Juniper Research predicts mobile search and discovery will reach $15bn in revenue by 2017, triple the current figure, driven by localised search apps. The growth of mobile will drive click-throughs and make mobile ad space increasingly lucrative.
Click-through 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 because users want specific products or services, and can be accurately targeted by advertisers.
Both Google and Microsoft say a large proportion of mobile web searches are localised, and local search apps may represent a greater opportunity for advertisers because of more relevant results and better user interface. Google’s domination search means other players need to find ways to differentiate their products - for example, Augmented Reality search, which is increasingly being used as an add-on feature.
"Web search results, by their very nature, are more generalised, despite the local parameters search engines offer," says report author Daniel Ashdown. "Furthermore, the websites linked-to in search results are often not optimised for mobile devices."
