Tag: mobile advertising spending

Digital ads will represent 22 percent of all American ad spending this year, with mobile at 3.7 percent.

According to the latest report on spending in digital and mobile marketing, online ads will make up 22 percent of all of the U.S. ad spending this year, which represents a considerable growth.

Ads geared toward consumers on smartphones and tablets will also be growing steadily.

This will bring the global ad spending up to a healthy 3.5 percent growth to reach $503 billion by the time this year comes to a close. The amount being directed toward the internet and mobile marketing specifically will only continue to rise. This, according to the latest figures that have been released by ZenithOptimedia, an ad agency owned by Publicis.

Mobile marketing ads will account for 3.7 percent of all ad spending in the U.S. ($6.2 billion).

The United States is disproportionately the single largest advertising marketplace. The digital spending in that country throughout all of 2013 was predicted by the report to be 21.8 percent of all of the ad spending, which will total $109.7 billion). This is an increase of a very healthy 19 percent over the figure from 2012.

At the same time, mobile marketing does still remain a small fraction of the overall activity, despite its rapid growth, at its 3.7 percent of total ad spending. Equally, it is the most rapidly growing channel in advertising spending, leading the way with a massive 81 percent growth in the American market this year. That rate is expected to slow somewhat, but remain very high at 61 percent growth throughout 2014, and slow a little bit more in 2015, to 53 percent. At that time, it is expected to make up 8.4 percent of all ad spending.

When compared to standard internet advertising, mobile marketing is positively exploding. The report showed that online advertising is growing by about 16 percent this year and will make up 27.8 percent of all American ad spending by the end of 2015. Those figures are just as impressive outside of the U.S. market, where smartphones and tablets are also growing in popularity.

Recent research reveals mobile publishers are overtaking mobile advertising networks.

One of the latest reports published by IDC found that social media marketing giants like Facebook, Twitter and Pandora, are now dominating the mobile ad market industry, which was previously controlled by Apple and Google, as well as other large and small mobile ad networks.

The report results show there has been a big shift in mobile advertising.

According to the study, social media marketing claims 52% of the display advertising space. Mobile publishers are no longer taking a backseat to the usual mobile ad frontrunners. Instead, the IDC report shows that they are consistent in their overtaking of the ad market. This is a significant shift in mobile marketing advertising trends.

Mobile advertising networks are anticipated to continue to lose market share to social media marketing.

The report not only highlights that social media marketing publishers are dominating market share, but that is highly likely they will continue to do so. Karsten Weide, IDC’s Vice President of Media & Entertainment, observes that “Networks, especially independent ones, are entering a difficult phase, in which, with an ever smaller share of revenue, they’ll have to compete with publishers, which will only grow in strength.”

The growth rates of the mobile ad market in the U.S. continue to drop annually. In 2012, the market increased by 88%, which is quite the drop from 2011 when its growth rate had increased by 125%. That being said, despite the decline in market growth, mobile advertising has experienced a major increase in terms of spending. Last year, total spending amounted to $4.5 billion which is significantly larger than the $2.4 billion total in 2011.

In addition, the proption of the market that was represented by mobile from among all online advertising was up from 7% in 2011 to 11% in 2012. As for the future, IDC anticipates a 55% to 65% growth rate for the mobile ad market and for the U.S. to spend about $7 billion in mobile ads.

Based on what was revealed in the report, it appears that with social media marketing gaining a lot of strength, mobile ad networks will need to prepare for stiff competition in the mobile ad market.