Mobile local media advertising is poised to soar in the next four years.
Chantilly, Va.-based media consultant BIA/Kelsey says there will be a sevenfold rise by 2017 -- getting to $9.1 billion in 2017, from $1.2 billion in 2012. That's an annual compound growth rate of nearly 50%.
This will represent a 6.1% share of all local media ad revenues, up from a 0.9% share in 2012. BIA/Kelsey says large brand advertisers will increasingly come to using mobile campaigns with premiums for location-targeted advertising.
BIA/Kelsey says mobile local ad revenues will grow to 54% of overall U.S. mobile advertising -- up from 38% in 2012. Total U.S. mobile ad spending, is estimated to climb from $3.2 billion in 2012 to $16.8 billion in 2017.
Local media search advertising will continue to garner the most dollars -- hitting $5.7 billion in 2017 from $704 million in 2012. This will be followed by display advertising, estimated to land at $2.7 billion in 2017 from $379 million in 2012.
Local mobile video will also climb quickly -- reaching $515 million in 2017, from $38 million in 2012. SMS (commercial SMS messaging) will climb from $101 million in 2012 to $162 million in 2017.