Yahoo! today announced the beta launch of sponsored search results on the company’s Mobile Web service in the United States and United Kingdom. Yahoo will run the ads from its mobile internet service, which lets people search the internet from their phones and other hand-held devices. Advertisers are charged each time someone clicks on one of their ads in the same way that cost-per-click works with internet advertising.

At the moment, there are a group of just under a hundred advertisers lined up for the service, Yahoo has been showing mobile search ads in a pilot program in Japan, for about two years.

The mobile-advertising market is small and undeveloped today, but it is garnering increasing interest as more powerful, Web-enabled devices get into the hands of more consumers and as the devices become the primary way to access the Internet in some countries

Google also has a service that lets people search the internet using their mobile phones, but it does not yet have advertising. Nokia is working with Microsoft to integrate Live Search capabilities into its Mobile Search platform, thus enabling consumers access to Live Search directly from their Nokia Nseries multimedia computers and other compatible Nokia S60 devices Only 18 percent of wireless users in the U.S. have even tried surfing mobile Internet, estimates by the Yankee Group. Smaller screens, rudimentary navigation tools, costs, download time and tiny keypads not optimized for typing are some of the reasons why mobile search is not catching up but with mobile phone operators providing lot of content the importance of search will also grow

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