Consulting and valuation services firm BIA/Kelsey recently released its five-year outlook on U.S. mobile local advertising. The agency projected that local mobile ad spending would increase from $404 million in 2011 to $2.8 billion by 2015 - a 70 percent increase.
Search Engine Watch notes that local ads - those that are geo-targeted to pinpoint users in a specific location - will become more prevalent for both larger companies on a national level and small-to-medium sized businesses on a local level.
"Revenues will grow from not only ad volume, but also premiums placed on location-targeted ads," said Michael Boland, senior analyst and program director of BIA/Kelsey’s Mobile Local Media practice.
SEW adds that well-known brands and agencies will constitute the largest source of mobile ad spending, and will utilize the latest in technology such as touch screen, camera, voice and GPS location awareness for their future campaign objectives.
The SMB market currently constitutes a much smaller portion of the mobile ad market. The news source notes that it will be driven by self-serve tools such as Google AdWords and Foursquare, as well as local sales organizations like the Yellow Pages, which can combine mobile marketing campaigns with advertising that's already in place.