U.S. Mobile Local Ad Revenues to Grow From $404 Million in 2010 to $2.8 Billion in 2015, According to BIA/Kelsey

By: Press Release | BIA/Kelsey

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 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.

About BIA/Kelsey

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 Facebook (http://www.facebook.com/biakelsey).

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