Home  › Media › Mobile
screen-shot-2011-06-23-at-10

Location-Based Mobile Ad Spend to Quadruple by 2015

  |  June 23, 2011   |  Comments

Local ads will account for lion's share of mobile ad investment, says BIA/Kelsey.

Spending on location-based mobile ads in the U.S. will grow four-fold over the next five years, eventually accounting for 70 percent of mobile ad spend, according to forecasts by local media consultancy.

The firm predicted advertisers will invest a total of $690 million on local mobile ads this year, reaching $2.84 billion by 2015. Meanwhile, overall spending on the channel will attract a total of $1.6 billion in 2011, rising to $4.05 in the same period, the firm expects.

Growth in the mobile ad space will be predominantly driven by the continued proliferation of smartphones as well as the emergence of self-service ad platforms, BIA/Kelsey suggested, aided by a focus on digital media from local media companies and the continued growth of location-aware technologies.

screen-shot-2011-06-23-at-10

"Ad volume growth will be compounded by premiums placed on location-targeted ads," the report said, citing the increased performance of location-based ads versus those targeted by other means. "This performance is a function of higher relevance, immediacy and consumer buying intent, which are more prevalent in mobile than many other print and digital media," it explained.

Despite the promise and potential of location-based advertising, however, regulators remain concerned about the potential privacy implications of the practice. Last month the U.S. Senate Committee on Commerce, Science, and Transportation held a subcommittee hearing titled "consumer privacy and protection in the mobile marketplace," and invited representatives from Google, Apple, and Facebook to testify alongside David Vladeck, director of the Bureau of Consumer Protection of the Federal Trade Commission.

Meanwhile in Europe, the European Commission's Article 29 Working Party - a collection of data authorities from across the EU responsible for promoting pan European privacy practices - issued an opinion classifying location data from smartphones as "personal data," the collection of which it suggested is only legal following consumers' "prior informed consent."

WPP-owned media agency GroupM also issued its own mobile privacy guidelines yesterday, which encouraged ad providers to offer users an easy opt-out for targeted advertising, and to limit the amount of data collected for advertising purposes.

ClickZ Live Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!

ABOUT THE AUTHOR

Jack Marshall

Jack Marshall was a staff writer and stats editor for ClickZ News from 2007 until August 2011. 

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

IBM: Social Analytics - The Science Behind Social Media Marketing

IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.

Resources

Jobs

    • Recent Grads: Customer Service Representative
      Recent Grads: Customer Service Representative (Agora Financial) - BaltimoreAgora Financial, one of the nation's largest independent publishers...
    • Managing Editor
      Managing Editor (Common Sense Publishing) - BaltimoreWE’RE HIRING: WE NEED AN AMAZING EDITOR TO POLISH WORLD-CLASS CONTENT   The Palm...
    • Senior Paid Search & Advertising Manager
      Senior Paid Search & Advertising Manager (Smarty Had A Party) - St. LouisCompany Description: A warm, loving, [slightly wacky] startup, we view...