Mobile Ad Spend Could Top $29B in 2020


BIA KelseyBIA/Kelsey projects location-targeted mobile ad spending to be $29.5 billion in 2020.

That’s up from $9.8 billion in 2015.

Search will continue to eclipse all ad formats, holding the largest share of location-targeted ad spend through the forecast period. However, that share will decrease from 57 percent in 2016 to 42 percent in 2020.

“Several market factors are currently bearing down on the mobile ad marketplace—from Google’s moves to adapt to an app-based world, to the media consumption habits of millennials,” said Michael Boland, chief analyst and VP, content, BIA/Kelsey. “These and other influences will require advertisers, publishers, agencies and ad tech players to rapidly innovate.”

BIA/Kelsey expects native social, one of the fastest growing formats in mobile advertising, to increase its share of location-targeted mobile ad spend from 19.8 percent in 2016 to 28.1 percent in 2020, mainly at the expense of search and display.

Factors feeding native social’s growth include increased ad blocking and the growing buying power of millennials, who are more receptive to native social advertising than traditional formats like banner ads.

The information is part of BIA/Kelsey’s U.S. Local Advertising Forecast 2016.