Analyst firm The Kelsey Group has released a report predicting that mobile search advertising revenues in Western Europe will grow from 39 million (34 million) in 2008 to 2.3 billion in 2013, representing a compound annual growth rate (CAGR) of 125.4%. Revenues for the local segment of mobile search will grow from 18 million in 2008 to 1.4 billion in 2013, a 139.3% CAGR. The report predicts that mobile display ad revenues for the region will grow from 14 million in 2008 to 1.1 billion in 2013, a 138.3% CAGR.
A comparison with Kelseys US mobile ad forecast released earlier this year shows that Western Europe leads the US in adoption and monetization of mobile local media, primarily due to the greater number of mobile handsets in the region – 499 million in 2008, compared with 266 million in the US.
Additional findings from the US mobile ad forecast include:
- US mobile search ad revenues will grow from $39 million in 2008 to $2.3 billion in 2013.
- US mobile local search ad revenues will increase from $20 million in 2008 to $1.3 billion in 2013.
- US mobile display ad revenues will grow from $21 million in 2008 to $567 million in 2013.
In addition to the higher number of mobile subscribers in the region, rapid proliferation of Smartphones is helping drive the growth in mobile advertising, says Michael Boland, Program Director for Kelseys mobile local media practice. Our forecast indicates the number of Smartphones in Western Europe will grow at a 35.7% CAGR during the forecast period, from 32 million in 2008 to 149 million in 2013.
The Kelsey Groups Annual Forecast: Western Europe Mobile Search and Display 2008-2013, is available to clients of BIA/Kelseys Mobile Local Media continuous advisory service. Mobile Local Media covers the mobile local advertising opportunity, providing research and analysis of content, delivery (bandwidth and access device) and customer and advertiser acceptance. 
