U.S. ad-spending to see largest increase since 2004 [report]

Mobile Advertising
Mobile advertising leads growth; will surpass radio, magazines, and newspapers this year.

Total media ad spending in the US this year will see its largest increase in a decade, according to eMarketer. Total ad investments will jump 5.3% to reach $180.12 billion, achieving 5% growth for the first time since 2004, when ad spending increased 6.7%.

US total media ad spend 2012-2018

Mobile will lead this year’s rise in total media ad spending in the US, and advertisers will spend 83.0% more on tablets and smartphones than they did in 2013—an increase of $8.04 billion. By the end of this year, mobile will represent nearly 10% of all media ad spending, surpassing newspapers, magazines and radio for the first time to become the third-largest individual advertising venue, only trailing TV and desktops/laptops. Though investments in TV advertising will rise just 3.3%, advertisers will spend $2.19 billion more on the medium than they did in 2013, making it the second-leading category in terms of year-over-year dollar growth.

Digital ad spending by channel

The surge in mobile advertising is chiefly attributable to the fact that consumers are spending more and more time with their tablets and smartphones. According to the latest estimates, US adults will spend an average of 2 hours 51 minutes per day with mobile devices this year. In 2013, daily time spent on mobile devices and on desktops and laptops was equal, totaling 2 hours 19 minutes, but this year, time with desktops and laptops will drop slightly to 2 hours 12 minutes, while mobile time will increase significantly. TV remains by far the largest beneficiary of adults’ media time, at 4 hours 28 minutes in 2014, hence its persistent lead as the top category for advertising spending.

Net digital ad revenue share

Strong, steady growth in mobile advertising will push digital ads to represent nearly 30% of all US ad spending this year. Advertisers will invest more than $50 billion in digital channels in 2014 for the first time, an increase of 17.7% over 2013. Just over one-third of that will come from mobile, but by 2018, mobile will account for more than 70% of digital ad spending.

Digital ad revenue

The accelerated rise in ad spending is being influenced in part by growing revenues from leading internet media companies, particularly those that are capitalizing on mobile revenues. eMarketer projects advertising revenues for a handful of the top US digital ad-selling companies, which collectively will represent 18.2% of total media ad spending this year—led by Google and Facebook. Google alone already accounts for more than 10% of all advertising spending in the US, and in 2016, together Google and Facebook will take a 15.0% share of the $200.00 billion total media advertising market. Mobile ads on Facebook will total 68.0% of its US ad revenues this year, up from 46.7% last year, and while Google’s ad revenues in the US won’t flip to majority-mobile until 2016, they’re shifting quickly. This year, Google’s US mobile revenues will comprise only 36.8% of its overall ad revenues, but by 2016, the medium will account for 65.8%.

These forecasts are based on a multi-pronged approach that focuses on both worldwide and local trends in the economy, technology and population, along with company, product, country, and demographic pecific trends, and trends in specific consumer behaviors. Quantitative and qualitative data is analyzed from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.

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Mobile Ad Spending to Overtake Display Ads by 2016 [study]

Mobile Advertising
Mobile ad spending is growing at such a rate that it will soon overtake display advertising to become the second-largest digital advertising channel in the US, according to PricewaterhouseCooper’s annual Entertainment and Media Outlook study. The study forecasts a 22.1% compound annual growth rate (CAGR) for mobile advertising from 2013 through 2018, versus a 9% CAGR for internet advertising as a whole. As such, mobile should account for 29.2% of online ad revenues by 2018, almost double its share (16.6%) from last year. That translates to a projected spending of $19.2 billion on mobile advertising in 2018, from $7.1 billion last year.

Online-ad-revenues

Another rapidly growing channel is online video advertising, predicted to grow at a compound annual rate of 19.5% from 2013 through 2018. But video ad revenues are growing from a smaller base, and will constitute a relatively smaller 10% share of the digital advertising pie in 2018. The analysts note that video ad revenue is growing in response to increasing audiences. Online video ads did indeed reach a larger share of the online population last year, although the huge growth in online video ads viewed during the year was more the result of viewers being exposed to ads much more frequently.

Meanwhile, paid search will continue to dominate the online advertising market through the forecast period, although its share will decline. Last year, search captured 43% of all digital advertising dollars, with that figure projected to drop to 37% by the end of the forecast period. That’s partly the result of search dollars moving to mobile, per a recent report from the IAB and PwC.

