Chantilly, Va.—U.S. mobile local advertising revenue is expected to grow to $5.8 billion in 2016, from $664 million in 2011, according to a report released by BIA/Kelsey. The surge represents a compound annual growth rate (CAGR) of 54%.
BIA/Kelsey projected overall U.S. mobile ad spending will grow to $9.92 billion in 2016, from $1.62 billion in 2011. Locally targeted mobile ads are forecast to account for 58% of overall U.S. mobile ad spending in 2016, up from 41% in 2011.
“Growth drivers include smartphone penetration, location data, ad targeting innovation and advertiser evolution to utilize these factors for higher-performing mobile local ad campaigns,” said Michael Boland, program director, mobile local media at BIA/Kelsey, in a statement.