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Mobile Ad Spend on Web Search to Reach $12bn by 2017 Driven by High-Usage Tablets

A new report from analyst firm Juniper Research forecasts that ad spend on mobile web search will reach $12 billion per annum in five years’ time, three times the ad spend this year, which will reach $4 billion. Usage of web search on mobile devices will be driven by continued adoption of high-usage tablets, with the number of these devices in-use reaching 672 million by 2017. 

The size of tablet displays – typically either 7-inch or circa 10-inch – makes performing search queries a more comfortable experience, while the fact that these devices are used more in the home or at work for longer periods also means that users will make more queries per session. For these reasons, the report found that tablet users on average make around three times as many queries as smartphone owners, and ten times the number made by users of other handsets. 

Optimise for Mobile or Face Wasted Clicks 

While search engine providers will reap the rewards of booming mobile web search usage, brands advertising in this space need to ensure their websites are optimised for mobile clicks. Juniper’s report notes that if poor user experience ultimately prevent consumers from going on to make a purchase, ad spend is wasted. 

Amazon and Marks & Spencer are among the few brands that have got this right, with many more key brands requiring further optimisation to maximise the increasing opportunity from tablets. 

Other key findings from the report include: 

• Mobile Search & Discovery Market to Generate $15bn by 2017, Driven by High-Value Clicks.
• Augmented reality search is increasingly being deployed as an add-on feature, rather than a stand-alone product.
• Adoption of discovery services for apps is driven by the high number of applications on leading storefronts, but faces challenge from big brands (with Apple acquiring Chomp, and Facebook launching app centre). 

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