BIA/Kelsey: Mobile Local Advertising Revenues To Exceed $2B In 2014
September 28, 2010 at 5:19 AM (PT)
U.S. mobile local advertising revenues will increase from $213 million in 2009 to $2.02 billion in 2014, representing a compound annual growth rate of 56.9%, according to a newly released update to BIA/KELSEY's U.S. Local Media Forecast (2009-2014).
BIA/KELSEY defines mobile local advertising as advertising that is targeted based on a user's location and/or advertising that is locally actionable. For large and small advertisers alike, location targeted ads will command premiums over non-local advertising, due to higher immediacy, consumer buying intent and conversion levels.
"We expect advertisers will be drawn to mobile marketing as the overall market shifts to digital ad platforms," said BIA/KELSEY Pres. NEAL POLACHEK. "A lack of traffic to fulfill quotas on geo-targeted ads will likely accelerate mobile website and application development by publishers."
Regarding influencers of mobile ad growth, MICHAEL BOLAND, senior analyst and PD of BIA/KELSEY's Mobile Local Media practice added, "As we've seen in the online space over the past decade, tools will be introduced to democratize and localize the mobile ad buying process. GOOGLE has already begun to bundle mobile ad placements within its pervasive ADWORDS search marketing platform."
BIA/KELSEY cites smartphone penetration, mobile Web usage and related increases in ad inventory as additional mobile ad growth drivers.
The Big Picture On Local Media
BIA/KELSEY expects total local advertising to grow from $130.6 billion in 2009 to $145.2 billion in 2014, representing a CAGR of 2.1%. Comprising total local advertising is traditional local media, which will decline from $115.1 billion in 2009 to $110 billion in 2014, a CAGR of negative 0.9%, and online/interactive local media, which will grow from $15.5 billion in 2009 to $35.2 billion in 2014, a CAGR of 17.4%.