BIA/Kelsey Forecasts U.S. Mobile Advertising to Reach $2.9 Billion in 2014

CHANTILLY, Va., Dec. 1, 2010 /PRNewswire/ -- According to BIA/Kelsey's U.S. Mobile Ad Revenue Forecast (2009-2014), U.S. mobile advertising revenues will grow from $491 million in 2009 to $2.9 billion in 2014, representing a compound annual growth rate (CAGR) of 43 percent. The forecast comprises advertising placed in mobile search (text advertising applied to search queries on mobile devices), display (display advertising applied to app and mobile Web inventory) and SMS (commercial SMS messaging).

During the forecast period (2009-2014), BIA/Kelsey expects U.S. mobile search ad revenues to grow from $59 million to $1.6 billion (93 percent CAGR); U.S. mobile display ad revenues to grow from $206 million to $803 million (31 percent CAGR); and U.S. mobile SMS ad revenues to grow from $226 million to $562 million (20 percent CAGR).

The Local Share of Mobile

As previously announced, BIA/Kelsey expects U.S. mobile local advertising revenues to grow from $213 million in 2009 to $2.03 billion in 2014 (57 percent CAGR). This represents 44 percent of total U.S. mobile ad revenues in 2009, growing to 69 percent in 2014.

BIA/Kelsey defines mobile local advertising as that which is targeted based on a user's location and/or actionable locally. Local targeting occurs to varying degrees and with different methods within each of the advertising formats examined in the forecast (search, display, SMS).

"We expect to see more bundling of mobile advertising by digital and local media companies, in an effort to lower the barriers for adoption by small and medium-sized businesses," said Michael Boland, program director, BIA/Kelsey. "As a result, mobile advertising will move down market to SMB and mid-market segments, increasing the overall revenue opportunity and share of geotargeted ads. This down-market shift will be coupled with large advertiser evolution and adoption of mobile local ad distribution."

Exploring Mobile Local Media at ILM:10

Highlights from the mobile forecast, with an emphasis on the local advertising opportunity, will be presented to attendees of BIA/Kelsey's upcoming Interactive Local Media 2010 (ILM:10) conference. On Day 1 of ILM:10, a two-hour SuperForum on mobile local media, led by BIA/Kelsey's Boland, will include a mobile keynote address, as well as three panel sessions: Evolution of Mobile Local: The Leaders; Mobile Ad Targeting: The Metrics; and Innovation in Mobile Products: The Demos.

ILM:10 takes place Dec. 7-9 in Santa Clara, California. For more information about the conference, visit www.kelseygroup.com/ilm2010.

BIA/Kelsey's U.S. Mobile Ad Revenue Forecast (2009-2014) is available to clients of BIA/Kelsey's Mobile Local Media (MLM) Continuous Advisory Service. For information about MLM, visit www.kelseygroup.com/services/mobile-local-media.asp or contact Steve Passwaiter at [email protected]. 

About BIA/Kelsey

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 www.bia.com and www.kelseygroup.com. The company's blogs are located at http://blog.bia.com/bia/ and http://blog.kelseygroup.com/, and it can be found on Twitter through http://twitter.com/BIAKelsey.

SOURCE BIA/Kelsey