AT&T Interactive announced this week the launch of in-app ads on its mobile ad network, an extension of YP Local Ad Network. In-app local ads are served within mobile apps based on a user’s location. Earlier this year, AT&T Interactive piloted in-app advertising and reported generating more than 750 million local ad impressions in three months. The goal of in-app local ads is two-fold: offer participating mobile publishers an enhanced way to generate revenues and help advertisers increase potential reach.

“We’re taking advantage of the power of local advertising and the proliferation of location-aware mobile handsets,” said AT&T Interactive President and CEO David Krantz in a statement. Krantz briefed BIA/Kelsey that mobile now makes up a third of AT&T’s local search.

Last month we predicted in our mobile local forecast that local mobile advertising will grow from 51 percent of total mobile advertising to 70 percent by 2015.

Mobile ad networks will be in the spotlight at BIA/Kelsey’s DMS ’11: The Summit for Small-Business Advertising Solutions, Sept. 21-23, in Denver. We’ve got the following session on deck, with BIA/Kelsey’s Mike Boland moderating:

Mobile Ad Networks: The Stakes for SMBs
Mobile brings new customers in different parts of the purchase funnel. How should SMBs engage? The emergence of local mobile ad networks is a major step in bringing volume and engagement to SMBs. We’ll hear from industry leaders.

Dan Gilmartin, VP Marketing, Where
Craig Hagopian, COO, xAd
Greg Hallinan, CMO, Verve Wireless