With over half of the world’s population now carrying a smartphone, it’s no surprise that more than half of the world’s web traffic also comes from mobile phones. There are now a whopping 4.92 billion global mobile users in 2017, equaling 66% penetration. On top of these staggering numbers, 2.56 billion people use their mobile phones to engage in social media of some kind.
Not surprisingly, the money usually isn’t far behind.
U.S. mobile advertising revenues will grow from $25 billion last year to $72 billion by 2020 – this according to a recent local media study conducted by BIA/Kelsey. Of this total, location targeted mobile ad spend will grow from $9.8 billion last year to $29.5 billion in 2020. That translates to 39 percent of overall mobile ad revenues, growing to 41 percent by 2020.
This mobile-social behavior is a significant driver for Village Vesl licensees. Advertiser revenue, which comes from small businesses at the local level, is the primary source of revenue for Village Vesl entrepreneurs today. While this may be augmented in the future with revenue also coming from larger national advertisers, the local advertiser will always be the bedrock of the service. And that’s what makes the ongoing shift to mobile so encouraging.
Consumers’ use of mobile devices and their contribution to local economies in every small town and city across the country places a premium on location-based advertising. Three of the most sought after ad ‘placements’ by locally focused advertisers are (1) ‘Native’ Social, which are ads that appear as part of the media’s regular content (see the Village Vesl Bulletin Board), (2) traditional display and (3) messaging. All exist in some form in each Village Vesl mobile app (see below).
The trends are obvious and the opportunity is massive. In most cases, success requires some luck. And luck is often simply about being in the right place at the right time.