According to results from a study conducted by BIA/Kelsey, mobile ad revenues are being boosted significantly by local business participation in online marketing campaigns. Of the anticipated $4.2 billion dollars generated by mobile phone campaigns, half will be derived from local campaigns. This represents the first time that locally generated mobile phone revenue will outpace revenue spent by national advertisers. Additionally, BIA/Kelsey predicts that local mobile ad growth will continue to grow over the next several years. It’s anticipated that local mobile ad growth will exceed $5.8 billion by 2016. That's an increase of 58% over that time period.
In response to this robust growth, many start-ups are appearing on the marketing landscape to justify the investment that is pouring into localized markets from local as well as national brands. What they are quickly learning is that the mobile device user has high expectations from his smart phone merchants. These sophisticated electronic shoppers demand real-time relevance from his merchants. Retailers expect high conversion rates and a cultivated audience of loyal customers.