Mobile Ad Spend to Pass $1 Bil.

The mobile advertising market in the U.S. is set to skyrocket over the next few years, with spending expected to reach $743 million this year and top $1 billion in 2011, according to eMarketer.

“It is safe to say that many marketers who had not previously considered mobile advertising are now anxious to tap into its potential thanks to the stamp of legitimacy applied to the medium by the high-profile entrance of companies such as Apple and Google,” said Noah Elkin, eMarketer principal analyst.

The firm estimates spending on mobile advertising will grow 79 pecent this year to $743.1 million, up from $416 million in 2009. SMS messaging is still the largest format in the mobile ad market, with spending expected to reach $327 million this year.

However, spending on both mobile search and display ads is expected to soon surpass messaging thanks to the introduction of rich media formats, increased smartphone penetration and lucrative new ad networks, the firm reported.