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Call-Based Ad Market Poised for Explosive Growth, Driven by Mobile Penetration
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The call-based advertising market, which includes all ads that use call-based lead tracking, is poised for explosive growth, according to a new report by BIA/Kelsey. Key growth drivers include the emergence of increasingly sophisticated call analytics and the unprecedented growth of mobile, which will unleash a dramatic increase in call-based advertising inventory.
"The rapid growth in smartphone penetration has put us on the cusp of a watershed moment in local advertising," said Matt Booth, chief strategy officer and program director, Interactive Local Media, BIA/Kelsey. "Mobile is about to unleash a massive increase in call-based ad inventory, which will be so vast that many established companies will scramble to align their advertising portfolios to accept call-based ad products."
Indeed, the report points to Google's recent move to allow bid separation between online clicks and calls, a step which means paying more for calls, and a very rare change to Google's optimization algorithm. BIA/Kelsey foresees a likely extension of split bidding to mobile.
According to the report, in 2011 the average U.S.-based business received 10.9 calls per month from desktop search (and all downstream properties through SEO) and 34.7 calls per month from mobile (including mobile search). In 2013 the average U.S.-based business will receive 13.8 calls per month as a result of desktop search and 80.9 calls from mobile.
"Our experience in both call analytics and advertising supports BIA/Kelsey's predictions about the rapid growth," said Peter Christothoulou, president of Marchex. "Mobile is the big driver and accounted for 83 percent of the 90 million calls we connected in Q1 2012. Local and national businesses are both getting into this market. We are already seeing some national brands allocate as much as 20 percent of their digital advertising budgets to generate calls and expect this to continue to grow."
Tags: [mobile advertising]
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