Total U.S. mobile ad spending will grow from $790 million
in 2010 to $4 billion in 2015. During the period, the local portion of that
total to increase from $404 million to $2.8 billion. This makes locally
targeted mobile ads 51 percent of overall U.S. mobile ad spending, growing to
70 percent by 2015, according to BIA/Kelsey.

 

Among the drivers of mobile ad revenue growth are
smartphone penetration, mobile Web usage and related increases in ad inventory.

 

BIA/Kelsey expects this to
come about as large brand advertisers evolve their campaign objectives to the capabilities
of the mobile device. Mobile advertising will be moving down market to small
and medium-sized businesses through a combination of local sales and self-serve
tools. Exploding mobile usage, clearer ROI and a shorter purchase funnel will
accelerate this demand within display, search and SMS advertising formats.

 

“Revenues will grow from not only ad volume, but
also premiums placed on location-targeted ads,” said Michael Boland,
senior analyst and program director of BIA/Kelsey’s Mobile Local Media practice.

 

“These premiums result from higher performance for
locally targeted mobile ads when compared with non-local ads, due to higher
relevance, immediacy and consumer buying intent, all of which are more
prevalent in mobile than many other print and digital media,” Boland
added.

 

By TelecomLead.com Team
[email protected]