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Hosted Exchange - BIA/Kelsey: Mobile Local Advertising Revenues to Cross $2 Billion in 2014

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September 30, 2010

BIA/Kelsey: Mobile Local Advertising Revenues to Cross $2 Billion in 2014

By Rajani Baburajan
TMCnet Contributor

According to a newly released update of BIA/Kelsey's U.S. Local Media Forecast, 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 or “CAGR” of 56.9 percent.

BIA/Kelsey offers services to companies in the local media space through consulting and valuation services, research, continuous advisory services, and conferences.

The organization has been a vast resource to media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies to understand trends and revenue drivers, according to officials at BIA/Kelsey.

“We expect advertisers will be drawn to mobile marketing as the overall market shifts to digital ad platforms,” said Neal Polachek, president of BIA/Kelsey, in a statement.

“A lack of traffic to fulfill quotas on geotargeted ads will likely accelerate mobile Website and application development by publishers,” Polachek added. 

Google (News - Alert) has already begun to bundle mobile ad placements within its pervasive AdWords search marketing platform.

“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,” said Michael Boland, senior analyst and program director of BIA/Kelsey's Mobile Local Media practice.

BIA/Kelsey cites smartphone penetration, mobile Web usage and related increases in ad inventory as additional mobile ad growth drivers.

Location targeted ads will command premiums over non-local advertising, for both large and small advertisers, due to higher immediacy, consumer buying intent and conversion levels, according to the agency.

Growth in total local advertising is expected to rise from $130.6 billion in 2009 to $145.2 billion in 2014, representing a CAGR of 2.1 percent.

Traditional local media-based advertising will decline from $115.1 billion in 2009 to $110 billion in 2014, a CAGR of negative 0.9 percent.

Online/interactive local media-based ads will grow from $15.5 billion in 2009 to $35.2 billion in 2014, a CAGR of 17.4 percent, according to the report.

BIA/Kelsey's U.S. Local Media Forecast presents a comprehensive and authoritative view of the local media landscape.

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Tammy Wolf


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