CHANTILLY, Va., Sept. 28 /PRNewswire/ -- U.S. mobile local advertising revenues will increase from $213 million in 2009 to $2.02 billion in 2014, representing a compound annual growth rate (CAGR) of 56.9 percent, according to a newly released update to BIA/Kelsey's U.S. Local Media Forecast (2009-2014).
BIA/Kelsey defines mobile local advertising as advertising that is targeted based on a user's location and/or advertising that is locally actionable. For large and small advertisers alike, location targeted ads will command premiums over non-local advertising, due to higher immediacy, consumer buying intent and conversion levels.
"We expect advertisers will be drawn to mobile marketing as the overall market shifts to digital ad platforms," said Neal Polachek, president, BIA/Kelsey. "A lack of traffic to fulfill quotas on geotargeted ads will likely accelerate mobile Web site and application development by publishers."
Regarding influencers of mobile ad growth, Michael Boland, senior analyst and program director of BIA/Kelsey's Mobile Local Media practice added, "As we've seen in the online space over the past decade, tools will be introduced to democratize and localize the mobile ad buying process. Google has already begun to bundle mobile ad placements within its pervasive AdWords search marketing platform."
BIA/Kelsey cites smartphone penetration, mobile Web usage and related increases in ad inventory as additional mobile ad growth drivers.
The Big Picture on Local Media
BIA/Kelsey expects total local advertising to grow from $130.6 billion in 2009 to $145.2 billion in 2014, representing a CAGR of 2.1 percent. Comprising total local advertising is traditional local media, which will decline from $115.1 billion in 2009 to $110 billion in 2014, a CAGR of negative 0.9 percent, and online/interactive local media, which will grow from $15.5 billion in 2009 to $35.2 billion in 2014, a CAGR of 17.4 percent.
BIA/Kelsey's U.S. Local Media Forecast presents one comprehensive and authoritative view of the local media landscape. The forecast is available to clients of the company's Continuous Advisory Services: Mobile Local Media, Interactive Local Media, Digital Strategies for Broadcasting, The Kelsey Report® and Marketplaces.
The forecast also serves as the foundation for the firm's newest offering, "Media Ad View: Category Report." Category Report provides a five-year projection of advertising revenues across 12 media categories (cable TV, direct mail, e-mail reputation and presence management, Internet Yellow Pages, magazines, mobile, newspapers, online, out-of-home, print Yellow Pages, radio and television) and the top 12 advertising categories in markets nationwide. The advertising categories — automotive, educational, finance/insurance, general services, government/political/religion, health care, leisure/recreation, media, real estate, restaurants, retail and technology — constitute nearly 95 percent of all local media advertising revenues. Markets are organized by the 362 Core Based Statistical Areas (CBSAs) or the 210 television markets.
For information on BIA/Kelsey's Continuous Advisory Services and Media Ad View: Category Report, please contact Steve Passwaiter at firstname.lastname@example.org.
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.