Mobile ad spend on Web Search to Reach USD12bn by 2017

VALUE ADDED SERVICES

A new report from analyst firm Juniper Research forecasts that ad spend on mobile web search will reach USD12 billion per annum in five years’ time, three times the ad spend this year, which will reach USD4 billion. Usage of web search on mobile devices will be driven by continued adoption of high-usage tablets, with the number of these devices in-use reaching 672 million by 2017.

Juniper says the size of tablet displays – typically either 7-inch or circa 10-inch – makes performing search queries a more comfortable experience, while the fact that these devices are used more in the home or at work for longer periods also means that users will make more queries per session.

For these reasons, the report found that tablet users on average make around three times as many queries as smartphone owners, and ten times the number made by users of other handsets.

While search engine providers will reap the rewards of booming mobile web search usage, brands advertising in this space need to ensure their websites are optimised for mobile clicks. Juniper’s report notes that if poor user experience ultimately prevent consumers from going on to make a purchase, ad spend is wasted.

Juniper says Amazon and Marks & Spencer are among the few brands that have got this right, with many more key brands requiring further optimisation to maximise the increasing opportunity from tablets.