Mobile will be the fastest-growing channel in the local advertising media market through 2017, rising from just 1.7% share of local ad revenues this year to 7.1% share in 2017. That’s according to a new forecast from BIA/Kelsey, which looks further at the growth of location-targeted mobile advertising over the next few years. Interestingly, the rapid rate of location-targeted mobile ad spend will see it overtake national ad spend on mobile by 2017, per the forecast.
By then, mobile local ad spend will have grown to the tune of $10.8 billion, almost quadrupling this year’s estimated $2.9 billion, which in itself has doubled will have been double last year’s $1.4 billion.
That $10.8 billion would represent 52% share of all mobile advertising spending, about one-billion more than would be spent on non-location targeted ads ($9.9 billion). Last year, advertisers spent $3.65 billion on mobile, per BIA/Kelsey, an estimate slightly higher than the $3.4 billion estimated by the IAB and PricewaterhouseCoopers. Of that $3.65 billion last year, BIA/Kelsey estimates that 37% was spent on location-targeted advertising, or $1.36 billion.
The researchers had previously forecast location-targeted mobile ad spend to reach $9.1 billion by 2017, so these latest projections represent a significant uptick in expectations.