Local Mobile Ad Spending to Continue Dramatic Growth - eMarketer
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Local Mobile Ad Spending to Continue Dramatic Growth

Local mobile spend to surpass $2 billion by 2014

December 8, 2010

US local mobile ad revenues are set to increase at a compound annual growth rate (CAGR) of 57% from 2009 through 2014, according to a forecast by BIA/Kelsey.

Local spending on the mobile channel is set to rise from $404 million this year to $692 million in 2011 and over $2 billion by 2014, the firm projects.

US Mobile Local Ad Revenues, 2009-2014 (millions)

“We expect to see more bundling of mobile advertising by digital and local media companies, in an effort to lower the barriers for adoption by small and medium-sized businesses,” said Michael Boland, program director at BIA/Kelsey, in statement. “As a result, mobile advertising will move down market to SMB and mid-market segments, increasing the overall revenue opportunity and share of geotargeted ads. This down-market shift will be coupled with large advertiser evolution and adoption of mobile local ad distribution.”

Overall, BIA/Kelsey forecasts mobile ad revenues to increase from $790 million this year to just under $3 billion in 2014, making local an increasingly prominent part of the mix. In terms of formats, the firm expects a shift in favor of search over the same period.

US Mobile Ad Revenues, by Format, 2009-2014 (millions)

eMarketer estimates a similar $743.1 million in mobile spending this year, rising to a somewhat more conservative $2.55 billion in 2014. Display will remain the dominant format, however, with search approaching but not surpassing it, according to eMarketer’s forecast.

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Check out today’s other article, “Display Spending Begins to Catch Up with Search.”


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