Local U.S. Mobile Ad Revenue to Exceed $2 Billion in 2014
CHANTILLY, VA.: U.S. mobile local advertising revenues
will increase from $213 million in 2009 to $2.02 billion in 2014, the folks at
BIA Kelsey said today. The trajectory represents a compound annual growth rate
of nearly 57 percent.
“We expect advertisers will be drawn to mobile marketing as the overall market
shifts to digital ad platforms,” said BIA’s Neal Polachek. “A lack of traffic
to fulfill quotas on geo-targeted ads will likely accelerate mobile Web site
and application development by publishers.”
BIA defines mobile local advertising as that based on targeting a user’s
location. Location-targeted advertising will command a higher price over
non-local advertising, BIA said, “due to higher immediacy, consumer buying
intent and conversion levels.” Smartphone penetration, mobile Web usage and
related increases in ad inventory are expected to drive the revenue segment, as
are emerging technologies.
“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,” BIA’s
Michael Boland said. “Google has already begun to bundle mobile ad placements
within its pervasive AdWords search marketing platform.”
BIA said expects total local advertising to grow from $130.6 billion in 2009 to
$145.2 billion in 2014; a CAGR of 2.1 percent. 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 percent, 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 percent.
December 9, 2009:
Considered Key to Mobile Adoption”
Nine out of 10 cell-phone users would watch local news on their handhelds
or a comparable mobile device.