eMarketer predicts ad spend from mobile will finally surpass desktop in 2015. Mobile will account for 51.9% of total digital ad spend in 2015, according to the independent market research company, higher than its forecast earlier this year. While desktop’s share of ad dollars is expected to slowly decline, mobile’s share is forecasted to grow steadily.
Consumer Demand Drives Mobile Ad Spend Growth
The reason behind this growth, according to eMarketer analyst Martin Utreras, is that “brands and marketers continue to see increased value in mobile advertising to reach consumers.” The allocation of digital ad spend to mobile is happening organically. Traditional media and local advertising are witnessing a similar trend, as extra dollars are being allocated to mobile.
Mobile ad spend is being driven by consumer demand. According to eMarketer, “US adults are spending 2 hours and 51 minutes a day on non-voice activities on mobile devices. More than half of that, or 1 hour and 31 minutes, is spent on mobile phones.”
Source: Pew Research Center analysis of comScore Media Metrix, January 2015, U.S.
Similarly, Pew Research Centre’s report “Final State of the News Media 2015” shows that “while desktop visits are still valuable to publishers – especially when it comes to time spent on the site – the number of mobile visits now outpaces desktop visits for the majority of the top 50 sites and associated apps.“
In-App vs. Mobile Web Ads
Within mobile, display advertising will continue to take the largest share of ad spend, capturing about 51.1% or over $15 billion. App spending will also outpace mobile web browser ad dollars nearly 3-to-1, in 2015. The reasons for this: better targeting possibilities, the ability to serve more compelling ad placements in the form of video, rich media and native ads and the absence of ad -blockers.
What about Europe?
Although the numbers we used in this Industry Update reflect the situation in the U.S., they are a good indicator for what we can expect in Europe. Analysis on our MADS ONE platform show a 50/50 divide on volumes for Mobile Web and In-App. However, the growth rate for In-App ads has increased significantly in the past 6 months. Therefore we expect that In-App will reach a 60-70% share in the middle of 2016 on our platform.
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