Mobile search and display revenues in Europe will hit $1.93 billion (1.3 billion euros) by 2012, according to a new report from Jupiter Research. But the report also warned that aside from SMS marketing, most “mobile marketing tactics are still in their infancy and will struggle to meet initial high expectations.”

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Jupiter expects mobile advertising to grow significantly in the next few years. In five years, 40 percent of mobile users in Europe will regularly access the mobile web thanks to cheaper multimedia handsets, better networks, and transparent data plans. Meanwhile, ad-funded business models will emerge out as consumers’ “limited willingness” to pay for mobile content and the free internet collide. While mobile advertising could eventually emerge as a multi-billion euro industry, the maturation of the industry could take up to 10 years. Jupiter also notes that advertisers will be slow to react to the consumer shift to the mobile web, and will “need more than encouraging trials and early click-through rates to begin to invest massively in this nascent medium.”

Still, the $1.93 billion figure is quite conservative compared to ABI Research numbers. A few days ago, ABI released a study that said the global mobile marketing industry would be worth $24 billion by 2013—meaning that Europe would only account for 8 percent of that total.