users rely on both methods for finding information is unclear," observes Cathy Boyle, senior analyst for mobile at eMarketer

"Still, in light of the growing popularity and time spent with apps, search marketers that recognize this behavior and focus on increasing visibility within apps aligned to their industry and business objectives will be best positioned to connect with the largest number of mobile users," Boyle adds.

For more:
- check out the eMarketer stats

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