Clickthrough rates for search and discovery are some of the highest in mobile advertising.
A report by Juniper Research forecasts that revenue from mobile search and discovery will reach $15 billion by 2017.
With ad space in these markets proving increasingly popular, this is almost three times as much revenue as it expected by the end of 2012.
The report found that clickthrough and cost-per-click rates for search and discovery, including web search, local search, augmented reality search and discovery apps, are some of the highest in mobile advertising.
This is likely due to the fact that users are in the market for a discrete group of products or services, and can therefore be accurately targeted by advertisers.
The report highlights that local search apps arguably represent a greater opportunity for advertisers because of more relevant results and better UI optimisation.
Report author Daniel Ashdown said: "Web search results, by their very nature, are more generalised, despite the local parameters search engines offer. Furthermore, the websites linked-to in search results are often not optimised for mobile devices.”
Other key findings from the report include:
- Google’s domination of the mobile web search space means other players need to find ways to differentiate their products in a largely commoditised market.
- 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.