RSS feed Get our RSS feed

News by Topic

BizReport : Mobile Marketing : April 05, 2013

Forecast: Local Mobile to push $9 billion

Look for the local mobile space to skyrocket over the coming four years. A new forecast out from BIA/Kelsey predicts the local mobile ad space will hit at least $9 billion by 2017. Compare that to 2012 when the local mobile space captured only about $1.2 billion ad dollars.

by Kristina Knight

Local mobile isn't the only ad space expected to see significant growth in the US, the overall advertising space is expected to increase from $3.2 billion (2012) to nearly $17 billion by 2017. This represents a 54% CAGR. Pushing the growth, especially in mobile, is the push large brands are expected to put into the local mobile space.

"Though inventory growth currently outpaces advertiser demand, we believe the latter will begin to accelerate," said Michael Boland, senior analyst and director of content, BIA/Kelsey. "This will not only increase overall mobile ad spend, but mobile ad rates such as CPMs and CPCs, which are currently lower than desktop equivalents, due to inventory oversupply."

As for the breakdown of mobile advertising display (app and mobile screen) is expected to push $3 billion by 2017 while mobile search will grow to more than $5.5 billion. SMS advertising should hit $162 million by 2017 while mobile video is expected to increase to $515 million.

As for the current mobile subscriber breakdown, comScore reports that for February nearly 134 million US consumers now own a smartphone, representing a 57% market penetration rate. Apple holds nearly 39% of the market share while Samsung comes in at a 21% market share.

Image via Shutterstock

Tags: BIA/Kelsey, comScore, local advertising, local mobile ad trends, local mobile ads, mobile advertising

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.