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Mobile Search - Growth of Voice and Local Search Challenge the Dominance of Google
Pyramid Research, Inc, March 2011, Pages: 61
Web search has become the way to navigate the Internet and today supports a multibillion dollar industry dominated by Google. It is also the largest and fastest-growing segment of the digital advertising industry. The smartphone boom is creating increasing demand for mobile Internet services, and search is becoming an important method of finding information on this platform. Today it is a dynamic, growing opportunity.
Although Google has a strong position in mobile search, it is unclear if the search giant will be as dominant as it is on the desktop because of a number of important trends, notably voice and local search. While voice is becoming an important trend driving mobile search, language differences are likely to benefit local or first movers in different regions. The development of voice recognition into a personal digital assistant offers new opportunities and is being integrated into platforms and devices. Location is also a key element of mobile search, and players from different industries have been drawn into the local search opportunity.
This report looks at all these developments, providing an overview of the mobile search market that puts it into the context of digital advertising, mobile communications and search in general. We look at different trends and developments, examine the different value chains and highlight the positioning of key industry participants. Market size and forecasts are also provided at a global and regional level, with some additional breakdowns such as messaging and local search.
Key findings include:
- The mobile search market generated revenues of US$901m in 2010, equivalent to around 3% of total search revenues. The boom in the adoption of smartphones is the key market driver. In 2015 we forecast total mobile search revenue to reach $8bn, equivalent to around 11% of total search revenues and representing a CAGR of 55%.
- Mobile search makes up around a quarter of total mobile advertising revenue, but this will increase rapidly and is forecast to exceed 40% in 2015.
- Although Google already has a strong position in the mobile advertising market, a range of established and new players are challenging its dominance. Voice and local search are important trends, providing opportunities for new and established players. Operators and handset vendors have a strong position in the value chain to influence the success of mobile services.
Key Questions Answered
- How can service providers capitalize on recent developments in mobile search?
- What are the important trends underlying the growth of mobile search?
- What are the key mobile search technologies?
This report will help you think through ways to capture a greater share of mobile search revenue by understanding customer needs and learning lessons from the mobile search business models of other providers.
Acronyms and abbreviations
Section 1: Market overview and background
1.1 Definitions and overview
1.2 The search engine business and Google
1.3 Mobile search: A segment of mobile advertising
1.3.1 Tablet devices closer to PCs for search
1.4 Key mobile search technologies
1.4.2 Voice drives mobile search
1.4.3 Visual search: Impressive but immature
1.5 Messaging and mobile search
Section 2: Value chains and business models
2.1 Introduction to the mobile search value chain
2.2 Analysis of the preload value chain
2.2.1 Operator/search engine partnerships
2.2.2 Operators are creating their own-branded location applications, with local search included
2.3 Analysis of the post-sale value chain
2.4 Search messaging value chain
2.5 China and Russia: Local players take on Google
Section 3: Market sizing and forecast
3.1 Overview and methodology
3.2 Global forecast
3.2.1 Revenue breakdown by search type
3.2.2 Search revenue breakdown by region
3.3 Regional forecasts
3.3.1 North America
3.3.2 Europe, Middle East & Africa
3.3.4 Latin America
3.4 Comparing developed and emerging markets
Section 4: Case studies
Mobile: Google’s future
Windows Phone 7: Microsoft’s last chance in mobile?
Table of exhibits
Exhibit ES: Mobile search revenue growth and as a portion of total search revenue, 2008-2015
Exhibit 1.1: Internet users (bn), 2007-2014
Exhibit 1.2: Google revenue growth, 2007-2010
Exhibit 1.3: Search revenue as a percentage of US online advertising revenue, 2006-2009
Exhibit 1.4: Comparison of mobile and online search
Exhibit 1.5: Breakdown of Vlingo uses
Exhibit 1.6: Screenshots of Google Goggles
Exhibit 1.7: Screenshot of ChaCha
Exhibit 2.1: Mobile search value chain
Exhibit 2.2: Overview of Orange UK’s San Francisco device search configuration
Exhibit 2.3: Comparison of smartphone platform configurability
Exhibit 2.4: Smartphone share by OS (platform), year-end 2010
Exhibit 2.5: Major mobile operator partnerships with search engines
Exhibit 2.6: Selected location vendors and operator partnerships
Exhibit 2.7: Pelephone subscription breakdown, year-end 2009
Exhibit 2.8: YellGroup revenue breakdown, £m, 2008-2010
Exhibit 2.9: Mobile local search applications
Exhibit 2.10: Screenshot of Google Tags
Exhibit 2.11: Easou and Google logos
Exhibit 3.1: Global mobile search revenue forecast, 2006-2015
Exhibit 3.2: Mobile search revenue by segment, 2006-2015
Exhibit 3.3: Mobile search revenue breakdown by region, 2010 and 2015
Exhibit 3.4: North American mobile search revenues, 2006-2015
Exhibit 3.5: EMEA mobile search revenues, 2006-2015
Exhibit 3.6: Asia-Pacific mobile search revenues, 2006-2015
Exhibit 3.7: Latin American mobile search revenues, 2006-2015
Exhibit 3.8: Comparison of market indicators in India, South Africa and the UK, 2010
Exhibit 4.1: Google revenues breakdown, 2007-2010
Exhibit 4.2: Google geographic revenue breakdown, 2007-2010
Exhibit 4.3: Android device shipments, 2008-2010
Exhibit 4.4: Microsoft total and OSD revenues breakdown, 2008-2010
Exhibit 4.5: Yahoo revenue breakdown, 2010
Although Google has a strong position in mobile search, it is unclear if the search giant will be as dominant as it is on the desktop because of several important trends, notably voice and local search, according to a new report.
Mobile Search: Growth of Voice & Local Search Challenge Google's Dominance provides an overview of the mobile search market that puts it into the context of digital advertising, mobile communications and search in general. Pyramid looks at different trends and developments, and examines the different value chains and highlight the positioning of key industry participants. Market size and forecasts are also provided at a global and regional level, with some additional breakdowns such as messaging and local search.
The smartphone boom is creating increasing demand for mobile Internet services, and search is becoming an important method of finding information on this platform. "Today it is a dynamic, growing opportunity. Total mobile search revenue will reach $8 billion in 2015, equivalent to around 11 percent of total search revenues and representing a CAGR of 55 percent," according to Jan ten Sythoff, Analyst at large at Pyramid. "Mobile search makes up around a quarter of total mobile advertising revenue, but this will increase rapidly and is forecast to exceed 40 percent in 2015," he indicates.
Although Google already has a strong position in the mobile advertising market, a range of established and new players are challenging its dominance. "The combination of mobile and location is a powerful one, and is particularly relevant for search. It is an effective way for users to find places of interest, products and services nearby, thus offering a rich opportunity for advertising," says ten Sythoff. "As a result, there is much interest in taking a share of local advertising spending, which is dominated by business listings, directories such as YellowPages and print. Competition is intensifying as companies from different industries are drawn into it," he adds.
"Adoption of voice search is increasing rapidly, and because of its ease of use and ready accessibility on home screens and hard keys, it will be an important driver in increasing the number of searches conducted on a mobile," he notes. While voice is becoming an important trend driving mobile search, language differences are likely to benefit local or first movers in different regions. The development of voice recognition into a personal digital assistant offers new opportunities and is being integrated into platforms and devices.
- America Móvil
- Bharti Airtel
- Boost Mobile
- China Mobile
- China Unicom
- Cricket Communications
- Lonely Planet
- NTT DoCoMo
- TIM Brasil
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