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Web 2.0 Mobile Revenues to Reach $18.9 billion by 2014

Demand for mobile access to Web 2.0 applications and services will see related annual revenues from these services hit $18.9 billion in 2014, a new report from Juniper Research has found. Presence-enabled communities, such as mobile voice-over-IP (VoIP), will be the primary market driver, followed by rapid growth in the social Web – which encompasses social networking, user-generated content (UGC) and mobile dating, chat & professional applications. Geolocation will also be an important enabler, and is forming part of an increasing number of Web 2.0 mobile mash-up service offerings.

The mobile social web report found that despite pricing models and monetisation of Web 2.0 presenting a significant challenge for many online service providers, numerous opportunities exist in the mobile market based around advertising, messaging, premium services and virtual economies, coupled with the strategic micro-billing capability of mobile.

Although there are significant revenue opportunities for players across the service delivery chain, the size and complexity of the Web 2.0 mobile market should not be underestimated. There are multiple routes to market, and there is fragmentation at all levels. “A confluence of Web 2.0 concepts and end-user behaviour exploiting both the Web and the mobile phone as delivery platforms is driving mobile Web adoption and shaping industry development,” says report author, Ian Chard. “Yet the distinction between service provider roles is becoming less clear-cut, meaning some commercial allies are finding themselves increasingly polarised as the market progresses.”

Other key findings from the mobile social web research include:

Off-portal applications and OTT (over-the-top) services – such as mobile IM and VoIP, SMS and social network-based ‘in-mail’ – represent a significant threat to operator revenues
Smartphones, app storefronts, and Web 2.0 applications are driving demand for cloud computing, and innovation in the service delivery environment – including Telecom Web Services, open APIs, and PaaS (platform as a service) and SaaS (software as a service)
This study published today is the first of two reports focusing on mobile web 2.0:

1. Mobile Social Web 2.0: Forecasts, Challenges & Regulations 2010-2014

2. Mobile Web 2.0: Business Models, Geolocation & Presence 2010-2014

Mobile social web whitepaper and further details of the two studies can be freely downloaded from www.juniperresearch.com

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