Arlington, Va. — Mobile ad spending for smartphones could quadruple over the next four years to $4 billion, according to a new report by BIA/Kelsey, a media advisory and research firm.
The a big reason for growth is what BIA/Kelsey sees as a significant increase in mobile local advertising which targets users in specific locations or contains location-specific calls to action. The firm points out that in 2010 local ad spending accounted for $404 million and is expected to grow to 2.8 billion by 2015, an increase from 51 percent to 70 percent of overall U.S. mobile ad spending.
“Revenues will grow from not only ad volume, but also premiums placed on location-targeted ads,” said BIA/Kelsey senior analyst Michael Boland. “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.”
With the predicted increase of mobile ad spending, location awareness technology is also expected to grow, bringing in smaller businesses who may invest in the improved response to location-driven ads.
http://tinyurl.com/64bmpys (Washington Business Journal)