Mobile Advertisement Development Prognosis by Kelsey Group

The company Kelsey Group has published the forecast of the development of the mobile advertising market according to the results of its research.

At the moment Mobile advertising has a great potential, but nowadays even in the US the segment doesn’t get much public attention. Recently a great number of studies and research campaigns show significant increase in the number of mobile devices compared to the number of PCs, which resembles the development of the Internet. Although the features of Mobile advertising are being spoken about for a long time, there isn’t any practical realization of the ideas. In the years to come, the picture will incredibly change, according to the company’s prognosis.

The forecast mentions that the profit from Mobile advertising will rise from the current $33.2 million to $1.4 billion by 2012 with the average growth of 112%.

The research divided the market into 3 segments: sponsor-add services, mobile Internet (advertising while searching, surfing), multi-profile applications. The maximum growth will be reached for the first two segments: the profits of sponsor-add services will increase from $270 million in 2007 to $2.1 billion in 2012, and the number of mobile Internet users will grow from 37.9 million in 2007 to 91.7 million in 2012.

The company stated a number of basic reasons for the development of mobile advertising:

• Top-line search growth is slowing
• Google, the largest search engine in terms of share and revenues, has considerable ad overhang, meaning advertisers want to spend more money than current traffic levels can support
• The mobile and search markets are linked, and Kelsey Group believes market share in one could affect the other
• U.S. carrier dominance and the proliferation of voice query products (like ad-sponsored DA) mean an increase in dial-around services that attempt to circumvent the carrier deck using voice in and data out
• GPS handset devices are growing in popularity, and 50 percent replacement is expected within five years, allowing improved mobile applications
• Yellow Pages companies such as AT&T are executing on a multi-channel ad business

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Technorati Tags: mobile web, mobile Internet, mobile adds, mobile advertisement, mobile software, mobile web 2.0, mobile web page, mobile wireless internet, advertising mobile

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