According to the Kelsey Group, mobile advertising revenues are expected to skyrocket to $3.1 billion in five years, especially local mobile activity.

The group says, mobile advertising will have an annual compounded growth rate of over 80%.

Currently, mobile advertising sits at $160 million in 2008.

In looking at mobile local search alone, the group says its expected revenues will soar over 130% per year to $1.3 billion. Current local search totals sit at $20 million in revenue.

Currently, Kelsey says 54.5 million mobile Internet users in the U.S. represent 25% of online users.

The research group also notes that mobile searches with local intent will rise from 28% in 2008 to 35% in 2013, and that approximately 15% of iPhone applications are local.