Mobile ad spending is on course to reach $18 billion in 2014 before increasing to $41.9 billion by 2017 with mobile display ads continuing to make up the bulk of revenue.
Gartner saw mobile ad spending reach approximately $13.1 billion in 2013 with the highest growth over the coming years expected to be in video despite the fact that mobile display ads will be where most of the revenue is garnered.
"Over the next few years, growth in mobile advertising spending will slow due to ad space inventory supply growing faster than demand, as the number of mobile websites and applications increases faster than brands request ad space on mobile device screens," said Stephanie Baghdassarian, research director at Gartner. "However, from 2015 to 2017, growth will be fuelled by improved market conditions, such as provider consolidation, measurement standardization and new targeting technologies, along with a sustained interest in the mobile medium from advertisers."
When it comes to different ad formats, mobile display ads will continue to be the highest earner as the category shifts from in-app display to mobile web display, with the audio/video format rising towards the end of the forecast period thanks to the growth of tablet adoption around the world.
Other ad types will also continue to increase with search/map ads benefiting from the increased use of location data gathered from users thus making it easier for local advertisers to target customers using mobile.
Geographically much of the global growth will come in North America, due to the size of budgets on offer and the shift it is making towards mobile.
"North America is the region with the strongest general advertising focus and investment. It is also the region where online advertising is most mature," said Mike McGuire, research vice president at Gartner. "Overall advertising budgets are the highest, so when a portion shifts to mobile, in a multiplatform approach, it immediately impacts the market's scale."
Western Europe will remain at a similar level to the North American market albeit at a lower level with the most mature region for mobile advertising, Asia/Pacific and Japan, slowing to 30 per cent average growth per year. In terms of emerging markets like Latin America, Eastern Europe, the Middle East and Africa, mobile ad growth will exceed the worldwide average by 2015 as Russia, Brazil and Mexico drive emerging markets forward.