Spending on mobile search and display advertising will skyrocket in the coming years in the U.S., making cell phones a viable vehicle for this type of online marketing, according to research firm The Kelsey Group. Forecasting revenues to grow from $33.2 million in 2007 to $1.4 billion in 2012, the growth represents 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)

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