Mobile ad spending to increase 406% by 2015: BIA/Kelsey

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US mobile advertising spending will increase 406% from $790 million in 2010 to $4 billion in 2015, according to a forecast released June 23 from BIA/Kelsey. Local mobile advertising spending, which the advisory firm predicted will increase 600% from $404 million in 2010 to $2.8 billion in 2015, will drive the growth in large part.

Local mobile advertising spending represents 51% of overall mobile marketing spend. BIA/Kelsey predicted that share will grow to 70% by 2015.

“The majority of mobile ad spending is brands, agencies and larger advertisers pouring it over existing online strategies to a smaller screen,” said Michael Boland, senior analyst and program director of BIA/Kelsey's mobile local media practice. “What we believe will happen is marketers will better use the capabilities of the mobile device, including camera, touch, voice and location-awareness. As that curve progresses and marketers evolve, we believe they will more effectively target location.”

Boland also said local mobile ad spending will account for a much larger percentage of overall mobile spending because small businesses will begin to take advantage of the tactic.

“The premiums that are put on locally-targeted mobile ads will boost dollar spend” because performance from local ads will get better as technology matures, he added.

“Local ads offer a higher degree of relevance,” added Boland. “Advertisers are more likely to spend on local because users are more likely to click on local ads.”

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