Forecast: Mobile search and discovery revenues to reach $15B in 2017
Global revenues from mobile search and discovery services will rise to $15 billion by 2017, nearly tripling projections for the current year, according to a new Juniper Research forecast.
Juniper credits the anticipated search and discovery revenue growth to click-through and cost-per-click rates associated with web search, local search, augmented reality search and discovery apps, which the firm says are some of the highest in mobile advertising. Juniper explains consumers accessing those services are in the market for a discrete group of products or services, making them ideal for advertiser targeting.
While search engine providers including Google (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT) state a large percentage of mobile Web searches are localized, Juniper maintains that local search apps like Yelp represent a greater opportunity for advertisers by offering more relevant results and superior user interface optimization. "Web search results, by their very nature, are more generalized, despite the local parameters search engines offer," explained report author Daniel Ashdown. "Furthermore, the websites linked to in search results are often not optimized for mobile devices."
Juniper adds that while the overwhelming number of applications available on leading storefronts is driving adoption of app discovery tools and services, the segment will face significant challenges from big brands, citing examples like Apple's (NASDAQ:AAPL) acquisition of discovery startup Chomp and Facebook's fledgling App Center recommendation engine.
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