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Introduction to Mobile Search August 2008 Introduction to Mobile Search Introduction to Mobile Search August 2008 Introduction to Mobile Search Overview...............................................................................................01 Introduction to Mobile Search................................................................. 01 How is Mobile Search Different from Internet Search.................................01 Multiple Players, Multiple Beneficiaries....................................................01 Consumer Opportunities and Challenges..................................................02 The Opportunity for Mobile Operators.......................................................03 The Opportunity for Marketers.................................................................03 Paid Search Strategies...........................................................................04 Natural Search Strategies.......................................................................04 Mobile Search Business Cases................................................................04 Challenges for Mobile Search..................................................................06 Who We Are..........................................................................................06 References............................................................................................07 The materials found in this document are owned, held, or licensed by the Mobile Marketing Association and are available for personal, non-commercial, and educational use, provided that ownership of the materials is properly cited. Any commercial use of the materials, without the written permission of the Mobile Marketing Association, is strictly prohibited. Mobile Marketing Association Version 1.2 www.mmaglobal.com © 2008 Mobile Marketing Association • USA 1670 Broadway, Suite 850, Denver, CO 80202 Introduction to Mobile Search Overview be immediately connected to the company to learn more about or purchase a product. This ability is another example Mobile search is one of the most discussed topics in the mobile, of how the whole concept of mobile search centers around Internet and advertising industries, and for good reason- As more people use their mobile phones to access content, information convenience and instant gratification. and entertainment, a search function becomes a vital tool for Mobile search has enormous potential, which can be measured finding what they’re looking for quickly and easily. This docu- in a variety of ways. For example, the installed and grown base ment provides an overview of mobile search in terms of how it of 2 billion-plus mobile users is already generating a signifi- differs from traditional Internet search and how mobile search cant amount of mobile search traffic even though many, if not meets the needs of consumers, operators and marketers. De- most, of those users are still learning about mobile search. This veloped by the Mobile Marketing Association (MMA) Mobile usage is creating tremendous revenues through proven online Search Committee, this document also discusses mobile search search marketing models. It’s not a stretch to see analysts and strategies, business models and challenges. investors giving members of the mobile search ecosystem valu- ations comparable to the Internet search world. Today, Google Introduction to Mobile Search is valued at around $180 billion. The MMA believes operators, Mobile search is emerging as a major source of revenue and mar- marketers and content providers can build equally large revenue ket-differentiation opportunities for mobile operators, marketers streams and valuations with the right strategic decisions sur- and content providers worldwide. By making it fast and conve- rounding search. nient for mobile users to find information and content, mobile search has the potential to change the way consumers view their How is Mobile Search Different from Internet mobile devices. That creates revenue opportunities for mobile Search? operators and their business partners by creating a perception among consumers that they can just as easily find and download One fundamental difference between mobile search and Inter- content – such as songs – on their mobile phone as they can on net search is the form factors of the devices used. Even with a PC. Mobile search has the added advantage of encouraging and QWERTY keyboards and large screens increasingly common, accommodating impulse buys. For example, if a consumer hears mobile devices still require search platforms designed to make a new song and immediately wants it, she can use mobile search it fast and convenient for users to find information and content to find and download the MP3, rather than waiting until she’s at on a handheld device. Internet search engines and strategies can’t home in front a PC. be simply ported to the mobile environment. Instead, they have to be modified – often significantly – in order to accommodate The Internet clearly is an extremely efficient sales and mar- device and network limitations. keting channel, with advertising revenues of over $20 billion in the U.S. and $45 billion worldwide (Kelsey Group – Feb A second fundamental difference is the type of information 2008). Yet many analysts predict that this success will be over- sought. Internet users often seek comprehensive, lengthy infor- shadowed by the mobile web. One reason is reach: There are mation, such as material for a term paper, analyst reports on their more than 2 billion mobile devices in use worldwide today. company’s competition, their boyfriend’s background, or prices That installed base is already roughly 600 million larger than for flights and mortgages. By comparison, mobile users typical- the number of Internet users worldwide.1 Just as important, ly seek concise, actionable information, such as news headlines, it’s growing, as the mobile web becomes an increasingly popu- sports scores, weather, movie times or a list of nearby hotels. Mo- lar way for consumers to go on-line when they’re away from bile users also increasingly seek ringtones, downloadable music their PCs or if they don’t own a PC. and video clips, all of which must be organized in a way that makes it fast and convenient to find exactly what they want. Additional market drivers include: 1. Mobile devices are always on and always available. That’s a Multiple Players, Multiple Beneficiaries major advantage over PCs, especially among consumers – Mobile search engines benefit wireless consumers, marketers and such as younger demographics – who spend most of their mobile operators by fostering a cycle where: 1) Consumers use day away from home and thus away from a PC. search to find content, services or information. 2) Marketers present 2. Mobile devices are a natural fit for marketing initiatives that relevant products and services, and are willing to pay for traffic. 3) include one-click call completion, where mobile users can Search engines provide what consumers seek and consumers find what they are looking for. 4) Operators provide a useful consumer 1 Source: http://www.internetworldstats.com/stats.htm experience while enjoying new revenue streams. For example: Mobile Marketing Association Version 1.2 www.mmaglobal.com Page 1 of 7 © 2008 Mobile Marketing Association • USA 1670 Broadway, Suite 850, Denver, CO 80202 Introduction to Mobile Search for consumers to find and use a wide variety of content • Search Providers – Mobile search provides a way for anytime, anywhere. That benefits content providers because it search providers to continue to serve consumers when increases their addressable market and revenue potential far they’re away from their PCs. In the process, search provid- beyond people who are in front of a TV or a PC. In the pro- ers give their advertisers, content providers and other busi- cess, mobile search also gives content providers a way to sell ness partners a way to reach consumers anytime, anywhere. into markets that have low PC and Internet penetration. By expanding into mobile search, search providers also can With mobile search, consumers get what they are looking for, expand their advertising revenue by placing ads in con- marketers find buyers for their goods and services, and mobile junction with the mobile queries. operators get additional revenue from data usage and, in some • Consumers – Mobile search provides consumers with a case, royalties. That’s why the mobile search ecosystem is one of convenient way to get actionable information, such as the most efficient and powerful marketplaces in recent history. weather, and immediate gratification, such as song down- As mobile search matures, the market dynamics will improve loads. Mobile search also can leverage the location tech- even more, unlocking additional revenues for all members of nologies (e.g. GPS) built into many phones to make the value chain. search results even more focused and actionable. For ex- ample, with GPS, search results could go beyond just a list Consumer Opportunities and Challenges of nearby Italian restaurants to include turn-by-turn di- In order for mobile search to reach its full potential, it has to be fast rections to each one. and convenient to use, regardless of whether the user has a smart- • Marketers – Search allows marketers to reach mobile us- phone with a QWERTY keyboard or a feature phone. The ideal ers with offers that are highly relevant to their immediate mobile search should provide users with immediate, relevant an- interests. Although that sounds as obvious as it is, there’s swers, with no distractions.
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