Today we released our Western Europe Mobile Search and Display forecast. This follows the February release of the U.S. mobile forecast, but takes a look at the collective mobile activity in France, Germany, Italy, Spain and the U.K.

Specifically, it examines mobile search and display ad revenues in the region from 2008 to 2013. During this period, mobile search ad revenues will grow from 39 million euros to 2.3 billion euros, a compound annual growth rate (CAGR) of 125.4 percent. Mobile display ad revenues will grow from 14 million euros to 1.1 billion euros, a 138.3 percent CAGR.

But the fastest growing area of the forecast will be mobile local search ad revenues. This is the local slice of the aforementioned search ad revenues, defined by ads that drive conversions to geographically specific areas or store locations. Ad revenues in this category will grow from 18 million euros to 1.4 billion euros, a 139.3 percent CAGR. This growth will be driven by local search volume increases and rates associated with locally targeted ads.

Western Europe leads the U.S. in each of these areas, mainly due to the region’s greater number of mobile handsets — currently 499 million, compared with 266 million in the United States. Smartphones will also drive mobile advertising, growing from 43 million to 149 million. This is a 28 percent CAGR, compared with overall handset CAGR of 2.8 percent.

Much of the ad revenue growth in the forecast in fact derives from expected smartphone penetration and mobile Web consumption. As mobile Web use continues to gain share among mobile subscribers, ad inventory will grow with it. This will combine with a growing demand for mobile marketing as advertisers shift spend from traditional media to more targeted and measurable mobile advertising.

More commentary to follow.