Mobile ad revenues in the US will grow to $62bn (£40bn) by 2020, according to a BIA/Kelsey report, growing from $23bn this year at a CAGR of 21.9 per cent.

This figure includes search, display, SMS, video and native social ads on smartphone alone – BIA/Kelsey doesnt consider tablets to be a true mobile device when it comes to advertising.

Native social, like newsfeed ads on Facebook, is the single fastest growing mobile ad format, and will pull market share from both search and display in the coming years.

Also on the up are location-based campaigns, which will account for 43 per cent of mobile ad revenues by 2020 – some $26.7bn – from 37 per cent this year.

“Drivers for this growth include mobile usage (which skews towards local intent) and advertiser evolution to follow that usage,” said chief analyst Michael Boland.”Another important factor is the premiums associated with location targeted ads, which result from performance and growing demand.