U.S. Mobile Local Ad Revenues to Grow From $404 Million in 2010 to $2.8 Billion in 2015
Locally targeted mobile ads will represent 70 percent of overall U.S. mobile ad spending in 2015
CHANTILLY, Va. (June 23, 2011) -
BIA/Kelsey, adviser to companies
in the local media space, 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.
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 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
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 firstname.lastname@example.org.
BIA/Kelsey advises companies in the local media space through consulting
and valuation services, research, Continuous Advisory Services and
conferences. Since 1983 BIA/Kelsey has been a resource to the media,
mobile advertising, telecommunications, Yellow Pages and electronic
directory markets, as well as to government agencies, law firms and
investment companies looking to understand trends and revenue drivers.
BIA/Kelsey’s annual conferences draw executives from across industries
seeking expert guidance on how companies are finding innovative ways
to grow. Additional information is available at www.biakelsey.com,
on the company’s Local
Media Watch blog, Twitter at http://twitter.com/BIAKelsey and