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
eQB NOW
Marketron Executes The First-Ever Real Time Programmatic Spot Buy For Radio
Alpha Media Names Stefan Brock Corporate VP/Interactive
Roadrunner Promotion, Atlantic Records Announces Two Regional Hires
WPLJ/New York Joins Jayde Donovan In Her Apple-A-Day Program
In Brief - May 29, 2015
May 28, 2015
John Sutherland Promoted To VP/Market Manager For Cumulus Providence
iHeartMedia, CW Network And Yahoo Announce The 2015 "iHeartRadio Summer Pool Party"
iHeartMedia And Children's Miracle Network Hospitals Honored For Nationwide Radiothon Campaign
In Brief - May 28, 2015
May 27, 2015
iHeartMedia Connecticut Names Zac Davis PD of WKSS & WKCI
iHeartMedia Phoenix Appoints Spivey And Wolff To APD Posts
Former Dial Global/Westwood One Execs Launch DGital Media
Radio Promotion Executive Bridget Herrmann Joins Crush Music
Sinclair Broadcast Group And iHeartMedia Join Forces For UNCF "An Evening Of Stars"
In Brief - May 27, 2015
May 26, 2015
Michelle Jubelirer Promoted To COO, Capitol Music Group
CBS Radio Phoenix Names Tim Richards VP/Programming
Demi Lovato, Nick Jonas & Phil McIntyre Announce Formation Of Safehouse Records
Free Registration Offered To Radio Show's First-Ever Student Scholars Program
In Brief - May 26, 2015
May 22, 2015
Hubbard Radio Ups Jeremy Sinon To Corporate Digital Director
The Week In Review: 5/18-5/22
KSZR/Tucson Becomes Classic Hip Hop, 97.5 The Vibe
In Brief - May 22, 2015
May 21, 2015
Music News
Hozier, Nick Jonas And More To Play iHeartRadio Music Festival's Daytime Village
Riot Fest Reels In Modest Mouse, No Doubt and More
Quick Hits: Mumford & Sons, MS MR, Fun Fun Fun Fest, Daughtry, The Roots / Philadelphia Music Alliance, Bonnaroo SuperJam
Twenty One Pilots Hit #1 On Billboard 200
Quick Hits: U2, NiFi Festival, Azealia Banks
A$AP Rocky Drops Early Release
Quick Hits: Neil Young, Of Monsters and Men, Chris Cornell, Boston Calling festival, Rob Thomas
Adam Lambert Unveils Two New Tracks
Academy Award-Nominated Actress Hailee Steinfeld Inks Record Deal With Republic Records
Quick Hits: Taylor Swift, Eminem, Enrique Iglesias, Slayer
The Week In Review: 5/18-5/22
Quick Hits: Taylor Swift, Madonna, Little Mix, Roger Waters
Pitch Perfect 2 Comes In At #1
Quick Hits: Foo Fighters, The Rolling Stones, Kanye West, Five Finger Death Punch, Amy Winehouse, Riot Fest
FMQB Photo Pass: MMRBQ 2015
FMQB NOW

Erik Bradley
APD/MD, B96/Chicago

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!