BIA/Kelsey, advisor to companies in the local media industry, today announced the release of a new foundation report which explores the advantages, performance indicators and challenges in location-based mobile advertising. “From National to Local: Mobile Advertising Zeros In” profiles top players, examines best practices, and determines the best opportunities for growth and value generation in the fast-moving mobile ad sector.
“Following the typical pattern of new media, advertiser adoption of location-based mobile marketing trails consumer adoption,” said Michael Boland, report author and senior analyst, BIA/Kelsey. “It’s been relatively slow-moving until now, but we see growing signs of an imminent tipping point for location-based mobile ad adoption. A key driver of the mobile-local share shift will be the evolution of national advertisers, who, to date, have run mostly mobile campaigns that mirror the tactics of the desktop, missing opportunities for more precise location targeting.”
Among the report’s key takeaways are:
- Advertiser adoption hasn’t caught up with mobile usage. Mobile holds a 10 percent share of U.S. consumers’ media time, but only a 1 percent share of ad revenue.
- Mobile’s heightened user engagement, relative to other ad supported media, will create premium inventory that boosts advertiser demand and ad rates.
- Advertiser demand will follow in a slow but inevitable process of market evolution and education over the next 12-24 months.
- The larger opportunity will be for national advertisers that build effective mobile local campaigns.
- This local shift is in line with the “native advertising” movement, which incorporates the mobile device’s unique capabilities and use cases.
In addition to research around mobile local advertising, the report draws from the analysis contained in BIA/Kelsey’s mobile ad revenue forecast (U.S. Mobile Local Media Forecast (2011-2016)). A critical component of the forecast is the breakdown of ad dollars associated with location-targeted campaigns, currently projected at 41 percent ($664 million) and projected to grow to 58 percent ($5.8 billion) by 2016.