It's not all doom and gloom when it comes to ad spend forecasts. The Kelsey Group is bullish on local mobile advertising over the next five years.
OK, so we've all heard this year will be "the year of mobile" for seemingly as long as "next year in Jerusalem" has been intoned at Passover seders. Nevertheless, Going Mobile: The Mobile Local Media Opportunity makes some interesting predictions.
US mobile ad revenues are predicted to grow from $160
million last year to $3.1 billion in 2013, a compound annual growth rate
of 81.2 percent.
Kelsey splits ad spend into three distinct categories: display, search and SMS messaging. Last year, $21 million was spent on display; $39 million on search, and $100 million on SMS.
By 2013, search will reign supreme, according to the report, accounting for $2.3 billion in spending. Mobile
display ads will account for $567 million, with SMS advertising accounting for $270 million in spending.
Other interesting findings include these tidbits: