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Behavioral, Local Mobile Ads on the Rise

Posted on 5.21.2009

The Kelsey Group is predicting that local mobile advertising is going to take off - in a big way. Ad revenue reached $160 million in 2008, but Kelsey estimates it will skyrocket to more than $3.1 billion in 2013, just four years from now. And how will this be achieved? Mobile search is the main driver, clocking in with an estimated $2.3 billion. And more than half of the revenue spend on all of mobile advertising will be spent on local search.

We've all heard the "mobile era is here" argument before. But if there's any reason to take this one seriously, Yahoo! might have something to do with it. They just announced that their Smart Ads are going local - and behavioral. So, when a user is walking around New York on a cold morning, they might see an ad on their mobile device for a hot cup of Starbucks coffee, conveniently located just steps from their current location.

While Kelsey's numbers are lofty, it's interesting to note such a huge increase. Also, the expected ad spend on mobile advertising. It appears that advertisers are ready to take the leap, and assume consumers will be doing plenty of searching on their mobile devices in the very near future.

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