Over the past ten years, the mobile ad market has exploded in a way that few could have predicted. With a smartphone in everyone’s pocket, purse, or hand, there are few better channels for reaching high-quality leads, and the market has responded.
So, it should come as no surprise that the growth in mobile ad spending is expected to continue into the 2020s. According to a new report by BIA/Kelsey, that growth will be substantial. In the next five years, the BIA/Kelsey report projects mobile ad spending to more than double, swelling from an estimated $32.6 billion in 2016 to just over $72 billion by 2021.
Here are some of the highlights from their data:
Growth Expected Across Mobile Ad Channels
According to BIA/Kelsey’s data, mobile ad spending is expected to grow across all mobile ad channels. The report covers five specific channels — traditional display, search, messaging, traditional video, and native/social — with each channel expected to grow over the next five years.
Here’s how the projected data breaks down channel by channel:
- Traditional Display: $5.1 billion in 2016; $12.9 billion in 2021; five-year growth of 152.9%
- Search: $14.2 billion in 2016; $23.4 billion in 2021; five-year growth of 64.7%
- Messaging: $350 million in 2016; $4.5 billion in 2021; five-year growth of 1185.7%
- Traditional Video: $2.8 billion in 2016; $7.2 billion in 2021; five-year growth of 157.1%
- Native/Social: $10.2 billion in 2016; $24.2 billion in 2021; five-year growth of 137.2%
Local-Targeted Mobile Ad Spending to Rise
The BIA/Kelsey report was part of a broader report on local-targeted advertising. BIA/Kelsey project that mobile will be the fastest growing segment of the local-targeted advertising market over the next five year. In their projections for local-targeted mobile ad spending, the team behind the report found that spending was set to grow from $12 billion in 2016 to $32 billion in 2021.
According to the report, the major driver of growth across mobile ad spending is the ability to target high-intent consumers. Mobile advertising allows brands to micro-target users in a way that traditional ad channels cannot match. The report also notes that location-targeted ads come at a premium, which drives higher overall spending.
What does this mean for brands? First, brands should prepare to bulk up their mobile ad budgets in upcoming years. Second, brands should be prepared for the costs of mobile ads to drive increased spending. Third, brands should continue to look to Google and Facebook for mobile ad opportunities, as both brands continue to swallow up mobile advertising market share.
Looking to grow your brand’s impact with mobile ads? The team at Qiigo can help. Call us today at (888) 673-1212 to speak with our mobile marketing experts about how you can improve your brand’s mobile marketing efforts.