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Mobile Ad Spend Poised to Double by 2021

By 2021, U.S. annual mobile ad spending will reach $72 billion, according to a fresh forecast from BIA/Kelsey.

That’s up from $33 billion last year, by the research firm’s reckoning. If accurate, mobile ad spending will see a 17 percent compound annual growth rate through 2021.

Of the overall mobile ad spend, the location-targeted portion is projected to grow from $12.4 billion in 2016 to $32.4 billion in 2021.

This growth translates to 38% of overall mobile ad revenues, today -- growing to 45 percent by 2021.

In addition to segmenting mobile ad spend by its locality, the report also reveals BIA/Kelsey's estimates for each mobile ad format including search, traditional display, messaging, video and native-social.

Search has long maintained a top position but is slowly losing share to emerging formats like native-social. Native-social ads are expected to derive $10.2 billion in 2016 and grow to $24.2 billion in 2021. This growth stems from the format’s advantages, high performance and resulting demand.

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