May 20, 2014 | 2 minute read Reading Time:
By: Ginny H.
The Spring 2014 Local Media Forecast from BIA/Kelsey was recently released. Forecasted growth for U.S. mobile ad revenue is projected to increase significantly over the next five years.
BIA/Kelsey is projecting mobile ad revenue to climb to $30.3 billion by 2018. This represents a significant increase from 2013 revenues which came is at $7.2 billion. Mobile ad revenue includes display, SMS, search, video, and native social (i.e. Facebook news feed ads) advertising.
The Local Media Forecast for mobile ad revenue also included projects for location targeted mobile ads. Location targeted ads are expected to grow to $15.7 billion in 2018, up from $2.9 billion in 2013. While location targeted mobile ads accounted for 40% of all mobile ad revenue in 2013, that number is expected to rise to 52% by 2018.
The projections in the Spring 2014 forecast represent an increase in overall mobile ad projections for 2018 compared to the original numbers released in the November 2013 report. Mike Boland of BIA/Kelsey explains the increase in projections is based on additional “guidance from mobile ad networks and share leaders such as Google and Facebook.”
The growth in mobile ad spending can be at least partly attributed to the roll out of Google’s Enhanced Campaigns in 2013. Enhanced Campaigns added mobile to all search advertising by default. The addition of mobile to all search campaigns should serve to accelerate the adoption and lessen the learning curve of mobile advertising for both SMB and National Brands. Adding mobile to all search advertising should also bring desktop and mobile ad rates in line with each other.
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