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:“Local Content Considered Key to Mobile Adoption”
Nine out of 10 cell-phone users would watch local news on their handhelds or a comparable mobile device.