According to a new report released by BIA/Kelsey, U.S. mobile ad spending will grow from $33 billion in 2016 to $72 billion by 2021, a 17 percent compound annual growth rate.
The location-targeted portion of that overall mobile ad spend is projected to grow from $12.4 billion in 2016 to $32.4 billion in 2021. This growth translates to 38 percent of overall mobile ad revenues today, growing to 45 percent by 2021.
Native-social ads are expected to derive $10.2 billion in 2016 and grow to $24.2 billion in 2021, according to the report. BIA/Kelsey says this growth stems from the format’s advantages, high performance and resulting demand. “For example, mobile screens lack real estate for traditional top and side banner ads that ruled the desktop web. A vertically scrolling feed (a la news feed) conversely holds greater capacity for ad inventory.”
