BIA/Kelsey is forecasting for local online ad revenues to reach $42.5 billion by 2015, nearly twice 2010’s $21.7 billion, for a compound annual growth rate of 14.4 percent. The researcher is projecting the total local ad market to hit $153.5 billion in 2015, up from $136.3 billion in 2010, representing a 2.1 percent CAGR.
Mobile is expected to play a major role in driving spending in the local space, as the penetration of smartphones has continued to rise. Back in December, BIA/Kelsey offered its prediction that the U.S. mobile ad revenues will grow from $491 million last year to $2.9 billion in 2014 for a staggering CAGR at 43 percent.
The numbers were based on expectations of rising mobile search ads, display on both apps and wap sites and text messaging. But the big spending will come in the form of local ads, which now makes up less than half of the mobile ad market. That will change significantly by 2014.
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