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It’s All About Ads

According to an article at by Ingrid Lunden, digital advertising is on a healthy path upward. Her numbers come from a report published by ad agency ZenithOptimedia. Global ad spending for 2013 was predicted to have reached $503 billion, and digital will have accounted for 21.8% of all ad spending, which is $109.7 billion in real numbers.

Meanwhile, mobile remains a solid minority of activity: in the U.S., mobile ads will account for 3.7% of all ad spend ($6.2 billion) in 2013.

Lunden states “When it comes to what is driving the most growth in advertising at the moment, mobile continues to lead the way, growing by 81% this year in the U.S. market, with that rate slowing down to 61% in 2014 and 53% in 2015, when mobile will make up 8.4% of ad spend. Compare that to Internet advertising, which is growing by around 16% and will account for 27.8% of all U.S. ad spend by 2015.”

“ZenithOptimedia’s analysts say that mobile is growing seven times faster than desktop Internet spend, with mobile ads growing by 77% in 2013, 56% in 2014 and 48% in 2015., driven by the rapid adoption of smartphones and tablets. Globally, internet advertising will grow at an average of 10% a year.”

According to Lunden, the rapid growth of mobile ads should come as no surprise. The trend seems to be that sales of tablets are set to overtake those of PCs in the near future, and smartphones are becoming the primary way that people go online.

The importance of mobile advertising will increase over the short-term, but “There is still a long way to go. Although we have all heard about the decline of print and how many old-school publishers are feeling the crunch, and how people are turning off the radio to listen to services like Spotify, the knock-on effect on advertising is taking longer to emerge. If you look at 2012, the combined ad spend for newspapers and magazines still outweighed that of Internet spend. If you add in radio to that, by 2015 they will still outweigh Internet spend.”