Local mobile marketing and advertising has been the subject of many conversations recently. Google’s acquisition of mobile ad network Admob and Apple’s response by acquiring Quattro Wireless are important first steps toward wide adoption of mobile device centered advertising. However, national and brand advertisers are the key buyers of mobile ad inventory within these two networks. While such major advertisers will continue to play a very important role as mobile advertising develops, many believe that enabling local merchants to reach customers via the mobile device is an even more attractive opportunity.
The local advertising market is massive. Kelsey Group estimates that in 2009 local advertising was a $141 billion market. Borrell Associates estimates that today mobile is a tiny sliver representing spend of only $285mm. However, Borrell believes local mobile advertising will grow to be a $4.7 billion market by 2014, representing over $4.4 billion of revenues up for grabs.
Vendors with eyes on this market will need to build new relationships, capabilities and product offerings that historically have not existed. Our diagram below illustrates the key required elements that will need to be integrated to enable a compelling value proposition. We anticipate quite a bit of activity in the context of both internal development efforts and M&A to build these capabilities.
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January 27, 20105:34 am