Mobile, Online Local Ad Spending Will Double in the Next 5 Years

By Gary Kim May 17, 2012

Mobile and online will account for the largest increase in local ad spending, nearly doubling from $11.1 billion in 2011 to $21.8 billion in five years, with a compound annual growth rate of 14.4 percent, according to BIA/Kelsey.

Local advertising spending will experience a compound annual growth rate of 2.6 percent between 2011 and 2016, with revenues climbing from around $132 billion to more than $150 billion.

The major source of advertising in the mobile and online space will be technology and telecom, which will spend $5.1 billion by 2016 (up 80.7 percent). Other top spending categories include retail ($4.5 billion), automotive ($2.6 billion) and healthcare ($815.3 million).

“While we expect to see changes in ad spending in some advertising categories, it is significant to note that television and radio continue to hold their own, while out-of-home, online and mobile are having an impact on the overall share,” said Mark Fratrik, VP and chief economist, BIA/Kelsey.

Technology and telecommunications spending will increase by $2.9 billion by 2016. Those industries will increase investment in online and mobile advertising by 35.1 percent, while reducing its spending in newspapers and magazines, direct mail, TV and radio.

In part, that preference for mobile and online advertising by technology and telecom providers is based on the simple fact that those industries sell mobile and online products. Both retail consumer electronics and telecom and cable firms also traditionally are heavy advertisers, given the degree of competition in those markets.

Some service providers and large consumer electronics manufacturers also have significant advertising operations of their own and can leverage those assets.

Amobee, for example, is owned by Singtel, which operates in some 20 countries throughout Asia and serves 434 million mobile customers and has investments in Bharti Airtel (India), Telkomsel (Indonesia), Globe Telecom (the Philippines), Advanced Info Service (Thailand), Warid Telecom (Pakistan) and PBTL (Bangladesh).

Consider that between the Singtel audience of 434 million, and screens served by other customers Vodafone and Telefonica, the Amobee reach is about a billion people. That’s a serious scale, and an owned asset that can be used on behalf of Singtel and its partners for advertising purposes.




Edited by Braden Becker

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Why People Don't Update Their Computers

By: Special Guest    7/13/2018

When the WannaCry ransomware attacked companies all over the world in 2017, experts soon realized it was meant to be stopped by regular updating. Even…

Read More

More Intelligence About The New Intelligence

By: Rich Tehrani    7/9/2018

TMC recently announced the launch of three new artificial intelligence events under the banner of The New Intelligence. I recently spoke with TMC's Ex…

Read More

Technology, Innovation, and Compliance: How Businesses Approach the Digital Age

By: Special Guest    6/29/2018

Organizations must align internally to achieve effective innovation. Companies should consider creating cross-functional teams or, at a minimum, incre…

Read More

Contribute Your Brain Power to The New Intelligence

By: Paula Bernier    6/28/2018

The three events that are part of The New Intelligence are all about how businesses and service providers, and their customers, can benefit from artif…

Read More

TMC Launches The New Intelligence - an Unparalleled AI and Machine Learning Conference & Expo in Florida

By: TMCnet News    6/28/2018

TMC announced the launch of The New Intelligence conference and expo - The Event Powering the AI Revolution. This exciting new event will take place o…

Read More