Mobile Local Ad Revenues To Grow

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Mobile Local Ad Revenues To Grow

BIA/Kelsey has recently released their five year forecast for U.S. mobile local advertising.

The report indicates that total U.S. mobile ad spending is set to grow from the level of $790 million in 2010 to $4 billion by 2015. In addition the report also predicts that the mobile local ad spend will go up from $404 million in 2010 to $2.8 billion in 2015.

In effect this means that while local ad spend currently accounts for about 51% of the revenue, it is set to go up to about 70% by 2015.

Mobile local advertising is defined as that which targets users in specific locations or contains location-specific calls to action.

While mobile ad spend is likely to go up mainly due to the easier availability of smartphones and increased web usage, local ad spend is set to grow due to increased ability of mobile phones to be aware of location of the user.

This increased capability of mobiles, will not only lead to increased advertising by big brands but will also encourage the small and medium businesses to advertise on mobile, through display, search and SMS formats.

Local Advertising can be further divided into National-local and Local-local advertising.

National-local advertising is done by big brands and agencies, which target the local population of a given area.

On the other hand, local-local advertising is done by the small and medium sized businesses.

This local-local sector of the mobile advertising business is what is set to grow at a very fast pace thanks to the availability of facilities provided by features such as AdWords, Foursquare etc. This will eventually lead to the large growth of mobile ad spending.