Local search to push mobile search and discovery ad spend

HAMPSHIRE, UK: A new report from hi-tech analysts Juniper Research has revealed that by 2018, the total advertising spend on mobile search and discovery will reach 16.8 billion USD, up from an estimated 6.4 billion USD in 2013. While mobile web search will continue to account for the lion's share of adspend, advertising in local search apps will be the fastest growing market segment.

Search: The Next Generation

According to the report, Mobile Search & Discovery: Market Prospects 2014-2018, growth in local app adspend is being fuelled by improvements to, and wider deployments of, location-based technologies such as GPS and smartphone map apps. It argues that this makes it easier for advertisers to target nearby users, who are typically further along the purchase funnel if they are performing a local search. Augmented Reality Search, a subset of local search, will also see strong growth as awareness of the technology grows, albeit from a very small base.

Converting Mobile ‘Taps'

Nevertheless, optimisation for mobile devices remains a key concern for users, search engines and advertisers alike. The report highlighted the issue where potential conversions have been frustrated by sites which are ill-equipped for mobile browsing or purchase. It stressed that not only is the advertising then wasted, but that a single poor experience can cause a brand or retailer to lose a customer to a competitor.

Other Key Findings Include:

- North America recognised the greatest adspend on mobile search in 2013, however it will be surpassed by the Far East and China in 2018.

- Both search engines and device manufacturers will work to develop natural language search solutions, leading to increased usage of intelligent personal assistants such as Apple's Siri.