The Kelsey Group Forecasts U.S. Mobile Search Advertising Revenues to Grow from $33.2 Million in 2007 to $1.4 Billion in 2012

Forecast includes ad-sponsored directory assistance (free DA), mobile Internet and multi-modal applications

PRINCETON, N.J., Sept. 10  -- The Kelsey Group, the leading provider of strategic research and analysis, data and competitive metrics on Yellow Pages, electronic directories and local media, forecasts U.S. mobile search advertising revenues to grow from $33.2 million in 2007 to $1.4 billion in 2012, representing a compound annual growth rate (CAGR) of 112 percent.

"Advertisers in the U.S. are the most aggressive in terms of messaging to potential U.S. consumers," said Matt Booth, senior vice president and program director, Interactive Local Media, The Kelsey Group. "Given the relatively high spend levels, we believe advertisers will continue to look into innovative solutions, including mobile, that demonstrate a clear ROI on ad spend."

The Kelsey Group's mobile search advertising forecast, which is available to the firm's continuous advisory services clients, comprises three distinct revenue and usage segments:

  -- Ad-Sponsored Directory Assistance (Free DA) - Consumers dial a phone
     for free directory assistance and other local information (examples: 1-
     800-GOOG411, Jingle Networks).
  -- Mobile Internet Ads - Consumers use SMS, WAP, etc., to search or browse
     the Internet for information (examples: Google Maps, Apple iPhone).
  -- Multi-Modal Applications - Carriers and/or consumers opt to put voice-
     in and data-out products directly on the mobile device (examples:
     Tellme, V-Enable).

  Methodology

The Kelsey Group's mobile search advertising forecast is based upon data collected through interviews, company reports, market surveys, third parties, usage trends, Kelsey Group knowledge of industry players, expected company outcomes, various types of performance and CPM-based advertising, ROI and conversion rates, as well as The Kelsey Group's analysis and opinion of the future direction of each of these. Revenue estimates are based on "session conversion rates," defined as the amount of revenues The Kelsey Group expects to be created based on anticipated ad placements during a mobile ad session.

For information on The Kelsey Group's continuous advisory services, including its Interactive Local Media practice, which developed the mobile search advertising forecast, visit www.kelseygroup.com, or contact Steve Vasil at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or (905) 468-8786.

About The Kelsey Group

The Kelsey Group is the leading provider of research, data and strategic analysis on directories, small-business advertising and online local media. Founded in 1986, the company has built a reputation as the premier analyst firm covering the directory publishing community and the emerging local search marketplace, providing advisory services (The Kelsey Report(R) and Interactive Local Media), publishing (Global Yellow Pages(TM)), consulting (more than 400 individual assignments) and conferences (68 events).

Available Topic Expert(s): For information on the listed expert(s), click appropriate link. Matthew Booth https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=48602

Web site: http://www.kelseygroup.com/