Locally Targetted Mobile Advertising expected to climb to 78% of Mobile Ad spending

June 25, 2011

Mobile Ads To Hit $4 Billion By 2015

Locally targeted mobile ads will have a 70% share ($2.8 billion) of the expected $4 billion in overall U.S. mobile ad spending by 2015, according to Chantilly, Virginia-based BIA/Kelsey. In addition, total US mobile ad spending will balloon from $790 million in 2010 to $4 billion in 2015. Concurrently, the local portion of that total will increase from $404 million to $2.8 billion. Consequently, the advisory firm projects, locally targeted mobile ads will then make up 51% of overall US mobile ad spending, growing to 70% by 2015.

“Exploding mobile usage, clearer ROI and a shorter purchase funnel will accelerate this demand within display, search and SMS advertising formats,” the report reads. In 2010, overall U.S. mobile advertising was at $790 million. Local mobile advertising’s piece of the pie is $404 million — 51% of the whole mobile advertising market.

The gain is expected when large brand advertisers adapt their marketing goals for the mobile device. That’s thanks to a growing awareness of retail locations, driven by consumers’ increasing smartphone ownership. Once large advertisers move in, BIA/Kelsey says small and medium-sized businesses will also push marketing efforts on mobile. All advertisers will benefit from the clearer return on investment and shorter purchasing funnel.

Mobile advertising sellers will also garner premium pricing on location-targeted ads. Michael Boland, senior analyst and program director of BIA/Kelsey Mobile Local Media practice, stated: “These premiums result from higher performance for locally targeted mobile ads when compared with non-local ads, due to higher relevance, immediacy and consumer buying intent, all of which are more prevalent in mobile than many other print and digital media.”

Bottom Line: Further targeting coupled with LBS and Geo-Fencing advancements will drive an increase in local advertising. Advertisers quickly need to focus on capturing intent to deliver greater ROI on each placement. Mobile is very focused and directive and therefore conversion cannot be ignored.

Let QWASI develop a conversion strategy off your mobile display, in-app advertisements, SMS ads and other placements. For more information on mobile marketing or other QWASI services, contact us today @ 877-747-9274.