Mobile Ad Revenue To Hit $3.1 Billion

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Mobile Ad Revenue To Hit $3.1 Billion

U.S. mobile advertising revenues are on track to grow to $3.1 billion in 2013, form $160 million in 2008, representing a compound annual growth rate (CAGR) of 81.2 percent, according to a new report from the Kelsey Group.


During the same period, the firm forecasts mobile local search advertising revenues will increase from $20 million to $3.1 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 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.


“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.”

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