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BizReport : Mobile Marketing : January 27, 2017

Location-targeted mobile ad spend to exceed $32 billion by 2021

In the next five years, mobile ad spending in the U.S. will increase 118%, according to a new forecast from research firm BIA/Kelsey.

by Helen Leggatt

U.S. mobile ad spending in 2016 was, according to BIA/Kelsey, $33 billion. By 2021, that will have increased 118% to $72 billion, predicts the research firm.

The biggest growth in spending will be on location-targeted ads and spending will rise from last year's $12.4 billion to $32.4 billion - a jump of 161% - by 2021. That suggests that nearly half (45%) of mobile ads will be targeted by location.


"The smartphone revolution turns ten this year, and we've come a long way," said Mike Boland, chief analyst of BIA/Kelsey and author of the report, 'Getting to $72 Billion: BIA/Kelsey's Mobile Ad Revenue Forecast'. "But many are far behind, still operating with a desktop mindset. They'll be left behind the next era of mobile, defined by native-social, voice interfaces and multimedia, not banner ads and traditional search."

The report also delves into other mobile ad formats, including search, which is slowly losing its top spot to emerging formats such as native-social. Native-social ads are forecast to rise from 2016's $10.2 billion spend to $24.2 billion in 2021.

Tags: advertising, forecast, location-targeting, mobile marketing

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