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BizReport : Mobile Marketing : April 27, 2015

Forecast: Local media to slide mobile

Over the next four years brands will be pushing more of their local ad budgets into the mobile space. That according to a new forecast from BIA/Kelsey. According to the forecast local mobile spending will increase from $6.7 billion (2015) to just over $18 billion in 2019.

by Kristina Knight

The growth will push local mobile spending to an 11% share of the total local media spend according to BIA/Kelsey.

"We live in an on-demand culture, conditioned by the mobile device to get whatever we want, whenever we want it," said Michael Boland, chief analyst, VP, content, BIA/Kelsey, and co-chair for BIA/Kelsey NOW. "This is really reshaping the local service economy, with demand being captured and revealed for service providers in real time. At BIA/Kelsey NOW, we'll examine how this may impact the traditional local advertising model, in which advance marketing is required to connect buyers with sellers."

Look for direct mail (23% share) to continue to lead local advertising efforts along with local television (13% share) and pure-play online (12% share).

"Online spending is growing on ads viewed through desktops, but general online ad unit pricing faces headwinds as the attention of audiences and advertisers alike drifts more towards mobile," said Mark Fratrik, chief economist, BIA/Kelsey. "Online will gain just a few points of local advertising market share, as mobile nearly triples its share."

Image via Shutterstock

Tags: BIA/Kelsey, local ads, local marketing, local mobile spending, mobile marketing

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