Mobile Search Will Beat and Steal Lunch Money From Mobile Display Advertising
A great blog post over at Local Search News about the mobile local opportunity. Definitely worth the full read, but key take aways for me was the expected shift in ad dollars on mobile to move away from the largely display oriented stuff we see today toward an explosion of mobile search revenue. The Kelsey Group shows display revenue at over 60% of total 2008 mobile ad revenue, but sinking to just under 10% by 2013, mostly as the result of massive search growth from a mere $39 million to a whopping $2.27B or around 70% of all mobile ad spending in just five years.
I dug around to get the latest and greatest, and it looks like in the good old fashioned web world search is about 45% of ad revenue today with premium display close to a 1/3. So Kelsey’s predictions for the mobile world certainly seem to magnify the trend we’ve seen so far on the web with search having an even bigger role and display, a decidedly smaller role. To some degree this makes a lot of sense, since the small footprint of the mobile handset doesn’t leave a lot of room for all that lovely creative ad work, the sight sound and motion and all, and search is simple, quick and to the point which is well suited to the phone.
An even more interesting part, was not just the AMOUNT of search revenue, but the TYPE of searches expected… citing data from Google that mobile searches are 2-3x more often to be local in nature than searches done via a desktop, The Kelsey Group calls for over 1/3 of mobile searches to be “local” in nature in five years, and for over half of that whopping $2.27B in search revenue to be generated from “local” search queries.
Kinda makes you wonder what kind of local stuff all those folks will be searching for on their phones and who will be the benficiaries of that cool $1B+ in local oriented search ad spending. 
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