BIA/Kelsey forecasts geo-targeted mobile marketing revenues to double

GEO-TARGETTED display (or banner) advertising market will grow from $897 million in 2008 to $1.9 billion in 2013, according to research by BIA/Kelsey.

The geo-targeted segment of the display market will grow from 10.2 per cent of all display ads sold in 2008 to 15 per cent by 2013.

The locally bought portion of the market, which primarily comprises small and medium-sized businesses, will see the highest growth, at a CAGR of 66 per cent. The segment will grow from $45 million in 2008 to $565 million by 2013. Further, the SMB market will swell from 5 percent to 30 percent of the total geo-targeted market over the same period.

“The basis for growth of the geo-targeted ad market is rooted in the economics of existing search resellers,” said Matt Booth, senior vice president and program director, Interactive Local Media, BIA/Kelsey.

“The effective strategy for companies like AT&T, ReachLocal, Yodle and others will be to use geo-targeting to increase margins by shifting spend from paid search to geo-display. Simply, if a lead from search costs $30, these companies will shift to display where similar quality leads can be obtained for less. The display ad networks have so much excess inventory; they will run whatever impressions are needed to meet reseller targets.”

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