BIA/Kelsey Forecasts U.S. Mobile Local Ad Revenues to Grow from $664M in 2011 to $5.8B in 2016
Forecast highlights will be presented at 'Interactive Local Media West,' Dec. 4-6, in Los Angeles
CHANTILLY, Va. (Nov. 5, 2012) – BIA/Kelsey,
advisor to companies in the local media industry, forecasts U.S. mobile
local advertising revenues to grow from $664 million in 2011 to $5.8
billion in 2016, representing a compound annual growth rate of 54.2
BIA/Kelsey’s projected mobile local ad revenues represent a
subset of overall U.S. mobile ad spending, which the firm forecasts
to grow from $1.62 billion in 2011 to $9.92 billion in 2016. This puts
locally targeted mobile ads at 41 percent of overall U.S. mobile ad
spending in 2011, growing to 58 percent in 2016.
“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 Michael
Boland, program director, mobile local media, BIA/Kelsey. “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
Boland will moderate a SuperForum on mobile local media at BIA/Kelsey’s
Local Media West (ILM West) conference, Dec. 4-6,
in Los Angeles. He’ll present highlights from the forecast during
a session titled, “Mobile’s Impact on Interactive Local
Media: National to Local.” He will also present forecast highlights
to the Los Angeles venture community on Nov.
15, during a one-day event hosted by the Los
Angeles Venture Association (LAVA).
The U.S. Mobile Local Media Forecast (2011-2016) drills down into
many other areas and market segmentations such as ad revenues by format
(search, display, SMS, etc.). The complete forecast is available to
clients of BIA/Kelsey’s Mobile
Local Media advisory service.
For information on becoming an advisory services client, call (800)
331-5086 or email email@example.com.
Details about the ILM West conference, including speakers, agenda,
sponsors and online registration are available at www.biakelsey.com/ilmwest2012.
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Definitions and Methodology
BIA/Kelsey defines the local media advertising marketplace as those
media that provide local audiences to all types of advertisers. Mobile
local advertising is defined as advertising that is targeted based
on a user’s location. In addition to interviews and company reports,
BIA/Kelsey’s mobile forecast is based on usage trends, mobile
ad spending across various formats, consumer adoption patterns, advertiser
penetration and ad performance measurements such as clickthrough and
cost-per-click rates, and other benchmarks in online media. These data
are vetted against aggregate revenues of top players in each mobile
advertising segment (i.e., mobile ad networks). Traditional definitions
of ad spending apply to this forecast. At present, it does not include
marketing or promotional expenditures such as coupons.
BIA/Kelsey advises companies in the local media space through consulting and
valuation services, research, Continuous Advisory Services and conferences.
Since 1983, BIA/Kelsey has been a resource to the media, mobile advertising,
telecommunications, Yellow Pages and electronic directory markets, as well
as to government agencies, law firms and investment companies looking to understand
trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives
from across industries seeking expert guidance on how companies are finding
innovative ways to grow. Additional information is available at http://www.biakelsey.com,
on the company’s Local
Media Watch blog, Twitter (http://twitter.com/BIAKelsey)
and Facebook (http://www.facebook.com/biakelsey).
For more information contact: