Local Mobile Ad Spending to Increase as Percentage of Total

By many accounts, growth in the local mobile ad market was by hurt by the recession. Last year, marketers spent $491 million on total mobile advertising. Of this, $213 million was spent in local markets. Consumers are increasingly shopping with their smartphone in hand and  marketers are realizing  they can reach shoppers who might be right outside the pet food store or barbershop. As a result of the rapid growth in  technology adoption, BIA/​Kelsey has issued a report with new predictions on the value of the mobile ad market and which points to a dramatic uptick in local spending.

Here are the latest projections from the company on total mobile spending, as printed in a recent eMarketer report:

  • $790 million (2010)
  • $1.186 billion (2011)
  • $1.590 billion (2012)
  • $2.136 billion (2013)
  • $2.946 billion (2014)

As I’ve mentioned in previous blogs, analysts expect search spending, currently about 12% of the mobile market to increase to 54% of the market by 2014. This growth will come at the expense of display. Its current market share will drop from 42% to 27% by 2013. SMS/​Text will experience a similar drop from 46% to 19%. These projections make sense. As more consumers use smartphones, marketers will connect with them in a media rich environment afforded by smartphone technology.

The biggest shift in mobile marketing will occur in the amount of money spent at the local level. According to Michael Boland, program director, BIA/​Kelsey, local media companies will aggressively pursue small and medium-​sized businesses (SMBs). Over the next several years, local mobile will become a larger percentage of the total mobile ad market as these figures show:

  • 2010 51%
  • 2011 58%
  • 2012 62%
  • 2013 65%
  • 2014 69%
[Sources: BIA/​Kelsey Forecasts U.S. Mobile Advertising to Reach $2.9 Billion in 2014. BIA​.com. 1 Dec. 2010. Web. 22 Dec. 2010; Local Mobile Ad Spending to Continue Dramatic Growth. Emarketer​.com. 8 Dec. 2010. Web. 22 Dec. 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.