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Article

Title: Taking on Goliaths

Author: White, George Article Type: Product Analysis
Source: The Deal, v5 n13 p23(1) Publication Date: Apr 23, 2007
  ISSN: 1541-9878
  Illustrations: Tables
URL of Publication: http://www.thedeal.com

Startups are optimistic about the prospects of mobile search in their bid to compete against the Internets search giants. Mobile search is seen as the next area of growth in terms of Internet advertising. Around 12.5 million users are said to have done web searches on their phones, according to research firm M:Metrics. The number is expected to increase as more phones get equipped with browsers. Advertising in the mobile search market is projected to rise to between $16 billion and $18 billion in 2011, from $1.5 billion in 2006. The industry sees strong potential in the industry, projecting that it might even beat Internet usage. Mobile phones, for instance, provide the access of developing nations to the Internet. The growth potential is driving the Internet search engines to prioritize mobile search, although the market remains open. One reason that startups get a chance in the market is the business dynamics involved. In mobile search, it is more important to build good relationships with the wireless carriers. Startups have the advantage of bringing a carrier-friendly approach of not threatening them with big brand names. On their part, the Internet giants are enhancing their mobile search initiatives by acquiring portfolio companies. Microsoft has purchased Tellme Networks, which allows users to do mobile search by talking instead of pushing buttons.

Special Features: Tables

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Mobile Search

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