30 March 2017

Local advertising will prepare for a golden age


The next four years are going to see an explosion in the local mobile space. A new BIA / Kelsey prediction raises the local mobile advertising space to 9 billion by 2017, a fantastic growth compared to the 1,200 million achieved in 2012 in local mobile advertising.

Local advertising will prepare for a golden ageBut it is not an isolated growth but is going to occur within a generalized growth of the mobile advertising environment, which is expected to jump from 3.2 billion in 2012 to almost 17 billion in 2017. This volume represents a rate Of compound growth of 54%. Behind this growth, especially in mobility, is the bet that big brands are expected to make for the local mobile market

“While inventory levels are currently outpacing advertiser demand, we believe this situation is going to change as it begins to accelerate,” said Michael Boland, senior analyst and content director for BIA / Kelsey. “It will not only increase overall mobility spending but will also improve mobile advertising ratios like CPMs and CPCs, which are lower than their desktop equivalents at this time, mainly due to the excess inventory.”

The amount of mobile display advertising (applications and mobile display) will grow to reach 3 billion in 2017, while the mobile search market will reach up to 5.5 billion dollars. SMS advertising will get a modest volume of 162 million on that date, and mobile video will grow to 515 million dollars.

As for the detail in the mobile subscriber, comScore has facilitated that in the US In February last year, about 134 million people owned a Smartphone, representing a penetration of 57% of the market. Apple has a 39% share, followed by Samsung with 21%.