US Mobile Ad Revenue Expected to Reach $30B by 2018

BIA/Kelsey recently released their spring 2014 local media forecast for mobile advertising. The forecast shows expected growth in U.S. mobile ad revenue to reach $30.3 billion by 2018. 2013 mobile ad revenue topped out at $7.2 billion. Mobile ad revenue includes search, display, SMS, video, and native social. Native social includes Facebook news feed ads.

Location Targeted vs. Non-Location Targeted Ad Spend in Mobile

Included in this projection are increases for location targeted mobile ads. Projections show growth from $2.9 billion in 2013 to $15.7 billion in 2018. Location targeted mobile ads accounted for 40% of overall mobile ad revenue in 2013. By 2018, location targeted mobile ads are projected to make up 52% of overall mobile ad revenue.

The overall mobile ad projections released this spring have been increased since the November 2013 BIA/Kelsey report. Revisions in the projections are due to “guidance from mobile ad networks and
share leaders such as Google and Facebook,” according to Mike Boland of BIA/Kelsey.

Google’s Enhanced Campaigns are also expected to impact mobile ad spending. With the roll out of Enhanced Campaigns, mobile advertising is included by default with all search advertising. This is expected to accelerate the rate of adoption and the learning curve for both national brand and SMB advertisers. The default inclusion of mobile advertising in Google search campaigns should also work to diminish the difference in desktop and mobile ad rates.

The impact of mobile advertising continues to drive marketing decisions for both SMB and national brand advertisers. For assistance managing your local online marketing campaigns, call Qiigo today at (404) 496-6841.

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