Will Search Drive Mobile Ad Revenues?
Last month, BIA/Kelsey released its annual mobile forecast. It projects  mobile ad revenues in the U.S. to grow from $490 million in 2009 to $2.9  billion in 2014, a compound annual growth rate of 43 percent.But more interesting than the total revenue pie is the breakdown of  formats that drive this growth. SMS and display ads currently lead in  revenue but are projected to be eclipsed by the faster moving mobile  search ad category over the next five years. 
By the Numbers
So why is that? There are intricate formulas to devise these  projections, unique to the way that each of these formats are bought and  sold. Inputs include search volume, ad coverage, page views, CPCs, CPMs, etc. 
Aggregate revenue for top mobile ad networks are also used to confirm  figures. Along these lines, Google's announced  $2 billion global mobile run rate was  affirming, given its estimated 60 percent share of the U.S. mobile ad  market (including AdMob). 
But looking back over why search ad revenue will accelerate so  rapidly, a few interesting theories arise. First, it's projected that  the mobile web is expected to grow at a faster pace than the native apps  that have erstwhile ruled the smartphone environment. 
Because search is the front door to browser-based experiences, this  bodes well for search volume and thus revenues. Add in the fact that the  immediacy and commercial intent of mobile users drives search ad "CTRs and CPCs higher  than desktop equivalents. 
Back to the premise that the mobile web will grow faster than apps,  this is a bone of contention as the industry-wide "apps vs. mobile web" debate rages on. This is also  one of the increasing points of friction between Apple and Google. 
Google's core search business compels it to push for a world where  the browser is the front door. Comparatively, Apple's app-centric  universe spreads content and features into little self-defined buckets  where search isn't quite as necessary. 
This is much behind Google's outspoken support for the mobile web and  its own practice to "develop first" for the mobile web for products  like Gmail, Latitude, YouTube, and others. 
World Wild Web
But more so than Google's sway and the rest of the factors above, it  could really just end up being a combination of economics and improving  mobile browsers that push users and developers toward the mobile web. 
Things like HTML5 allow developers to build mobile websites, (a.k.a.  web apps), with features previously reserved for native apps. And it's  much cheaper to build a web app and reach many more users across  platforms. 
As these factors take hold, the point is that we'll see more and  better content fill the mobile web. By comparison, it now resembles the  Wild West environment we saw on the desktop 15 years ago, where content  is lacking, hard to find, and under-optimized. 
Mobile ad network Chitika reports that only 4 percent of top online domains  have optimized mobile sites. It's no wonder why most mainstream mobile  users flock to app stores instead. 
But this could all change as many of the factors above coalesce and  as more content comes online. In parallel, we'll also see mobile users  get better and more comfortable at searching the mobile web -- just like  they did on the desktop over the past decade. 
And don't forget parallel technologies that will make searching  easier such as voice and visual  search. This includes bar code scanners, voice search, and other  inputs that are more intuitive than tapping a tiny keyboard. 
Google, again in support of boosting mobile search volume, has made  lots of investment in these areas, such as Goggles and voice actions for Android. It even announced that a surprisingly high 25 percent for  its mobile searches executed with voice. 
To tie all of this to a monetization engine, Google is increasingly  adding options to AdWords to build mobile search campaigns. In 2010 it  launched mobile  pay-per-call ads  and hyperlocal ad targeting. 
Repeating History
Through all of this, we'll start to see the mobile web become a much  more functional, substantive, and friendly place to search. Monetization  will follow. 
Don't forget, desktop computing over the past five years shifted from  being a client-centric environment to one that's more browser-based,  where content and software reside in the cloud. We'll see a similar  shift in mobile. 
Not to be so down on apps -- they aren't going away any time soon. If  anything, Apple's move to bring them to tablets and now the desktop  will ensure a solid future. But the  mobile web will see faster growth. 
That of course means more search volume. Combined with higher CTRs  and CPCs than desktop search, it becomes a matter of arithmetic to plot a  fairly healthy roadmap for mobile search ad revenue. 
marketingseo




 marketingseo