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Mobile Ad Spending More Than Doubled in 2013 [study]

Driven by Facebook and Google, Mobile Ad Market Soars 105% in 2013

Mobile Ad Spending
Last year, global mobile ad spending increased 105.0% to total $17.96 billion, according to new figures from eMarketer. In 2014, mobile is on pace to rise another 75.1% to $31.45 billion, accounting for nearly one-quarter of total digital ad spending worldwide.

Facebook and Google accounted for a majority of mobile ad market growth worldwide last year. Combined, the two companies saw net mobile ad revenues increase by $6.92 billion, claiming 75.2% of the additional $9.2 billion that went toward mobile in 2013. The two companies are consolidating their places at the top of the market, accounting for more than two-thirds of mobile ad spending last year—a figure that will increase slightly this year, according to eMarketer.

Facebook in particular is gaining significant market share. In 2012, the social network accounted for just 5.4% of the global advertising market. In 2013, that share increased to 17.5%, and eMarketer predicts it will rise again this year to 21.7%. Google still owns a plurality of the mobile advertising market worldwide, taking a portion of nearly 50% in 2013, but the rapid growth of Facebook will cause the search giant’s share to drop to 46.8% in 2014, eMarketer estimates.

The rapid pace at which mobile has taken over the company’s ad revenue share indicates Facebook’s mobile future. In 2012, only 11% of Facebook’s net ad revenues worldwide came from mobile, and last year, that figure jumped to 45.1%. In 2014, eMarketer estimates that mobile will account for 63.4% of Facebook’s net digital ad revenues. Mobile accounted for 23.1% of Google’s net ad revenues worldwide in 2013, and eMarketer estimates this share will increase to 33.8% this year.

eMarketer bases forecasts on a multi-pronged approach that focuses on both worldwide and local trends in the economy, technology and population, along with company-, product-, country- and demographic-specific trends, and trends in specific consumer behaviors. They analyze quantitative and qualitative data from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.

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Facebook Right Behind Google In Ad Spending [survey]

Facebook Mobile Ads
Mobile now accounts for more than 22% of all US digital ad spending, compared with less than 3% in 2010

US mobile ad spending is expected to near $9.6 billion in 2013 and account for a whopping 22.5% of all digital ad investments, according to new figures from eMarketer. The channel’s incredible growth—considering mobile represented just 11.9% of digital ad spending in 2012 and less than 3% of digital budgets in 2010—comes largely as consumers shift time spent from desktop to mobile devices, which has caused a significant redistribution of revenues for some of the world’s largest ad platforms.Facebook and Google are both major drivers and recipients of this growing market, domestically and internationally.

The latest forecast of US ad spending, the rapid growth of mobile ad revenues at Facebook has helped make the social network the second-largest digital ad seller in the US, behind only Google.This year, Facebook will take in 7.4% of net US digital ad dollars, or $3.17 billion, while Google will account for nearly four in 10, or $17.00 billion.

Microsoft’s share of US digital ad revenues will fall from 6.2% last year to 5.9% this year. Microsoft’s $2.53 billion in ad revenues, which include advertising not only from the company’s web properties, but also from Xbox and Skype services, will grow to $2.87 billion by 2015, though not fast enough to hold or increase market share. Twitter will take in a comparatively small $420 million in US ad revenues this year, estimates—about a 1% share.

On a worldwide basis, Google and Facebook are also the top two ad publishers, with 31.91% and 5.64% of the market this year, respectively.

Just like on the desktop, Google and Facebook grabbed the greatest shares of net US mobile ad revenues, with Facebook jumping from 9.0% to 16.0% between 2012 and 2013.

Globally, Google dominates the mobile ad landscape, with a 48.76% market share. Facebook has seen its share of global mobile revenues explode this past year, growing from 5.34% in 2012 to 16.91% in 2013.

Mobile internet ad spending worldwide will grow 105.9% to top $18.15 billion in 2013, up from around $8.82 billion last year. It now accounts for 15.2% of all digital ad dollars spent globally, up from just 8.5% last year.

eMarketer bases all forecasts on a multi-pronged approach that focuses on both worldwide and local trends in the economy, technology and population along with company, product, country and demographic-specific trends as well as trends in specific consumer behaviors. We analyze quantitative and qualitative data from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.

