National Advertisers to Dive Deep Into Local Mobile Ads

Source: March 19, 2013 by MarketingCharts staff

BIAKelsey-National-Investment-Local-Mobile-Online-Ads-2012-2017-Mar2013

National advertisers will pour money into local mobile ads over the next few years, predicts BIA/Kelsey in a new forecast. The researchers project local mobile spend by national advertisers to climb from $1.9 billion this year all the way to $6.4 billion in 2017. By that year, the forecast calls for spending on local mobile ads to slightly exceed investments in local online ads.

That would mark quite a shift from current spending patterns. Last year, BIA/Kelsey estimates that national advertisers spent $4.3 billion on local online ads, as opposed to just $1 billion on local mobile ads. But while mobile spend should see dramatic growth, local online advertising should see more muted increases, with the biggest increase (of 11.3%) coming in the next presidential election year (2016).

National advertiser influence, per the report, is greatest in mobile and cable advertising, and smaller in TV, online, radio, newspapers, and Yellow Pages.

Overall, national advertisers still account for a smaller share of local media spending than local advertisers, and that trend will remain throughout the 5-year forecast period. This year, BIA/Kelsey expects local advertisers to spend $90 billion (67.8% share), unchanged from last year, while national advertisers are predicted to slightly increase their investments to $42.8 billion. By 2017, local advertiser spend will be at $97.8 billion (66% share), and national advertiser spend at $51 billion.

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