Description

Web search has become the way to navigate the Internet and today supports a multibillion dollar industry dominated by Google. It is also the largest and fastest-growing segment of the digital advertising industry. The smartphone boom is creating increasing demand for mobile Internet services, and search is becoming an important method of finding information on this platform. Today it is a dynamic, growing opportunity.

Although Google has a strong position in mobile search, it is unclear if the search giant will be as dominant as it is on the desktop because of a number of important trends, notably voice and local search. While voice is becoming an important trend driving mobile search, language differences are likely to benefit local or first movers in different regions. The development of voice recognition into a personal digital assistant offers new opportunities and is being integrated into platforms and devices. Location is also a key element of mobile search, and players from different industries have been drawn into the local search opportunity.

This report looks at all these developments, providing an overview of the mobile search market that puts it into the context of digital advertising, mobile communications and search in general. We look at different trends and developments, examine the different value chains and highlight the positioning of key industry participants. Market size and forecasts are also provided at a global and regional level, with some additional breakdowns such as messaging and local search.

Key findings include:

• The mobile search market generated revenues of US$901m in 2010, equivalent to around 3% of total search revenues. The boom in the adoption of smartphones is the key market driver. In 2015 we forecast total mobile search revenue to reach $8bn, equivalent to around 11% of total search revenues and representing a CAGR of 55%.
• Mobile search makes up around a quarter of total mobile advertising revenue, but this will increase rapidly and is forecast to exceed 40% in 2015.
• Although Google already has a strong position in the mobile advertising market, a range of established and new players are challenging its dominance. Voice and local search are important trends, providing opportunities for new and established players. Operators and handset vendors have a strong position in the value chain to influence the success of mobile services.

4INFO
Adobe
Affle
America Movil
Apello

Asklaila
AT&T
Baidu
Bharti Airtel
Boost Mobile

Cellcom
ChaCha
China Mobile
China Unicom
Citysearch