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Local Mobile Ads On Course for Big Success by 2017

The mobile advertising market is a young one, but its growth is ever-present, showing impressive numbers on what seems to be a monthly basis. Usually, we see that the larger national brands in the US are the major contributors to the growth of mobile, sending quite significant chunks of their ad budgets to mobile advertising solutions providers. However, even taking a look at more local ad media, we can see huge leaps in mobile adoption and from that will stem some great mobile success. At least, that is what most research companies are predicting for the coming years in mobile advertising. One company in particular, a media consultancy company BIA/Kelsey, is forecasting big things for years to come in the way of local mobile advertising media. This is an ad type that is expected to make a very impressive imprint on the big mobile advertising picture, and it will happen soon according to BIA/Kelsey’s recent U.S. Local Media Forecast.

When local mobile media was last analyzed in 2012 by BIA/Kelsey, local mobile ad revenue had hit somewhere around $1.2 billion for the year. Now, the company is expecting this number will grow to upward of $9.1 billion by the year 2017. Between now and then, if revenues were to reach that high, it would represent an annual growth rate of nearly 50 percent. So, as can be seen local mobile ads will be gaining quite a bit of prominence in the relatively near future. To further prove this, BIA/Kelsey mentions that in 2012, local mobile ads represented a 0.9 percent share of all local media ad revenues, while in 2017 this share is expected to reach about 6.1 percent.

In terms of the bigger picture, BIA/Kelsey has forecasted that overall mobile ad spending, which was at about $3.2 billion in 2012, will be at $16.8 billion in the year 2017. When fitting locally targeted mobile ads into this big picture, they stood for 38 percent of all mobile ad spending in 2012 in the U.S. and by 2017 the percentage will have increased to about 54 percent. But, what is it exactly that is making so many advertisers choose locally targeted ads? BIA/Kelsey credits the huge growth to the following in their press release:

  • Large brand advertisers will increasingly adapt their campaign objectives to the capabilities of the mobile device due to effective, abundant, and currently undervalued mobile local ad inventory.
  • Mobile advertising will move down market to the SMB segment through a combination of self-serve tools and local media direct sales channels.
  • Premiums that develop for location-targeted ads will compound ad volume growth.
  • Innovation will increase among ad networks and ad tech providers (i.e., Enhanced Campaigns).

The adoption of mobile advertising methods by SMBs can already be seen, as many mobile advertising providers are setting these businesses up with tools that are easy to use and effective for simple advertising needs. Mobile is the place where companies are focusing their attention, and these advertising solutions providers are putting a majority of their effort into refining the mobile advertising experiences for their business clients. All of this in a nutshell will inevitably lead to growth in the use of mobile as an ads platform, and going further it will lead to more and more revenue.

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Pesach Lattin

Pesach "Pace" Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

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