U.S. mobile local advertising revenues will increase from $213 million in 2009 to $2.02 billion in 2014, representing a CAGR of 56.9%, according to a newly released update to BIA/Kelsey’s U.S. Local Media Forecast (2009-2014). Among reasons quoted for growth, the research company cites smartphone penetration, mobile Web usage and related increases in ad inventory as additional mobile ad growth drivers.
Total local advertising market will grow from $130.6 billion in 2009 to $145.2 billion in 2014, representing a CAGR of 2.1%. Local advertising in traditional local media will decline from $115.1 billion in 2009 to $110 billion in 2014, while online/interactive local media will grow from $15.5 billion in 2009 to $35.2 billion in 2014.
BIA/Kelsey defines mobile local advertising as advertising that is targeted based on a user’s location and/or advertising that is locally actionable. For brands, location targeted ads will command premiums over non-local advertising, due to higher immediacy, consumer buying intent and conversion levels…