Mobile advertising continues to grab local marketing dollars, as a new study from BIA/Kelsey estimates that by 2019 the channel will account for 11.5 percent of total local ad revenue.
The research company’s study, U.S. Local Media Forecast 2015, shows that local ad spend is continuing to shift toward digital media in general, which will account for 35.4 percent of overall ad spend in 2019, compared to 23.2 percent in 2015.
In terms of dollars spent, BIA/Kelsey predicts that location-targeted mobile ad revenue (ads on tablets are excluded) will climb from $6.7 billion in 2015 to $18.2 billion in 2019, representing a compound annual growth rate of 28.5 percent.
This will make mobile the fourth largest local media in 2019, falling behind direct mail (23.6 percent), over-the-air television (13.7 percent), and pure-play online (12.9 percent).
The study explains that the uptick in location-targeted mobile ad revenue can be ascribed to both national advertisers and small to medium-sized business (SMB) adoptions. For example, more and more national advertisers started leveraging local mobile ad tactics such as geo-fencing and click-to-map. And a growing number of SMBs are tapping into mobile ad tools like Google AdWords and Facebook.
Additionally, innovation among ad networks and tech companies like Google will further accelerate the growth of location-targeted mobile ads, says the study.
BIA/ Kelsey’s study follows the release of the Interactive Advertising Bureau’s (IAB) annual revenue report, published just yesterday. The research shows that mobile ad revenues soared to $12.5 billion in 2014, representing a 76 percent increase – up from $7.1 billion – since 2013. This figure is just part of a burgeoning digital advertising industry, which grew by 16 percent to $49.5 billion in sales last year.
Image via Shutterstock.
Many companies use SMS, email and push notifications to deliver updates to customers and stakeholders, and such notifications are especially important to publishers ... read more
Effective app marketing is not about generating app page traffic, but rather about ensuring your app is discovered by targeted and relevant users who will install your app and use it regularly.
According to a survey conducted as part of OnBrand Magazine's State of Branding Report 2017, marketers are well aware of the new technologies that are expected to be important to their brands in coming years, but the majority aren't rushing to invest in them before they're fully-baked.
Shell has switched its corporate marketing from 80% traditional advertising to 85% digital media, and has stopped blowing its own trumpet in order to focus on telling video-led stories about the alternative energy start-ups it helps.