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Mobile Ads Seen at $2.9 Billion in 2014

BIA/Kelsey foresees compound annual growth of 43%

Research and consulting company BIA/Kelsey is predicting mobile advertising revenues in the U.S. will grow from $491 million in 2009 to $2.9 billion in 2014, a compound annual growth rate of 43%.

The forecast covers ads placed in text that is applied to search queries on mobile devices, display ads applied to app and mobile Web inventory and commercial SMS messaging.

In its “U.S. Mobile Ad Revenue Forecast” period of 2009–2014, BIA/Kelsey expects mobile search ad revenues to grow from $59 million to $1.6 billion; mobile display ad revenues to grow from $206 million to $803 million; and mobile SMS ad revenues to grow from $226 million to $562 million.

As previously announced, BIA/Kelsey expects U.S. mobile local advertising revenues to grow from $213 million in 2009 to $2.03 billion in 2014. This represents 44% of total U.S. mobile ad revenues in 2009, growing to 69% in 2014.

“We expect to see more bundling of mobile advertising by digital and local media companies, in an effort to lower the barriers for adoption by small and medium-sized businesses,” according to Michael Boland, program director, BIA/Kelsey.

“As a result, mobile advertising will move down market to SMB and mid-market segments, increasing the overall revenue opportunity and share of geo-targeted ads. This down-market shift will be coupled with large advertiser evolution and adoption of mobile local ad distribution.”