BIA’s The Kelsey Group Forecasts U.S. Mobile Local Search Advertising Revenues to Reach $1.3B in 2013

Feb. 24, 2009

FOR IMMEDIATE RELEASE

First major report from Kelsey’s new Mobile Local Media practice outlines the scope of the mobile local market opportunity and presents the firm’s five-year outlook.PRINCETON, N.J. (Feb. 24, 2009) – U.S. mobile advertising revenues (search and display) will grow to $3.1 billion in 2013, from $160 million in 2008, representing a compound annual growth rate (CAGR) of 81.2 percent, according to The Kelsey Group (www.kelseygroup.com), a division of BIA Advisory Services, LLC (www.bia.com). During the same period, the firm forecasts mobile local search advertising revenues will increase from $20 million to $1.3 billion, a CAGR of 130.5 percent.

“As mobile data consumption rises, we expect local marketing to be a big winner,” said Michael Boland, program director, Mobile Local Media (MLM), The Kelsey Group. “There is a strong correlation between local search and the mobile use case, which will cause a good portion of the ongoing mobile application boom to focus on local.”

The Kelsey Group’s Mobile Local Media Forecast (2008-2013) is highlighted in the report “Going Mobile: The Mobile Local Media Opportunity,” distributed to clients of the firm’s new MLM advisory service. Additional findings covered in the report include:
 

  • The percentage of mobile searches that have local intent will increase from 28 percent in 2008 to 35 percent in 2013.
     
  • Currently there are 54.5 million mobile Internet users in the United States, representing 25 percent of online users.
     
  • Approximately 15 percent of iPhone applications are local. 

 “We’ve been covering the mobile local space for some time within our Interactive Local Media practice,” said Neal Polachek, chief executive officer, The Kelsey Group. “The trend lines for usage, revenue and application development indicate a turning point that compels us to devote more resources and deepen our coverage of this market segment. Our MLM practice will focus on mobile as a critical and key driver in the overall transformation of the advertising industry.”

“The most critical emerging media venue is mobile. Having Kelsey now able to provide insights into this arena coupled with their expanded view of the market will make them an even more important source for the industry going forward,” said Scott W. Klein, CEO, Idearc Media.

Mobile Local Media Advisory Service

“Going Mobile: The Mobile Local Media Opportunity” is available to clients of Mobile Local Media, The Kelsey Group’s new advisory service. MLM provides research and analysis of mobile content, delivery (bandwidth and access device), consumer usage and advertiser adoption of mobile platforms for local media companies, mobile carriers, handset developers, application developers, search engines, directory publishers, advertising agencies/ad buyers/recommenders, intermediaries/resellers, individual advertisers and mobile sector investors.

Upcoming MLM coverage includes reports on SMS; voice search; mobile and traditional media; mobile marketing best practices; smartphone penetration; mobile ad networks; “yellow mobile;” channel strategies; engagement, conversion and ROI; mobile pay-per-call advertising; mobile operating systems; mobile ad formats; mobile television, news and entertainment; point of sale; mobile coupons; mobile application engagement; mobile integrated campaigns; the “Netbook” phenomenon; localizing national advertising; and mobile social networking. To learn more about MLM, visit http://www.kelseygroup.com/services/mobile-local-media.asp, or contact Michael Taylor at mtaylor@kelseygroup.com or (937) 610-6257.
 

About The Kelsey Group

The Kelsey Group, a division of BIA Advisory Services, LLC, is the leading provider of research, data and strategic analysis on directories, small-business advertising, online local media, vertical market advertising and mobile advertising. As the premier analyst firm covering the directory publishing community and the emerging local search marketplace, The Kelsey Group provides advisory services (The Kelsey Report®, Interactive Local Media,  Marketplaces and Mobile Local Media), publishing (Global Yellow Pages™), consulting (more than 400 individual assignments) and conferences (74 events). For more information about The Kelsey Group, visit www.kelseygroup.com. The Kelsey Group’s blog is located at http://blog.kelseygroup.com and the company can be found on Twitter through http://twitter.com/TheKelseyGroup.

About BIA Advisory Services, LLC

BIA Advisory Services, LLC, a subsidiary of BIA Financial Network, provides research, data, analysis, and financial and strategic consulting to media, telecommunications, technology, directory publishing, and local search companies. BIA Advisory Services includes The Kelsey Group, experts in traditional and online local media and advertising; BIA Research, providers of competitive and comparative market information and analysis through data services, specialized reporting, engineering studies and mapping; and BIA Consulting, specialists in business intelligence and corporate growth strategy, and the nation’s leading communications appraisal and valuation firm. Additional information is available at www.bia.com. BIA’s blog is located at http://blog.bia.com and the company can be found on Twitter through http://twitter.com/BIAfn.

For more information contact:

Eileen Pacheco
For The Kelsey Group
(781) 556-1026 | eileen@tango-group.com

MacKenzie Lovings
BIA Advisory Services, LLC
(703) 802-2992 | mlovings@bia.com

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