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US Mobile Advertising to Reach $2.9 Billion in 2014

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US mobile advertising revenues will grow from USD491 million in 2009 to USD2.9 billion in 2014, representing a compound annual growth rate (CAGR) of 43 percent according to a study by BIA Kelsey. The forecast comprises advertising placed in mobile search (text advertising applied to search queries on mobile devices), display (display advertising applied to app and mobile Web inventory) and SMS (commercial SMS messaging).

During the forecast period (2009-2014), BIA/Kelsey expects U.S. mobile search ad revenues to grow from $59 million to $1.6 billion (93% CAGR); U.S. mobile display ad revenues to grow from $206 million to $803 million (31% CAGR); and U.S. mobile SMS ad revenues to grow from $226 million to $562 million (20% CAGR).

The Local Share of Mobile

BIA/Kelsey also expects U.S. mobile local advertising revenues to grow from $213 million in 2009 to $2.03 billion in 2014 (57% CAGR). This represents 44 percent of total U.S. mobile ad revenues in 2009, growing to 69 percent in 2014.

BIA/Kelsey defines mobile local advertising as that which is targeted based on a user's location and/or actionable locally. Local targeting occurs to varying degrees and with different methods within each of the advertising formats examined in the forecast (search, display, SMS).

"We expect to see more bundling of mobile advertising by digital and local media companies, in an effort to lower the barriers for adoption by small and medium-sized businesses," said Michael Boland, program director, BIA/Kelsey. "As a result, mobile advertising will move down market to SMB and mid-market segments, increasing the overall revenue opportunity and share of geotargeted ads. This down-market shift will be coupled with large advertiser evolution and adoption of mobile local ad distribution."

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Tags: mobile advertising  mobile web