BIA/Kelsey Predicts Continued Mobile Growth
April 10, 2014

U.S. mobile local advertising revenues will reach $4.5 billion in 2014, up from $2.9 billion in 2013, according to a new report from BIA/Kelsey. In its Annual U.S. Local Media Forecast (2013-2018), the firm projects mobile local ad revenues to more than triple over the next five years, reaching $15.7 billion in 2018.

According to the forecast, total U.S. mobile ad spending will grow from $11.4 billion in 2014 to $30.3 billion in 2018. By the end of the forecast period, locally targeted mobile ads will represent 52 percent of overall U.S. mobile ad spending. Driving this localized share of mobile ad revenues is the adoption of mobile local advertising tactics (i.e., geo-fencing, click-to-call, click to map) by national advertisers, who currently account for most U.S. mobile ad spending, and who are expected to take advantage of increasingly available and currently undervalued mobile local ad inventory.

"Advertiser demand will be driven by natural market forces to follow undervalued inventory," said Michael Boland, Senior Analyst/VP of Content. "Mobile advertising’s appeal includes higher performance, clearer ROI, tangible conversions and a shorter purchase funnel. These qualities of mobile content and advertising present a rare alignment between typical mobile user intent and advertisers’ stated objectives."

National-to-local mobile marketing is a focus of BIA/Kelsey’s upcoming conference, LEADING IN LOCAL: The National Impact, which takes place May 7-9, in Atlanta. During a Day 2 session titled, "Location Targeting: The Brand Impact," publishers and advertisers will discuss the types of ad placements and localized calls to action that are most effective at engaging location-sensitive mobile users.

BIA/Kelsey's forecast comprises various mobile ad formats, including textual search, display, video, commercial SMS and native social advertising. Search advertising currently holds the largest share, followed by display and native social ads. Search’s dominant share indexes higher within this localized segment than within the broader of U.S. mobile ad revenue total, due to the high correlation between mobile search and local user intent. There is conversely a lower percentage of localization within the display category, due to the branding (as opposed to direct response) and reach-driven objectives inherent in display campaigns (i.e., in-app ads).

The forecast includes a breakdown of mobile local ad spending by format as follows:

•       Search (advertising applied to search queries on mobile devices) will grow from $4.3 billion in 2014 to $10.9 billion in 2018.
•       Native social (visual and textual brand messaging merged into organic feed-based interfaces of mobile social apps such as Facebook and Twitter) will grow from $3.3 billion in 2014 to $9.9 billion in 2018.
•       Display (display advertising applied to app and mobile Web inventory) will grow from $2.4 billion in 2014 to $6.1 billion in 2018.
•       Video (rich media ad units distributed within app and mobile web inventory) will grow from $1.1 billion in 2014 to $3.1 billion in 2018.
•       SMS (commercial SMS messaging) will grow from $332 million in 2014 to $381 million in 2018.




 
Breaking News
Clear Channel's iHeartRadio Partners With AdsWizz
Nielsen, Pointlogic Forge Strategic Alliance To Develop Next-Gen Media Planning Solutions
Pandora Hires Lars Murray As VP Of Industry Relations
In Brief - July 22, 2014
July 21, 2014
Evolve Music Group Signs Worldwide Agreement With Capitol Music Group
Second Annual KBA WKU Radio Talent Institute Underway
2014 Conclave Learning Conference Dates Announced
In Brief - July 21, 2014
FMQB FYI... Links You Should Know About
July 18, 2014
Hubbard Radio Elevates Drew Horowitz To President/COO
The Week In Review: 7/14-7/18
CCM+E Names Jeff Davis OM For Greenville & Asheville Markets
Tony Cortez Upped to APD At KTFM/San Antonio
In Brief - July 18, 2014
July 17, 2014
Report: Driving Radio's Value With U.S. Auto Buyers
In Brief - July 17, 2014
July 16, 2014
Study: Coleman Insights And knowDigital Find Opportunity For NextRadio
In Brief - July 16, 2014
July 15, 2014
CCM+E Austin Names Jonathan "JR" Reed Program Director For KHFI & KPEZ
Westwood One Partners With Radio Industry To Support NextRadio Funding
Triton Digital Releases May Top 20 Rankers
Nashville's Own Meghan Trainor Hears "Bass" For The First Time On 107.5 The River
In Brief - July 15, 2014
July 14, 2014
Rob Morris Named VP/Programming, CBS Radio Tampa Bay
Music News
Godsmack Unleashes Epic "Generation Day"
Quick Hits: MAGIC!, One Direction, Kimbra, Uncle Kracker, Billy Joel
Weezer Goes "Back To The Shack"
Quick Hits: Avicii, iTunes Festival, Adam Levine, The Script, Demi Lovato, Johnny Marr
Upcoming Maroon 5 Album Features Gwen Stefani Duet
The Week In Review: 7/14-7/18
Quick Hits: Beyonce, Teen Choice Awards, Aaliyah, The Roots
Beyoncé Leads 2014 MTV Video Music Awards
Quick Hits: Bruno Mars, Kanye West & Iggy Azalea, Busta Rhymes, The Smashing Pumpkins, Pearl Jam, Johnny Winter
Sia's 1000 Forms Of Fear Is #1
Quick Hits: The Beatles, Tool, Jason Mraz, David Bowie
Train Announces Bulletproof Picasso
Quick Hits: Drake, Blink-182, Pharrell Williams, Gwen Stefani & Gavin Rossdale, Gerard Way, Cold War Kids, Alex & Sierra, Polaris Music Prize
Tommy Ramone Dead At Age 65
Quick Hits: Justin Timberlake, Metallica, Radiohead, Halestorm, Kiss, Interpol
FMQB NOW

Chase Murphy, PD
KXXM, KQXT/San Antonio

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!