• by Jack Loechner , Staff Writer @mp_research, November 6, 2007

Mobile Users Want Internet, Maps, And Local Search

According to a new mobile consumer study conducted by The Kelsey Group with ConStat, 44.7 percent of U.S. mobile phone users surveyed say a mobile phone with better Internet capability will be a key factor in their next mobile phone purchase decision. According to the survey, only 26 percent of mobile phone service subscribers currently opt for an Internet access plan.

Matt Booth, senior vice president and program director, Interactive Local Media, said "The combination of unlimited data plans and next-generation Internet-enabled mobile devices suggests mobile Web access will grow to become ubiquitous... mobile Internet usage and increased satisfaction with mobile Internet applications are among the converging factors that... point to a breakthrough year ahead for mobile ad adoption."

In the past six months, notes the study, 9.8 percent of respondents used their mobile phones to conduct Internet searches for products and services in their local area. During the same period, 10.7 percent downloaded or looked at maps, while 10.9 percent indicated they had downloaded search or mapping applications for use on the Internet to supplement those that came with their mobile phones.

The Kelsey Group announced last month that it expects U.S. mobile search advertising revenues to grow from US$33.2 million in 2007 to US$1.4 billion in 2012, representing a compound annual growth rate of 112 percent.

And perhaps India is a precursor in the acceptance of both cellular communications and mobile advertising: 

Rajiv Khanna, Meridian Mobile CEO, stated to Business Standard "The cellular growth in India is faster than that of personal computer penetration and this will result in huge opportunities for advertisers. The emergence of high-end handsets and portable devices would also result in advertisements moving away from the internet."

In India, mobile advertising is catching on like wild fire, according to a study by Thomas Weisel International The new trend is gaining speed to the point that it has industry professionals talking that it could very easily soon surpass online advertising. Online advertising in India is expected to peak by the end of 2009, when mobile ads are supposedly going to skyrocket, according to a report in Business Standard.

It is thought that customized, targeted advertisements will be what boost the growth of mobile ads. Currently online advertising claims about $75 million which is 1.8% of the country's ad spend. It is projected to grow by 3.1% in the 2008-2009 fiscal year, and another 7.1% in 2010-2011.

Mobile only claims about $1.5 million, yet the country continues to add about 7.5 million mobiles a month. Online users in India measure at 35-40 million, while mobile users total 208 million, the report continued.

S Subramanian, CEO of BPL Mobile, was quoted by Business Standard to say "Mobile advertising, with its reach and relevance is attracting advertisements. It will become the best option in the next six months."

Finally, AdMob released a report covering 1.5 billion mobile ads served in September covering the US, UK, India and South Africa.

For more on the Kelsey Group study, please visit here. And to read more on mobile advertising in India, please go here.