U.S. mobile local ad revenues on pace to reach $5.8B in 2016
Mobile local advertising revenues across the U.S. are projected to increase from $664 million in 2011 to $5.8 billion in 2016--a compound annual growth rate of 54.2 percent--forecasts media advisory firm BIA/Kelsey.
Overall U.S. mobile ad spending is on pace to reach to $9.92 billion in 2016, increasing from $1.62 billion in 2011, BIA/Kelsey reports. Locally targeted mobile ad spending, which represented 41 percent of total nationwide mobile ad spending a year ago, will surge to 58 percent at the end of the forecast period.
"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, BIA/Kelsey program director of mobile local media. "New mobile ad formats will also drive demand, including Facebook's (NASDAQ:FB) quickly evolving options like sponsored stories and app install ads--currently accounting for 14 percent of Facebook's revenues and quickly growing."
Despite growing interest in the mobile platform, BIA/Kelsey revealed that local mobile ads represented just 0.6 percent of local media ad revenues in 2011 and will increase to just 3.1 percent in 2016. Total local ad spending, which includes campaigns earmarked for media including radio, television, newspapers, Yellow Pages and the Internet, is expected to increase from $132.8 billion in 2011 to $147.1 billion in 2016.
- read this release
Forecast: Tablet ad spending will eclipse smartphone spending over holidays
Report: Mobile ad spending doubled in first half of 2012
Flurry: Advertisers under-spending on mobile
Half of tablet owners engage with ads more than once a week
Forecast: In-app mobile ad spending to surpass $7 billion in 2015