New Report by BIA/Kelsey Focuses on Measuring Mobile Advertising's Effectiveness
January 16, 2014

A new report by BIA/Kelsey reveals the tipping point for advertisers embracing mobile will arrive this year. Improved location targeting, such as geo-fencing, demonstrates the ability to influence consumers' offline purchase decisions. "Attribution: The Next Phase in the Age of Mobile Advertising" is available as a free download on the BIA/Kelsey website. 

"Mobile holds a 12 percent share of consumer's current media consumption, but has a disproportionately low - three percent - share of U.S. ad dollars," said the report's author Michael Boland, Vice President of content, BIA/Kelsey. "However, we see a few factors that will counterbalance this in the coming year, including location-targeted ads and the ability to measure effectiveness through attribution technologies."

BIA/Kelsey's U.S. Local Media Ad Forecast projects the breakdown of ad dollars associated with location-targeted campaigns to be 37 percent of total ad revenues ($1.4 billion) in 2012 and growing to 52 percent ($10.8 billion) by 2017.

A term gaining recognition by marketers is attribution, which involves measuring advertising effectiveness and its return on investment. The report examines ways mobile advertising and attribution are materializing, how mobile location data is playing a central role in these approaches and where they're moving next.

The report classifies developing attribution methods in three ways: location data analysis, (tracking users spatial behavior post ad exposure); panel data (tracking large samples of mobile users to derive insights); and offline purchase data (correlating lifts in sales to ad effectiveness).

Mobile adoption, especially by brand advertisers who spend the most on mobile advertising today, is driving demand for more precise ROI metrics. As this trend continues, development of attribution solutions will accelerate. For advertisers, publishers and ad tech players, attribution tactics will involve a combination of methods outlined in the report.

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Republic Records

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