June 24, 2011
BIA/Kelsey today 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 percent of overall U.S. mobile ad spending, growing to 70 percent by 2015.
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 says mobile advertising will move down 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 Michael Boland, senior analyst and program director of BIA/Kelsey?s Mobile Local Media practice. ?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). This forecast is available to clients of BIA/Kelsey?s Mobile Local Media advisory service, which provides research and analysis of the geolocal advertising opportunity, including content, delivery and advertiser adoption. To learn more about the Mobile Local Media advisory service and this mobile forecast, visit http://www.biakelsey.com/Advisory-Services/Mobile-Local-Media, or contact Steve Passwaiter at (703) 802-2973 or spasswaiter@bia.com.
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