By then, mobile local ad spend will have grown to the tune of $10.8 billion, almost quadrupling this year’s estimated $2.9 billion, which in itself has doubled will have been double last year’s $1.4 billion.
That $10.8 billion would represent 52% share of all mobile advertising spending, about one-billion more than would be spent on non-location targeted ads ($9.9 billion). Last year, advertisers spent $3.65 billion on mobile, per BIA/Kelsey, an estimate slightly higher than the $3.4 billion estimated by the IAB and PricewaterhouseCoopers. Of that $3.65 billion last year, BIA/Kelsey estimates that 37% was spent on location-targeted advertising, or $1.36 billion.
The researchers had previously forecast location-targeted mobile ad spend to reach $9.1 billion by 2017, so these latest projections represent a significant uptick in expectations.