Home Login RADIO ONLINE RSS Facebook
Advertisement

Mobile Ad Revenue To Grow To $9.1 Billion


Research company BIA/Kelsey says mobile is the revenue bastion of the immediate future and forecasting U.S. mobile local advertising revenues to grow from $1.2 billion in 2012 to $9.1 billion in 2017, representing a compound annual growth rate of 49.3 percent. This corresponds to a 0.9 percent share of local media ad revenues in 2012, growing to a 6.1 percent share in 2017, according to the firm's recently released U.S. Local Media Forecast (2012-2017).

BIA/Kelsey's projected mobile local ad revenues represent a subset of total U.S. mobile ad spending, which the firm forecasts to grow from $3.2 billion in 2012 to $16.8 billion in 2017. This puts locally targeted mobile ads at 38 percent of overall U.S. mobile ad spending in 2012, growing to 54 percent in 2017. Several factors will drive the "localized" share of U.S. mobile ad revenues, including:

  • Large brand advertisers will increasingly adapt their campaign objectives to the capabilities of the mobile device due to effective, abundant, and currently undervalued mobile local ad inventory.
  • Mobile advertising will move down market to the SMB segment through a combination of self-serve tools and local media direct sales channels.
  • Premiums that develop for location-targeted ads will compound ad volume growth.
  • Innovation will increase among ad networks and ad tech providers (i.e., Enhanced Campaigns).
"Though inventory growth currently outpaces advertiser demand, we believe the latter will begin to accelerate," said Michael Boland, senior analyst and director of content, BIA/Kelsey. "This will not only increase overall mobile ad spend, but mobile ad rates such as CPMs and CPCs, which are currently lower than desktop equivalents, due to inventory oversupply."

Advertisement

Latest Radio Stories

Beasley Media Launches ''105.7 Maxima'' in Las Vegas
KOAS-FM (105.7 Maxima) in Las Vegas
KOAS-FM (105.7 Maxima) in Las Vegas
Beasley Media Group flips Urban KOAS-FM to "105.7 Maxima, Para Nosotros -- It's for Us," a new bilingual outlet tailored to the community of Las Vegas. The new format blends English and Spanish language pop hits from the 1980s, 1990s, and early 2000s. The station features More

U.S. Senate Shows Overwhelming Support for AM Radio Bill
AM/FM Radio Dial
AM/FM Radio Dial
In a significant bipartisan move, a filibuster-proof majority in the U.S. Senate has rallied behind the AM Radio for Every Vehicle Act, a piece of legislation aimed at ensuring AM radio remains a standard feature in all new vehicles. With 60 senators endorsing the bill, along with More

iHeartMedia Ups Jennifer Stocker to AP for Nebraska-Iowa
Jennifer Stocker
Jennifer Stocker
iHeartMedia elevates Jennifer Stocker to Area President for the Nebraska-Iowa Area, effective immediately. As AP, she'll have oversight for the Omaha, Des Moines, Sioux City, Davenport, Ogallala and Cedar Rapids markets. Stocker has been with iHeartMedia for over 25 years and joins the Nebraska-Iowa Area More
Advertisement

Quu Unveils the 2025 In-Vehicle Visuals Report
Quu Inc.
Quu Inc.
Quu Inc. has published its second annual In-Vehicle Visuals Report. This year's report provides an updated analysis of the integration of radio in the dashboards of the top 100 best-selling vehicles in the United States. The report offers a comprehensive database and an expanded vehicle analysis, featuring More

Study Finds AM/FM Radio Ad Wear-Out Virtually Non-Existent
Cumulus Media and Westwood One
Cumulus Media and Westwood One
The Radio Advertising Bureau (RAB) has long grappled with inquiries about the phenomenon known as "wear-out" in radio advertising, where ads lose effectiveness over time due to frequent exposure. To address these concerns, RAB enlisted ABX Advertising Benchmark Index, a pioneer in creative testing, to More

Audacy Launches Platform to Support Podcast Creators
Audacy Creator Lab
Audacy Creator Lab
Audacy has officially unveiled the Audacy Creator Lab during the Podcast Movement Evolutions event in Chicago, a new initiative aimed at bolstering podcast creators and offering enhanced advertising opportunities. Building on the infrastructure of Podcorn, which Audacy acquired in 2021, this launch marks a More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement

Loading...