Mobile ad spending will reach $8.04 billion in the US, a 83% increase compared to 2013. Mobile will represent 10% of all ad expenditure in the US. This year, ad investment on mobile media will be higher than on each offline media (newspaper, magazine and radio). (Emarketer)
MOBILE AD GROWS ALONG WITH MOBILE USE
Smartphone and tablet penetration is growing, as well as the time spent by consumers on these devices. In 2014, US users are expected to spend 2 hours and 51 minutes per day on a mobile device, 32 minutes more than in 2013. With a growing audience on mobile devices and mobile apps, advertisers increasingly invest in mobile to reach potential consumers and targets.
MOBILE WILL OVERTAKE DESKTOP AD SPENDING BY 2016
Digital ads account for 30% of all US ad spending, with $50 billion invested in digital media in 2014. For now, mobile ads represent one third of digital ads. However, mobile ad investment is growing, whilst desktop ad spend is decreasing. By 2016, mobile will therefore surpass desktop in terms of ad spend, with $37.49 billion and $29 billion respectively. By 2018, mobile will represent more than 70% of overall digital ad spend.
GOOGLE HAS THE HIGHEST AD REVENUE SHARE
In 2014, Google’s ad revenue represented 10.6% of all ad income. Google and Facebook will attract 15% of all ad spend by 2016. Mobile ads already account for 68% of Facebook’s ad revenue in the US, up from 46.7% in 2013. Google’s mobile ads still account for 36.8% of its total ad revenue. However, by 2016, it will is expected to be 65.8% of its overall ad income.
OPPORTUNITIES AND CHALLENGES
As the investment in mobile is growing, mobile apps’ ad revenue will increase. That means that competition among mobile apps will become fiercer and fiercer to attract both a larger audience and higher ad investment. With good ad planning, the success of mobile apps be repaid and the app can even become profitable in a very short period of time. Marketers should keep in mind however, went targeting users with mobile ads, the importance of targeting a quality and truly engaged audience as opposed to sweeping download numbers as the result of a mobile ad campaign.
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