Make Way for Mobile Ads, the New Powerhouse of Internet Advertising

Wed May 17, 2017

Rachel Cagle

Mobile advertising has become a major powerhouse in online advertising in the U.S. IAB and PwC’s Internet Advertising Revenue Report revealed the advertising medium’s shocking growth. In just five years, mobile has shot up from comprising 5% of U.S. online advertising revenues to encompassing a whopping 50.52% of that same spending. Looking at society today, can any of us really say the astonishing growth is much of a surprise?

Not only is mobile advertising conquering online advertising revenues, it’s also driving digital advertising as a whole. Advertisers spent $12.9 billion more on digital advertising last year than they did in 2015 and every bit of that extra spending went toward mobile advertising.

How is mobile ad spending being distributed? According to the IAB and PwC, there are three major media that are dominating mobile spending:

  • Search: made up 47% of mobile advertising spend
  • Banners: 38%
  • Video: 11%

While video may make up a smaller percentage of mobile advertising revenues, it’s not to be overlooked. Last year, mobile digital video, specifically on smartphones and tablets, experienced growth of 145% and reached a total of $4.2 billion. Overall, 46% of video ads were viewed on mobile devices.

Now the big question: how did mobile fare when compared to desktop advertising? Mobile was right on desktop’s heels when it came to search spend ($17.2 billion vs. $17.8 billion) and digital video spend ($4.16 billion vs. $4.89 billion). However, mobile annihilated desktop when it came to display-related advertising by scooping up $31.7 billion in marketer outlay compared to desktop’s $13.6 billion. According to IAB and PwC, desktop advertising spend is either declining or remaining steady, depending on the ad format, so it wouldn’t be too surprising if mobile spending finally overtakes desktop spending in the coming years.

We live in an age when it seems as if everyone’s nose is stuck to their phone. Why not have your clients’ ads be where consumers are looking? Encourage your clients to hop on the mobile bandwagon!

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About Rachel Cagle

Rachel is a Brand Research Specialist at SalesFuel. She holds a Bachelors in English from The Ohio State University. She specializes in major accounts research for AdMall.

View all posts by Rachel Cagle
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