Europe set for mobile adspend boom

24 July 2009

CHANTILLY: Mobile search adspend in Western Europe will reach €2.3 billion ($3.3bn; £2.0bn) in 2013, compared with €39 million in 2008, with the uptake of devices like the iPhone one of the main reasons the region will outperform the US on this measure, the Kelsey Group says.

According to the consultancy, mobile search will register a compound annual growth rate of 125.4% over the period to 2013, with mobile display growing from €14m to €1.1bn at the same time, an uptick of 138.3% a year.

Earlier this year, Kelsey predicted US mobile search spending will rise from $39m to $2.3bn in the five years to 2013, with display also expanding from $21m to $567m.

One of the main reasons for the faster rate of growth expected in Western Europe is that there are a greater number of handsets in operation in the area than the US.

Kelsey says there are 499 million wireless devices in the European area under scrutiny, which includes France, Germany, Italy, Spain and the UK, compared with 266 million in America.

"In addition to the higher number of mobile subscribers in the region, rapid proliferation of smartphones is helping drive the growth in mobile advertising," Michael Boland, program director for Kelsey's mobile local media practice, said.

"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," he added.

Data sourced from Kelsey Group; additional content by WARC staff