As technology continues to advance, marketers are thinking up new ways to pinpoint consumers' habits to better craft an individualized message. One of the key strategies to this is the development of local mobile advertisements. The communication method is growing in popularity. According to a new report released by BIA/Kelsey, localized mobile ad revenue is expected to increase from $1.2 billion in 2012 to $9.1 billion in 2017.
Mobile marketers are identifying key ways to communicate with consumers through the very smartphones in their hands. Large brands are currently the ones showing the most adaptability and best techniques with local advertising. However, the key to this marketing strategy is allowing for localized ads that speak to the individual neighborhoods and communities situated in the area.
Currently, inventory and opportunities for growth far outweigh advertiser demand because the marketing venue is still so new and professionals are unsure about how to best leverage the opportunity.
"Though inventory growth currently outpaces advertiser demand, we believe the latter will begin to accelerate," said Michael Boland, senior analyst and director of content, BIA/Kelsey. "This will not only increase overall mobile ad spend, but mobile ad rates such as CPMs and CPCs, which are currently lower than desktop equivalents due to inventory oversupply."
As mobile adoption continues to grow, local marketers who wish to promote smaller venues to more targeted audience will have greater communication opportunities to do so. In addition, this developing method may become a greater strategy deployed by artists or venues that wish to promote a show or event.