Search dominates mobile local ad spend to the tune of 58% share of revenues ($704 million of $1.22 billion in 2012), per the latest mobile local ad spend forecast from BIA/Kelsey. That compares with 31% share for display, 8% share for SMS, and just 3% for video. But that picture should change quite dramatically by 2017, particularly when looking at the share of revenues accounted for by video.
Indeed, BIA/Kelsey expects video revenues to reach $515 million in 2017, more than 13 times the $38 million registered last year. That dramatic climb will begin this year, with video revenues projected to more than double to $83 million.
By 2017, then video will account for almost double last year’s share of mobile local ad spend, at 5.7%. Display’s share of revenues will remain relatively stable over the years, forecast to be at roughly 30% in 2017. The big loser will be SMS, with revenues only expected to increase from $101 million last year to $162 million in 2017. SMS’s share of the mobile local ad spend market will drop from last year’s 8% to less than 2%. Read the rest at MarketingCharts.