Location-targeted mobile advertising drives ad spend growth by 45% in 2021

Posted on March 13th, 2017 by

Mobile is now the fastest growing digital advertising medium among all location-targeted formats, according to a new BIA/Kelsey report. Overall, US mobile ad spend is currently estimated at $33 billion this year. The research firm projects a growth to $72 billion in 2021. That’s a 17% annual growth rate.

However, location-targeted mobile ads are of particular note as they are predicted to grow from $12.4 billion in 2016 to $32.4 billion in 2021 in ad expenditure. That increase translates to 38% of overall mobile ad revenues, growing 45% by 2021.


The report says that one of the key factors for local mobile is native thinking, which includes content strategies, apps and ads that perfectly fit a device’s form. In addition, location advertising is being boosted by smartphone tracking technology which sheds light on user behaviour.

Additionally, there are increasingly premiums linked to location-targeted ads.

Mike Boland, Chief Analyst of BIA/Kelsey, says:

“The smartphone revolution turns ten this year, and we’ve come a long way. 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.”

In addition, the report dives deeper into mobile ad spend by format, including search, traditional display, messaging, video and native-social. We’ve covered this here for you.

Following the white paper, Mike Boland addressed the projections in this video:

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