The annual mobile forecast released by BIA/Kelsey estimates that mobile ad revenues are likely to go up from 2009’s $490 million to $2.9 billion by 2014 in the US, meaning 43% compounded annual growth rate. Currently, the SMS and display ads are leading in terms of revenue but according to projections the faster moving mobile search ads will soon overtake these.
The main reason for expected increase in mobile search ad revenues is that, compared to native apps, mobile web is expected to grow at a much faster rate. Also, with technologies like HTML5, now developers can include the features previously limited to native apps in mobile websites as well. Compared to native apps, web apps are more cost effective and can reach a large audience.
One of the reasons for popularity of native apps is that only around 4% popular online domains have optimized mobile sites. But soon the percentage will go up and mobile sites will start having content of better quality and quantity and users will get more used to mobile search. The popularity of native apps will not diminish in near future with Apple bringing them to tablets and desktops as well, but mobile apps will present tough competition. As mobile web matures, monetization won’t be far behind.
The rapid growth of mobile web means higher search volumes along with high CTRs and CPCs compared to traditional search on PCs. It’s easy to forecast the healthy future for mobile ad revenue when we look at the complete picture. With this trend, it’s only logical that marketers should start considering mobile web in their internet marketing strategies