Rapid Adoption of Advanced Mobile Devices Driving Increased Mobile Local Search Activity, According to The Kelsey Group

According to the latest wave of "Mobile Market View," a consumer study of U.S. mobile phone users conducted by The Kelsey Group with research partner ConStat, 18.9 percent of mobile consumers now use a smartphone. Among those surveyed, 49.2 percent plan to purchase an advanced mobile device within the next two years.

Corresponding with the rapid consumer adoption of smartphones is a marked increase in the level of mobile search activity. According to the Mobile Market View study, mobile consumers performed the following activities using their mobile devices during the past six months:

-- Downloaded or looked at maps or directions: 17.6 percent, up from 10.8
percent in 2007
-- Searched the Internet for products or services in their local area:
15.6 percent, up from 9.8 percent in 2007
-- Searched the Internet for products or services outside their local
area: 14.3 percent, up from 6.4 percent in 2007
-- Obtained information about movies or other entertainment: 13.7 percent,
up from 8.2 percent in 2007
-- Connected with a social network, such as MySpace or Facebook: 9.6
percent, up from 3.4 percent in 2007

"We believe the introduction of more user-friendly smartphones is ushering in a new mobile paradigm where devices now offer an Internet experience that is as easy as traditional voice connectivity," said Matt Booth, senior vice president and program director, Interactive Local Media, The Kelsey Group. "The implication is that users will increasingly turn to their smartphones for local commercial and social search experiences, and the data certainly suggest this is already happening."

"We are seeing a qualitative difference in consumer usage of mobile phones, particularly with the energetic uptake of smartphones," said Steve Marshall, director of research and consulting, The Kelsey Group. "The aggressive projections about mobile are approaching reality, as smartphones are now becoming mainstream platforms for commercial usage."

Study Confirms Kelsey Group Mobile Forecast

Findings from Mobile Market View indicate a growth rate of mobile Internet users that is in line with The Kelsey Group's U.S. Mobile Advertising Forecast: 2007-2012 (September 2007), which projected mobile Internet users would grow at a compound annual growth rate of 19 percent through 2012. According to the latest Mobile Market View findings, the percentage of mobile users who access the Internet from their mobile devices increased from 32.4 percent in 2007 to 38.9 percent in 2008, an annual growth rate of 20 percent.

The future of mobile local search and advertising will be among the topics explored at The Kelsey Group's upcoming "Interactive Local Media 2008" (ILM:08) conference, Nov. 19-21, 2008, in Santa Clara, California. ILM:08 is The Kelsey Group's annual conference devoted to digital media with a local focus. For more information, visit http://www.kelseygroup.com/ILM2008.

About Mobile Market View

Mobile Market View is a tracking study of mobile user behavior conducted by The Kelsey Group and research partner ConStat. The second wave of the study was conducted in October 2008 via an online 39-question survey of 512 U.S. mobile phone users aged 18 and older. The first wave of the study was conducted in September 2007.

About BIA Advisory Services, LLC

BIA Advisory Services, LLC, a subsidiary of BIA Financial Network, provides research, data, analysis, and financial and strategic consulting to media, telecommunications, technology, directory publishing, and local search companies. BIA Advisory Services includes The Kelsey Group, experts in traditional and online local media and advertising; BIA Research, providers of competitive and comparative market information and analysis through data services, specialized reporting, engineering studies and mapping; and BIA Consulting, specialists in business intelligence and corporate growth strategy, and the nation's leading communications appraisal and valuation firm. Additional information is available at http://www.bia.com.

About The Kelsey Group

The Kelsey Group, a division of BIA Advisory Services, LLC, is the leading provider of research, data and strategic analysis on directories, small-business advertising, online local media, vertical market advertising and mobile advertising. As the premier analyst firm covering the directory publishing community and the emerging local search marketplace, The Kelsey Group provides advisory services (The Kelsey Report(R), Interactive Local Media and Marketplaces), publishing (Global Yellow Pages(TM)), consulting (more than 400 individual assignments) and conferences (73 events). For more information about The Kelsey Group, visit http://www.kelseygroup.com.