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September 10, 2007
The Kelsey Group Forecasts
U.S. Mobile Search Advertising Revenues to Grow From $33.2 Million
in 2007 to $1.4 Billion in 2012
Forecast includes
ad-sponsored directory assistance (free DA), mobile Internet and
multi-modal applications
Princeton, NJ (September 10, 2007) --
The Kelsey Group, the leading provider of strategic research and
analysis, data and competitive metrics on Yellow Pages, electronic
directories and local media, forecasts U.S. mobile search advertising
revenues to grow from $33.2 million in 2007 to $1.4 billion in 2012,
representing a compound annual growth rate (CAGR) of 112 percent.
“Advertisers in the U.S. are the most aggressive
in terms of messaging to potential U.S. consumers,” said Matt
Booth, senior vice president and program director, Interactive Local
Media, The Kelsey Group. “Given the relatively high spend
levels, we believe advertisers will continue to look into innovative
solutions, including mobile, that demonstrate a clear ROI on ad
spend.”
The Kelsey Group’s mobile search advertising
forecast, which is available to the firm’s continuous advisory
services clients, comprises three distinct revenue and usage segments:
- Ad-Sponsored Directory Assistance (Free DA) – Consumers
dial a phone for free directory assistance and other local information
(examples: 1-800-GOOG411, Jingle Networks).
- Mobile Internet Ads – Consumers use SMS, WAP, etc., to
search or browse the Internet for information (examples: Google
Maps, Apple iPhone).
- Multi-Modal Applications – Carriers and/or consumers opt
to put voice-in and data-out products directly on the mobile device
(examples: Tellme, V-Enable).
Methodology
The Kelsey Group’s mobile search advertising forecast is based
upon data collected through interviews, company reports, market
surveys, third parties, usage trends, Kelsey Group knowledge of
industry players, expected company outcomes, various types of performance
and CPM-based advertising, ROI and conversion rates, as well as
The Kelsey Group’s analysis and opinion of the future direction
of each of these. Revenue estimates are based on “session
conversion rates,” defined as the amount of revenues The Kelsey
Group expects to be created based on anticipated ad placements during
a mobile ad session.
For information on The Kelsey Group’s continuous
advisory services, including its Interactive Local Media practice,
which developed the mobile search advertising forecast, visit www.kelseygroup.com,
or contact Steve Vasil at svasil@kelseygroup.com or (905) 468-8786.
About The Kelsey Group
The Kelsey Group is the leading provider of research, data and strategic
analysis on directories, small-business advertising and online local
media. Founded in 1986, the company has built a reputation as the
premier analyst firm covering the directory publishing community
and the emerging local search marketplace, providing advisory services
(The Kelsey Report® and Interactive Local Media), publishing
(Global Yellow Pages™), consulting (more than 400 individual
assignments) and conferences (68 events).
For more information contact:
Eileen Pacheco
For The Kelsey Group
eileen@tango-group.com
(781) 556-1026
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