Mobile advertising is expected to gain more ground as it acquires more credence among marketers, with a new report from BIA/Kelsey projecting the channel will account for more than $4 billion in ad dollars in 2015.
As of 2010, the platform was still relatively niche, with only $790 million invested into it throughout the course of the year. However, as smartphone penetration increases, so too will marketers' interest in the channel – especially businesses looking to target local consumers. According to the BIA/Kelsey report, local companies will make up 70 percent of mobile ad spending in 2015, up from the 50 percent share they have now.
“Revenues will grow from not only ad volume, but also premiums placed on location-targeted ads,” said Michael Boland, senior analyst and program director of BIA/Kelsey’s Mobile Local Media practice.
“These premiums result from higher performance for locally targeted mobile ads when compared with non-local ads, due to higher relevance, immediacy and consumer buying intent,” Boland added.
Mobile content is growing more important to comprehensive marketing efforts. Recent research from comScore shows smartphone owners are increasingly using their devices for non-talk functions, with 39.1 and 28 percent of consumers utilizing their phones to browse the web and check social networks, respectively.