CHANTILLY, Va., Aug. 22, 2012 /PRNewswire/ -- According to BIA/Kelsey's Media Ad View reports, the advertising categories of real estate, technology and education are driving triple-digit increases in mobile ad revenues in the local market of Des Moines, Iowa.
Growth in mobile ad revenues is a trend seen across U.S. local markets. BIA/Kelsey projects U.S. mobile local ad revenues will grow from $784 million in 2011 to $5.01 billion in 2016, representing a 45 percent compound annual growth rate (CAGR). This equates to a 0.6 percent share of local media ad revenues in 2011, growing to a 2.7 percent share in 2016 (source: BIA/Kelsey's U.S. Local Media Forecast: Full Edition).
In Des Moines, real estate advertising dollars spent on mobile media will grow from $43 million in 2011 (0.7 percent of all real estate ad spending) to $268 million in 2016 (4.3 percent of all real estate ad spending). During the same period, in the same geographic market, spending by technology companies on mobile media will grow from $490 million (1.3 percent of all technology ad spending) to $3 billion (3.6 percent of all technology ad spending).
"Even as traditional media retains the largest portion of ad dollars, it's becoming apparent that advertisers are increasingly drawn to mobile marketing as a part of overall market shifts to digital advertising," said Mark Fratrik, vice president and chief economist, BIA/Kelsey, adviser to companies in the local media space. "The growth of mobile advertising in the Des Moines market is a snapshot of what we're seeing across the country, and our Media Ad View forecasts hone in on the specific areas where media companies can and should direct their sales staff to find new revenues."
Another break-out growth category for mobile in Des Moines is educational advertising. In 2011, mobile ad spending in the educational category in Des Moines garnered $14 million (0.2 percent of all educational ad spending). Mobile local ad spending in this category is projected to grow to over $91 million in 2016 (1.3 percent of all educational ad spending).
"Smartphone penetration and consumer adoption of the mobile web continue to drive mobile ad growth," said Michael Boland, program director of BIA/Kelsey's Mobile Local Media (MLM) program. "Additionally, local sales strategies and self-serve tools are simplifying the mobile ad buying process, with even Google bundling mobile ad placements within its AdWords search marketing platform. All of this has laid the groundwork for businesses, SMBs in particular, to adopt mobile as a bigger part of their ad strategy."
NOTE: Related charts are available online.
Real Estate and Technology Ad Spending:
Educational Ad Spending:
Media Ad View Reports
Covering 12 media, 12 ad categories and 94 detailed business categories, BIA/Kelsey's Media Ad View reports track local advertising spending by media for the most recent year and five years out (2011-2016) for every local market. Markets are organized by the 362 Core Based Statistical Areas (CBSAs) or TV/Radio markets. The reports also examine the distribution of online ad share by segment (e.g., classified/verticals, search, video display and other display) to reveal the actual dollars being spent on online advertising in a local market by the most important business categories. For more information on BIA/Kelsey's Media Ad View reports, visit www.biakelsey.com/MAV, call (800) 331-5086 or email [email protected].
BIA/Kelsey advises companies in the local media space through consulting and 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).