Mobile Will Grab 11.5% of Total Local Media Revenues By 2019
May 6, 2015 at 3:55 AM (PT)
In the SPRING update to its U.S. Local Media Forecast 2015, BIA/KELSEY forecasts location-targeted mobile advertising revenues in the U.S. to grow from $6.7 billion in 2015 to $18.2 billion in 2019, representing a 28.5% compound annual growth rate. According to the forecast, mobile is driving most of the change in digital media, gaining traction with advertisers, and jumping to an 11.5% share of the total local media pie by 2019, up from a 4.8% share in 2015. This will make mobile the fourth largest local media in 2019.
“Online spending is growing on ads viewed through desktops, but general online ad unit pricing faces headwinds as the attention of audiences and advertisers alike drifts more towards mobile,” said SVP/Chief Economist MARK FRATRIK. “Online will gain just a few points of local advertising market share, as mobile nearly triples its share.”
“We live in an on-demand culture, conditioned by the mobile device to get whatever we want, whenever we want it,” said Chief Analyst & VP/Content MICHAEL BOLAND. “This is really reshaping the local service economy, with demand being captured and revealed for service providers in real time. At BIA/KELSEY NOW, we’ll examine how this may impact the traditional local advertising model, in which advance marketing is required to connect buyers with sellers.”