BIA Kelsey: U.S. Mobile Local Ad Revenues to Grow Nearly Seven-fold from 2010 to 2015

June 23, 2011


Chantilly, VA - Jun 23, 2011 - BIA/Kelsey 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.

The outlook for mobile local advertising is part of BIA/Kelsey's U.S. Local Media Annual Forecast (2010-2015).



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