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BizReport : Mobile Marketing : June 17, 2016

Forecast: Strong push for mobile LBS coming

Look for mobile brands to earmark more budget dollars for location targeting. That's the word from BIA/Kelsey's new US Local Advertising Forecast (2016); researchers predict that location targeted mobile ad spending will increase from less than $10b last year to nearly $30b by 2020. That would be a CAGR of nearly 25%.

by Kristina Knight

Forecasters believe mobile search will continue to lead for location-targeted spending, but that search's hold will decrease from 57% (2016) to 42% (2020).

"Several market factors are currently bearing down on the mobile ad marketplace--from Google's moves to adapt to an app-based world, to the media consumption habits of millennials," said Michael Boland, chief analyst and VP, content, BIA/Kelsey. "These and other influences will require advertisers, publishers, agencies and ad tech players to rapidly innovate."

Native social is expected to be the big winner during the reporting period, increasing it's share to at least 28% of the spend; much of that increase will come from lessened spending in both mobile search and display, according to the report.

Meanwhile, the forecast suggests ad blocking technologies will also help the native social and sponsored content spends because they are immune to ad blocking where other formats are vulnerable to blocking. Researchers also believe we will see more brands aligning their ads with screen sizes.

Tags: BIA Kelsey, local mobile advertising, location targeting, mobile marketing, mobile trends

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