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

Share this article:

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.”

Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Hallmark Takes Baby Steps to a New Brand

Hallmark Takes Baby Steps to a New Brand

The company relied on digital to get its growing children's apparel brand off of the ground.

One Third of Americans' Social Media Time Is Spent on Facebook

One Third of Americans' Social Media Time Is ...

Pandora, meanwhile, attracts more user time but far fewer digital advertisng dollars, says a study.

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

Robert Thomson warns the EU that an antitrust deal with Google will lead to a decrease in competitive options for marketers and an increase in piracy.