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Mobile ad spending to rise 120% to $9.6B

Mobile Advertising
Most Digital Ad Growth Now Goes to Mobile

Mobile advertising continues to grow faster than expected, largely at the expense of desktop ad spending, which is flattening or declining more rapidly than previous predicted, according to new figures from eMarketer.US mobile advertising spending is expected to reach $9.60 billion by the end of this year, up 120.0% from $4.36 billion from 2012. Spending on ads served to desktops and laptops is expected to grow just 1.69% to $32.98, down from 6.60% growth last year.Overall, US digital ad spending, including paid media spending on ads appearing on all digital devices, will increase 15.72% this year to $42.58 billion.Next year, overall spending on desktop advertising is predicted to increase by just 0.41%, while mobile ad spending will grow a further 56.00% to $14.97 billion. By 2016, spending on mobile will rival desktop spending, and in 2017 it will blow past, posting $35.62 in ad spending compared to the desktop’s $27.21 billion.

There are few remaining desktop ad formats that will see significant incremental increases in ad spending, notably branding-friendly categories like sponsorships and video.

Virtually all the spending growth going to search, banners and rich media ad formats, however, will go toward the mobile channel. Mobile search advertising spending will have grown 118.8% in 2013; mobile banner ad spending will have increased 155.22%; and mobile rich media ad growth will hit 95.89% in 2013, per estimates.

The same formats seeing such robust growth on mobile will languish on the desktop, however, as advertisers shift more dollars to target smartphone- and tablet-toting shoppers. search spending is expected to be down 1.4% this year when the mobile component is removed, while display will grow a sluggish 3.8%, buoyed by double-digit growth in sponsorship and video spending, along with lead generation the main bright spots for desktop-based digital ads.

2013 may be the last year of triple-digit growth for mobile display, search and other formats, but the outlook is optimistic, with consumers continuing to pick up smartphones and tablets in droves, and publishers like YouTube, Instagram and Twitter adding more—and more lucrative—ad products to their mobile offerings.

The forecasts are based on a multipronged approach that focuses on both worldwide and local trends in the economy, technology and population along with company, product, and demographic specific trends, as well as trends in behaviors. Quantitative and qualitative data is analyzed from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.

Take your mobile marketing to the next level. Call us today at 877.447.0134.

Google Testing New Mobile AdWords Look

In the screenshot below, notice the new eye-catching yellow ad icon next to the display URL.

The bright new label replaces the much more subtle “ad” that rests next to the “i” icon in the current design. The new “Ad” label especially pops because the standard yellow ad background is also gone.

Adwords Mobile Ad Test No Background Yellow Ad Icon

Now both the organic listings and ads are in white boxes that sit in front of a new gray background. The gray background behind the Google logo and search box has been removed.

Here’s the current mobile search results look:

Adwords Mobile Results Yellow Background

-SearchEngineLand

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Major US Digital Ad Market Shifts Revenues to Mobile

Google

Nearly one-fifth of Google’s revenues will come from mobile search

Major players in the US digital ad market are shifting more of their revenues to mobile, as consumers in the US spend more time than ever with portable connected devices.

Search is the largest single format when it comes to mobile ad spending, and search giant Google is already garnering nearly one-fifth of its total US ad revenues from mobile search, eMarketer estimates. This year, 19.1% of Google’s ad revenues will come from mobile search, up from 12.3% last year and rising to nearly 31% by 2015.

While search drives much of Google’s mobile monetization, on the display side YouTube is a major reason more mobile dollars are going to Google. Google has moved display dollars to mobile at a similar pace as for search, though display makes up less of Google’s overall ad revenues. This year, eMarketer projects, 3.8% of Google’s net US ad revenues will come from mobile display, vs. 13.8% coming from desktop display ads. By 2015, the mix will be 9.4% mobile display and 16.6% desktop display, more than doubling mobile display’s share of total ad revenues while still growing display dollars on the desktop.

Overall, that means this year Google will take in 22.9% of its net US ad revenues from mobile channels, vs. 77.1% from desktop ads. Both Facebook and Twitter are far more tilted toward mobile in their ad revenue mix.

eMarketer estimates 42.4% of net US Facebook ad revenues will come from mobile this year, only the second year the social networking site has offered mobile ads at all. In 2012, the company aggressively grew its mobile ad revenues to make up 17.9% of the US total, and that share will more than double this year. Next year, eMarketer anticipates, mobile will account for a majority of Facebook’s net US ad revenues.

Twitter is already mostly mobile when it comes to net US ad revenues, and has been since 2012—also the first year the service started selling mobile ads.

eMarketer forms its estimates of company ad revenues based on the analysis of reported revenues from company releases; estimates from other research firms; Facebook usage trends; and eMarketer interviews with executives at ad agencies, brands, online ad publishers and other industry leaders.

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