Mobile Ad Boom: $2.9 Billion in 2014


Ad revenues on mobile devices are set to soar over the next five years as smartphones spread and consumer attachment only grows. BIA/Kelsey projects that revenues came in at $491 million last year, and are headed toward $2.9 billion in 2014. 

The projections include ad dollars generated from advertising attached to search queries, display advertising and messages slotted into text messaging.

Search advertising should grow the fastest over the five-year period, at a compound annual growth rate of 93%, notes BIA/Kelsey. Mobile display ads would be at 31% growth and text messaging at 20%.

In 2014, text-message advertising would account for 19% of all mobile ad dollars -- the lowest of the three segments. That's no surprise; marketers have expressed wariness in wading too deeply in the space, since users consider it so personal.



Search advertising will dominate with a 55% share of mobile ads, followed by display at 28%.

Also, BIA/Kelsey expects local mobile advertising -- meaning geo-targeted and other granular targeting -- to boom. In 2014, about 70% -- $2.03 billion of the total $2.9 billion pie -- will be mobile local ads.

"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," stated BIA/Kelsey's Michael Boland.

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