Home  › Stats › Audience/Traffic
facebook-mobile

U.S. Mobile Local Ad Revenue Will Reach $5.8 Billion by 2016

  |  November 5, 2012   |  Comments

Mobile local ad revenue in the U.S. will grow by 54 percent by 2016, according to a new study by local media advisor company BIA/Kelsey.

Mobile local ad revenue in the U.S. will grow by 54 percent by 2016, according to a new study by local media advisor company BIA/Kelsey.

BIA/Kelsey projects that mobile will account for over three percent of local ad revenues by 2016. The mark would represent an increase from the 0.6 percent market share represented by mobile local ad revenue in 2011.

The company says that mobile local ad spending will outpace mobile national ad spending by 2016. BIA/Kelsey projects that local mobile ad spending will account for 58 percent of total ad spending in four years. The company expects mobile ad spending to reach $9.92 billion by 2016.

According to the company's figures, mobile ad spending was only at $2.7 billion for this year. In 2012, $1.2 billion was spent on mobile local ads and $1.5 billion was spent on national mobile ads.

Michael Boland, program director of mobile local media for BIA/Kelsey, says the growth of mobile local media has a lot to do with the penetration of smartphones in the U.S. marketplace. He also points to Facebook's recent mobile push as a possible growth motivator.

"Growth drivers include smartphone penetration, location data, ad targeting innovation and advertiser evolution to utilize these factors for higher-performing mobile local ad campaigns," said Boland.

"New mobile ad formats will also drive demand including Facebook's quickly evolving options like sponsored stories and app install ads. Currently accounting for 14 percent of Facebook's revenues and quickly growing."

Boland's theory is backed up by a recent YP study, which found that four out of 10 consumers use local search. According the study, a large group of users also use local search at least three times a week.

BIA/Kelsey says that mobile local ads offer marketers better relevance, immediacy, and consumer-buying intent. However, the company reports that mobile ad spending has seen slow adoption rates because of the steep mobile marketing learning curve. A major factor in the firm's projections is that marketers will master the learning curve and mobile marketing products will get easier to use over time.

To come up with its figures, BIA/Kelsey took interviews and reports from local ad firms like YP.com. The company than vetted its figures against the aggregate revenues of high earners in the mobile advertising market.

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, August 29 to take advantage of Super Saver Rates!

ABOUT THE AUTHOR

James is a freelance writer and editor. In addition to ClickZ, his work has appeared in publications like V3, The Commonwealth Club, CachedTech.com, and Shonen Jump magazine. He studied Journalism at Weber State University.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Stats delivers stats headlines to your inbox twice a week. 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.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

Resources

Jobs

    • Chinese Speaking Copywriter
      Chinese Speaking Copywriter (Agora Financial) - BaltimoreDo you speak Chinese? Are you interested in economics and finance or want to learn more...
    • Video/Digital Media Designer
      Video/Digital Media Designer (Confidential) - Delray BeachFull service corporate video production studio looking to hire a creative, and highly...
    • HEAD OF SALES
      HEAD OF SALES (OZONE MEDIA) - Santa Clarawww.ozonemedia.com HEAD OF SALES POSITION Reporting to the founder & CEO, Kiran Gopinath, the Head...