Mobile search advertising revenues in Western Europe will grow from ?39 million in 2008 to ?2.3 billion in 2013, representing a compound annual growth rate (CAGR) of 125.4%, according to a report from BIA’s The Kelsey Group.
The report also forecasts that revenues for the local segment of mobile search will grow from ?18 million in 2008 to ?1.4 billion in 2013, at a 139.3% CAGR. Mobile display ad revenues for the region will grow from ?14 million in 2008 to ?1.1 billion in 2013, at a 138.3% CAGR.
Local searches will grow from 35.2% of total 2008 searches and 45.6% of revenues, to 49.2% of 2013 total searches, and 61.3% of revenue, Kelsey Group said.
Western Europe Leads US
A comparison with Kelsey’s US mobile ad forecast released earlier this year shows Western Europe leads the US in adoption and monetization of mobile local media, primarily because of the greater number of mobile handsets in the region.
The Kelsey group estimates there were 499 million mobile handsets in Western Europe in 2008, compared with 266 million in the US. This number is expected to grow to 573 million in 2013.
“In addition to the higher number of mobile subscribers in the region, rapid proliferation of smartphones is helping drive the growth in mobile advertising,” said Michael Boland, program director for Kelsey’s mobile local media practice. The forecast indicates the number of smartphones in Western Europe will grow from 32 million in 2008 to 149 million in 2013, at a 35.7% CAGR during the forecast period.
Additional findings from the report:
- Western Europe mobile search ad revenues will grow from ?39 million in 2008 to 2.3 billion in 2013. This compares with US mobile search ad revenues, which are expected to grow from $39 million (?27 million) in 2008 to $2.3 billion (?1.6 billion) in 2013.
- Western Europe mobile local search ad revenues will grow from ?18 million in 2008 to ?1.4 billion in 2013 at a CAGR of 139.3%. This compares with US mobile local search ad revenues, which are expected to increase from $20 million (?14 million) in 2008 to $1.3 billion (?915 million) in 2013.
- Western Europe’s mobile display ad revenues will grow from ?14 million in 2008 to ?1.1 billion in 2013, at a CAGR of 138.3%. This compares with US mobile display ad revenues, which are forecast to grow from $21 million (?15 million) in 2008 to $567 million (?399 million) in 2013.
About the forecast: Data for The Kelsey Group’s Western Europe Mobile Search and Display Forecast are based on interviews, company reports, market surveys, third-party resources, usage trends, TKG’s knowledge of various players, expected company outcomes, various types of performance- and CPM-based advertising, ROI and conversion rates,and the firm’s strategic opinions about the future direction of the forecast areas. Countries included in the Western European forecast are France, Germany, Italy, Spain and the UK.