Local Mobile Spend Varies Widely, Biggest Markets On Track To Earn $100 Million

Local mobile advertising is on track to double this year, according to new estimates -- but the macro trend is playing out quite differently from one market to another.

In some markets, the number may be in the tens of thousands of dollars, while the largest markets could see more than $100 million in local mobile advertising, according to a new forecast from Borrell Associates.

Nationwide, Borrell expects local mobile advertising to hit $3.2 billion, this year -- more than double the $1.5 billion that local advertisers spent on mobile media in 2012.

“We are seeing a big increase in mobile-directed advertising over the next year,” said Larry Shaw, vice president of research at Borrell.

“Our mobile advertising estimates are not just smartphones but all devices that are “Mobile Ad Capable,” Shaw clarified, citing "tablets, laptop hybrids and laptops that allow for mobile-directed ads" as a major reason for the increase.

Last year, mobile ads accounted for 8% of the $18.5 billion spent on local online advertising, while this year’s growth will put its share at 13% of $24.3 billion, Borrell predicts.

Furthermore, in 16 U.S. digital marketing regions (DMRs), mobile could account for more than a quarter of all mobile ad spending.

Some of the smaller mobile markets include Dupree, South Dakota, which can expect somewhere in the neighborhood of $10,000 in local mobile advertising this year. New York City, by contrast, is on track to reach $168 million in local mobile dollar.

Somewhere in between, markets like Seattle, Baltimore, Milwaukee and Miami should see about $30 million this year -- double what local advertisers spent in those markets last year, Borrell reports.

A little further down the scale, midsize markets, such as El Paso, Hartford, Birmingham and Syracuse can expect about $10 million in local mobile spending.

The growth doesn’t come as a complete surprise to Borrell. Earlier this year, 37% of small and medium businesses who had not yet tried mobile advertising told the research firm they were likely to do so within the coming year. A whopping 83% of SMBs that had already engaged in some sort of mobile campaign said they were likely to do so again.

Of the 513 markets tracked by Borrell, 108 are likely to see mobile advertising expenditures double, this year, while only six markets will see less than 50% growth. “Local advertisers are also really starting to jump on board the ‘Mobile Express’ as they discover the ROI benefits of more targetable mobile advertising,” Shaw said.



1 comment about "Local Mobile Spend Varies Widely, Biggest Markets On Track To Earn $100 Million".
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  1. Jeremy Geiger from Retailigence, June 17, 2013 at 1:02 a.m.

    I guarantee we will see much higher growth rates for smaller markets over the next 12 months, as data companies enable national advertisers to automatically localize mobile ads (in our case, even in markets where a product brand is literally only for sale in 1 local store in town!).

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