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Jul. 24, 2007

Overall, the competition for the U.S. mobile search market promises to be harsh, thanks to the large U.S. online ad market, and some pressure from certain wireless portals.

Some experts project that, in less than four years from now, mobile search will account for about $715 million, or almost 15 percent of a total mobile advertising market worth nearly $4.7 billion.

Initially, a $715 million mobile search market isn't a foregone conclusion. However, many of the behavioral factors are in place in the U.S. market to push mobile search forward.

There is already a strong correlation between mobile Internet use and accessing mobile search services.

Three months ago, iCrossing reported that about 74 percent of mobile Internet subscribers access mobile search services.

Overall, this is in sharp contrast to the little more than 20 percent of general mobile phone users in the US who access mobile search.

Until 2009, the U.S. mobile search market can be expected to suffer some growing pains as the tug of war between the major operators, the major portal players, large media and a few mobile search start-ups compete for the title of mobile search leader.

Senior analyst John du Pre Gauntt at eMarketer said "mobile search in the U.S. has all the right parts on the table: a huge online advertising ecosystem, the world's leading content industry, massive portal players, major league mobile operators and a host of VC-backed start-ups."

He added "in other words, it'll be a bloody mess over the next few years sorting out the center of gravity for mobile search, as each player tries to convince the others to follow its lead. The good news for mobile marketers is that there's enough of a prize for the winners that resolution will come, probably sooner rather than later."

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Source: eMarketer