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
iHeartMedia Atlanta Names New Market President and Vice President of Sales
iHeartMedia Myrtle Beach Names Zac Davis Operations Manager
Tim Maranville Joins Cross Platform Media Group As Chief Content Officer
Study: New Brain Research Demonstrates High Effectiveness Of Radio Advertising
Survey: Justin Timberlake Is Music’s Best Male Role Model
In Brief - September 30, 2014
September 29, 2014
Jon Pinch Delays Retirement, Named Market Manager At Cumulus-Atlanta
iHeartMedia Names Earl Jones SVP, Urban Operations
Report: Few 13-20’s Name FM As #1 Music Source
New Study: Radio An Effective Way To Influence Swing Voters
In Brief - September 29, 2014
September 26, 2014
eQB NOW
The Week In Review: 9/22-9/26
Cox Media Group Names Pete Spriggs News/Talk/Sports Radio Format Leader, Drew Anderssen Format Coordinator
Mann Gets HOT From HITS In Bakersfield
ErrorFM.com Announces Launch Date, Features
In Brief - September 26, 2014
September 25, 2014
iHeartRadio Music Festival Generates 5 Billion Social Impressions
In Brief - September 25, 2014
September 24, 2014
Report: Southern California Broadcasters Association White Paper
In Brief - September 24, 2014
September 23, 2014
Jelli Selects Digigram To Provide Sound Cards For RadioSpot
In Brief - September 23, 2014
September 22, 2014
BIA/Kelsey Projects $139.3 Billion In Local Media Revenue By 2015
Music News
Lorde Drops "Yellow Flicker Beat"
Quick Hits: Gwen Stefani & Pharrell Williams, Mary Lambert, Alex & Sierra
Taylor Swift, Metallica & More Headlining 2015 Rock In Rio USA
Quick Hits: Britney Spears, Prince, Birdman, Black Sabbath, Rancid
Thom Yorke Releases Surprise Solo Album Via BitTorrent
The Week In Review: 9/22-9/26
Quick Hits: R.E.M., AC/DC, U2
Metallica Has Goodies In Store This Holiday Season
Quick Hits: Justin Bieber, Kanye West, Wiz Khalifa & Amber Rose, Brandi Carlile, Neil Young, Bob Seger
Streisand, Chris Brown Top SoundScan Sales Chart
Nickelback Moving To No Fixed Address In November
Quick Hits: AC/DC, Bruce Springsteen, Weezer, Outkast, The Who
T.I. Gets Paperwork In Order
FMQB Photo Pass: Lily Allen
Quick Hits: Kelly Clarkson, Bob Dylan, Iggy Azalea, Lana Del Rey, Jeff Bridges
FMQB NOW

Celebrating
The History Of
WFLZ/Tampa

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!