U.S. Mobile Ad Spend to Overtake Desktop by 2017

Mobile

Dec. 16, 2013 -- According to new analysis from eMarketer, U.S. mobile advertising spending continues its rapid growth, and is now expected to reach $9.60 billion by the end of this year, up 120.0% from $4.36 billion from 2012.

Mobile's growth is coming, for the most part, at the expense of desktop ad spending, which is declining more rapidly than previous predicted; Desktops and laptop ad spend is expected to grow just 1.69% to $32.98 billion, down from last year's 6.60% growth.

Source: eMarketer, Dec. 2013
 

By 2016, spending on mobile will be edging up on desktop ad spending, and in 2017 it is expected to exceed it, reaching $35.62 billion in ad spending compared to the desktop’s $27.21 billion.
 

There are a few desktop ad formats that will see significant incremental increases in ad spending, states eMarketer, notably sponsorships and branded video while the spending growth associated with search, banners and rich media ad formats will instead go toward mobile, as "as advertisers shift more dollars to target smartphone- and tablet-toting shoppers."

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, eMarketer estimates.
 

About: eMarketer bases their forecasts on a multipronged 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. 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. Additionally, elements of each eMarketer forecast fits within the larger matrix of all their forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of each forecast means those assumptions and framework are constantly updated to reflect new market developments and other trends.

Source: eMarketer, Most Digital Ad Growth Now Goes to Mobile as Desktop Growth Falters, Dec. 16, 2013.