U.S. Mobile Local Ad Revenues To Grow To $2.8 Billion in 2015
June 23, 2011 at 4:01 AM (PT)
BIA/KELSEY has released its five-year outlook for U.S. mobile local advertising. According to the firm, total U.S. mobile ad spending will grow from $790 million in 2010 to $4 billion in 2015. During the same period, BIA/KELSEY projects the local portion of that total to increase from $404 million to $2.8 billion. This makes locally targeted mobile ads 51% of overall U.S. mobile ad spending, growing to 70% by 2015.
Consistent with other local media, BIA/KELSEY defines mobile local advertising as that which targets users in specific locations or contains location-specific calls to action.
Among the drivers of mobile ad revenue growth are smartphone penetration, mobile Web usage and related increases in ad inventory. BIA/KELSEY expects this to come about as large brand advertisers evolve their campaign objectives to the capabilities of the mobile device -- most notably, location awareness. The firm also sees mobile advertising moving down market to small and medium-sized businesses through a combination of local sales and self-serve tools. Exploding mobile usage, clearer ROI and a shorter purchase funnel will accelerate this demand within display, search and SMS advertising formats.
"Revenues will grow from not only ad volume, but also premiums placed on location-targeted ads," said Sr. Analyst/Program Director MICHAEL BOLAND. "These premiums result from higher performance for locally targeted mobile ads when compared with non-local ads, due to higher relevance, immediacy and consumer buying intent, all of which are more prevalent in mobile than many other print and digital media."
The outlook for mobile local advertising is part of BIA/KELSEY's U.S. Local Media Annual Forecast (2010-2015).