A new study from BIA/Kelsey shows that local media spend is steadily shifting toward digital, with mobile representing 11.5 percent of overall ad revenue by 2019.
Mobile advertising continues to grab local marketing dollars, as a new study from BIA/Kelsey estimates that by 2019 the channel will account for 11.5 percent of total local ad revenue.
The research company's study, U.S. Local Media Forecast 2015, shows that local ad spend is continuing to shift toward digital media in general, which will account for 35.4 percent of overall ad spend in 2019, compared to 23.2 percent in 2015.
In terms of dollars spent, BIA/Kelsey predicts that location-targeted mobile ad revenue (ads on tablets are excluded) will climb from $6.7 billion in 2015 to $18.2 billion in 2019, representing a compound annual growth rate of 28.5 percent.
This will make mobile the fourth largest local media in 2019, falling behind direct mail (23.6 percent), over-the-air television (13.7 percent), and pure-play online (12.9 percent).
The study explains that the uptick in location-targeted mobile ad revenue can be ascribed to both national advertisers and small to medium-sized business (SMB) adoptions. For example, more and more national advertisers started leveraging local mobile ad tactics such as geo-fencing and click-to-map. And a growing number of SMBs are tapping into mobile ad tools like Google AdWords and Facebook.
Additionally, innovation among ad networks and tech companies like Google will further accelerate the growth of location-targeted mobile ads, says the study.
BIA/ Kelsey's study follows the release of the Interactive Advertising Bureau’s (IAB) annual revenue report, published just yesterday. The research shows that mobile ad revenues soared to $12.5 billion in 2014, representing a 76 percent increase – up from $7.1 billion - since 2013. This figure is just part of a burgeoning digital advertising industry, which grew by 16 percent to $49.5 billion in sales last year.