02:23 PM

Annual Mobile Search Ad Revenue To Near $5 Billion In Five Years

Juniper Research says data charges from mobile search far exceed revenue from mobile advertising now, but that will change.

Mobile search ad revenue could reach $4.8 billion in five years, according to a new report.

Juniper Research announced that annual revenue could approach $5 billion by 2013. The research company released a report Tuesday stating that data charges from mobile search far exceed revenue from mobile advertising now, but that will change.

The report predicted that advertisers will be most drawn to local search, with 40% of ad spending going to local search in the next five years. During that time, the chasm between revenue from mobile data charges and mobile search will close, according to Juniper.

The top mobile search service revenue producing areas will be China and the Far East region, Western Europe, and North America, according to the report.

Technology changes will drive growth, as advanced interfaces improve user experience, data costs decline, flat rates increase, and walled gardens open up, according to Juniper. Major search engines like Google, Yahoo, and MSN will also drive adoption of mobile search services, according to Juniper.

Google has mobile search deals with Vodafone and T-Mobile, while Yahoo has deals with Vodafone and Hutchison's 3. Just over a month ago, Google CEO Eric Schmidt announced plans to dive more deeply into the mobile ad space.

Meanwhile, several wireless carriers, including Vodafone, France Telecom, Telefonica, Deutsche Telekom, Hutchison Whampoa, Telecom Italia, and Cingular announced plans to develop their own mobile search engine.

Juniper warned that advertising overload may make mobile customers reluctant to adopt mobile search, especially if they worry about the collection and use of their personal data.

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