US Mobile Advertising Growth (2021–2025)
With more people using smartphones year after year, the number of eyes on mobile ads is undoubtedly growing. For businesses, this translates to a potential increase in sales and revenue from investing in mobile advertising.
But just how big is the mobile advertising market in the United States?
US mobile advertising market: key data
- The US mobile advertising market is expected to surpass $200 billion for the first time in 2024, reaching $202.59 billion. This marks a 14.4% year-over-year increase.
- In 2024, search advertising will lead in mobile ad spend with $81.5 billion, followed by video advertising ($58.92 billion) and banner advertising ($50.96 billion). Influencer advertising, although smaller, is also growing, projected at $4.85 billion for the year.
- From 2021 to 2025, the US mobile advertising market is projected to expand by $83.1 billion, representing an overall rise of 57.3% and an average annual growth rate of 12%. The growth is driven by the increasing number of smartphone users, with 90% of Americans now owning a smartphone.
US mobile ad spend: table
|
Year |
US mobile ad spend |
Annual change |
Percentage of total digital ad spend |
|
2021 |
$145.01 billion |
65.7% |
|
|
2022 |
$161.74 billion |
+11.5% |
65.6% |
|
2023 |
$177.02 billion |
+9.4% |
65.5% |
|
2024 |
$202.59 billion |
+14.4% |
66.0% |
|
2025 |
$228.11 billion |
+12.6% |
66.4% |
US mobile advertising market: 2021–2025 growth
According to the latest data, mobile advertising spend in the US in 2024 is expected to reach $202.59 billion, as it crosses the $200 billion milestone for the first time. This will represent a 14.4% year-over-year increase in mobile ad spend, an acceleration from 2023’s 9.4% growth rate.
The mobile advertising market has been expanding over the past few years. In 2021, total mobile ad spend registered at $145.01 billion, before rising by 11.5% in 2022, to $161.74 billion. A year later, the market grew further to $177.02 billion.
The US mobile advertising market is expected to continue growing in 2025—albeit at a slightly slower rate. In 2025, expenditure is still projected to hit $228.11 billion, even as growth decelerates to 12.6%.
If mobile ad spend does continue to grow according to experts’ forecast, this will represent an overall increase of $83.1 billion between 2021 and 2025. This is an overall rise of 57.3% and an average annual growth rate of 12%.
US mobile advertising market by format
|
Format |
Total mobile ad spend |
|
Search advertising |
$81.5 billion |
|
Video advertising |
$58.92 billion |
|
Banner advertising |
$50.96 billion |
|
Influencer advertising |
$4.85 billion |
Of the different mobile ad formats, search ads are expected to bring in the largest revenues. A separate analysis shows that total expenditure on search ads on mobile is expected to hit $81.5 billion in 2024. This figure is set to rise to $123.59 billion by 2028.
Meanwhile, spending on video and banner ads are projected to total $58.92 billion and $50.96 billion this year. Expenditure on mobile influencer ads, a relatively nascent format, is anticipated to reach $4.85 billion in 2024, more than four times the $930 million figure recorded in 2017.
Drivers behind US mobile advertising growth
What’s driving the mobile advertising growth in the US? For starters, the large and growing number of internet users and mobile device owners. As many as 90% of Americans today own smartphones.
That’s not all. On average, internet users spend more than 3.5 hours every single day using the internet on their mobile devices, and mobile internet traffic in the US currently accounts for as much as 47.64% of the total. Every minute consumers are connected on their mobile devices is brand exposure and sales potential.